Advertisement
Advertisement
A Genting Dream cruise ship returning to Kai Tak Cruise Terminal with 1,070 passengers aboard after a four-night Cruise to Nowhere “seacation” package on August 1, 2021. Photo: Nora Tam
Opinion
Editorial
by SCMP Editorial
Editorial
by SCMP Editorial

Cruise industry the world over still sailing in stormy waters

  • Decline of Genting Hong Kong serves as a warning that nothing can be taken for granted during a health emergency
The cruise industry argues that its ships are among the safest places to holiday because all on board have to be tested and vaccinated. But that has not saved Asia’s biggest operator, Genting Hong Kong, which has become the latest casualty of the Covid-19 pandemic. Under the weight of several years of losses, the Malaysian-majority firm is being liquidated after going into debt following the bankruptcy of its two shipyards in Germany. It is a similar story for scores of other companies in the travel and leisure sector, which is facing new waves of financial turmoil as a result of the Omicron and Delta variants.

Before the coronavirus struck three years ago, cruises were the fastest-growing sector of the travel industry. They were estimated to be worth US$150 billion in 2018, with 28.5 million passengers. Companies such as Genting Hong Kong had every reason to be optimistic and invest in new ships; it purchased two shipyards in Germany to construct two giant luxury liners. A cloud of uncertainty quickly descended when the pandemic was declared in March 2019 and countries began closing borders.

A major jolt came for the industry during Lunar New Year in 2020, when the British-owned, United States-operated, Diamond Princess suffered the then biggest cluster of cases outside China. Originating in Yokohama and on a cruise of the western Pacific, coronavirus symptoms became apparent among passengers and crew shortly after a port call in Hong Kong on the way to Taiwan and Okinawa. Eventually, 712 people were infected and eight died, three Hong Kong residents among them. Ensuring health and safety on board is now a priority for governments and cruise companies.

How has Covid-19 hurt China’s travel sector, and when will it recover?

Genting has seven cruise ships operating under three brands, four in Asian waters and one each in the Caribbean, Mediterranean and Antarctica. It was the first major company to return to service after initial global suspensions and has been sailing continuously since June 2020. Stormy waters necessitate innovative thinking; the company helped pioneer the idea of “cruises to nowhere”. But despite being popular among travel-starved customers, tight restrictions, particularly in Hong Kong, have ensured continued uncertainty for the firm, its 1,600 crew and ground staff, and passengers.

“Cruises to nowhere” operated from Hong Kong by Genting Hong Kong and Royal Caribbean have variously been suspended or forced to return early for suspected cases on board. The highly transmissible Omicron variant has sparked fresh concerns, leading to cancellations and in Hong Kong, a closure of cruise operations from January 7 until at least February 4. Such measures have no doubt contributed to Genting Hong Kong’s decline and must serve as a warning that nothing can be taken for granted during a health emergency.

1