Royal Caribbean latest to warn of coronavirus profit impact

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The wonder of the Seas due for China deployment 2020

Royal Caribbean Cruises has joined larger rival Carnival Corporation in warning of the potential “material” financial impact of the ongoing coronavirus outbreak.

The world’s second-largest cruise company has now cancelled a total of 18 sailings in south-east Asia and also modified several itineraries as a result of travel restrictions in place and “related circumstances.”

The number of cancelled cruises has risen from the eight out of China reported by the company last week.

RCC also reported “softer bookings” across the broader business, not just Asia.

It is in regular communications with global health authorities after China and other countries moved “aggressively” to contain the spread of the virus.

Like other cruise firms, the owner of brands such as Royal Caribbean International, Celebrity Cruises, Silversea and Azamara, has implemented measures to protect passengers and crew.

These include denying boarding to those that have travelled from, to or through mainland China or Hong Kong in the past 15 days and performing mandatory specialised health screenings on at-risk passengers and crew.

The company “is assessing the developments constantly and will update these measures as needed”.

RCC added: “Taken together, these measures have an estimated impact on the company’s financial performance for 2020 of approximately $0.65 per share.

“While not currently planned, if the company was to cancel all of its remaining sailings in Asia through the end of April, it would impact 2020 financial performance by an additional $0.55 per share.

“There are still too many variables and uncertainties to make a reasonable forecast for 2020.

“While the early impact due to concerns about the coronavirus is mainly related to Asia, recent bookings for our broader business have also been softer.

“If the travel restrictions and concerns over the outbreak continue for an extended period of time, they could materially impact the company’s overall financial performance.”

Chairman and chief executive Richard Fain said: “It is important that every organisation acts responsibly, and we have already taken aggressive steps to minimise risk through boarding restrictions and itinerary changes.

“Our shipboard and shoreside teams have been working tirelessly through these circumstances and I want to thank them for all of their extraordinary efforts. We appreciate our responsibility to our guests and to each other, and our focus on public health is unwavering.”

Carnival Corporation, owner of quarantined ship Diamond Princess in Japan after an outbreak of coronavirus on board, was the first to warn of a “material impact” on its financial results.

Guests on quarantined Diamond Princess allowed to disembark.

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Guests on quarantined cruise ship Diamond Princess will be allowed to disembark to stay in a shoreside facility.

Princess Cruises said Japanese health officials are planning voluntary disembarkation with the most medically vulnerable guests given priority.

The update came as another 44 cases of the virus were confirmed on Diamond Princess to bring the total up to 218.

More: Coronavirus triggers Carnival Corporation profits warning

A Princess Cruises spokesperson said:” Princess Cruises has been informed that over the next several days, Japanese health officials are planning voluntary disembarkation of guests to complete their quarantine period at a shoreside facility.

“From the information available it is our understanding that this will be a phased approach, with the most medically vulnerable guests in the first phase, including older adults with pre-existing health conditions.

“According to officials, guests in the first group will be tested for the 2019 novel coronavirus. If the test is positive, they will be transported to a local hospital for further evaluation and isolation. If the test is negative, they will be given the option to leave the ship and be transported to a quarantine housing facility.

“These are the details provided by health officials about the temporary facilities:

• The housing facility includes individual rooms and individual bathrooms

• There are no clinics at these facilities. Prescription medication will be provided, but medical care will require transport to a hospital or clinic.

• The food available will not accommodate dietary preferences but will accommodate certain medical conditions.  The meals provided will be Japanese bento-style boxes. No Western meals will be available.

“Princess Cruises confirmed that all guests on Diamond Princess remain welcome to stay on board through to the end of the quarantine period.

“Princess Cruises also confirms the announcement, from Japan health officials, of 44 new positive cases of Coronavirus onboard Diamond Princess.”

In a letter sent to the ship’s crew, Princess Cruises president Jan Swartz said the line was “deeply grateful” and “incredibly proud” of staff on Diamond Princess.

She revealed that the crew would receive two months paid leave for “much-needed rest” once they had left the quarantined ship.

“We will also handle your flights to return home and your job will be protected to return for another contract,” she added.

More than 300 passengers fall ill with suspected norovirus on Caribbean Princess

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At least 299 passengers and 22 crew members sailing on a Princess Cruises ship are believed to be suffering from suspected norovirus.

Caribbean Princess was refused entry to Trinidad & Tobago as a precautionary measure.

The ship was on a 14-day Caribbean sailing which departed on February 2.

It is now en route back to Port Everglades, Florida, and is scheduled to arrive Thursday morning.

The ship is carrying 4,196 guests and crew in total.

All guests are being offered a 50% refund and a future cruise credit.

The US Centers for Disease Control and Prevention said the ship will undergo a “super sanitation cleaning” in port on February 16.

It will then depart from Port Everglades for a round-trip Circle Caribbean cruise.

The line is also dealing with an outbreak of coronavirus onboard Diamond Princess in Japan, where 136 passengers have been diagnosed with the virus.

Meanwhile, on Monday, Saga Cruises confirmed at least 89 passengers on board Spirit of Discovery were suffering from suspected norovirus with guests showing symptoms including vomiting, diarrhoea and fever.

The authorities in Gibraltar refused the ship entry and it is now en route back to Southampton.

A Princess Cruises spokesperson said: “Caribbean Princess, which had been on a 14-day cruise in the Caribbean, has curtailed its current voyage due to guests reporting symptoms consistent with a mild case of gastrointestinal illness.

“The affected guests are being treated by the onboard medical team and there are no cases of coronavirus identified among guests or crew.

“The ship, with 4,196 guests and crew, is now sailing back to the Port of Everglades in Fort Lauderdale, and is scheduled to arrive at Port Everglades at 7:00am on Thursday, February 13.

“This is a highly unusual development and we share the disappointment of our guests. However, the health and safety of our guests and crew is our top priority, and we have worked alongside the U.S. Centers for Disease Control and Prevention (CDC) to make this decision.

“All guests will receive a 50% refund on their voyage and a future cruise credit valued at 50% of their cruise for this inconvenience.

“Caribbean Princess will resume its schedule with a February 16 departure from Port Everglades for a round-trip Circle Caribbean cruise.”