18,000 jobs on the line as border closures sink cruises

Major cruise line Royal Caribbean has cancelled the majority of its summer voyages around Australia and New Zealand.

The Carnival-owned Cunard line had planned to have the Queen Elizabeth homeported in Australia for 120 days. Picture: David Swift

Major cruise line Royal Caribbean has cancelled the majority of its summer voyages around Australia and New Zealand as ongoing border closures deal another cut to an industry that once contributed billions of dollars to the ­economy.

More than 18,000 cruise line jobs are at stake as the federal government hesitates over reopening the cruise industry for local cruises – in a move that would follow the successes of similar cruise itineraries in Singapore, Britain and Taiwan.

Apart from Royal Caribbean, a conga line of cruise companies have either cancelled their Australian summer itineraries or will reconsider them from December. Others are cancelling on a rolling basis. They include Cunard, P&O, Regent Seven Seas, Carnival, Princess, Silversea, Ponant and the Australian-owned Aurora Expeditions. Holland America has cancelled all its 2021 cruises to Australia and New Zealand and is instead expanding its cruise itineraries out of San Diego from September.

Joel Katz, who represents local and international cruise lines as head of the Cruise Lines International Association Australasia, said 1.35 million Australians, or more than 6 per cent of the population, cruised in 2018

The federal government’s next review of biosecurity laws is not slated until September 17 – and Mr Katz said that was too far away.

“We are not waiting for September 17, we are pushing the government to finalise a framework as soon as possible so we can give certainty to the 18,000 Australians who rely on the cruise industry for their livelihood,” Mr Katz told The Australian on Wednesday night.

“Without certainty it is very difficult for the cruise lines to be able to plan.

“Even if the government set out a framework now it would still be 60-90 days before the cruise lines could get ready to sail. In the first instance we are asking for local cruising for locals while Australia’s international borders remain closed.

“Cruise lines have presented detailed plans to the Australian government for local cruises which are already in operation successfully in Singapore, Taiwan and the United Kingdom.”

But the Miami-based Royal Caribbean, which once boasted a market capitalisation of $US7.01bn, could not wait.

The American line, the world’s second largest, had planned to inject millions of dollars into its Brisbane home port during the summer cruise season from September through to April next year, but it was forced to cancel the sailings due to “ongoing uncertainty around the opening of international borders”.

“We know many of our guests look forward to a return to cruising and we are sorry for the disappointment and inconvenience these cancellations may cause,’’ Royal Caribbean said in a statement on Wednesday.

Royal Caribbean has cancelled its entire Quantum of the Seas sailings from Brisbane from October to April 2022 inclusive, as well as Ovation of the Seas sailing from Honolulu on September 28, Ovation of the Seas sailing from Sydney on October 16 and Serenade of the Seas sailing from Honolulu on October 7.

The line said it would continue to assess the remainder of the 2021-2022 summer cruise season, adding that its focus remained on engaging with federal and state governments to establish a framework and pathway forward for the resumption of cruising in ­Australia.

P&O and Carnival have extended their suspension of cruising until December, while the Australian-owned Aurora Expeditions – which was planning cruises off Western Australia’s coast – postponed the start of its spring and summer sailing season in Australia until there is clarity on start dates.

The Carnival-owned Cunard line has also cancelled its summer sailing season. It had planned to have the Queen Elizabeth homeported in Australia for 120 days from October 18 to March 9, making 33 port calls in Australia and 22 in New Zealand.

But it was hamstrung by the fact that Australia is the only cruise-loving nation in the world that does not have a clear strategy for the resumption of domestic cruising.

Cunard president Simon Palethorpe said the Cunard line was fully committed to resuming its sailings in Australia and New Zealand from November next year.

“Sadly, the impact of the pandemic forced the cruise industry to go into an extended pause in operation,” Mr Palethorpe said in a ­recent statement.

“As local restrictions have lifted, the cruise industry has successfully resumed operating in a number of countries. However, due to the ongoing complexities of navigating international sailing, this has meant that further changes have been necessary to scheduled itineraries.”

Just a couple of local cruise companies are operating off the West Australian coast. They include True North, which has one ship off the Kimberley, and Coral Expeditions, which is also operating throughout the Kimberley.

Meanwhile, the super liners that once plied Australian waters are in a state of “warm lay-up” throughout Asia with skeleton crews.

If the cruise line gets a government green light it can bring the ship back to service quickly as the machinery and lifesaving equipment are well kept and up to date.

Originally published as 18,000 jobs on the line as border closures sink cruises