Cruise lines ‘to return to Turkey this year’

Image result for turkish cruise ports

A Busy Cruise port in Turkey

Cruise lines plan a return to Turkey this year following a period of uncertainty due to terrorism and political upheaval.

Ports operator Global Ports Holdings today signalled a possible recovery after reporting a 6.3% slump in overall cruise revenue to $50.3 million last year over 2016.

Earnings [Ebitda] from cruise fell by 12.7% to $32.2 million as the company reported an annual loss of $14.1 million from a profit of $4.4 million the previous year.

This came despite the company’s ports outside Turkey, including Barcelona, Malaga and Valletta, recording 2017 passenger growth of almost 26%

The company’s ports handled more than 2,801 cruise ship calls and 4.1 million passengers.

However, cruise calls to Ege port in Kusadasi in Turkey fell by 53% with passenger numbers down by 66% to 118,954 year-on-year. The company also runs the Turkish ports of Bodrum and Antalya.

“Current trading in our cruise segment in our non-Turkish based ports remains strong. The weakness in Turkish cruise ports is expected to continue into 2018, although passengers and revenue are expected to stabilise compared to the decline experienced in 2017,” GPH said.

“A number of cruise lines have begun to communicate their plans to visit our Turkish ports in 2018, which we see as a good sign of a possible recovery.”

The company added: “Transit passengers recorded a 20.3% increase in 2017, while the expansion of more profitable turnaround passengers was relatively lower at 8%, resulting in two percentage point decrease in the share of turnaround passengers.”

Chairman and co-founder Mehmet Kutman said: “In May 2017 we listed on the London Stock Exchange. Despite the geopolitical challenges in Turkey since then, we have been able to deliver stable revenues and underlying profits, achieve strong operating cash flow and attractive dividends.

“Operating profit was down year on year mainly reflecting the costs of the IPO. Delivering shareholder value remains a key priority for the group as we look to the year ahead.”

Chief executive Emre Sayın added: “Our 2017 financial performance reflects the importance of our diversified business, with robust contributions from our commercial operations and strong performance in our cruise ports outside Turkey, where the geopolitical situation continues to be challenging.

“We are making progress with our strategy set out at the IPO to expand our global footprint of cruise ports, also reducing the significance of Turkey on our overall business.

“M&A [merger and acquisitions] discussions both in and outside Europe are progressing well and we have strengthened our global team as we pursue the next phase of growth. We feel good about 2018 as it starts growing again.”

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.

Cruise lines to help evacuate Irma-ravaged St. Thomas

A picture shows a wrecked car in the streets of Marigot,
Damage caused by Hurricane Irma

Two cruise lines on Saturday said they were diverting ships to the hurricane-ravaged island of St. Thomas to drop relief supplies and evacuate stranded travelers.

Norwegian Cruise Line said it was sending the 2,004-passenger Norwegian Sky to the island with the goal of retrieving as many as 2,000 vacationers who were unable to leave before Hurricane Irma hit on Wednesday. The ship currently is off the coast of Mexico and should arrive in St. Thomas by late Monday.

Royal Caribbean said it was redirecting its 2,350-passenger Majesty of the Seas to the island to similarly evacuate several thousand travelers and also to drop water, food, ice and other provisions that are needed. The ship is off the west coast of Cuba and expected to arrive in St. Thomas on Tuesday.

The two ships are based in Miami and Port Canaveral, Fla., respectively, and currently are sailing without passengers. The lines previously had canceled their weekend sailings due to the approach of Irma and sent the ships toward Mexico to seek shelter from the storm.

Royal Caribbean also plans to redirect its 3,114-passenger Adventure of the Seas to the hard-hit island of St. Martin on Sunday for an unscheduled stop to drop relief supplies. The vessel is departing San Juan, Puerto Rico late Saturday on a previously scheduled cruise to the Southern Caribbean and is loading on provisions that are needed for a mounting relief effort.