At the beginning of the pandemic, 712 people were trapped on a cruise ship infected with COVID-19 (one-quarter of the ship’s passengers), making cruise travel a fearful prospect for many.
The global cruise industry is a multi-billion dollar sector with an approximate revenue of 35.5 billion dollars in 2016 and $154 billion in 2019. Not only that, in 2019 cruises welcomed over 29.7 passengers and created jobs for 1.8 million people from all over the world. But with covid restrictions, when are cruises expected to re-open and how does this impact the thousands upon thousands of employees it services? We speak to boat insurer, Taylor Watkins, to find out more.
Cruise Ship Employment
Cruise ships employ billions of people annually from across different industries and with people from all over the world. From engineers, to waiters, to cabin crew, to entertainers, there is no end to the employment opportunities available on board.
The cruise industry employed a reported 178 thousand people in 2019, a figure which had increased substantially year-on-year since 2018 with the expectation of further growth. In 2019, cruising represented a $55 billion contribution to the United States economy.
The recent pandemic, unsurprisingly, had a devastating impact on this sector. Reportedly, the cruise industry says that 254,000 American jobs were lost in 2020 and a $32 billion loss in revenue. In 2020, the cruise industry failed to contribute even half of what it did in 2019.
When Will Cruises Restart?
Many US cruise lines have already announced definitive dates to resume sailing, with most indicating June and July of this year (2021). Although, it must be noted that this will depend on many factors. All cruise lines will need to form specific safety agreements with the collaborating ports and undergo regular COVID-19 tests for both crew and passengers.
At the moment it seems that the situation is largely dependent on the vaccine; ships will be cleared to sail if 95% and 98% of crew members are vaccinated. However, although this is the general guideline given, it will ultimately be up to individual cruise lines to set their own vaccination rules.
Recently, the U.S. Centers for Disease Control and Prevention have relaxed restrictions for resuming cruises in the United States, although this is something that will vary between countries. The UK has indicated that cruises may be able to resume from May 2021. Canada, on the other hand, has indicated that cruise ships will be banned until at least February 28, 2022.
Recovery of the Cruise Industry
Data suggests that it will take many years before the cruise industry is able to recover from the Coronavirus pandemic.
Although 2021 is predicted to show an increase in revenue compared to last year (116% year-on-year increase; $16.8 billion), this is lower than figures from 2017. These figures are not set to be fully back on track until at least the end of 2025.
Crucially, this has implications for the millions of people employed by cruise lines and who depend on this industry for their income.