Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Carnival Cruise boss banks on safety measures

Carnival Cruise boss banks on safety measures

The boss of the world's biggest cruise company has told the BBC new safety measures can help the $150bn (£113bn) a year industry to get going again.

The hugely profitable business has been brought to its knees by coronavirus after regulators around the world stopped ships from sailing to try and limit outbreaks.

Arnold Donald, the chief executive of Carnival Corporation, said "universal testing, which doesn't exist in any other industry of scale" will help mitigate the risk of an outbreak.

He added that "additional medical screenings, physical distancing, mask wearing" could be among further measures.

However, there have been outbreaks of coronavirus on some of the few cruises that have set sail recently, including the Carnival-owned Costa Diadema which has been sailing in the Mediterranean Sea.

Mr Donald concedes that "you cannot guarantee that you're going to be Covid-free no matter what regimen you put in place".

Although, he insists, "it can be managed and managed effectively" and that collaborating with authorities around the world means that has been done "reasonably effectively" so far.


A number of cruise ships were scrapped this year


The company has drafted in a raft of health and scientific advisers to draw up its protocols.

Mr Donald says "our priority, of course, is to make cruising work in a way where we have every confidence there's no greater risk than if you were engaging in similar activity shore-side".

The difficulties of achieving that were laid out by the US Centre for Disease Control (CDC), which in lifting its ban on cruise ships, said that without mitigations "cruise ships would continue to pose a greater risk of Covid-19 transmission than other settings".

Two outbreaks on cruise ships early in the pandemic have been detrimental to the cruise industry, with passengers dying after outbreaks on both the Diamond Princess, which was quarantined by Japan, and the Grand Princess, which eventually docked in California.

'Cautiously optimistic'


Traditionally, cruising has a loyal customer base and that has given Mr Arnold grounds for optimism.

He says for the second half of next year "bookings have been robust. People really want to cruise when it's safe to do so". He adds "we're cautiously optimistic we'll be sailing in early 2021", albeit a few ships at a time.

The financial imperative to get going again is clear.

Despite scrapping 18 of its 105 ships, Carnival is losing about $650m a month. After raising more than $12bn from investors, Mr Arnold says, "even if we had zero revenue, we could go through in to the summer of next year".



Other than that the money has pretty much stopped coming in.

The summer is normally the busiest time of the year but from July to August Carnival brought in just $31m. None of that was from ticket sales, and it compares to $6.5bn in the same time last year, 68% of which was from tickets.

The lack of paying passengers reflects the huge uncertainty hanging over an industry that thrives on thousands of passengers at a time, travelling in relatively close confines, two things that have been severely restricted to try and control coronavirus.

According to Monique Giese, who tracks the shipping industry for the consultancy KPMG, the cruise industry is very much at the mercy of the virus.

Back to work?


She says "it is very difficult to give any forecast for the next year. The cruise industry is going to lose the very profitable winter season specifically in the Caribbean area."

Test runs are amongst the strict conditions that have been laid out by the CDC before cruises can resume in the US.

It's the most important market for the industry, accounting for nearly 50% of the 30m passengers who take a cruise each year.

The industry has voluntarily stopped sailings in the US until the end of year. However Congress is investigating whether or not the Trump White House interfered to stop the CDC extending the mandatory ban into next year.

President-elect Joe Biden has taken a markedly different approach to tackling coronavirus but Mr Donald says "we don't have any concerns" that a new administration will lead to a new no-sail order and more financial problems.

Before the pandemic, the Cruise Line Industry Association calculated that its members supported 1.2m jobs worldwide, and when the US no-sail order was lifted its President Kelly Craighead said she was "confident that a resumption of cruising in the US is possible to support the economic recovery" whilst protecting public health.

However, ships are being scrapped by several lines, meaning that jobs will be lost. For those that remain, Mr Arnold says "it's important to get people back to work".

You can watch Arnold Donald's full interview on Talking Business with Aaron Heslehurst this weekend on BBC World News at Saturday 2330 GMT, Sunday 1630 GMT, Monday 0730 GMT and 1130 GMT and Tuesday at 1330 GMT.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Russia’s A7 Builds a State-Linked Payments Network Beyond Western Sanctions
AI’s Next Bottleneck Is Power, Not Just Nvidia Chips
Meta Raises AI Spending Target to as Much as $145bn Despite Pressure Over Returns
Danube Drought Exposes Nazi Wrecks and Pushes Central Europe’s Power System to the Brink
Joe Biden’s Cancer Has Spread Beyond His Bones, Hunter Biden Says
Why 2027 Could Be a Strong Year for Stocks—and Why the Forecast Is Fragile
Why Markets May Look Quiet in August After Big Tech Earnings
UK Drought Cuts Harvests and Raises Food-Security Fears
UFO: Pentagon Releases Video of Unidentified Object Tracked Over Middle East
Ukraine Tells Senate Republicans Its Drone War Offers a Blueprint for America
Weight-Loss Drug Boom Tests the Limits of Prescription Advertising Rules
Senate Scrutinises AI-Driven Personalised Pricing
Spain Seeks Mainland Transfers for 1,100 Children Stranded in Ceuta
Spain and Morocco Trade Blame After 72,000 Migrants Enter Ceuta
AI Is Remaking the US Economy, From GDP Growth to iPhone Prices
Europe’s Heat and Drought Are Now Disrupting Power, Shipping and Tourism
Europe’s Drying Rivers Trigger Power Cuts, Factory Shutdowns and Wildfire Emergencies
Record-Low Danube Forces Nuclear Cuts and Emergency Power Curbs
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Record-Low Danube Exposes Probable Mammoth Remains in Bulgaria
US Says It Has Carried Out Heavy Strikes on Iran After Attempted Attacks on Its Forces
The AI User Nightmare: Private Claude Conversations Leaked to the Internet
Over 24 Hours in the Air: Qantas Airbus Completes Record-Breaking Test Flight
Massive Wildfires Ravage Southern Europe: Fatalities in Greece and Evacuations Across France, Spain, and Turkey
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
Following OpenAI's Cyberattack: 'Most Companies Still Do Not Understand What Is Coming'
OpenAI Sued After ChatGPT Allegedly Discouraged Emergency Care Before Near-Fatal Embolism
Miliband Sets Climate and International Law at Centre of UK Diplomacy
Czech Central Bank Governor Rejects Early Euro Entry and Rate-Cut Pressure
Trump Readies New Tariffs as Temporary Global Levy Nears Expiry
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
×