In Havana, historic gathering pairs cruise CEOs with government officials

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The Norwegian Sky in Havana.

Cruise lines are laying the groundwork for further expansion into Cuba now that the rules governing U.S. tourism to the island have been revised and clarified by the Trump administration.

CEOs from seven cruise companies met in Havana on Nov. 27 with Cuban government officials, along with representatives from CLIA and the Florida-Caribbean Cruise Association, to exchange viewpoints.

It was the first time so many cruise CEOs had gathered in Havana, according to Charles A. Robertson, who attended the meeting as chairman and CEO of Pearl Seas Cruises, which sails to Cuba from Fort Lauderdale.

“It was very positive,” he said. “The Cuban government did a great job. I think the whole relationship with the cruise industry is maturing very nicely.”

Cruise lines were left largely unscathed when the new rules for U.S. trade and travel to Cuba were announced a month ago. Hotels in Havana that are owned or operated by entities with ties to the Cuban military were made off limits, crimping land tourism. The Trump administration also blocked individual travel to Cuba, restricting visits to groups in itineraries designated as people-to-people exchanges.

MSC Cruises CEO Gianni Onorato, who also attended the Nov. 27 summit, said Cuban officials asked the group to back an easing of President Trump’s restrictions.

“We had sort of an official presentation of CLIA to the Cuban authorities, and the Cuban authorities were also asking for some sort of help or support to lift the ban,” Onorato said.

An effort to seek comment through Cuba’s Ministry of Tourism was unsuccessful.

As a practical matter, the cruise lines were unaffected by almost all the new U.S. restrictions.

“I would say it’s a minimal impact,” Robertson said. “It’s sort of a refining of the people-to-people rules under the general [travel] permit. There’s no significant change.”

So, for example, Robertson said that Pearl Seas passengers taking the line’s 10-day cruises circumnavigating Cuba can participate in organized group tours with guides and interpreters, but they also have time on their own.

“They do both,” Robertson said. “That’s true in all the cities we visit in Cuba.”

Cruise ships sailing from Florida have only been visiting Cuba since May 2016, when the now-defunct Carnival Corp. brand Fathom offered the first regular cruise to depart the U.S. for Havana in 50 years.

Since then, two Carnival Corp. brands, all three Norwegian Cruise Line Holdings brands and two Royal Caribbean Cruises Ltd. brands have made plans to visit the island from the U.S., along with Pearl Seas and Victory Cruise Line.

Cruise CEOs have said that pricing and demand for the cruises have been strong, stimulating plans to add new capacity. Norwegian Cruise Line has scheduled Cuba calls on a second ship in 2018, adding the Norwegian Sun from Port Canaveral to its Cuba cruises on the Norwegian Sky from Miami.

Cruises on both ships will include overnights in Havana.

A day after the summit in Miami, Royal Caribbean International announced that it, too, would add a second Cuba ship. Starting in April, its 2,350-passenger Majesty of the Seas will offer four- and five-day cruises from Tampa that include day trips and overnight stays in Havana. In October, it will do the same from Fort Lauderdale.

Royal’s 1,602-passenger Empress of the Seas, which had been sailing to Havana from Tampa, will move to Miami, where it will offer more varied itineraries. Along with five-day sailings to Havana and Key West, the Empress will offer seven-day trips that feature Nassau, Havana and Cienfuegos, which is a new Cuba destination for Royal.

The Empress will also debut an eight-day cruise that calls in Cienfuegos and Santiago de Cuba, another new port, along with Grand Cayman and Royal’s private destination in Labadee, Haiti.

Robertson said Pearl Seas, too, is planning to expand. In 2018 and 2019, it will offer more Cuba cruises on its 210-passenger Pearl Mist. By late 2019, Pearl Seas expects to take delivery of two more ships, at least one of which will likely be added to Cuba.

MSC Cruises is in a somewhat different position. Based in Geneva, it already has a well-developed business of taking European passengers to Havana. It has two ships, the MSC Armonia and the MSC Opera, that homeport in Havana year-round. In addition, it operates a ship seasonally from Martinique or Guadalupe that calls in Havana.

None of those cruises is sold in the U.S., so MSC doesn’t have to conform to U.S. regulations.

But MSC is also adding ships in North America, beginning with the MSC Seaside in Miami later this month, and Onorato said he is definitely interested in adding a Cuban port call for those ships in the future.

He said MSC has announced itineraries for its North American ships through 2020. “Until 2020, we don’t go,” he said. “We see the worst thing you can do in this business is to change itineraries because this creates uncertainty and disruptions among the customers.”

As things stand, it wouldn’t be feasible anyway for either the 3,502-passenger Divina or the 4,138-passenger Seaside to call in Cuba because the ships are too large for existing piers there.

Robertson said Cuban officials addressed the infrastructure obstacles at the summit.

“I think they’re working on it,” he said. “There were no specifics that I heard, but they are working on it, and I think we’re all going to see some improvements in the infrastructure coming along fairly soon.”

Another stumbling block was a U.S. State Department warning against travel to Cuba. Issued in late September, the warning was tied to mysterious health symptoms suffered by some U.S. and Canadian diplomats in Havana.

Robertson said the impact on bookings was short-lived.

“Demand remains strong,” he said. “When the travel warning came out, there was a dip for about 10 days. I would say it’s quite normal now, and it’s encouraging us to operate more to Cuba.”

Carnival increases capacity for short cruises

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Carnival Cruise Line will raise the number of cabins devoted to short cruises out of Galveston and New Orleans in 2019.

It will send the 2,974-passenger Carnival Valor to New Orleans and the 3,646-passenger Carnival Dream to Galveston, representing capacity increases of 10% and 22%, respectively, for the four- and five-day itineraries there.

In Galveston, the Carnival Dream replaces the Valor and will join the Carnival Freedom and Carnival Vista, which repositions to Galveston in fall 2018.

The Valor will swing to New Orleans to replace the Carnival Triumph, which will be repositioned to a port to be determined.

Four-day cruises depart Thursdays and visit Cozumel. Five-day voyages depart Mondays and Saturdays, calling at Cozumel and Progreso. Some five-day itineraries from Galveston feature Cozumel and Costa Maya.

The Carnival Dream recently underwent a refurbishment that added Guy’s Pig and Anchor Bar-B-Que, the pharmacy-themed Alchemy Bar, the BlueIguana Cantina Mexican restaurant and the full-service Bonsai Sushi restaurant.

Valor last year added Guy’s Burger Joint, the Caribbean-themed RedFrog Pub, SkyBox sports bar, an Alchemy Bar and the poolside RedFrog Rum Bar and BlueIguana Tequila Bar.

Cruise lines say visiting Cuba by ship is safe

Three big cruise companies with itineraries that include calls in Havana said their ships are a safe way to visit the island, even though the U.S. State Department is warning Americans against going.

The warning is in response to illnesses reported by diplomatic workers in Havana attributed to some sort of sonic weapon. The attacks, which began last November, are thought to have occurred in residences or in a hotel that houses diplomatic personnel on temporary assignment.

In response, the U.S. government has withdrawn most of its diplomats from the U.S. Embassy in Havana. Because some of the attacks occurred at a hotel, the government also warned tourists.

The government of Cuba has denied any involvement in the attacks, an assertion that hasn’t been challenged by the U.S.

Carnival Cruise Line sails to Havana from Tampa with its Carnival Paradise ship. In a statement, it said that it would continue its cruises to Cuba for the moment.

“While members and relatives of the U.S. diplomatic corps have suffered illnesses apparently triggered by occurrences at the diplomatic offices or possibly their homes, none of the more than 475,000 other Americans visiting Cuba this year have reported similar health issues related to their visits,” the Carnival statement said.

Royal Caribbean Cruises Ltd. (RCCL), which also takes passengers to Havana from Tampa on the Royal Caribbean International ship the Empress of the Seas, said it was aware of the State Department warnings.

“Since the warning is due to the events that occurred in U.S. diplomatic residences and hotels frequented by U.S. citizens, we do not feel they pose a risk to our cruise passengers,” an RCCL statement said. “Our guests explore Havana on escorted tours and do not visit hotels.”

Norwegian Cruise Line, which visits Havana on its Norwegian Sky ship from Miami, said its cruises there continue to operate as scheduled.

“There have been no reported incidents involving tourists or other cruise ship passengers,” said a Norwegian statement that also noted incidents have been isolated to diplomats and government officials residing on the island. “Our shore excursions and tour locations have been thoroughly evaluated,” the statement continued. “We continue to believe that the best way to travel to Cuba is via cruise ship and look forward to continuing to offer our guests the opportunity to explore Cuba’s beauty, culture and friendly people.”

Asked about cancellations or a slowdown in Cuba bookings, a Norwegian spokeswoman said there was “nothing to note at the moment.”

Spokeswomen for RCCL and Carnival declined to comment on bookings.