By Aradhana Khowala CEO & Founder, Aptamind Partners
OPINION / TOURISM
HOW THE SINKING CRUISE INDUSTRY CAN STAY AFLOAT AMIDST THE STIGMA
CHALLENGE
T
he COVID-19 pandemic has upended all sectors of the travel industry and the cruise sector has suffered the worst two month span any industry could face, and it’s likely not over yet. Cruise ships have been branded “floating petri dishes” and “incubators for pathogens” and become a testament to the viciousness of the coronavirus crisis. Dozens of fatalities have been linked to cruise ships, with passengers and crew dying while at sea and after disembarking. More than 6000 passengers are still onboard ships that are unable to dock as governments block disembarkation, fearing it will spread the disease. Ports have denied vessels entry, Governments have launched criminal investigations, travellers have cancelled trips 34
JUNE 2020 TOURISM INDIA
and most cruise companies in the world have suspended operations. Even as ships will be allowed to sail again, a “No Sail Order” is etched in the minds of customers and questions have been raised about their very raison d’être. It is time for cruise industry to introspect and reinvent itself for the new world post Covid.. RE-REGISTER IN HOME SOIL Even as all cruise companies are struggling financially, they have been excluded from all Government bail outs and instead are facing backlash from society. The recent exclusion of Cruise Liners from the $2 trillion stimulus package in US is a great example. This is because most Cruise Liners are considered
tax dodgers as they fly under foreign flags to avoid taxes and wages and regulations that US and other western economies demand (federal income tax of 21 percent in US). Carnival Corporation is incorporated in Panama, Royal Caribbean is incorporated in Liberia, and Norwegian Cruise Lines is in Bermuda. While the importance of the cruise-ship industry for tourism cannot be understated, in times of crisis wider public want to only reward organisations that have contributed to the local economy. Cruise Liners should consider relocating and redomiciling back to their sponsor country so that they can become one with the society. Cruise Lines order a lot of goods in the host and visitor destinations, supports around 1.1 million jobs worldwide, with about 421,000 of those in America and it would be such a pity to let the industry suffer any more in future. DELIVER ON ESG AND ENCOURAGE MILLENIALS AS A NEW MARKET Historically the baby boomers and 60+ have been the most loyal
