Wednesday, 26 February 2020

Coronavirus: MSC cruise ship rejected from two Caribbean ports as crew member falls ill

Coronavirus: MSC cruise ship rejected from two Caribbean ports as crew member falls ill

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CRUISES have been hard hit by the outbreak of Coronavirus and yesterday MSC Meraviglia was rejected from two Caribbean ports amid fears that a crew member on board the MSC Cruises ship was sick.
Cruise ship MSC Meraviglia was turned away from two ports in the Caribbean on Tuesday. The rejection came amid fears of the spread of coronavirus. The MSC Meraviglia was denied permission to dock in Ocho Rios, Jamaica and Georgetown, Cayman Islands in the Caribbean.

Authorities were concerned the sickness was a result of coronavirus.

However, the cruise line claims his illness is down to common seasonal flu and insist no cases of coronavirus have been reported on any MSC ships.



MSC is “extremely disappointed” with the double rejection.

The ship is now sailing onward to Cozumel, Mexico, the next scheduled port of call.

The Jamaican Ministry of Health released a statement yesterday.

It stated: “A cruise line with over 4,500 passengers and over 1,600 crew members was today (Tuesday, February 25, 2020) denied access to the port of call in Ocho Rios, St. Ann.

“The vessel arrived at approximately 8:30 a.m. and upon inspection by the Port Health Officials, it was discovered that a crew member was placed in isolation on board.

“The crew member had a cough, fever and associated muscle pains with a travel history to a country of interest relating to the COVID-19.”

Dwayne Seymour, health minister of the Cayman Islands, also released a statement.

He said: “In an abundance of caution, in order to provide protection to the health and safety of the residents of the Cayman Islands, the government has denied permission for the cruise ship to call on Grand Cayman as previously scheduled.”

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MSC have said that the sick crew member and all passengers onboard the Meraviglia had passed a health screening before boarding the ship at the weekend.

The cruise ship departed Miami on Sunday and was scheduled to complete a 15-day cruise of Jamaica, the Cayman Islands, Mexico, Bahamas, Belize and Honduras, returning to Miami on March 8, according to an itinerary.

MSC said in a statement sent to Express.co.uk today: "MSC Cruises is extremely disappointed that Jamaican authorities yesterday delayed a decision for many hours to give our ship the necessary clearance to disembark guests, despite us having provided detailed medical records to the local health and national authorities ahead of its arrival as per normal protocol.

“Similarly, the decision taken overnight by the Grand Cayman authorities to refuse disembarkation at Georgetown was made without even reviewing the ship’s medical records, which show one single case of common seasonal flu (type A influenza) affecting one crew member with a travel history clearly showing no passages through territories either affected by COVID-19 (Coronavirus) or subject to any international health restrictions. In both instances, the ship was effectively turned away simply based on fears.

“MSC Meraviglia is currently at sea on her way to Cozumel, Mexico, her next scheduled port of call.

Antimicrobial surface coating said to show promise for ships, hotels

Antimicrobial surface coating said to show promise for ships, hotels

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A room is treated with Act. Global’s Act CleanCoat, a coating that is then activated with sunlight or artificial light.

As concern about the Covid-19 coronavirus grows, a promising new antimicrobial surface coating is being marketed to hospitality and transportation companies. 
Its maker, Act. Global, founded in 2013, offers a proprietary Premium Purity system that involves the application of Act CleanCoat, a transparent, odourless coating that the company says decomposes microbes, including bacteria, viruses, mould spores and volatile organic compounds. 
Richard Tubb, a retired U.S. Air Force brigadier general and former White House physician is now an informal advisor to Act. Global. 
“We had SARS in 2002, MERS-CoV in 2012 and now the coronavirus almost 10 years later,” Tubb said. “These types of things come and go, but they will never fully go away. What we need is a containment approach to allow us the luxury of turning our attention to the discovery of treatment and prevention, while also restoring people’s confidence in a way that will get them to engage with the economy.”
Hotels in a number of countries and the cruise line Lindblad Expeditions are among the early adopters of Denmark-based Act.Global’s product.
The coating’s key ingredient is titanium dioxide, a non-toxic, naturally occurring compound often used in paints, sunscreen and toothpaste, among other products.
The company claims that once exposed to sunlight or artificial light, a photocatalytic reaction activates the coating, producing a continuous surface- and air-purification cycle.
According to Act.Global, the coating has undergone extensive testing and has been approved by several independent laboratories, including Dr Brill and Dr Steinman Institute for Hygiene and Microbiology in Germany, ISI Food Protection in Denmark and Chang Gung University on Taiwan.
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An Act ECA Generator produces an eco-friendly cleaning agent called Act ECA Water.
While still relatively new, the company is marketing its Premium Purity system to a variety of commercial and industrial venues, including hotels. To date, the company has launched the system in a dozen hotels throughout Denmark, Germany, India and Thailand.
Christopher Luscher, the company’s chief technology officer, said, “Act. Global is founded on the premise of sustainable disinfection, and what we have seen in the hospitality sector is that we’ve been able to convert the method of cleaning so it’s less like a firefighter coming in and trying to fight a fire and more like the installation of fire-resistant materials.”
In the hotel setting, the company’s CleanCoat can be applied on almost any fixed surface, hard or soft, though Luscher said his rule of thumb is that “if the Mona Lisa is hanging on the wall, it’s best to take it down.” After the coating is applied, it takes two hours to set. 
How it works
Post-application cleanliness is maintained with the use of an eco-friendly and affordable cleaning agent called Act ECA (for electrochemically activated) water. The water is produced using an Act ECA Generator, which is installed on-site and requires just two ingredients: water and salt. 
Coating costs vary greatly by region and venue. Act. Global sells Premium Purity with a three-year service contract.
Hotels aren’t the only settings in which an antimicrobial coating offers a promising solution. In the wake of the Covid-19 crisis, Luscher reported that the company is seeing a surge in demand from airports and restaurants as well as from airlines, railways and cruise ships.
Among the first cruise lines to adopt Premium Purity is Lindblad Expeditions, which deployed the system aboard its National Geographic Explorer ship in mid-2018.
Bruce Tschampel, Lindblad’s vice president for hotel operations, said, “We’re very careful about the environment, and we were looking for options for a green cleaning method that used fewer chemicals and plastic. Also, with cruise lines, we have to be absolutely clean and sanitary because you’re in this small environment, and someone could bring on a cold, and it’s easily passed around.”
The results made a compelling case for the product.
Following the National Geographic Explorer’s trial run, Tschampel said, the company “reduced guest-reported illness by 50%, eliminated over 1,000 plastic bottles of cleaning products and reduced water usage by 1.1 million gallons per year.” 
Lindblad has since announced plans to adopt Premium Purity across its entire fleet, coating all of its eight ships, including all public areas and guest and crew cabins. The process is set to be completed by early March. Lindblad’s newest ship, the Endurance, will also be using the system when it debuts next month. 
“There is a choreography that has to be managed, whether you’re a hotel or a ship,” Tschampel said. “How do you get all these areas coated, and when is the right time to do it? But so far, we’re extremely pleased, and there are so many benefits. The results have been even better than we expected.”

Tour operators ‘closely monitoring’ coronavirus impact on Europe

Tour operators ‘closely monitoring’ coronavirus impact on Europe

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The map above shows the affected areas.

Tour operators are braced to react to travel restrictions as the impact of coronavirus spreads across Europe.

Fears the virus, which has caused the deaths of more than 2,600 people in China, was becoming a pandemic heightened with 80,000 cases worldwide.

More than 20 deaths had been confirmed from 1,200 cases outside of China on Tuesday night. Eleven were in Italy, which had 323 cases – the largest number in Europe, and where more than 50,000 people were quarantined in 11 towns in the Lombardy and Veneto regions, home to Milan and Venice.

Austria, Croatia, Spain, Switzerland and Algeria said new cases involved people who had been to Italy.

The Foreign Office last night advised against “all but essential travel” to the 11 towns in northern Italy.

The chief medical officer Chris Whitty said people with underlying health conditions might want to rethink travel plans for northern Italy but added that it was reasonable for anyone else to go because “there’s nothing in this world where there isn’t risk”.

He told The Times: “We’re not recommending changing travel advice for Italy at this point.”

A hotel in Tenerife was quarantined after an Italian tourist who had coronavirus had been identified on the island. About 1,000 guests at H10 Costa Adeje Palace were placed on lock-down. Jet2holidays stopped sales to the hotel after it was placed under quarantine, with holidaymakers due to stay at the property transferred to other accommodation.

Consumer group Which? warned that a lack of clarity was creating confusion for travellers. Insurance companies will only payout on a cancelled trip if the FCO has advised against travel to that area.

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Tour operators, including Kuoni, Cosmos and Titan Travel, said they were keeping a close eye on developments in Italy and monitoring Foreign Office advice in case of warnings against travel.

Exodus Travels said no one was affected on its current trips in Italy and nearby Austria.

A spokesperson said: “At present, all itineraries are scheduled to operate as normal, however, they are in constant contact with their trusted operators that work in all affected countries, and will monitor the situation closely.

“As always, Exodus Travels works hard to ensure the safety of their staff and customers at all times.

Newmarket Holidays starts its Italy tours in April. Chief operating officer David Sharman said the operator was “monitoring the situation extremely closely”.

He added: “As with all incidents that impact on travel we follow Foreign and Commonwealth Office (FCO) as a source of good practice, with our customers’ health and wellbeing our top priority.”

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A school in Northwich closed for the week after students returned from a ski trip in Italy and another, in Nantwich, shut its sixth form.

Agents were fielding questions from concerned customers “instantly”, said Miles Morgan Travel chairman Miles Morgan, who added: “24/7 news coverage means clients become 24/7. As the operators say, it goes on the FCO advice – but agents can shine by answering our clients’ questions.”

Louise Thomas, of Tailor Made Travel, said: “The phone was ringing quite heavily this morning. It’s difficult to anticipate the outcome.”

Greek airline Aegean waived rebooking fees for passengers due to travel until March 20 across its network.

“Also be advised that our company will continue its regular flight schedule to all destinations, including Italy, until further notice,” the carrier added. “Naturally, we will continue to cooperate with the relevant authorities for any further steps that may be required.”

MSC Cruises bans visitors to quarantined Italian towns from boarding its ships

MSC Cruises bans visitors to quarantined Italian towns from boarding its ships

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MSC Grandiosa

MSC Cruises has banned anyone who has travelled to, from or through any areas of Italy quarantined because of coronavirus in the last 14 days from boarding its ships.

Passengers and crew embarking and disembarking at ports of call will be “frequently checked by thermal cameras for fever symptoms”.

Sailings onboard MSC Grandiosa and MSC Opera, the line’s two ships in the Mediterranean, are going ahead as planned and the company stressed that the majority of its fleet is currently in South America and the Caribbean.

In a statement, MSC said it has “further enhanced our precautionary health measures for all guests and all crew who are due to travel on any of our cruises to ensure the health and well-being of everyone on board every one of our ships”

The quarantined areas in Italy are: Casalpusterlengo, Codogno, Castiglione d’Adda, Fombio, Maleo, Somaglia, Bertonico, Terranova dei Passerini, Castelgerundo, San Fiorano and VĂ².

An MSC spokesperson added: “None of the ports visited by any of our ships in Italy nor any of the related excursion destinations is anywhere near these municipalities or neighbouring territories.”

The restrictions are in addition to those on people who have travelled from or through mainland China, Hong Kong or Macau.

“Everyone’s health and safety on our ships is our top priority and we have had no cases of coronavirus on board any of our ships,” the spokesperson added.

Tuesday, 25 February 2020

Cruise lines must move quickly and creatively to redeploy ships

Cruise lines must move quickly and creatively to redeploy ships

The Celebrity Millennium is being repositioned from Asia and will be in Los Angeles in March.
The Celebrity Millennium is being repositioned from Asia and will be in Los Angeles in March.

At last count, at least 27 cruise ships in Asia have had to cancel or modify not only single itineraries but in some cases entire seasons in response to the Covid-19 coronavirus outbreak in China. 
Fixing that kind of disruption on short notice is no small feat, especially for lines whose ships are being turned away from ports or are dealing with outbreaks onboard. 
For example, it took weeks for Celebrity Cruises to rework itineraries for the Celebrity Millennium, which was in the midst of its Asia cruise season when the outbreak occurred in China. 
After talks with the deployment team, travel advisors and port and health authorities, the cruise line cancelled its remaining Asia cruises, starting with its Feb. 15 sailing. 
It will instead arrive in Los Angeles on March 20, said Celebrity Cruises CEO Lisa Lutoff-Perlo. There it will conduct free sailings for first responders, active military and veterans. It will also sell a series of revenue cruises and donate the net proceeds to charities and foundations that help first responders and the military.
“At the end of the day, you really have to make the right decision for your guests,” she said. “Unfortunately, with coronavirus, there’s been growing concern for travelling to that region. Safety is paramount to us. It was clearly not our desire or intention to leave that region, but we felt it was the prudent thing to do in the short term. You just didn’t know each day what was going to happen.”
Celebrity’s sister cruise line Royal Caribbean International made a similar decision: Its China-based Spectrum of the Seas is going to Australia, where it will give free cruises to first responders who helped fight the recent devastating wildfires.
The Millennium, which was renovated last year, will make a three-day stop in Hawaii en route to Los Angeles to equip the ship to be able to hook up to shore power once there.
“Redeploying the ship is one thing,” Lutoff-Perlo said. “We had to work with the deployment team to put the itineraries together. We had to work with the global marine organization on how to get shore power on Millennium in just five weeks.”
She said that anybody who understands the complexity of this knows “it’s heroic to be able to do this.”
Details of the new sailings are still being worked out, but Celebrity offered a rough sketch.
Once in California, the Millennium will operate three four-day cruises and one five-day cruise for revenue. As of now, it will also host four two-day cruises for first responders, active military, veterans and their families.
The Millennium will resume its regular Alaska season on May 22. The ship’s Japan cruises are still scheduled for later this year.
Lutoff-Perlo said her team has had to answer several questions, such as whether or not they will be able to sell the new itineraries on such short notice. In response, she said that the staff has had to deal with many crises before, such as the 9/11 attacks, and that they are prepared to make adjustments.
They are still finalizing all the ports, but she said once the relevant officials found out that the cruises would be used to benefit first responders and military, they were willing to be more accommodating.
“As you can imagine, we went back and forth a lot as we fine-tuned these itineraries and figured out what we wanted to do, and every time we went back to every port we talked to, they couldn’t have been more gracious, and they couldn’t have been more wonderful,” she said.
Other lines are still figuring out what to do with their ships, citing the complexity of making such big changes on such short notice to frustrated customers. 
Holland America Line said in an online blog post last week that it was figuring out a solution for its Asia-based Westerdam, on which it cancelled sailings through March 14.
In a statement, the line said it was “still working through the extremely complex factors and decisions of itinerary planning. We understand that our guests are eager to learn more about their departures, and we are assessing future cruise itineraries as quickly as possible.”
For travel advisors, the slew of itinerary changes and cancellations has had them working overtime to keep up with changes happening while their clients were at sea as well as awaiting the fate of ships with upcoming departures. 
Michelle Fee, CEO of Cruise Planners, said the last time this many cruises had to redeploy from a region this quickly was after 9/11 when nearly all ships repositioned to the U.S.
And despite the logistical difficulty of having so many ships change itineraries on such short notice, Fee said this response points to one of the industry’s best qualities in a time like this: “Unlike land destinations, the upside is that cruise lines can move their hardware. At this point, China and parts of Asia have completely shut down, whereas the ships are just relocating.”
Fee was among several advisors who said the biggest challenge is not knowing “what decisions the cruise lines will make and what types of refunds or accommodations will be offered.” 
Linda Terrill, a cruise specialist with the Luxury Travel Group, an independent affiliate of Brownell Travel, agreed. She had clients on a Seabourn Ovation sailing in Asia that was eventually cancelled. 
“The most challenging part was spending so much time just checking, checking and rechecking,” she said. “Searching and contacting the sales managers and saying, ‘Tell me what to do.’” 
Terrill said the challenges are “all-encompassing.”
“But these are long-time clients, and they were so worried, and I kept putting myself in their shoes and saying, ‘What would I do?’” Terrill said. 
In the end, she said, “All’s well that ended well,” and she added that she understands what the cruise companies are facing. 
“The lines are completely overwhelmed,” she said. She said one sales manager told her, “We’re just trying to get people home right now.” 
Fee said last week that the communication from cruise lines had improved. 
“In the beginning of the coronavirus crisis, some cruise lines made decisions and communicated them immediately, while others took a bit longer,” she said. “In the last weeks, we have seen a robust amount of communication from the cruise lines, which is helpful.”
And although the industry has borne the brunt of negative travel headlines due to the challenges on Princess Cruises’ Diamond Princess, Fee is among those who hope that once everyone disembarks the ship, “the story will die down.” 
“If history repeats itself,” Fee said, “a few weeks afterwards, we should get back to normal booking trends.”

Princess Issues RFP to Clean and Sanitize Diamond Princess

Princess Issues RFP to Clean and Sanitize Diamond Princess


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Princess Cruises announced today a global search for a service provider with advanced, scientifically proven cleaning and disinfection capabilities to perform work onboard the Diamond Princess.
The work will begin after the guests and crew have disembarked, following the quarantine of the ship in Yokohama.
Princess is seeking proposals and estimates from the most technologically advanced service providers in this business, the company said.
The company is in action to manage an extensive out of service cleaning, disinfection and refurbishment period. The exact location of the project will be announced soon.
“Our focus continues to be on the safety and well-being of our guests and crew. We are seeking to identify the best resources to partner with to clean and disinfect the ship from bow to stern,” said Jan Swartz, Princess Cruises president. “To accomplish this critically important undertaking, Princess will engage a vendor that has experience in significant cleaning and disinfection projects and experience in the use of the disinfectant agent Virox®, which is well-known to be an effective disinfectant. The expert use of personal protective equipment is also a requirement for the chosen service provider.”
The company has detailed the areas and requirements for cleaning and disinfecting which include, but are not limited to, the following locations and all surfaces: 
• Staterooms: the removal and proper disposal of all towels (bath, face, hand), bed linens, mattress pads, pillows, duvets, shower curtains, and mattresses
• Carpets, draperies, and other soft furnishings
• All corridors and handrails
• Housekeeping storage and service areas
• Galleys, pantries, dishes, service ware
• Restaurant and food and beverage areas
• Entertainment areas
• Public venues (retail shops, spa, salon, fitness centre, etc.)
• Technical and machine spaces
• All crew living areas
• All deck areas and handrails
• Medical Center
• Air handling units and ventilation: Cleaning and disinfecting of air handling units including ducts, fan rooms, coils and systems will be developed by Princess’ Technical Services separately using specialist cleaning contractors.
• All marine, hotel and operations equipment
• Any other areas required after an appropriate assessment
Companies who wish to submit a proposal should be prepared to comply with detailed standards set forth by experts in health protocols and administration such as the Japanese Ministry of Health, the U.S. Center for Disease Control and the World Health Organization, in addition to the operational standards established by Princess Cruises.


Cruise Lines 2019 Q4 Breakdown: By the Numbers

Cruise Lines 2019 Q4 Breakdown: By the Numbers

Seabourn, Royal Caribbean and AIDA Ships in Antigua

Cruise Industry News takes a look at the financial performance of the “big three” following the final quarter of 2019.
Takeaways:
While gross revenue was up for Q4 2019 for the three publicly-traded cruise companies, increased operating expenses led to reduced operating income, net income and net income per passenger day, compared to Q4 for the previous year.
Net revenue per passenger day was also down year-over-year for Carnival Corporation, up noticeably for Royal Caribbean and up slightly for Norwegian.
Gross revenue per passenger day was significantly up for all three companies, including onboard spending, with gross ticket revenue per day also up for Royal Caribbean and Norwegian, but down for Carnival.
Carnival saw the biggest difference between gross and net onboard revenue: more than $25, making it flat with last year, while Royal had nearly a $12 drop and Norwegian a little more than $10, and up from last year.
Both Carnival and Royal Caribbean saw a decrease in fuel costs year-over-year while Norwegian saw its fuel spend to go up.
Carnival cited the regulatory change preventing travel to Cuba, geopolitical events in Arabian Gulf, Hurricane Dorian, an unscheduled drydock, and multiple shipyard delays. Royal cited the Oasis drydock mishap, Cuba and Hurricane Dorian, and Norwegian also cited Cuba and Dorian.
Because of the fleet mix, Norwegian continued to generate the highest gross and net ticket and onboard spend revenue.

The Cruise Industry Financial Tracking Report provides an in-depth look into the financial metrics of the leading cruise companies. Learn more.
Included: Carnival, Royal Caribbean, Norwegian, MSC, Star/Genting, Royal Olympic, P&O Princess, Regent, American Classical Voyages and Commodore.
Key metrics include revenue, operating expenses, operating income and net income, as well as those metrics on a per passenger day basis. We also look at EPS, fleets, berths and passenger cruise days. 

Saturday, 22 February 2020

Coronavirus: Slump in-demand set to cost airlines almost $30bn

Coronavirus: Slump in-demand set to cost airlines almost $30bn

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A slump in demand due to the coronavirus outbreak is set to cost the global airline industry $29.3 billion in lost revenue this year.

The bulk of the revenue loss – $27.8 billion – will hit carriers in the Asia-Pacific region, as Iata warned that 2020 would be a “very tough” year for the sector.

An estimated $12.8 billion will be lost in the Chinese domestic market alone with those outside the region expected to lose $1.5 billion in revenue, the airline trade body calculated.

The total forecast drop in demand of 4.7% would wipe out expected growth this year, resulting in a 0.6% contraction in passenger demand for the year.

This would represent the first overall fall in demand in more than a decade.

The estimated impact of coronavirus assumes that the centre of the public health emergency remains in China.

If it spreads more widely to Asia-Pacific markets then impacts on airlines from other regions would be larger, according to Iata.

The estimates are based on a scenario where coronavirus has a similar impact on demand as was experienced during the SARS outbreak in 2003.

“That was characterised by a six-month period with a sharp decline followed by an equally quick recovery,” Iata said.

“It is premature to estimate what this revenue loss will mean for global profitability. We don’t yet know exactly how the outbreak will develop and whether it will follow the same profile as SARS or not.

“Governments will use fiscal and monetary policy to try to offset the adverse economic impacts. Some relief may be seen in lower fuel prices for some airlines, depending on how fuel costs have been hedged.”

Iata director general and chief executive Alexandre de Juniac said: “These are challenging times for the global air transport industry. Stopping the spread of the virus is the top priority.

“Airlines are following the guidance of the World Health Organisation (WHO) and other public health authorities to keep passengers safe, the world connected, and the virus contained.

“The sharp downturn in demand as a result of COVID-19 (coronavirus) will have a financial impact on airlines – severe for those particularly exposed to the China market.

“We estimate that global traffic will be reduced by 4.7% by the virus, which could more than offset the growth we previously forecast and cause the first overall decline in demand since the global financial crisis of 2008-09. And that scenario would translate into lost passenger revenues of $29.3 billion.

“Airlines are making difficult decisions to cut capacity and in some cases routes. Lower fuel costs will help offset some of the lost revenue. This will be a very tough year for airlines.”

De Juniac called on governments to provide support. He said: “We have learned a lot from previous outbreaks, and that is reflected in the International Health Regulations (IHR). Governments need to follow these consistently.”

He added: “Airlines and governments are in this together. We have a public health emergency and we must try everything to keep it from becoming an economic crisis.”

Iata medical advisor Dr David Powell advised: “If you are sick, don’t travel.

“If you have flu-like symptoms, wear a mask and see a doctor. And when you travel wash your hands frequently and don’t touch your face.

“Observing these simple measures should keep flying safely for all.”

Coronavirus Could Pose Threat to Cruise Ship Credit Ratings

Coronavirus Could Pose Threat to Cruise Ship Credit Ratings

The cruise ship Diamond Princess is docked at the port of Yokohama, south of Tokyo, in this photo taken by Kyodo February 7, 2020. Mandatory credit Kyodo/via REUTERS

The impact on cruise companies’ earnings from cancelled trips, steep discounts and ships quarantined over coronavirus concerns could pose credit risks, said rating agencies Moody’s Investors Service and S&P Global Ratings.

Carnival Corp and Royal Caribbean Cruises said last week that scrapped itineraries in Asia due to the outbreak would affect their earnings per share more than expected. Norwegian Cruise Line Holdings on Thursday forecast an impact of 75 cents per share on full-year adjusted earnings, citing virus-linked fallout.

“It reduces the flexibility that these companies have in their rating categories,” said Moody’s analyst Peter Trombetta. “It removes some of their cushions.”The earnings impact on both Carnival and Royal Caribbean were deemed “credit negative” by Moody’s although neither company’s credit ratings were immediately affected.

In a note published on Wednesday, S&P Global analysts wrote that the impact on Carnival’s cash flow from the coronavirus outbreak is expected to drive leverage above the 2.5 debt to EBITDA ratio is 2020, the threshold that would normally warrant a downgrade if breached. However, if the analysts believe the impact on Carnival to be temporary and that leverage could be lowered within a year or two, they do not expect to downgrade the rating.

Financially, “Carnival would be impacted the most. They also have the most capacity in China. So they would probably see the biggest hit to earnings,” said Trombetta.

In response to a request for comment, a Carnival spokesman said, “The primary impact on the cruise industry is focused mostly on China, which is an emerging market for the cruise industry, so the impact is relatively small.” Neither Royal Caribbean nor Norwegian responded to a request for comment.

While the outbreak casts a shadow on the cruise industry in the short-term, credit analysts said they did not expect the effect to be lasting.

“We have very short memories,” said Trombetta, citing disasters like the wreck of the Costa Concordia ship in 2012, which killed 32 people. “People want to go on cruises. Once some time passes, that demand – so far – seems to keep coming back.”

Fitch Ratings, the third of the three largest credit rating agencies do not publicly rate the cruise companies, but analyst Colin Mansfield, who covers the gaming, lodging and leisure sectors, said he expected the consequences of the epidemic to be temporary.

And yet, Norwegian Cruise Line Chief Executive Frank Del Rio noted on a call with investors on Thursday that the coronavirus in particular “has caused near panic in the travelling public.”

“The decrease in bookings is similar to what we see – we have seen in past similar events, whether they be geopolitical during the financial crisis, et cetera. What’s a little bit different about this one is the increase in cancellations.”

That bias could create longer-term problems for the industry. There is some potential for “a softer demand picture in general if cruise gets some bad PR from this that sticks in peoples’ minds for any period of time,” said Paul Golding, an analyst at Macquarie Capital. (Reporting by Kate Duguid; Editing by Megan Davies, Steve Orlofsky and Daniel Wallis)(c) Copyright Thomson Reuters 2019.

Friday, 21 February 2020

Carnival and Norfolk ink 5-year deal

Carnival and Norfolk ink 5-year deal

The Carnival-Norfolk press conference at the Half Moone Cruise Center.
The Carnival-Norfolk press conference at the Half Moone Cruise Center.

Carnival Cruise Line has signed a five-year agreement with the city of Norfolk, Va., to operate cruises from the Half Moone Cruise Center.
Norfolk has agreed to upgrade the port so it can accommodate larger ships. Improvements will include a new boarding bridge to streamline the embarkation and debarkation process.
The 130,000-gross-ton Carnival Magic will sail a series of 12 cruises from the port in 2021. It will be the largest cruise ship to sail from Norfolk, which has been welcoming Carnival cruises for almost 20 years. 
The long-term commitment will elevate Carnival’s presence in the city and will give travellers in the Mid-Atlantic more cruising options to the Caribbean.
“Our cruises from Norfolk have been very well received by our guests, and this agreement speaks volumes about our confidence in growing the market,” said Carnival Cruise Lines president Christine Duffy.
“This commitment strengthens that partnership and solidifies Norfolk’s position as a true Mid-Atlantic cruise port,” Norfolk Mayor Kenneth Alexander said.
The Carnival Magic’s 2021 schedule will have four- to eight-day cruises to the Caribbean. Reservations are open.
The Carnival Magic offers hundreds of balcony staterooms and suites. It also has a complimentary kids program in three age groups, the Cloud 9 spa, a WaterWorks aqua park, a variety of indoor and outdoor dining, and an entertainment promenade.
Before repositioning to Norfolk, the Carnival Magic will sail a series of voyages in the Mediterranean. It will then take a two-week drydock in Cadiz, Spain.

Norwegian Cruise Line Holdings: Virus depressing bookings globally

Norwegian Cruise Line Holdings: Virus depressing bookings globally

The Norwegian Spirit has been moved from Asia to Europe.
The Norwegian Spirit has been moved from Asia to Europe.

The coronavirus Covid-19 outbreak has caused a slowdown in new bookings and increased cancellations worldwide, Norwegian Cruise Line Holdings reported to investors today. 
NCLH CEO Frank Del Rio said that the impact of the virus extends beyond Asia, threatening what in early January looked to be the start of a record year for the company. 
“The resiliency of our business model will be tested once again by a noncontrollable external factor,” he said. “The effect of the coronavirus outbreak on our business has been swift and severe and the continuous global headline news coverage has been substantial and relentless.”  
NCLH said in an earnings release that it has cancelled 40 cruises across its three brands due to the outbreak: 10 on Oceania, six on Regent Seven Seas, and 24 on Norwegian Cruise Line (21 were on the Norwegian Spirit, which was redeployed to the Eastern Mediterranean from Asia earlier this month. 
NCLH CFO Mark Kempa called the outright cancellation of cruises on Oceania and Regent Seven Seas “a significant impact for us.”
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“Those are very long lead-booking itineraries with very high per diems,” he said. “Those voyages were completely sold out.”
Despite the Spirit’s extremely condensed booking window, Del Rio said the relocation of the ship provides the best opportunity to maximize its earnings and revenue potential and “demonstrates our nimbleness and ability to redeploy our assets as necessary.”
Looking ahead, Del Rio said that “given the unknown duration and severity of the outbreak, there may additional impacts that are not yet quantifiable. It is affecting the broader consumer demand environment that extends to our global deployment outside of Asia, which cannot be quantified at this time.
“The cruise industry was at the forefront of headline news for reasons that we know and that has caused near panic in the travelling public,” he added. “So, we’ve seen a meaningful decrease in new bookings. A meaningful increase in cancellations. Not just for our Asia sailings but throughout the deployment.”
Del Rio said he’s heard from travel partners and business partners that they are seeing similar trends across their portfolios. 
“Business is soft, people are scared to travel,” he said. “Until we see the levelling off of new cases and the cruise industry not being the poster child for the virus, this may continue for some time.” 
But he also said that “nothing is permanent.”
“Consumers do have a relatively short memory, thank god. We have seen other major events affecting the cruise industry that were quickly overcome,” Del Rio said.
Silver linings 
Del Rio also pointed to “silver linings,” including what he called the “underlying resilience of our business and potential for a reasonably timed recovery.”
The strong booked position prior to the outbreak, he said, “demonstrates the strong demand fundamentals of our business.”
He also said that in the past five days, NCLH has seen an improvement in week-over-week booking volumes and a decrease in cancellations compared with the prior three weeks. 
“I don’t want to call it a turnaround trend just yet, but it is at least one data point of a possible positive change,” he said. 
“We are no longer seeing a week-over-week acceleration in the declines in bookings and increases in cancellations. We’re seeing a moderation.”
Del Rio said the bookings decrease is similar to what the company experienced during similar geopolitical events and the financial crisis a decade ago. The difference with this crisis, he said, is the increase in cancellations. 
“As an industry and company, we have faced and overcome challenges similar to Covid-19,” Del Rio said.  “I am confident this challenge will not be different. It usually takes eight-plus weeks from the time the news cycle peaks to when we can expect a return to normal booking patterns. It’s not a question of if, but when.”

Monday, 17 February 2020

Coronavirus: Royal Caribbean Cruises to deliver one million surgical masks to China

Coronavirus: Royal Caribbean Cruises to deliver one million surgical masks to China

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Royal Caribbean Cruises will deliver a million protective surgical masks into China as the country battles to contain the coronavirus outbreak.

Richard Fain, the chairman and chief executive of Royal Caribbean Cruises, said the cruise company would work with suppliers to deliver the N-95 protective masks to China for the country’s government.

Face masks are reportedly selling out in cities across Asia as concerns over the virus grow.

More than 1,300 people are known to have died from the virus, including six health workers in China.

Local authorities in the country have reportedly struggled to provide protective equipment such as respiratory masks and goggles in hospitals, according to the BBC.

Fain said: “We admire the all-out efforts of the Chinese government and people to address this crisis and we want to bring our resources to bear to help their efforts.”

Royal Caribbean International president and chief executive Michael Bayley said the line would move a ship to China to carry out a series of complimentary sailings to thank medical personnel once the virus outbreak had ended.

Royal has also revealed that Spectrum of the Seas will offer complimentary cruises sailing from Sydney for Australia’s first responder community and Celebrity Millennium will provide ex-US sailings for firefighters in California following the wildfires.

Coronavirus: Americans from quarantined cruise ship flown from Japan

Coronavirus: Americans from quarantined cruise ship flown from Japan

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Diamond Princess
Two planes carrying hundreds of US citizens from a coronavirus-hit cruise ship have left Japan, officials say.
One plane has landed at a US Air Force airbase in California, and its passengers will be isolated at military facilities for 14 days.
There were some 400 Americans onboard the Diamond Princess. The ship with some 3,700 passengers and crew have been in quarantine since 3 February.
Meanwhile, China reported a total of 2,048 new cases on Monday.
Of those new cases, 1,933 were from Hubei province, the epicentre of the outbreak.
More than 70,500 people across China have been infected by the virus. In Hubei alone, the official number of cases stands at 58,182, with 1,692 deaths. Most new cases and deaths have been reported in Wuhan, Hubei's largest city.
In other developments:
  • In Japan, a public gathering to celebrate the birthday of new Emperor Naruhito later this week has been cancelled, due to concerns over the spread of the virus while organisers of the Tokyo marathon due to take place on 1 March are considering whether to cancel the amateur part of the race, reports say
  • In China, the National People's Congress standing committee said it would meet next week to discuss a delay of this year's Congress - the Communist Party's most important annual gathering - because of the outbreak
  • At the weekend, an American woman tested positive for the virus in Malaysia after leaving a cruise liner docked off the coast of Cambodia
  • A Russian court has ordered a woman who escaped from a quarantine facility to go back and stay there until she is confirmed to be disease-free Fontanka news agency reports. Alla Ilyina has until Wednesday to return
Aircraft wait to take Americans home from Japan after they were taken off the quarantined cruise ship, Diamond Princess, 17 February 2020
Those bound for the US left from Tokyo's Haneda Airport

What's happening on the Diamond Princess?

The cruise ship was put in quarantine in Japan's port of Yokohama after a man who disembarked in Hong Kong was found to have the virus.
On Monday, Japanese officials said there were 99 new cases of infections on board the ship, bringing the total to 454 confirmed cases. It is the largest cluster of cases outside China.
A Russian woman who was onboard and tested positive is thought to be the first Russian national to contract the virus after the two previous cases found in Russia were Chinese nationals, Reuters news agency reports.
She will be taken to a hospital for treatment, the Russian embassy in Japan said.
At least 40 US citizens who were on board are infected and will be treated in Japan, Dr Anthony Fauci, Director of the National Institute of Allergy and Infectious Diseases told US broadcaster CBS.
The two aircraft chartered by the US government left Tokyo's Haneda Airport in the early hours of Monday. The second flight was due to land at another base in Texas.
More than 300 passengers are being repatriated voluntarily, the US state department said. Fourteen of them were reported during transit to have tested positive for the virus and were being kept separate from the other passengers, it said.
Those entering the US will undergo a 14-day quarantine, on top of the time they have already spent confined on the ship.
"And the reason for that," Dr Fauci added, "is that the degree of transmissibility, on that cruise ship, is essentially akin to being in a hotspot."
Some of the Americans have declined to be evacuated, preferring to wait until the ship quarantine comes to an end on 19 February.
Passenger Matt Smith, a lawyer, said he would not want to travel on a bus to the plane with possibly infected people.
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To assist with relief efforts, Japan's government has given away 2,000 iPhones to passengers on the ship - one for each cabin.
The smartphones were distributed so people could use an app, created by Japan's health ministry, which links users with doctors, pharmacists and mental health counsellors. Phones registered outside of Japan are unable to access the app.
Other evacuation flights have been arranged to repatriate residents of Israel, Hong Kong and Canada. On Monday, Australia announced that it would evacuate 200 of its citizens too.