Royal Caribbean Will Invest $250 Million to Expand Presence in Miami

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Oasis Class and Quantum Class to call Miami Home

Big Thank You To David Block for this story.

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Royal Caribbean Cruises has plans to open a new cruise terminal in Miami by 2018, increasing its presence in the U.S. market and giving its giant new-build vessels a potential homeport in South Florida.

Earlier this week, the Miami-Dade county Board of Commissioners signed a legislative resolution which will likely lead to a new home for Royal Caribbean’s ships in the region.

The resolution, obtained by Skift from the Miami-Dade county Board of Commissioners, shows that a long-term lease to accommodate Royal Caribbean’s large new vessels will likely be signed in the next four months.

According to deal, Royal Caribbean will invest more than $100 million to build a new cruise terminal in a ten-acre plot on the north side of PortMiami. Its expected investment over the course of the contract is $250 million.

Royal Caribbean Cruises will introduce eight new ships across its six brands by the end of 2020, including four more gigantic Oasis- and Quantum-class ships.

PortMiami says the deal is a good one for them because Royal Caribbean will bear the brunt of all upfront costs for building the new terminal. The port just completed a costly dredging project to let large cargo and cruise ships access its facilities.

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Port of Miami.

“Although much work remains to determine the cost ranges for various elements of this program, RCL will bear the full cost for constructing the cruise terminal, parking garage, ancillary facilities, and any bulkhead work,” according to the report.

PortMiami expects to earn $9.5 million annual from leasing the land to Royal Caribbean, an increase from the about $1.2 million it currently earns from cargo companies using the land. The initial lease will run for 20 years and will be renewable in ten year increments once the original terms expire.

Royal Caribbean’s biggest vessels now homeport at Port Everglades due to its infrastructure’s support for larger ships, and PortMiami wants the cruise line’s continued business.

“At the time that PortMiami failed to secure the Oasis of the Seas and the Allure of the Seas, the Port did not have facilities capable of hosting these vessels nor did it have suitable expansion plans,” reads the document.

Royal Caribbean can bring in other investors to help finance the new terminal, but will be on the hook for at least 20 percent of the venture when the project is completed.

Fathom creates new Cuba shore excursions

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Fathom Cruise in Cuba

Fathom has created three new excursions for guests on its Cuba cruises that leave every other week from Miami.

“In Hemingway’s Footsteps” shows off Havana through the eyes of the American author and includes stops at his home, Finca Vigia, and his favorite fishing village, Cojimar, where guests can step into the room in which he wrote “For Whom the Bell Tolls.” The five-hour tour is $59 per person.

In “Beyond Havana: Exploring the Cuban Countryside,” passengers will explore the rural side of Cuba, including coffee and sugar cultivation and visit Las Terrazas biosphere reserve. The nine-hour tour includes lunch and is $69.

Also priced at $69 is “Magic of Santiago Featuring El Cobre.” Highlights include the final resting place of Cuban hero Jose Marti and a tour of San Juan Hill, home to the Rough Riders assault during the Spanish-American War.

The six-hour tour ventures beyond the limits of the Santiago city center into the Sierra Maestra mountain range for the city of El Cobre, a historic copper-mining town with African influence.

MSC Cruises Anticipates American and Chinese Expansions

MSC Cruises Anticipates American and Chinese Expansions
MSC Seaside, soon to home port in Miami; Florida

For a company like MSC Cruises with eleven new ships set to come online between 2017 and 2026 – contributing to a total $10.2 billion growth investment – it’s important to establish the firmest foundation possible in which to deploy in new markets, and both North America and China are still relatively new to the European line.

MSC Cruises has dedicated the MSC Divina to sailings roundtrip from Miami, Florida, but the line has vacillated on its year-round commitment – establishing it in 2013, leaving it temporarily and then returning again in 2015.

As it is, the Divina was an existing ship that was retrofitted for the U.S. market, and its success was questionable at the start. Initially, service and dining were particularly not up to standards, but the ship has much improved since then, making the Divina a wonderful Mediterranean experience in the Caribbean.

Now, the line is anticipating the launch of its MSC Seaside (rendered above) which, come December 2017, will be the line’s first ship to be exclusively based in the States from the very start, and with the ship’s launch will also coincide the opening of the line’s new Ocean Cay MSC Marine Reserve in the Bahamas.

With the island destination alone costing $200 million, there is a lot at stake for MSC Cruises in the Caribbean next year.

READ MORE: MSC Cruises Appoints President, Chairman to Lead North American Growth 

So, the line is making a fresh start with its North American leadership team. It is bolstering it up by effectively putting two in the driver’s seat: 12-year-veteran Rick Sasso becomes Chairman of MSC North America, and executive Roberto Fusaro takes the role of President of MSC North America after his success in South America on behalf of the cruise line.

“With the ultra-modern and beautiful MSC Divina home-porting in Miami, the revolutionary MSC Seaside to be christened in Miami in December 2017 and to also home-port there, as well as the development of Ocean Cay MSC Marine Reserve – the most exciting new private destination ever built by a cruise line – it is clear that MSC Cruises is committed to the North American market,” said Fusaro.

“I am honored to have the opportunity to take on this new challenge and excited to work with Rick and the rest of the North American team as we look to further grow our business in the region and deliver a unique vacation experience to guests on board one of the most modern and elegant fleets at sea.”

 Similarly in China, MSC Cruises has meanwhile opened up an office for the line in Shanghai, where its MSC Lirica has been recently deployed, and appointed Helen Huang as President of MSC Greater China. She comes to MSC after regional endeavors with Costa Asia and Costa China. As more and more cruise lines enter Asian markets, competition rapidly grows, and MSC Cruises’ new developments in China show that the company means business.

“I look forward to a new journey to contribute to making MSC Cruises – in the footsteps of what the company has already accomplished in China – the most attractive brand to Chinese vacationers,” added Huang.