new eco-newsletter
Howard Breen
Worried about wastewater discharges in coastal waters causing red tides?
Interested in eco-certification of cruise ships recognized
by the international conservation community?
Wish to become an informed, discerning cruise passenger,
travel agent, or travel writer?
...for answers to your cruise tourism research questions
look no further...
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
If you would like to receive the waves~ e-newsletter (FREE) simply
send a "subscribe" email message to rese...@oceansblue.org
A summary of articles of Part 1 of last week's dispatch
follows below (now posted to website/see below):
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
waves ~
Cruise News and Information from Around the World
compiled by the Oceans Blue Foundation
09.10.01 Part 1
Charting a New Course
for Environmentally Responsible Tourism ~
News Summary Part 1 ~
FEATURES
1a. WCEL News Release: Cruise Ship Pollution Harms The Environment Tourism
Depends Upon
1b. WCEL Executive Summary - Cruise Control: Regulating Cruise Ship
Pollution On The Pacific Coast
INDUSTRY NEWS RELEASES
2. Vancouver Port Authority - Port Activities Generate 27,500 Direct Jobs,
$1.6 Billion In GDP And $3.5 Billion In Economic Output
Also see #14 below
CRUISE NEWS FROM AROUND THE WORLD
3. Cruises pollute B.C. coast, report says - GLOBE AND MAIL
4. Cruise ship discharge rules 'aren't doing the job' - VANCOUVER SUN
5. Rare Whale Killed By Cruise Ship Last July - VANCOUVER PROVINCE
6. Company Turns Over Information Suggesting Terrorism Suspects Took
Gambling Cruise - ASSOCIATED PRESS
7. Cruise Lines Take More Hits After Terror Attacks - ASSOCIATED PRESS
8. Royal Caribbean Cruises Cuts Back - ASSOCIATED PRESS
9. Cruise Industry Painting An Optimistic Picture - ST. CROIX SOURCE
10. Terror Puts Chill On B.C. Tourism - VANCOUVER PROVINCE
11. Cruise Wreck: Renaissance Shuts Down, Mid-Vacation - ABC NEWS
12. Cruise Lines Now Pondering Ship Vulnerability - INVESTOR'S BUSINESS
DAILY
13. Tourism Industry Crippled: Americans Stay Home - ABC NEWS
14. Business Update - ROYAL CARIBBEAN
15. No Rest For Leisure Investors - NEW YORK TIMES
16. Northrop Grumman, American Classic Voyages Co. Settle Business Issues,
SEAWAVES MAGAZINE
17. S&P Places Cruise Ship's ABS Notes on Watch Neg - PR NEWSWIRE
18. European Cruise Ship Builders Face Uncertain Future - BUSINESS TIMES
19. Attacks cost P&O Princess $5m - THE INDEPENDENT
20. INS Lifts Ban On Crews Leaving Cruise Ships - THE SOURCE
21. Crew Quarantine Is Another Blow To V.I. Business - ST. THOMAS SOURCE
22. Royal Caribbean Sinks On Cancellation Fears - REUTERS
23. Blocked From N.Y., Ships Stop In Boston - BOSTON GLOBE
24. Crew actions in ship fire criticized
25. Fears Of Consumer Pullback Swamp Cruise Stocks - REUTERS
26. Global Tourism Still Seen Growing In 2001 - REUTERS
27. Maine's Seaports Are Not Immune - ASSOCIATED PRESS
28. Investors Warning - CBS MARKETPLACE
29. Cruise Lines Buffeted, May Face Consumer Turndown - EXCITE
OTHER NEWS
30. Europe Prepares For World Sustainability Summit - ENS
31. Tourism ecotax hits legal mire - TOMORROW PUBLISHING
32. To Travel Or Not To Travel: a Consumer's Dilemma - CITC
33. Workers More Than Sum Of Their Parts - FINANCIAL TIMES
34. New Environmental Protection Official - ANCHORAGE DAILY NEWS
35. EU to Call for International Aviation Fuel Tax - EXCITE
36. Sustainability Standards; Corporate Social Responsibility - ISO
37. Ship Comes In For New York Poor - FINANCIAL TIMES
38. Good Environmental Practices Can Lead to Sustainable Profits -
CONFERENCE BOARD OF CANADA
ARCHIVES
39. UNEP News Release 01/64: Sven Lindblad Receives UNEP Award
waves~ is archived on the Oceans Blue website www.oceansblue.org waves~
Newsletter Index :
http://www.oceansblue.org/bluetourism/chartacourse/cruiseship/wavesnews.html
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Part 1
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
FEATURE
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
1a. WEST COAST ENVIRONMENTAL LAW ASSOCIATION - http://www.wcel.org
27.09.01
NEWS RELEASE:
Cruise Ship Pollution Harms The Environment Tourism Depends Upon
VANCOUVER- BC's world class Inside Passage is at risk from a minimally
regulated cruise ship industry, according to Cruise Control, a report
released by West Coast Environmental Law today.
Cruise ships the size of small towns run up and down BCs Inside Passage but
unlike BCs other small towns, they face few controls on sewage and waste
disposal. said Linda Nowlan, West Coast Executive Director and author of the
report. Environmental rules, written when BCs cruise ship industry was in
its infancy, just arent doing the job anymore.
Cruise Control is a thorough review of the laws regarding cruise ship
disposal of raw sewage, hazardous waste, greywater and bilgewater as well as
garbage and other forms of pollution. The report shows that Canada and BC
have fallen far behind the US and Alaska when it comes to controlling cruise
ship pollution.
A cruise ship that sails from Seattle to Alaska cant dump sewage in
Washingtons waters and it cant dump sewage in Alaskan waters. But it can
dump raw sewage for most of the thousand kilometres it travels in BC. That s
just one example of how far we are behind the States, said Nowlan.
Cruise Control says a recent Alaskan law that toughens protection against
cruise ship pollution should be an example to our federal and provincial
governments. The law sets out specific industry restrictions including a
complete ban on dumping raw sewage.
The Alaskan law was brought in when it became clear that voluntary controls
werent working, said Nowlan. BCs at the same point. Its the same industry in
both places. Now BC needs better standards to stop cruise ship pollution and
better enforcement to ensure the industry complies.
Cruise Control points out that where rules do exist there is little real
enforcement. Enforcement of all environmental laws is a real problem in
Canada, said Nowlan. Often there arent enough staff and no routine
inspections so officials cant stop pollution before it fouls our waters.
They just play catch up after a spill occurs.
The Cruise Control report makes a number of recommendations dealing with
better standards, and enforcement and monitoring.
Copies of the report are available from West Coast Environmental Law or
on-line at www.wcel.org.
1b. Cruise Control: Regulating Cruise Ship Pollution On The Pacific Coast
Executive Summary
-----------------
Every year over one million passengers board a cruise ship to travel north
to Alaska, along BCs famed Inside Passage. Cruise ship travel on the
Vancouver to Alaska route grew at a rate of over 5% a year over the past
decade. By 2000, there were 336 cruise trips from BC to Alaska carrying
1,053,000 passengers and over 12,000 crewmembers.
And each year those passengers and crewmembers generate more waste than a
small town the size of Courtenay or Penticton.
This report looks at the effectiveness of the regulations controlling cruise
ship pollution. It also reviews the standards set in the US and Alaska to
deal with the same problem.
THE INSIDE PASSAGE
Canadas Inside Passage, renowned for its scenic beauty, is one of Canadas
most majestic and delicate ocean environments. This inland sea is home to
many rare and endangered species and contains up to 3.5% of all marine
invertebrates in the world.Millions of migrating birds find habitat in its
estuaries, marshes and bays. The Inside Passage is home to several species
of whales as well as thousands of coastal salmon runs.
Cruise ship passengers spend hundreds of millions of dollars a year to take
in the splendour of the BC and Alaskan coastlines. In turn, these tourism
values are dependent upon preserving the natural beauty and abundance of our
coastline.
SOURCES OF POLLUTION
Cruise ships plying the Inside Passage produce and discharge six principal
waste streams, all of which have the potential to damage BCs coastal
environment.
Sewage: human waste;
Grey water: wastewater from sinks, showers, galleys and laundrymay contain
detergents, cleaners, oil and grease, metals, pesticides and medical waste;
Oil and Bilgewater: fuel, oil,oily water, on-board spills collected in the
bilge located in the bottom of the cruise ships hull; Hazardous wastes:
toxic chemical waste from dry cleaning, photo processing, paint and
solvents, batteries, fluorescent lamps and other sources; Solid Wastes;
plastic, paper, wood, cardboard, food waste, cans or glass; and Air
pollution.
With an average of 2000 passengers and crew on every trip, cruise ships are
floating towns, generating similar amounts of waste, sewage and garbage.
Cruise ship pollution grows as the industry grows.
PROTECTING OUR WATERS FROM CRUISE SHIP POLLUTION:THE AMERICAN EXPERIENCE
The US and Alaskan governments have recognized the importance of
environmental protection to the continued development of the cruise ship
market and have developed an extensive set of regulatory requirements to
effectively monitor and restrict cruise ship pollution.
These regulations include the newly passed Alaskan Commercial Passenger
Vessel Regulation and Fees law developed after a voluntary pollution control
program was show to be ineffective in the face of growth in the cruise
industry.
Tighter restrictions were also imposed in the US after evidence of the
industrys poor environmental record was made public. Between 1993 and 1998,
there were 104 American prosecutions against cruise ships for pollution
offences. Prosecutions resulted in over $30 million (US) dollars in
corporate fines.
PROTECTING OUR WATERS FROM CRUISE SHIP POLLUTION:THE CANADIAN EXPERIENCE
Canada is in its infancy in protecting against cruise ship waste and
pollution. Laws and policies have not yet been updated to reflect the growth
of the industry and its increasing pollution streams. In fact it, is
difficult to determine who is polluting how much because inspection and
monitoring is minimal.
Where controls and regulations exist in the United States none exist in
Canada: there are no standards for grey water discharge and no general
prohibitions on untreated sewage discharge. American standards for hazardous
and solid wastes are considerably stronger than Canadian standards.
Inspection, monitoring and enforcement are woefully weak to non-existent in
Canada. While an industry funded inspection and monitoring system produces
charges and millions of dollars in industry fines in the US, there have been
no prosecutions of cruise ships and no fines levied over a similar period in
Canada. In many cases, the same ships and the same companies operate in
Canadian and American coastal waters.
PRESERVING THE GOOSE THAT LAYS THE GOLDEN EGG:RECOMMENDATIONS FOR CANADIAN
CRUISE SHIP LAW REFORM
1. Create a new set of Cruise Ship Pollution Prevention regulations under
the Canada Shipping Act targeting sewage and grey water particularly.
2. Create comprehensive controls for grey water if comprehensive
pollution prevention regulations are not passed, at a minimum new
regulations are required to capture the entire grey water waste stream.
3. Harmonize Canadian regulations with American standards; one set of
standards should apply to the entire BC to Alaska cruise ship route.
4. Ban all cruise ship discharges in sensitive areas; key natural
habitat, ports and other sensitive areas should be completely protected from
cruise ship discharges.
5. Establish and strengthen effective inspection and enforcement systems;
compliance depends upon effective enforcement.
Copies of Cruise Control are available from West Coast Environmental Law or
on-line at www.wcel.org.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
INDUSTRY NEWS RELEASE
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
2. VANCOUVER PORT AUTHORITY - http://www.portvancouver.com
24.09.01
Port Activities Generate 27,500 Direct Jobs,
$1.6 Billion In GDP And $3.5 Billion In Economic Output
Vancouver: Port of Vancouver activities generate 27,500 direct jobs,
according to a new study released by the Vancouver Port Authority. When
multipliers are factored in, the total employment from port operations
including direct, indirect and induced climbs to 62,000. The study,
conducted by Mike Tretheway, former UBC professor and one of Canadas leading
transportation economists, also concluded the port generates $1.6 billion in
Gross Domestic Product (GDP) and $3.5 billion in economic output.
This study confirms the value of the port as a major economic generator of
employment for Greater Vancouver, the province and indeed, the Canadian
economy, said David Stowe, Chairman, Vancouver Port Authority. In addition
to creating substantial employment, port operations are a major contributor
to all levels of government in taxes paid and other revenue generated.
Activities at the port contribute $366 million in federal taxes, $201
million in provincial taxes and $55.5 million in municipal taxes.
Every ship arriving at our port means jobs here and elsewhere in the
country, said Captain Gordon Houston, President and Chief Executive Officer,
Vancouver Port Authority. While these numbers are indicative of the strength
of the port, it is important we work to maintain our competitive advantage
with reliable, cost-effective service and facilities in a business
environment where there are many ports to choose from.
The port has two main sectors of direct employment: maritime cargo and the
cruise industry. The maritime cargo sector accounts for 19,700 direct jobsor
more than 70 per centwith $1 billion in wages, $1.2 billion in GDP and $2.7
billion in economic output. The value of cargo shipped through the port is
$29 billion. The cruise industry generates 4,500 direct jobs, $177 million
in wages, $228 million in GDP and $508 million in economic output.
Maritime cargo generates 14,000 direct jobs in total in B.C. It generates
4,700 direct jobs in Vancouver alone as well as 1,000 in Delta and 4,500 on
the North Shore.
Capital investment by the Vancouver Port Authority and its tenants is a
considerable generator of employment, wages, GDP, and economic output.
Planned investments by the Vancouver Port Authority and its tenants of $2
billion in Western Canadian infrastructure over the next 10 years will
continue to strengthen the economy, said Houston. Future investment plans
without considering multiplier impacts will mean 1,300 direct jobs annually,
$54 million in wages, $58 million in GDP and $140 million in economic
output.
The Port of Vancouver is Canadaąs largest and most diversified port, trading
more than $29 billion in goods with more than 90 nations. In 2000, a record
76.6 million tonnes of cargo were shipped through the Port of Vancouver.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
CRUISE NEWS FROM AROUND THE WORLD
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
3. GLOBE AND MAIL - www.theglobeandmail.com
02.10.01
BYLINE: JANE ARMSTRONG
HEADLINE: Cruises pollute B.C. coast, report says
Ocean liners on their way to Alaska
dump an estimated 794,936 litres of sewage a day
VANCOUVER The rich marine life and spectacular scenery of British
Columbia's fabled Inside Passage are threatened by the sewage, dirty
water and other polluting byproducts left by cruise ships sailing the
West Coast route to Alaska, a new report says. Last year, more than
one million passengers booked cruises on more than 300 voyages that
traced the coastal route. The popular trips have been growing steadily
for almost 20 years and last year contributed about $508-million to
_ the B.C. economy.
But according to a report by the West Coast Environmental Law
Association, Canadian laws that govern cruise-ship emissions are weak
in general and non-existent in some areas. And the controls that are
in place are not adequately monitored or enforced.
It's estimated that on a one-week trip, a typical cruise ship
generates an estimated 794,936 litres of sewage a day. During the peak
summer season, with an average 20 ships carrying 2,000 passengers and
crew each, the daily discharge is about 9.5 million litres, the
equivalent to the entire amount of sewage discharged in the city of
Juneau, Alaska, the report says.
Except for 10 designated areas, cruise ships sailing this passage are
free to discharge sewage into most parts of the Canadian section of
the route. And there are no regulations concerning the dumping of
so-called grey water into Canadian waterways.
Grey water refers to wastewater from sinks, showers, dishwashers and
laundry facilities, and it can contain detergents, oil, pesticides and
medical waste. In addition to sewage and grey water, cruise ships also
discharge fuel and toxic chemicals from dry-cleaning and photo
processing.
The Inside Passage is the stretch of ocean that hugs the western
coastline north from Vancouver to Alaska. Millions of migrating birds
have habitats in its estuaries, marshes and bays. It is also home to
several species of sea mammals -- including orcas and grey whales --
and the world's greatest variety of sea stars.
The report says Canada is not doing enough to control the pollution
generated by the ships. Currently, cruise ships in Canadian waters
fall under the Canada Shipping Act, administered by Transport Canada.
In January, the act was changed to restrict sewage dumping in 10 B.C.
waterways, but the report says the new rules are not broad enough nor
adequately enforced.
Transport Canada spokesman Rod Nelson said Canada is updating its
shipping act and a working group is looking at toughening up
cruise-ship regulations.
However, the report suggested that Canada follow the lead of Alaska,
which, last summer toughened cruise-ship regulations to allow the
state to test and monitor sewage and grey water from the ships' sinks
and showers. The new Alaska law is funded by a $1 (U.S.) surtax on
each passenger.
The alternative, which allows the industry to regulate itself with
voluntary codes of conduct, has not worked, said Linda Nowlan, one of
the report's authors.
"Canada should be emulating [the Alaskan] law," she said.
"In our opinion, voluntary guidelines aren't as effective as legal
requirements."
She added that there is strong evidence that cruise ships flout
voluntary controls. Alaska reacted after a study found that 79 out of
80 samples taken from ships that were part of a voluntary monitoring
program exceeded permissible levels of coliform bacteria.
John Hansen, president of the Vancouver-based North West Cruise Ships
Association, said the industry agrees that Canadian cruise-ship
regulations should be harmonized with Alaska's.
He also noted that nearly one-quarter of its 22 ships that travel the
Inside Passage have water-treatment devices aboard that bring
discharged sewage water to near drinkable quality.
Tainted waters
With an average of 2,000 passengers and crew in every trip, the six
sources of cruise-ship pollution increase as the industry grows.
Air Pollution
Sewage
Human waste.
Grey water
Wastewater from sinks, showers, galleys and laundry; may contain
detergents, cleaners, oil and grease, metals, pesticides and medical
waste.
Oil and bilge water
Fuel, oil, oily water, on-board splits collected in the bilge located
in the bottom of the cruise ship's hull.
Hazardous wastes
Toxic chemical waste from dry cleaning, photo processing, paint and
solvents, batteries, fluorescent lamps and other sources.
Solid wastes
Plastic, paper, wood, cardboard, food waste, cans or glass.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
4. The Vancouver Sun - www.canada.com
Business Section
28.09.01
BYLINE Alan Daniels
HEADLINE: Cruise ship discharge rules 'aren't doing the job'
British Columbia's Inside Passage is at risk of pollution from cruise ships
because Canadian and B.C. regulations are weaker than U.S. and Alaska
regulations, a report released Thursday by West
Coast Environmental Law says.
"Cruise ships the size of small towns run up and down B.C.'s Inside Passage
but unlike B.C.'s other small towns, they face few controls on sewage and
waste disposal," said Linda Nowlan, West
Coast executive director and author of the report, Cruise Control.
"Environmental rules, written when B.C.'s cruise ship industry was in its
infancy, just aren't doing the job any more."
The report claims Canada and B.C. have fallen far behind the U.S. and Alaska
in monitoring and preventing cruise ship pollution.
"A cruise ship that sails from Seattle to Alaska can't dump sewage in
Washington's waters and it can't dump sewage in Alaskan waters. But it can
dump raw sewage for most of the 1,000 kilometres it travels in B.C. That's
just one example of how far we are behind the States," Nowlan said.
Cruise Control says a recent Alaskan law that toughens protection against
cruise ship pollution should be an example to the federal and provincial
governments.
The law sets out specific industry restrictions including a complete ban on
dumping raw sewage.
"The Alaskan law was brought in when it became clear that voluntary controls
weren't working," said Nowlan. "B.C.'s at the same point. It's the same
industry in both places. Now B.C. needs
better standards to stop cruise ship pollution and better enforcement to
ensure the industry complies."
According to an economic impact report released this week by
Vancouver Port Authority this week, the cruise industry generates $508
million in economic output and 4,500 direct jobs.
Northwest CruiseShip Association president John Hansen defended the
industry's environmental record.
"All the ships in the fleet have waste water treatment systems that are
equivalent and in many cases better than cities and towns in B.C. and
Alaska," he said in an interview, Thursday.
In addition, he said, cruise line operators have pledged to spend $100
million in the next two years on new pollution prevention equipment and
technology.
"Also, we have made a commitment that whatever operating practises are in
Alaska, we will live by the same practices in B.C. waters.''
The environment law organization's report makes a number of recommendations
including:
- Creation of cruise ship pollution prevention regulations under the Canada
Shipping Act.
- Harmonizing Canadian and U.S. regulations so one set of rules applies to
the entire B.C/Alaska coast.
- Establishing inspection and enforcement systems.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
5. THE VANCOUVER PROVINCE - http://www.canada.com/
27.09.01
Rare Whale Killed By Cruise Ship Last July
JUNEAU, Alaska -- Fatal injuries to an endangered humpback whale near
Glacier Bay National Park this summer were caused by a cruise ship, a park
official has confirmed, and Alaska is now talking with the company.
The 15-metre pregnant whale was found floating inside park boundaries on
July 16. Its skull was so heavily damaged that park officials immediately
determined that a large vessel had killed the whale instantly.
Jed Davis, Glacier Bay's deputy superintendent, speculated at the time the
vessel was a cruise ship because cruise ships are the most prevalent large
vessels in the area. He confirmed in an interview last week that "it was a
cruise ship" that killed the whale. He would not name the cruise line.
Steve Skrocki, the assistant U.S. attorney assigned to the case, said this
is a criminal investigation.
** Humpbacks are classified as endangered species and killing one is
illegal.
U.S. law says any vessel that hits any object within Glacier Bay park must
report it to the park within 24 hours, Davis said, adding that no ship
reported hitting a whale around the time the dead whale was found.
Princess Cruises said in a statement that its Dawn Princess ship spotted two
humpbacks near the vessel after leaving Glacier Bay on July 12.
"While we have no clear evidence that our ship and a whale came into
contact, we cannot exclude this possibility either," the statement said.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
6. ASSOCIATED PRESS - www.associatedpress.com
27.09.01
Company Turns Over Information Suggesting Terrorism Suspects Took Gambling
Cruise
TAMPA, Fla. -- A gambling cruise line has turned over photographs and
documents to FBI investigators after employees said they recognized some of
the men suspected in the terrorist attacks as customers.
Michael Hlavsa, chairman of SunCruz Casinos, said Wednesday two or three
men linked to the Sept. 11 hijackings may have been customers on a ship
that sailed from Madeira Beach on Florida's Gulf Coast.
The cruise line also is turning over to the FBI video from a Port Canaveral
cruise ship of a man who an employee says resembled a suspect.
Hlavsa said one name on the passenger list from a Sept. 5 cruise is the
same as a suspect's
The FBI has not confirmed the men's identities and the cruise line is
declining to give names. An FBI spokeswoman declined to comment.
The ships, which carry several hundred people a day on six-hour tours, have
video security for their hundreds of slot machines and gambling tables.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
7. ASSOCIATED PRESS - http://www.newsOK.com
27.09.01
Cruise Lines Take More Hits After Terror Attacks
by Catherine Wilson, AP Business Writer
MIAMI, Fla. -- The cruise industry is absorbing fresh hits from the
terrorist attacks as Renaissance Cruises shuts down, Royal Caribbean
Cruises plans layoffs and Princess Cruises docks its oldest ship for six
months.20 Without warning, Renaissance ordered all 10 ships into the nearest
ports overseas Tuesday, arranged to fly passengers home, canceled flights
for the next wave of passengers and said it planned to file for bankruptcy
protection.
While the demise of debt-ridden Renaissance was no surprise to analysts,
the moves by Royal Caribbean and Princess were the first significant
cutbacks announced by industry leaders since the Sept. 11 attacks. Carnival
Cruise Lines has yet to make major changes.
"New reservations are certainly below normal volumes," said Robin Farley,
leisure travel analyst with UBS Warburg. "It's a question of how long that's
going to go on for. I don't think anybody has an answer to that. It's
unprecedented."
Ships with the major lines have been sailing at 90-plus percent capacity
since the attacks, which sounds impressive compared to the 50 percent
capacity many airlines are experiencing. But cruise rates commonly climb
above 100 percent when passengers occupy bunk- bed style upper berths.
Royal Caribbean plans to disclose layoff plans within three weeks as part of
a comprehensive cost review.
In the only other ship idling besides Renaissance vessels, Princess decided
to dock its Pacific Princess rather than sail Middle Eastern routes from
November through April.
"It's an interesting move, and it's a move that I think Carnival and Royal
Caribbean would be willing to make if the situation calls for it," Farley
said.
For now, several lines are canceling European cruises next summer and
shifting ships to North America, counting on higher demand closer to home.
Trouble in the cruise industry is expected to last as long as travelers are
jittery about air travel because about half of all cruise passengers fly
from home to reach their ships.
Discounts, the industry's traditional response to downturns, are on the
way, however.
Travel agent Bobbie Hamilton of the Tampa suburb of Ruskin is receiving
about 75 faxes a day offering cruise savings or booking incentives.
"They're doing some pretty nifty ones," she said. Norwegian Cruise line
parent "NCL is coming up with all sorts of fancy deals, and Carnival says,
'You book three people and we'll give you an extra $150 in commission.'
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
8. ASSOCIATED PRESS - www.associatedpress.com
27.09.01
Royal Caribbean Cruises Cuts Back
The cruise industry is absorbing fresh hits from the terrorist attacks as
Renaissance Cruises shut down, Royal Caribbean Cruises planned layoffs and
Princess Cruises docked its oldest ship for six months. The cruise industry
is absorbing fresh hits from the terrorist attacks as Renaissance Cruises
shut down, Royal Caribbean Cruises planned layoffs and Princess Cruises
docked its oldest ship for six months.
Without warning, Renaissance ordered all 10 ships into the nearest ports
overseas Tuesday, arranged to fly passengers home, canceled flights for the
next wave of passengers and said it planned to file for bankruptcy
protection.
While the demise of debt-ridden Renaissance was no surprise to analysts,
the moves by Royal Caribbean and Princess were the first significant
cutbacks announced by industry leaders since the Sept. 11 attacks. Carnival
Cruise Lines has yet to make major changes.
"New reservations are certainly below normal volumes," said Robin Farley,
leisure travel analyst with UBS Warburg. "It's a question of how long
that's going to go on for. I don't think anybody has an answer to that.
It's unprecedented."
Ships with the major lines have been sailing at more than 90 percent
capacity since the attacks, which sounds impressive compared with the 50
percent capacity many airlines are experiencing. But cruise rates commonly
climb above 100 percent when passengers occupy bunk-bed-style upper berths.
Royal Caribbean plans to disclose layoff plans within three weeks as part
of a comprehensive cost review. The cruise line has a major reservations
call center in Wichita.
Internet retailer Amazon.com has opened an online travel store to offer
booking information, discounted travel, cruise vacations and travel-related
products.
The Amazon.com Travel site provides information from Expedia, such as
airline updates, check-in procedures, flight status and tourist
attractions. Users will also be able to get discounted airline rates
through Hotwire.com and book cruises through National Leisure Group's The
Vacation Store.
The travel industry, including airlines and tourist attractions, has
reported declines since the Sept. 11 terrorist attacks. Seattle-based
Amazon.com decided to go ahead with the online store because customers still
need trip information, spokeswoman Carrie Peters said.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
9. ST. CROIX SOURCE - http://www.onepaper.com
27.09.01
Cruise Industry Painting An Optimistic Picture
by Source Staff
Two weeks after the terrorist attacks on the mainland, cruise line industry
officials are keeping an optimistic eye on the start of the cruise season in
November.
The International Council of Cruise Lines is a non-profit trade association
based in Virginia that represents the interests of 16 cruise lines in the
North American market. Its president, Michael Crye, told the British
Broadcasting Company on Wednesday that despite terrorism's crippling effects
on mass travel, he doesn't believe Caribbean cruises will be severely
impacted in the coming months.
"We anticipate that the ships that will be going from South Florida and San
Juan to the Caribbean destinations should not be affected substantially,"
Crye said.
Because of the perception that the Caribbean is a traditionally friendly
region, Crye said, American vacationers won't be as averse to leaving home
to go that route. And to circumvent the new fear of flying and the
logistical complications of doing so, he said, two major cruise lines,
Carnival and Royal Caribbean, will be setting sail from new "drive-up
markets," such as Galveston and Houston in Texas, New Orleans and Tampa.
This approach, Crye said, will not only ease the need for cruise passengers
to fly to their embarkation points and back, but also reduce the overall
cost of a cruise because no airfare will be involved.
The Caribbean "will be one of the best vacations," Crye said.
Adding to the industry's rosy picture for the region are recent capacity
reports from major cruise lines. For departures Sept. 19-23, Carnival Corp.
ships operated at an occupancy level of 97.7 percent, according to the
company. During this period, the company's six fleets -- Carnival, Holland
America, Windstar, Seabourn, Costa and Cunard -- carried a total of 58,718
guests.
"The strengthening in occupancy levels is very encouraging and clearly
indicates that consumers are resuming their vacation plans, including
returning to the airways," Carnival Corp. chairman Micky Arison said in a
release. Despite the increased security at airports and seaports, he said,
delays have been less than anticipated, and consumers are demonstrating a
desire to begin traveling again.
"It's apparent that, based on these numbers, Americans are heeding the
advice of our elected officials and returning to their normal activities,
which includes taking vacations," Arison said.
Royal Caribbean Cruises Ltd. announced that occupancy on its Royal Caribbean
International and Celebrity Cruises ships was 92 percent for Sept. 20-24.
And it was 97 percent for the company's seven-night Caribbean cruises,
according to a company release.
"Concerns regarding the safety of traveling are easing on a daily basis,"
Richard Fain, chairman of Royal Caribbean Cruises, said. "We will do
whatever we can as a company to speed that recovery."
That recovery is crucial to the Virgin Islands, particularly the St.
Thomas-St. John district, where earlier projections envisioned 1.9 million
passengers visiting this calendar year, with two million expected in 2002.
Those passengers and the ships' crew pump $1.2 billion into the islands'
economy, mainly in the retail and tour sectors.
On Tuesday, one cruise line halted all operations and filed for federal
bankruptcy protection -- but it was a company offering itineraries in the
Mediterranean and the South Pacific, not in the Caribbean. Renaissance
Cruises, a privately held firm based in Fort Lauderdale, Fla., operated
eight ships.
It was the second indication this week that the Mediterranean and Asia's
loss as a result of heightened security concerns may be the Caribbean's
gain. On Monday, it was announced locally that the Norway, which had been
scheduled to leave the Eastern Caribbean after two decades to begin service
in Asia this winter, will instead return to the region for at least another
year, continuing to call weekly at St. Thomas and St. John.
There are 719 cruise ship calls scheduled for St. Thomas-St. John this
coming season, while St. Croix is expected to see about 110.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
10. THE PROVINCE - http://www.vancouverprovince.com
27.09.01
Terror Puts Chill On B.C. Tourism
by Kent Spencer
Tourism in B.C. has been "dramatically" hurt following the events of Sept.
11, the minister responsible for B.C. communities said yesterday.
George Abbott said tourist visits are down all over B.C. due to the
terrorist attacks in the U.S.
"There has been a very dramatic impact on tourism," he said. "Attendance at
the Royal B.C. Museum is way down."
Abbott said many other business are affected, including "transportation,
technology and a whole range of areas."
Visits to the Capilano Suspension Bridge, a popular North Vancouver
attraction, are down 30 per cent.
Capilano marketing vice-president Sue Kaffka said the drop in airline
business "is killing us."
"Ninety per cent of our guests are from outside B.C.," she said. "Tour
operators are cancelling."
The suspension bridge, which sways 70 metres above the canyon, averages
2,800 people daily in September.
At the Royal B.C. Museum in Victoria, spokesman Chris Higgins said fewer
people are taking in the exhibits.
"You can see it in the lobbies," he said. "We don't have figures, but in the
next few months we're certainly going to be affected."
Abbott said he doesn't know the full impact of the tourism slump, but
predicts it will hurt cities in B.C.
- Some 1,500 mayors and councillors attending the Union of B.C.
Municipalities convention in Vancouver are used to getting fewer dollars
from the province.
The NDP chopped funding by $113-million in 1996. Currently, cities receive
about $130 million each year.
Delta Mayor Lois Jackson predicted the provincial transfer payments "will be
cut, bigtime."
"They have to because the cross-border traffic is down so much," she said.
Abbott said the full financial impacts are not yet known: "It's very
difficult to assess where this is going to end up."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
11. ABC NEWS.COM -http://www.abcnews.com
26.09.01
Cruise Wreck
Renaissance Shuts Down, Mid-Vacation
Some 2,000 cruise-ship passengers are being dropped off in ports around the
world as Renaissance Cruises shut down Tuesday night.
In a statement released on its Web site late Tuesday, the company said it
had ceased all cruise operation effective that day. "Passengers currently
onboard our vessels are being disembarked and travel arrangements are being
made to get them safely home." The company said it is filing for bankruptcy
protection.
The move comes as the travel industry is feeling severe repercussions from
the Sept. 11 terrorist attacks. Airlines have laid of tens of thousands, and
hotels are finding many of their rooms empty as would-be travelers decide to
stay closer to home.
Renaissance had attempted to alter its plans in some cases, it apparently
combined cruises to fill some ships while leaving others in port but it
seems that was not enough to save the company.
A message on the company's toll-free number said information about its
bankruptcy case would be posted on its Web site soon.
Many of the passengers are in the Mediterranean. But some others are in even
more remote locationsand their families are worried.
Worried About Mom in Tahiti
"Renaissance isn't really giving us any information," said Christine
Urbanski, whose mother, Pat, was on a Renaissance cruise through Tahiti.
"They're halfway around the world and I don't know where my mom is."
Urbanski said the hotline number posted by the company led her to the
recording. Unable to reach a live person at the cruise company, she called
the State Department for help.
It was not immediately clear if any Renaissance ships remained at sea, or if
all passengers had disembarked. It is also unclear if any passengers being
disembarked will be offered refunds. The recorded message said passengers
who have booked future cruises with them should contact their credit card
companies or travel agents.
Urbanski fears her mother, who spent only one day on board the ship for what
was to be a 10-day cruise, will be out the thousands of dollars she paid for
the trip.
Kind Treatment, But No Information
She said she chatted with her mother, a 62-year-old Florida resident, online
shortly after the company made its announcementbut her mother couldn't talk
long, as many other passengers wanted to use the computer to contact their
families.
"She said they were being treated very well by Renaissance employees. They
were being nice," said Urbanski. "They just weren't telling them any
information."
Urbanski said her mother decided to go ahead with the trip after the
terrorist attacks despite concerns from the rest of the family. She and her
father, who died in 1999, really wanted to visit Tahiti, but never had the
chance.
That, she said, may have firmed her mother's decision to make the trip
despite all the questions since Sept. 11.
Now, she just wants mom to come home.
"I think this trip was not meant to be from the beginning," she said.
Troubled Travel Industry
Renaissance is not alone in its troubles. According to The Associated Press,
Miami-based Royal Caribbean International and London-based Princess Cruises
are altering their routes in response to the downturn in tourism sparked by
the Sept. 11 terrorist attacks.
According to the Los Angeles Times, Renaissance had 450 employees in its
Fort Lauderdale headquarters, and 3,000 crew members on its ships. The paper
also said layoffs were expected at Royal Caribbean.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
12. INVESTOR'S BUSINESS DAILY - http://www.investors.com
25.09.01
Cruise Lines Now Pondering Ship Vulnerability
by Peter Benesh
On Sept. 11, cruise ships around the world went on high alert. Lumbering and
defenseless, symbols of Western prosperity, they are easy targets for
terrorists.
The USS Cole, a state-of-the-art warship, showed how vulnerable a ship can
be. On Oct. 12, 2000, the Cole was refueling alongside a pier in Aden,
Yemen. A small boat came alongside, manned by two suicide bombers later
linked to Osama bin Laden. The explosion nearly sank the Cole. Seventeen
sailors died.
ACHILLE LAURO
The last time hijackers seized a liner was Oct. 7, 1985, when four armed
Palestinian terrorists took the Italian cruise ship Achille Lauro in
Alexandria, Egypt. They killed Leon Klinghoffer, 69, a disabled U.S.
citizen. President Reagan mobilized Delta Force and Seal teams.
The events of Sept. 11 have made the cruise ship industry boost its
security. Cruise companies have taken steps about the same as airlines.
But protecting a ship is harder than protecting a plane, and determined
terrorists can get through, says retired Rear Adm. Stephen Loeffler,
director of the regional security education program at the Naval
Postgraduate School in Monterey, Calif.
SECURE PORTS
"In many countries there is fairly tight port security. You could not have
access to the berths. You couldn't drive a truck up alongside without having
it checked," he said.
The risk comes in international waters, he says. "In international waters,
which is the vast majority of waterways, there's no way you could protect a
cruise ship," Loeffler said.
"If you're talking about a boat coming alongside at high speed, a cruise
ship has no means to protect itself," he said. "The captain must keep crew
on watch on all four points of the compass to see who is approaching. The
crew could keep fire hoses ready on deck. A high-pressure blast may be
strong enough to knock a man out of a speedboat."
But it took more than fire hoses to defend Sri Lankan ship Pride of the
South on Sept. 17, according to The Associated Press. Tamil Tiger suicide
bombers in 20 explosive-laden speedboats attacked the ship, which was
carrying 1,200 soldiers.
The troops fired on the small craft. The Sri Lankan air force and navy came
to the rescue. Two of the speedboats were blown up. The rest escaped. The
battle lasted 3 1/2 hours.
NEED FOR INTELLIGENCE
Cruise ship captains need to get good intelligence from the U.S. government,
Loeffler says. "If there's a serious and credible threat, the company has to
transmit those threats to its ships."
Modern vessels could survive a suicide bomb attack, Loeffler says. "Naval
architects have learned a lot since the days of the Titanic. Ships are
compartmentalized, with automatic closing doors, and that reduces the
chances of sinking," he said.
Cruise ships fit many of the requirements by which terrorists pick targets.
"They are low-risk targets," said Dave Brannan, analyst with the Rand Corp.
in Washington, D.C. "And terrorists want to use tactics that have been
effective in the past," like the attack on the Cole, he said.
Cruise ships are attractive for their symbolic value, experts say. They
imply wealth. They imply intrusion in foreign lands. They carry many
Americans. Ships sailing from the U.S. carry 90% U.S. passengers, says
Michael Crye, president of the International Council of Cruise Lines.
Changing Itineraries
"The cruise industry is working diligently. Various port officials have
security plans in place, including waterside security and security
perimeters," he said.
Some lines have changed itineraries, moving embarkation and disembarkation
from New York to Philadelphia and Baltimore, he says.
What about moving ships away from Mediterranean ports? "We're working
closely with security officials to determine if that is necessary," he said.
All ships must meet international standards under the Safety of Life at Sea
Convention, he says. "Those lay out requirements for not only damage
stability but also for containing fire within one zone. Each cruise ship has
a large number of trained firefighters and damage stability experts. The
engineers are highly trained," he said.
"But specific security measures are a cruise-line by cruise-line and
ship-by-ship effort," Crye said.
"The industry works with the State Department and Immigration and
Naturalization Service to screen crews," he said.
The risk at sea was not lost on investors. Shares of Miami-based Royal
Caribbean Lines (RCL) have fallen more than 50% since Sept. 11. Shares of
Carnival Corp. (CCL), which owns Costa Cruises, Holland America, Windstar
Cruises, Seaborne Cruise Line and Cunard Line, are down 30%.
CANCELLATIONS SLOWING
Carnival is sharing data with law enforcement agencies, says company
spokesperson Jennifer de la Cruz. "We're at the highest level of security
under our security plan. We're controlling the flow of people and things on
and off our vessels. But the industry has been strictly cautioned not to
talk in terms of specifics," she said.
The firm's biggest ship, the Carnival Victory, holds 2,758 passengers and
about 1,000 crew, she says. "We had significant cancellations right after
Sept. 11, but the decrease in reservations is improving now."
Between Sept. 12 and 17, Carnival ships that would have been full were at
78%. Bookings ran at just 60% of normal last week, says de la Cruz.
MEDITERRANEAN MOVES
Privately held Renaissance Cruises, based in Fort Lauderdale, Fla., plans to
move ships away from high-risk ports in the Mediterranean, says spokesman
Brad Ball. "We're in the process of changing itineraries away from Egypt,
Athens and Istanbul. But this is such a recent occurrence, we're looking at
different options," he said.
The cruise lines are working together on the new risk, he says. "Our
security force is in contact with other major cruise lines. We've beefed up
security procedures significantly."
One reason for cancellations is fear of flying, says Joe Hovorka, a cruise
line analyst with Raymond James Financial in Tampa, Fla. "Some people don't
want to fly, and 60% of people must fly to get to their ships."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
13. ABC NEWS - www.abcnews.com
19.09.01
Tourism Industry Crippled
Americans Stay Home, Tourist Spots Feel the Effect
by Jeffrey Kofman
-- "It's so empty here," says one Miami Beach hotel operator. "It's as if a
bomb went off."
And one week after the terrorist attacks on the World Trade Center and the
Pentagon, the reverberations are being felt by businesses across the
country. Travel and tourism have been especially crippled.
The fall is a busy convention season in Miami, but suddenly it is quiet. At
800 rooms, the Loews Miami Beach is the second largest hotel on the beach.
Eight days ago, when the attacks happened, the hotel was full. A week later,
the occupancy rate was 7 percent; it's 12 percent today.
"I've lived on Miami Beach for 20 years," says Jeff Abbatichio of the Loews
hotel, "and other than hurricanes and the aftermath of hurricanes, I've
never seen it like this."
Miami's tourist board estimates cancellations are costing city businesses
$15 million a day; they've lost $100 million so far. For now, the Loews is
keeping its staff busy with maintenance and special repairs.
But it's harder for cab driver Ricardo Bostus to keep busy. He struggles to
stay awake in his cab while he waits in the heat outside the hotel's front
door. After four hours on shift he hasn't had a single passenger. The day
before, he carried three passengers during his 12-hour shift. He's
frightened.
"I don't know what I'm going to do, I have to work to pay the lease and I
don't know how I'm gonna pay the bills," he says.
Broadway Shows Close, Vegas Sees Layoffs
Wherever you look, you'll hear similar tales. On New York City's Broadway,
four shows that were struggling to stay alive will close this weekend: The
Rocky Horror Show , Stones in His Pocket, A Thousand Clowns, and If You Ever
Leave Me, I'm Going With You.
"It's devastating for the whole industry," says Stones producer Leonard
Soloway, "because it's not just about one show failing. It's also about the
theater owners who are taking an enormous loss, and also the musicians,
stagehands, hundreds of people are going to be thrown out of work."
People are already out of work in one of the country's biggest tourist
destinations, Las Vegas. So far 500 layoffs have been announced, but if the
slump doesn't end soon, the numbers are sure to grow. It's easy to see why.
Rob Powers of the Las Vegas Convention and Visitors Authority said 242
conventions and meetings have been canceled in the last week, which
represents 51,000 people who will not be visiting the city and more than $55
million in lost revenue.
Despite these grim reports, some tourist operators say there are already
signs of a small turnaround. Las Vegas reports bookings for the upcoming
weekend are up from last weekend, although still down for the season.
It is clear that America's travelers are wrestling with two fears: a fear of
flying and a fear of what happens next. As people search for a sense of
security, they are finding that the most secure place is home.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
14. ROYAL CARIBBEAN - http://www.royalcaribbean.com
17.09.01
Business Update
MIAMI - Richard Fain, Chairman and CEO of Royal Caribbean Cruises Ltd.
(NYSE, OSE: RCL) today provided some comments on the current situation and
how it has impacted the companys operations.
"We are devastated by the losses that so many of our fellow Americans have
suffered," Fain said. "While it is hard to focus on business as usual, we
know that it is important to do so, and we are determined to do just that."
"I know the business community would like to know what these events mean to
our company. While it is obvious that the world is a very different place
than it was a week ago, its hard for us to fully assess what this means to
our company. Nevertheless, we can provide some preliminary information that
we hope is helpful."
"The biggest immediate challenge we have faced has been with air
transportation. With the closure of the nations airports, there were many
difficulties in getting our guests to and from the ships over the past week.
We were moved by the determination of some of our guests to get to their
ships. Some people drove (as much as 3,500 miles), and we were eventually
able to find flights for many of the rest. Despite the transportation
challenges, we had more than 30,000 guests embark on our ships for cruise
vacations over the last several days. These sailings were about two-thirds
full. Those ships that operate in heavy drive-in markets operated at close
to 90% occupancy. With the return of air transportation, we expect this week
to be much better and are already seeing this with those ships that have
embarkation today."
"It will take us some time to figure out the total financial impact of these
events, but we have some preliminary figures for the past week. The biggest
cost was loss of revenue, but we also had extra security costs, lodging and
transportation costs, etc. Our best guess at the moment is that the
financial impact for the week following September 11 will be in the range of
$20 million to $25 million. We will provide additional guidance on the
financial impact going forward as more information becomes available."
"Obviously, the fear of terrorism is not good for tourism. However, even in
the midst of this horrific crisis, people continue to book cruises in
significant numbers. In fact, on Wednesday, Thursday and Friday we took
approximately 50% of bookings we took during the same three days in the
prior week. In addition, the flow of deposits on new bookings continues to
be surprisingly strong. For this weeks sailings, fewer than 1,000 guests
have cancelled their bookings. While these results are positive given the
circumstances, it is far too early to draw firm conclusions from this
information, and we will need to continue to monitor the bookings cycle
carefully."
"It is a difficult time for all Americans and our friends. Everyone will be
challenged in the weeks ahead. But the spirit within Royal Caribbean
International and Celebrity Cruises is strong, and the determination to
succeed greater than ever."
"God Bless America."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
15. NEW YORK TIMES -http://www.nyt.com
17.09.01
No Rest For Leisure Investors Gaming, Lodging And Cruises All Battered Down
by William Spain
If they didn't know it already, investors in gaming, lodging and cruise
companies learned Monday that this is no time to relax.
>From Harrah's Entertainment to Hilton and Carnival to MGM Mirage, leisure
travel specialists were reeling from flight cancellations and traveler
nervousness - on top of already challenging economic conditions.
Of the three sectors, gaming was probably holding up best as at least some
big operators managed to stay off 52-week lows.
Even so, diversified gaming operators got hurt, although not as badly as
those with the most exposure to Las Vegas. The majority of the gambling
center's customers arrive by plane; air transportation is the city's
economic lifeline and as long as it disrupted - and Americans are reluctant
to fly -- the pain is apt to continue.
Business at MGM Mirage is "just awful," said spokesman Alan Feldman.
Occupancy levels at the company's core Las Vegas properties "about half what
it would be normally. In 11 years out here, I can't recall ever seeing
anything like this."
Fortunately, "the cancellations for the most part are confined to the next
couple of weeks. We are hopeful that this is going to be a short-term
problem and one that see some resolution quickly. But the truth is, it's
anyone's guess."
Shares in MGM Mirage (MGG: news, chart, profile), which had been staying
above lows for much of the session closed down over 22 percent, or $6.31, to
a 52-week low of just $22.
Over at Harrah's (HET: news, chart, profile), which was off over 14 percent,
or $4.11, to $24.60, "the primary impact has been in Nevada - both in Las
Vegas and in Northern Nevada," the latter of which had already been
suffering from the effects of the economic slowdown in Northern California,
said spokesman Gary Thompson.
As of Friday, he said, 3,000 room nights at Harrah's Las Vegas properties
had been cancelled, a relatively small percentage considering that the
company has almost 5,200 rooms in the city.
"We anticipate that things will be slow for at least the next ten days,"
Thompson said, but there have been no cancellations for October as yet.
Business has also been off "modestly" in the company's other markets,
including Atlantic City and Midwest riverboats.
Some of the most dramatic news came out of Park Place Entertainment Monday
morning. Before the bell, the No. 1 casino operator said that it would
postpone the construction of a much-anticipated $475 million hotel tower at
Caesar's Place.
In order to "maintain a high level of flexibility," CFO Scott Laporta said
that Park Place was "not initiating any new capital projects at this time
[and is] looking a number of ways to reduce our operating costs, including
the reduction of our overall head count by attrition."
Shares in Park Place (PPE: news, chart, profile) closed down $1.92, or over
19 percent, to $8 - its lowest level since early 1999.
To round out the big-caps, Mandalay Resort Group (MBG: news, chart, profile)
was off $4.90, or over 20 percent, to $19; Station Casinos (STN: news,
chart, profile), which caters to the local Vegas market, gave up $1.27, or
just over 10 percent, to $10.98.
In a note to investors, Jason Ader of Bear Stearns said that gaming
companies already hit by cancellations and drops in new bookings, may start
dropping room rates and offering other discounts. That could pressure
earnings, which would in turn hit stock prices.
"On the other hand," he continued, "we believe those companies with share
repurchase programs in place [including MGM Mirage, Harrah's, Park Place and
Mandalay] will be aggressive in buying shares over the next several weeks,"
something Ader described as "a major positive."
In sum, "we believe the next several quarters could be challenging for the
gaming industry. . .although we believe gaming is more insulated than most
other leisure and travel industries at this point."
Certainly, that seemed to be the feeling on Wall Street as lodging and
cruise lines were beat up even harder.
Goldman Sachs analyst Steve Kent said that he expects the "terrorist attack
will reduce earnings significantly for the hotel companies in 2001," with
downside potential of between 10 percent and 30 percent.
"Operators are already seeing enormous cancellations and virtually no new
bookings," he said. For instance, Starwood said 50 percent of calls were
made to cancel room nights and Marriott "was seeing cancellations for the
next two weeks."
In the near-term, the "impact will be far greater than the Gulf War but
expected recovery [will be] faster and stronger." The reason, Kent said, is
that there was big build-up in supply just prior to that conflict and the
demand fell-off just as it peaked whereas now, supply growth had already
been tapering off. So, 'when demand returns, we think the eventual recovery
will be greater as excess supply will not have to be 'worked off'."
Virtually all of the big lodging companies touched year-long lows Monday.
Hilton (HLT: news, chart, profile) fell almost 24 percent to $8.55; Host
Marriott (HMT: news, chart, profile) was down almost 25 percent to $8.86;
and Starwood (HOT: news, chart, profile) lost better than 28 percent to
$21.15.
But they don't have a patch on cruise lines, which sank the deepest of any
leisure category in the Monday session.
Part of that drop is due to their dependence on air travel to bring
customers to the docks. But there is may also be a perception at work that
large, unprotected vessels full of Americans could offer tempting targets
for a follow-up attacks. Plus, unlike lodging companies that should at least
get some essential business travel business and Vegas, a big convention
destination, no one actually really needs to go a cruise.
Carnival (CCL: news, chart, profile) fell $9.09, almost 32 percent, to
$19.43, Royal Caribbean (RCL: news, chart, profile) was off over 40 percent,
or 8.55 to $12/76; and Princess (POC: news, chart, profile) lost almost 39
percent to $13.10.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
16. SEAWAVES MAGAZINE - http://www.seawaves.com
21.09.01
Northrop Grumman, American Classic Voyages Co.
Settle Business Issues, Move Forward
On Project America Cruise Ship Construction
PASCAGOULA, Miss. - Northrop Grumman Corporation (NYSE: NOC) and American
Classic Voyages Co. (NASDAQ: AMCV) today announced they have reached an
agreement, endorsed by the U.S. Maritime Administration with the support of
U.S. Secretary of Transportation Norman Y. Mineta, that enables the
continued and uninterrupted construction of two 1,900-passenger cruise
ships.
The program to build the first cruise ships in the United States in 40
years, named Project America, is a pilot project to reinvigorate U.S.-flag
cruise ship construction and operation. Today's agreement enables Project
America to continue unabated and resolves business issues relating to a
delay in the delivery and an increase in the price of the cruise ships
currently under construction at Northrop Grumman's Ingalls Operations.
"With these business issues behind us we can again concentrate solely on the
business of building these ships," said Jerry St. Pe, chief operating
officer of Northrop Grumman's Ship Systems sector. "This project is not only
important to Northrop Grumman and American Classic, but it has far-reaching
benefits for the U.S. economy, creating thousands of American jobs and
bolstering the U.S. shipbuilding industrial base."
Phil Calian, chief executive officer of American Classic, said, "We are
extremely pleased to reach an amicable resolution. We look forward to having
a state-of-the-art, luxury cruise ship, built in an American shipyard,
sailing the Hawaiian Islands in 2004. Despite the current challenging
economic environment, American Classic believes that Hawaii is a fantastic
growth opportunity for the company as the Hawaiian cruise market is in its
infancy." Following are the major provisions of the agreement:
-- Ship delivery dates will be extended by approximately 12 months, to Feb.
1, 2004, for Project America Ship I and Feb. 1, 2005, for Project America
Ship II; -- The price per ship will be increased by $19 million from the
original contract price of $440 million to cover the increased costs of the
interior finishing (joiner) package; -- AMCV has committed $42 million and
Northrop Grumman has committed $44 million to acquire through 2005 a new
issue of stock in AMCV's subsidiary, Project America. This additional equity
in Project America will help offset the price increase and associated costs
for the delivery extensions, and will provide additional funding for Ships I
and II. In addition to the equity committed as part of this agreement, AMCV
has already committed $100 million to fund the construction of Ships I and
II; -- The parties have settled all outstanding disputes; and -- The
agreement does not increase the $1.1 billion loan guarantee original
commitment provided by the Maritime Administration for the Project America
Ships.
More than 1,600 personnel at Northrop Grumman's Ingalls Operations are
currently engaged full-time in the cruise ship program. The design of the
ships is virtually complete, and the first ship is one-third finished. A
total of 142 assemblies have begun fabrication, with more than 48 percent of
the assembly blocks erected on the ship.
Northrop Grumman Corporation is a $15 billion, global aerospace and defense
company with its worldwide headquarters in Los Angeles. Northrop Grumman
provides technologically advanced, innovative products, services and
solutions in defense and commercial electronics, systems integration,
information technology and non-nuclear shipbuilding and systems. With 80,000
employees and operations in 44 states and 25 countries, Northrop Grumman
serves U.S. and international military, government and commercial customers.
American Classic Voyages is the largest U.S. Flag cruise company and markets
four distinct products that cruise in Hawaii, along the coasts of North and
Central America and on America's inland waterways. United States Lines,
American Hawaii Cruises, Delta Queen Coastal Voyages and Delta Queen
Steamboat Company operate a total of seven U.S. crewed vessels with a
combined 3,480 berths. Three ships, including the Project America ships,
with a total of 4,024 berths are on order at U.S. shipyards and scheduled
for delivery through 2005. For more information, visit http://www.amcv.com/
.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
17. PR NEWSWIRE - http://www.prnewswire.com
20.09.01
S&P Places Cruise Ship's ABS Notes on Watch Neg
LONDON-- Standard & Poor's today placed its 'BBB-' rating on Cruise Ship
Finance Ltd.'s A and B notes and Cruise Ship Finance II Ltd.'s senior notes
on CreditWatch with negative implications.
This action follows the downgrade on Sept. 19, 2001 by Standard & Poor's of
its local and foreign currency ratings on Royal Caribbean Cruises Ltd. to
'BB+' from 'BBB-'. Royal Caribbean Cruises acts as a supporting rating in
both transactions.
The ratings on the notes of both the Cruise Ship Finance SPEs (special-
purpose entities) will remain on CreditWatch with negative implications
pending a further review of the ramifications for these transactions of the
downgrade of Royal Caribbean Cruises.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
18. BUSINESS TIMES - www.businesstimes.com
20.09.01
European Cruise Ship Builders Face Uncertain Future
Further deceleration in the cruise industry following last week's terrorist
attacks in the US will cast doubt on the future of Europe's cruise ship
builders, which dominate the industry. Only conglomerates and oil companies
are in a position to place significant newbuilding orders because of the
high level of uncertainty in the market, leaving the handful of specialist
yards that build these ships particularly vulnerable to a possible
recession. Six of the eight yards building cruise ships of more than 50,000
gt are European and, with the exception of Norway's Fosen Mek, are handling
most of 45 on order. With all but a few of the cruise ships scheduled for
delivery by the end of 2002, the major cruise ship yards in Germany, France,
Italy and Finland need to see a recovery in the industry soon.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
19. THE INDEPENDENT - http://www.independent.uk
20.09.01
Attacks cost P&O Princess $5m
P&O PRINCESS Cruises predicted the net cost to the luxury cruise ship
operator of last week's attacks in the US would be between $3m (pounds 2m)
and $5m. The operator said it incurred the costs diverting ships to Boston
from New York and travel changes for customers who could not get to or from
ports due to the closure of North American airspace. P&O Princess shares
rose 1.75p to 212p. It will charge the cost in the current quarter.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
20. THE SOURCE - http://www.onepaper.com
20.09.01
INS Lifts Ban On Crews Leaving Cruise Ships
by Lynda Lohr
Cruise ship crews were out and about before they went back to the ship
Thursday, gladdening the hearts of Havensight-area merchants who had seen
their sales drop sharply earlier in the week in the absence of those
thousands of regular weekly customers.
"They're back in force," Jeff Salpis, owner of the Delly Deck in Havensight
Mall said with a smile in his voice. The U.S. Immigration and Naturalization
Service, starting Sunday, had prevented crew members who were not U.S.
citizens from disembarking while their vessels were in port in the Virgin
islands. The decision was apparently part of security measures instituted
following the Sept. 11 terrorist attacks on the World Trade Center and
Pentagon. No ships were scheduled to call in the territory in the days
immediately following the attack, so it appeared that INS had implemented
the ban at the first opportunity. Calls to the INS office on St. Thomas were
referred to the Puerto Rico office, where spokesman Ivan L. Ortiz said he
would not comment on the subject.
Ortiz also would neither confirm nor deny that the crew members had not been
allowed off the cruise ships. While the Delly Deck had a full patio for
lunch Thursday, Salpis said crew members were slow to fill up the seats.
Usually, the place is pretty busy by mid-morning, he said, but they didn't
show up in any numbers until noon. At the Modern Music store, manager Jim
Burke said he had seen a few crew members by mid-day.
"Usually we get busy later in the day," he said. Crew members often rent
videos from the shop, to return them on their next visit to St. Thomas. West
Indian Co. spokesman Calvin Wheatley said INS officials decided late
Wednesday to let the crew members resume getting off their ships. He said
WICO President Edward Thomas, cruise ship company officials and U.S. Coast
Guard staff pushed the INS for the change of heart.
Wheatley said the crews cause no problems for St. Thomas. Most are foreign
nationals hailing from Southeast Asia, Central and South America, and
Europe. Two ships were in port at St. Thomas Thursday, he said. Cruise ships
typically carry 900 to 1,000 crew members, and their shopping, along with
that of passengers, helps to fuel the territory's economy. WICO estimates
that crew members on average spend about $73 per person each time they come
ashore while in port at St. Thomas.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
21. ST. THOMAS SOURCE - http://www.onepaper.com
20.09.01
Crew Quarantine Is Another Blow To V.I. Business
by Molly Morris
Cruise industry officials were hoping Wednesday to persuade the U.S.
Immigration and Naturalization Service to rescind its recent order barring
cruise ship crew members who are not U.S. citizens from leaving the vessels
while they are in port in the Virgin Islands. The ban's effects have been
felt all this week -- a blind-siding economic blow to the Havensight Mall
and nearby merchants, as business dropped off dramatically at shops,
restaurants, telephone centers and cybercafes.
Edward Thomas, president of the West Indian Co., and Michael Crye, president
of the International Council of Cruise Lines, were working on the problem,
Calvin Wheatley, WICO spokesman, said Wednesday. It appeared evident that
the ban on disembarkation by non-U.S. nationals was a part of the heightened
security measures that have been instituted nationwide in the aftermath of
the Sept. 11 terrorist attacks on the U.S. mainland. Efforts by the Source
to obtain clarification of the INS order were unsuccessful. Repeated
telephone calls Tuesday and Wednesday to Ivan Ortiz, the INS public
information officer in San Juan, went unreturned. Calls to the INS office on
St. Thomas were referred to Ortiz in San Juan.
Cruise ships typically carry a crew-to-passenger ratio of about 1:3,
according to Wheatley. Thus, an average-size cruise ship such as the
Carnival Destiny, with a 2,766-passenger capacity, would have about 900 crew
members aboard. Megaships such as the Carnival Triumph can carry some 3,000
passengers with 1,000 crew. Most crew members are foreign nationals --
mainly from Central and South America, Europe and Southeast Asia.
Wheatley said WICO estimates that crew members spend an average of about $73
per person ashore each time their ship is in port at St. Thomas. That would
mean about $170,000 on Tuesday alone, with the crew of the megaship Explorer
of the Seas prevented from disembarking. The Delly Deck restaurant, long a
fixture in the Havensight Mall, has felt the loss. "We've really taken a
hit," manager Anna Saplis said. "Monday and Tuesday were bad." At Modern
Music, across the street from the mall entrance, general manager Jim Burke
said business has been down about 80 percent in the last three days. The
store has done a thriving business in renting videos to the crews, which
they take one week and return the next, he said.
"Tuesday we had Explorer of the Seas, one of the big ones with about 1,000
crew," Burke said. "We had about 20 American crew in, and they told us the
foreign crews were allowed off in Nassau in the Bahamas and Puerto Rico."
Puerto Rico is a U.S. Commonwealth, flying the U.S. flag. The S&B Liquor
store in Frederiksted also felt the impact of the ban on Wednesday, when the
megaship Carnival Triumph was in port.
"We usually sell lots of phone cards and sodas and snacks," manager Lionel
Smith said, "but today we didn't." On Wednesday morning, Attorney General
Iver Stridiron said became aware of the problem when "I noticed Sunday that
Havensight looked deserted." He said he was meeting with the governor later
in the morning and would bring the matter to his attention. "I think we will
have to deal with the federal authorities," he said. "I'll tell the governor
that I'll contact the Justice Department and see if I can help." Thinking
for a moment, Stridiron added, "You know, most of those guys have been on
the ships for years."
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
22. REUTERS COMPANY NEWS - www.reuters.com
18.09.01
Royal Caribbean Sinks On Cancellation Fears
OSLO - Shares in Royal Caribbean Cruises sank nearly eight percent on
Tuesday on continuing fears about falling revenues because of tourist
cancellations after last week's attacks in the U.S., analysts said.
At 1445 GMT Royal Caribbean shares were off 7.6 percent at 110 crowns while
the bluechip Oslo OBX index was down 2.2 percent.
"There are fears of mass cancellations because people are very afraid after
the New York attack. If the demand for cruises collapses it will send
revenues down which will hit the bottom line," Danske Securities Analyst
Thor Kleppestoe said.
"Royal Caribbean is also increasing capacity 22 percent this year which is
very capital intensive and there are fears a share issue will be needed,"
Kleppestoe added.
On Monday Royal Caribbean's New York-listed share dropped 37.2 percent to
its lowest level since March 1997.
Chief Executive Richard Fain said on Monday the group expected losses in the
range of $20 million to $25 million for the week following the September 11
attacks in New York and Washington and that it would provide further
guidance on the financial impact going forward.
Analysts said on Tuesday they expected more downward pressure on the share.
"The news flow will be bad because of booking falls, U.S. consumer
confidence and macroeconomic figures," Danske's Kleppestoe added.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
23. BOSTON GLOBE - http://www.boston.com/dailyglobe
17.09.01
Blocked From N.Y., Ships Stop In Boston
by Ross Kerber
Diverted from New York by last week's terrorist attacks, a flotilla of giant
passenger ships sailed to the Black Falcon Cruise Terminal yesterday and
turned Boston's port into one of the country's busiest.
Looming as large as harbor islands, the Cunard Line's Caronia and Queen
Elizabeth 2 steamed past South Boston under a cloudless midday sky. They
discharged thousands of passengers to a fleet of buses headed for New York's
airports. Passengers from several other vessels, including the Pacific
Princess and the Norwegian Majesty, also disembarked at the terminal over
the weekend.
Boston routinely sees as many as four cruise vessels at one time, but rarely
do so many unload passengers at once.
The vessels usually sail from piers in mid-town Manhattan, which are now
being put to other tasks: some as military depots, others as temporary
morgues.
Officials at the Massachusetts Port Authority, which runs the cruise
terminal, said they can't estimate how long the situation will last. Area
hotels and taxis are benefiting from the extra traffic, but some vendors
were reserved about the windfall.
''Given the circumstances, I'd really rather not have the business,'' said
Laura Benvenuto, a guide for the Hyannis-based bus operator Tourco, as she
waited for passengers to disembark.
Boston has been an occasional stop on the QE2's itinerary, most recently
last summer. At 963 feet long, the world's largest operating oceanliner also
came to Boston for repairs in 1992 after running aground in Vineyard Sound.
The ship disgorged most of its 1,500 passengers yesterday, according to
Cunard, a unit of Miami-based Carnival Corp.
A similar number of passengers was booked to depart from New York over the
weekend, but only about 1,000 were expected to make it for the Boston
departure, set for early this morning. Other passengers were offered refunds
or credits for later cruises. A one-way ticket for the weeklong
trans-Atlantic trip costs about $2,500, including return air fare.
On its voyage to Southampton, England, the ship will also carry about 160
people who doubted airlines would get them there much faster.
''At least we'll get a nice trip back this way,'' said Terence Barlow, who
decided to take the ship home. ''But what a horrible cause for it.''
Just meeting up with the ship wasn't a simple task for guests; most of them
had to make plans last week to get to Boston, not knowing whether Logan
Airport would be open.
A bomb scare early yesterday morning shut down harbor services for hours.
The delays left hundreds of passengers on board the Norwegian Majesty - a
regular Boston visitor - for most of the morning, with little to do but
stand at the ship's rails and wave to relatives milling around in the
parking lot 50 feet below.
Others waiting to board the QE2 seemed stoic throughout the morning, when it
wasn't clear when the QE2 would tie up.
''You just have to make the best of the situation,'' said Melinda Shamel of
Greensboro, N.C., who rode an Amtrak train overnight with friends and family
to make the connection.
Waiting to board another ship, Whitman resident Jane Riley said she wasn't
troubled by the delays.
''This is minor compared to what a lot of people have to go through,'' she
said.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Oceans Blue Foundation (Canada)
Oceans Blue Foundation (USA)
Oceans Blue International Council
Headquarters:
405 - 134 Abbott @ Water Street
Vancouver, British Columbia
V6B 2K4
T. 604.684.2523
F. 604.684.2502
E. rese...@oceansblue.org
W. http://www.oceansblue.org
* To submit a message to waves~, send to the moderator at:
rese...@oceansblue.org. The moderator reserves the
right to post submissions.
* To subscribe to waves~, send a message to the moderator:
rese...@oceansblue.org, with "subscribe" in the
subject header.
* To unsubscribe, send a message to: majo...@onenw.org, with the following
in the text of the message:
unsubscribe waves <your email address>