Coronavirus impacts $45 billion the cruise industry

- By Sagar Shere February 28, 2020

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Coronavirus outbreak as an impact all over the globe and now it's even affecting the cruise industry. Coronavirus has now pushed the $45 billion cruise line industry to cancel trips and reroute ships as it struggles to contain the impact of fearful travelers. But experts say the industry will bounce back after the outbreak is contained.

While talking to investors Frank Del Rio, CEO, Norwegian Cruise Line Holdings Ltd, said, “Business is soft, people are scared to travel.” He predicted the trend would continue, “until we see the leveling off of new cases.”

Carnival Cruise Lines, Norwegian Cruises, and Royal Caribbean Cruises all together recently announced they’d canceled nearly 40 cruises and rerouted over 40. Shares are down across the three major cruise lines from 10 to 16 percent since January.

Carnival told investors if travel restrictions continue through May, it could lead to a 14 percent reduction in the share price. Royal Caribbean said additional cancellations could lead to a roughly 12 percent decrease in earnings this year.

Earlier this over 600 passengers Carnival’s Diamond Princess were forced to remain on their ship in "chaotic conditions" after testing positive for coronavirus. Some described their 10-day quarantine as being held “hostage” Two passengers later died after leaving the ship.

The cruise lines have announced additional cleaning and safety measures to address the coronavirus issue. Several cruise lines are denying boarding to passengers who have visited infected regions, and extra screenings for anyone who appears sick or may have come in contact with travelers to affected regions.