The war in Ukraine does not seem to have had a significant impact on the cruise industry, but there have been some itineraries and cancellations, mainly on cruises to either Ukrainian ports on the Black Sea or St. Petersburg in the Baltic Sea. In general, however, there is no wave of cancellations. These estimates belong to the president of the Association of Cruise Shipowners and Shipping Operators (EEKFN), Giorgos Koumpenas, who spoke to “NEA” newspaper about the course of the cruise industry, the next day and the future of Greek cruise.
Mr President, we already have the first cruise ship departures from Greece. How has the season started?
The season started smoothly, with reduced passenger numbers in the first departures, but definitely with positive prospects for a better year than last year.
How is the industry expected to move in 2022 and how much is it affected by the war in Ukraine? Has any numbness been recorded in bookings mainly from the USA?
The cruise industry has shown resilience over more than 50 years of history – as evidenced by the responsible and gradual restart of cruise companies launched in July 2020. Global passenger numbers are expected to recover and exceed the levels of 2019 by the end of 2023. In this context and so far, the industry does not seem to have been significantly affected by the war in Ukraine. There were some cruise companies operating in the Baltic with approaches to St. Petersburg, as well as in other ports in the area, which were forced to change or cancel their routes. There have also been a few cancellations on Black Sea cruises scheduled for later this season. In addition, at present no wave of cancellations or reluctance of reservations from the North American market seems to have been recorded.
The negative effects on the cruise due to the war raging in Ukraine are the jump in the price of fuel and the rising cost of fuel, raw materials, spare parts and crew handling. All this will have an impact on the financial results of the companies.
What are the immediate measures that the state should take in order for the industry to return to the country financially much more than the income it now returns?
Cruise is a complex and multidimensional tourism activity which, if operated in its full range, can make a significant contribution to many sectors of the national economy. After the collapse of the Greek cruise companies, we now see only the financial footprint from the revenues that result from the approaches of the ships to the Greek ports and the corresponding visits of the passengers. Starting in 2021 we observe an increase in homeporting (disembarkation in Greek ports) which continues for this year. Nevertheless, a large share of income is missing, which is related to the management of ships from our country, the salaries of office workers, the employment of Greek sailors, the repairs or upgrades of ships by Greek crews in Greek shipyards, as well as a large part of catering of ships with Greek products.
The necessary factor in order to give the maximum to the national economy, we consider to be the existence of companies operating in our country. This will lead on the one hand to a significant increase in revenue, on the other hand to maintaining know-how. For this reason, the state must pay special attention to the few companies that are left to operate cruise ships based in Greece.
How do you see the future of the Greek cruise industry?
First of all, let me emphasize that the Greek cruise exists and in fact plays a leading role, but mainly as a destination and approach area for cruise ships with an emphasis on the Greek islands. Especially in the last two years we have observed an increasing trend and a positive dynamic for our country. However, the Greekness of the cruise is absent and the Greek cruise ship which for years was the ambassador of our country with few exceptions, such as Celestyal Cruises that promotes Greek hospitality, gastronomy and culture, but in this case also lacks the important element that is none other than the Greek flag. There are also notable Greek companies such as Variety Cruises, but operating in a different market with smaller ships.
In summary, Greece is an important destination for international cruise companies with significant growth prospects, but at the same time there is an urgent need to take steps to raise the Greek flag again and return the Greek crews so that the Greek economy can reap the maximum benefits. To be able to travel cruise passengers in the Greek seas offering them the experience of genuine hospitality and thus to maintain the remaining know-how of cruise ship management in Greek hands.
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