News

Meyer Werft delivers Spirit of Discovery

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 25 June 2019 25 June 2019

Meyer Werft handed over Spirit of Discovery to the British cruise line Saga Cruises on June 24. The vessel with a rating of 58,250 gross tons is already the second new build completed by Meyer Werft in 2019 after Spectrum of the Seas was delivered to Royal Caribbean International in April.

“With great team effort we already completed two modern cruise ships this year," says Tim Meyer, Managing Director of Meyer Werft.

Spirit of Discovery stands out with an environmental friendly and resource conserving Design. For the first time Meyer Werft equipped a ship with the eSiPod propulsion system delivered by Siemens.

Earlier this month, the keel laying for Spirit of Adventure, Saga Cruises’ second new build, was celebrated at Meyer Werft. Spirit of Adventure will be completed in summer 2020. The ships each have an overall length of 236 metres, a width of 31.2 metres, 999 passengers can be accommodated.

Therefore Meyer Werft will complete three new cruise ships in 2020 as well. In autumn 2019, Norwegian Encore is scheduled to be the third vessel delivered by Meyer Werft this year.

Meyer Werft currently has a long term orderbook delivery until end of 2023.

RCCL and ITM Group team up to form Holistica destination venture

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 25 June 2019 25 June 2019

Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, and the ITM Group, which is headquartered in Cancun in Mexico, are teaming to form a new destination company, to be called Holistica, RCCL said in a statement.

Holistica would create an inclusive model for destination development that works holistically – thus the name – to meet the needs of coastal communities, local governments, and land, sea, and air travelers."The continuing growth and rising popularity of cruise vacations make it clear that the sustainable development of coastal destinations, including the thoughtful evolution of existing ones, is in the travel industry's best interest," said Michael Bayley of RCCL.

"We have spent five decades learning what works and what doesn't, and we know the potential of strategic development to deliver extraordinary guest experiences and meet the needs of local communities."

Mauricio Hamui of ITM Group said: "A well-designed destination brings economic benefits to communities and cultural enrichment to travelers, while creating the least possible disruption to the human and natural environment. There is a way to do these projects inclusively, collaboratively, and sustainably – and those are the characteristics this new partnership is meant to embody."

Holistica Destinations, Ltd. will be a 50-50 partnership between RCCL and ITM Group. The partners have commenced a search for a CEO for the new company, which will be headquartered in Miami.

Holistica's first project: a $275 million development in Freeport, The Bahamas, was originated by RCCL and ITM and is currently under review by the Bahamian government. Centered on the regeneration of the Grand Lucayan resort, the project includes ambitious plans for local ownership, employment, job training, community investment and sustainable construction practices.

In addition to the Freeport project, the companies said the new venture will own and operate destinations in Costa Maya, Mexico; Roatan, Honduras; and Kumamoto, Japan. These projects, among others, will serve 8 million visitors annually, and be accessible to all travelers, including land and air vacationers and guests of multiple cruise lines. Holistica is also engaged in discussions regarding multiple existing and proposed destinations around the world.

"The timing is right for a venture of this type," said Hamui. "A collaborative development approach, paired with meaningful private financial resources, gives local destinations the opportunity to grow the right way."

Added Bayley: "Having more destinations, and developing them in a responsible manner, gives travelers greater vacation quality, and expands the landscape of available travel options as the tourism industry grows."

Comment – Carnival interims raise concerns over Continental Europe’s health

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 24 June 2019 24 June 2019

Carnival Corporation & plc, the world’s largest cruise shipping group, cut its earnings forecast for the 2019 financial year in its second quarter interims, citing ongoing headwinds faced by the company's Continental European brands as a key reason.

Carnival’s key brands on the Continent are Costa Crociere, which sells its cruises in virtually all over Europe (plus elsewhere, too) and AIDA Cruises, which caters for the German speaking market.

The Continental European market produced more than 4.0 million passengers in 2018 out of a global market of just under 30 million passengers. The principal Continental European source markets were Germany, with 2.2 million, Italy 0.8 million and Spain and France both 0.5 million passengers, according to CLIA figures.

The Italian economy, which is important for Costa Crociere, has been struggling for a long and the country’s GDP contracted by 0.1% in the first three months of the year compared to the same period in 2019. On the previous quarter, the figure grew by 0.1%

Italy is a major market for Costa Crociere, so a weak home market is bad news to the company. It also operates in a rather low price point, which makes it vulnerable to competition from attractively priced land based holidays.

AIDA Cruises is not a budget offering, but it has grown its fleet rapidly over the past several years as has TUI Cruises, its Hamburg based competitor. Neither company has a further newbuilding due before the next AIDA vessel in 2021 and the break in capacity growth may come at a good time.

German economy has lost momentum in recent times and on 17 June, the Bundesbank revised down its 2019 GDP growth forecast to a mere 0.6% from an earlier forecast of 1.6%. Its 2020 forecast was cut to 1.2% from 1.6%.

Meanwhile, TUI Cruises, which is jointly owned by Royal Caribbean Cruises, Ltd (RCCL) and TUI AG, said in in its second quarter interims release that the average daily rate the cruise line had obtained decreased by 0.8% to €146, year-on. In the first six months of its financial year, the decrease had been 0.3% to €148.

Going forward, the average daily rate of TUI Cruises will probably be an indicator worth looking for, at least when it comes to the assessment of the health of the German market.