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Comment – Capacity constraints in greatest of natural harbours

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 03 May 2019 03 May 2019

There is something paradoxical about the fact that the cruise industry continues to experience problems with land based infrastructure in Sydney, Australia.

Sydney is one of the greatest natural harbours in the world: a huge and sheltered bay that has several miles of shoreline and it has deep water too.

However, local authorities have preferred to dedicate the shoreline for housing rather than shipping. Moving cargo handling away from city centres, with all the associated noise and traffic, is a trend that has taken place in Sydney and in many cities around the world, and for good reasons.

But when cruise ships have nowhere to dock in the centre of a city, the experience that passengers have changes. Instead of walking down the gangway to enjoy the destination, it becomes necessary to take a bus or a taxi. The bigger the ship in question, the more traffic there will be on the roads.

True, Sydney has retained its iconic Circular Quay terminal, which is right in the centre of the city, near the famous harbor bridge. But facilities at Pyrmont on the other side of the bridge and Woolloomooloo near the Garden Island base of Royal Australian Navy have vanished. Media reports say that turnaround calls have taken place by using tenders.

Sydney’s problems are neither new nor unique. However, as tourism is being looked at with increasingly critical eyes in many cities – such as Amsterdam that imposed a tax on e.g. cruise passengers – problems arising from access to convenient terminals refuse to go away.

Instead, they pose a major concern for the cruise industry that is probably going to deepen in the years to come.

 

Infrastructure woes sharply slowed down Australian market growth last year

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 03 May 2019 03 May 2019

Problems with land based infrastructure particularly in Sydney contributed to a sharp slowdown in the growth of the Australian cruise market last year, CLIA Australasia figures show.

In 2018, a total of 1.35 million Australians took a cruise, which was just 0.9% more than in the previous year.  In 2017, the year on growth had been robust 4.4%.

The number of passengers starting their cruise in an Australian port rose by just 0.1% last year as a result of capacity constrains on land. Local cruising accounted for 1.03 million passengers last year, while fly cruises to destinations further afield attracted 315,000 passengers, an increase of 3.4%.

“While the local industry faces growth constraints caused by a shortage of cruise infrastructure in Sydney, the construction of a new International Cruise Terminal in Brisbane and other cruise related projects announced in Cairns, Eden and Broome are expected to reignite growth in the homeport market,” CLIA Australasia said.

“Cruise lines have already announced significant new vessel deployments in this region beginning from 2020/2021. At the same time, smaller older vessels will be replaced with newer larger ships to cater to Australian passenger demand while a solution to the Sydney infrastructure constraints is developed.”

“Although the reduced growth trend may continue in the short term into 2019, the future outlook for the Australian ocean cruise passenger market remains positive. As government and local stakeholders recognise the potential for the industry to offer an even broader and more frequent range of domestic itineraries, this will increase the contribution the industry is able to deliver to Australia’s national and regional economies<” CLIA Australasia said.

 

Lindblad expects strong year after first quarter net result leaps

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 03 May 2019 03 May 2019

Lindblad Expeditions, the US based expedition cruise operator, expects a strong year after a leap in its first quarter net profit.

Group net profit rose to $14.6 million from $10.8 million in the same period last year, while revenues increased to $89.6 million from $82.4 million. Operating income, however, remained stable at $14.4 million as operating expenses rose to $75.3 million from $68.0 million, the company said in a statement.

The company was able to cut other expenses and it received a $3.0 million tax benefit compared to a $0.3 tax bill in the first quarter of last year, which lifted net income..

Sven-Olof Lindblad, President and Chief Executive Officer, said, "Lindblad is off to another great start in 2019 as the strong momentum we generated throughout the last year and a half continued into the first quarter. The addition of our second new build vessel, the National Geographic Venture, in December of 2018, has further increased our overall capacity and as we have expanded our inventory we continue to maintain high yields and occupancy levels.”

“Demand for expedition travel has never been greater and with a proven track record of delivering high quality and immersive experiences, along with our long-standing partnership with National Geographic, we are generating booking strength from both loyal guests as well as those experiencing this type of travel for the first time. Reservations for departures later this year and beyond remain strong as we continue to see broad based demand at higher yields for our new builds as well as our existing fleet.”

“With further capacity expansion, including two new polar vessels scheduled to join our fleet over the next two years, and the ability to sustain pricing and occupancy levels, we remain uniquely positioned to generate continued strong growth and build additional shareholder value for years to come."

The Company's current expectations for the full year 2019 are as follows:

Tour revenues of $350 - $358 million (13% – 16% growth)

Adjusted EBITDA of $67 - $70 million (22% – 28% growth)

As of April 30, 2019, Lindblad segment bookings for travel during 2019 have increased 11% as compared with bookings for 2018 as of the same date a year ago. Additionally, the Lindblad segment had 94% of full year 2019 projected guest ticket revenues on the books versus 95% of full year 2018 revenue at the same time last year.

 

Viking to launch new ship in Egypt

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 02 May 2019 02 May 2019

Viking has announced an expansion of its Egypt program for the 2020 season, which will include the launch of a new ship. Inspired by the design of the award-winning Viking Longships and built specifically for the Nile River, Viking Osiris is currently under construction and will double the company’s owned capacity in Egypt when it debuts in September 2020. Also launching in the next year are two new Pre-Cruise Extensions designed to enhance guests’ base knowledge of Egyptology prior to arriving in Cairo. These five-day extensions to Viking’s Pharaohs & Pyramids itinerary will provide guests with Privileged Access to archives and exhibits in London and Oxford that are not normally accessible to the public. This announcement comes as Viking guests continue to express strong interest in Egypt – and just one year after the company launched Viking Ra, a completely renovated vessel and Viking’s first owned and operated ship on the Nile.

“Egypt has inspired explorers for generations, and it remains a top destination for many of our guests,” said Torstein Hagen, Chairman of Viking. “For more than two decades, we have led the river cruise industry with our fleet development and experiences that bring travelers closer to the cultures of the world. We remain committed to Egypt, and we look forward to introducing the historic treasures of the region to even more Viking guests.”

Hosting 82 guests in 41 staterooms, Viking Osiris will be a state-of-the art ship with the clean, elegant Scandinavian design for which Viking is known – and will join the company’s other ship on the Nile, Viking Ra, which launched in 2018. Viking is the first and only Western company to build, own and operate ships on the Nile.

New Pre-Cruise Extensions

Building on the success of the Oxford & Highclere Castle program – Viking’s highest-rated Pre/Post Extension that visits “The Real Downton Abbey” – the company has applied the same degree of Privileged Access to two new curated Pre-Cruise Extensions that allows guests to retrace the steps of the world’s most famous Egyptologist, Howard Carter, and his benefactor, the 5th Earl of Carnarvon. Guests on the five-day British Collections of Ancient Egypt extension will meet their Viking Tour Director, an expert Egyptologist, in London and experience Privileged Access to two museums: first a private, early morning visit to the Egyptian Collection at the British Museum before it opens to the general public – and then a visit to the home and personal museum of world-renowned architect, Sir John Soane, where the tour will be illuminated by candlelight, a re-enactment of how Soane entertained guests and showcased his exquisite collection of Egyptian antiquities, including a 3,000-year-old Egyptian sarcophagus. Guests will also visit London’s Petrie Museum, which houses more than 80,000 artifacts from ancient Egypt and Sudan. In Oxford, guests will visit the Ashmolean Museum, one of the oldest in the world, and home to a varied collection of Egyptian mummies and art – and go behind the scenes at Oxford University’s Griffith Institute, where they will enjoy a Privileged Access visit to see Carter’s archives, which detail the discovery of Tutankhamun’s tomb. Lastly, guests will have an opportunity to visit Highclere Castle – the country seat of the Earl and Countess of Carnarvon – and enjoy an exciting opportunity to view the earl’s magnificent private collection of Egyptian artifacts. Guests traveling through April 2020 may opt for the new five-day King Tut & the UK’s Egyptian Collections extension, which also includes an opportunity to visit Tutankhamun: Treasures of the Golden Pharaoh, a special exhibition at London’s Saatchi Gallery that is presented by Viking.

Pharaohs & Pyramids

During the 12-day, Pharaohs & Pyramids itinerary, guests experience Egypt’s cultural treasures in seven destinations. The cruisetour begins with a three-night stay at a first-class hotel in Cairo, where guests can visit iconic sites such as the Great Pyramids of Giza, the necropolis of Sakkara and the Mosque of Muhammad Ali. Guests will then fly to Luxor, where they will visit the Temples of Luxor and Karnak before boarding a Viking river ship for an eight-day roundtrip cruise on the Nile River, featuring Privileged Access to the tomb of Nefertari in the Valley of the Queens, and excursions to the Temple of Khnum in Esna, the Dendera Temple complex in Qena, the temples at Abu Simbel and the High Dam in Aswan, and a visit to a colorful Nubian village, where guests can experience a traditional elementary school. Finally, the journey concludes with a flight back to Cairo for a final night in the ancient city.