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April 23, 2020updated 15 Dec 2021 8:14am

Covid-19 impact on UK cruise industry continues to worsen

By GlobalData

According to the Cruise Lines International Association’s (CLIA) latest report, for every 1% drop in cruising in the UK, up to 530 jobs can be lost. Each day of the suspension results in the loss of 55 direct jobs and 139 total jobs for the cruise industry in the UK.

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Furthermore, it is anticipated that a 90-day suspension of cruises in the UK will lead to a total economic loss of £2.37bn, 13,788 jobs and £746m in wages.

The industry is estimated to contribute £10bn to the UK economy each year. These figures highlight the devastating impact of Covid-19 on the UK cruise industry and its influence on the wider economy. If UK cruise companies do not receive financial support from the government, it could be very difficult for them to survive.

According to CLIA, a fifth of the 435,000 people employed in businesses supported by the cruise industry across Europe are based in the UK. If the UK cruising industry does begin to suffer, there could be wider repercussions for the entire European economy.

The length of cruise suspensions is beginning to increase

Unsurprisingly, as global travel restrictions are continuing to be extended, cruise line suspensions are following suit. UK-based cruise line Fred Olsen has confirmed that it will be extending its halt in sailings beyond May in the wake of the ongoing coronavirus pandemic.

Although the suspensions being put in place by cruise companies are undoubtedly the correct decision, the longer they need to be put in place, the harder it becomes to achieve survival. Little to no revenue, combined with the increasing burden of the high costs associated with operating a cruise liner will begin to take its toll.

Currently, it looks as if cruise suspensions could continue to extend into the months ahead. This makes it vital for cruise liners to secure finance and steady cash flows.

Government stimulus could be crucial to UK cruise survival

The boss of Fred Olsen Cruise Lines has called on the government to provide more support for the UK cruise industry. The company’s managing director praised the government for the schemes it had introduced to ease economic hardship on companies across the country but appealed for further help to be extended to the cruise industry.

The biggest names within the cruise industry are likely to have the cash reserves to survive the challenging months ahead. However, smaller companies will surely need the help of governments to stay afloat. If not supported, the impact of a failing cruise industry could damage the wider UK economy in the long term.

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Navigate your business through the ‘new normal’

COVID-19 continues to dominate headlines the world over. It has already affected our lives forever. The way we work, shop, eat, seek medical advice, and socialize will all be different in the future. Quite how different remains to be seen, but all industries must plan for multiple eventualities.  Faced with an explosion of conflicting information on how to plan and implement successful recovery strategies, decision-makers are in dire need of a single, reliable source of intelligence.   GlobalData’s COVID-19 Executive Briefing gives you access to unparalleled data and insights to successfully navigate the uncertain road to recovery across the world’s largest industries. Understand every aspect of this disruptive theme by delving into: 
  •  COVID-19 infection update, with statistics on the spread, testing by country, as well as the latest data on vaccines and therapeutic developments 
  • Economic impact overview, covering stock market indices, GDP, unemployment rates, policy responses & GlobalData’s economic recovery scorecards 
  • Sector developments, with access to sector insight summaries, cross-sector indices and the leaders and laggards in each industry vertical 
Whatever your company’s imminent strategic plans, the long-lasting impact of COVID-19 must not be overlooked. Find out how to futureproof your business operations – download our report today. 
by GlobalData
Enter your details here to receive your free Report.

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