Continued growth in cruise industry through mid 2008

Although the cruise industry has been growing, the current financial crisis is likely to change that trend.

Travel Insurance News - 20/10/2008

<< Eurostar sales rise despite affects of Channel tunnel fire | Travel News | United Airlines pilot arrested for being drunk >>

The current financial crisis and resulting cuts in consumer spending are expected to curtail industry growth, according to a new report.

The Cruise Lines International Association (CLIA) released a report last week in which it revealed that nearly 12.6 million passengers went on cruises in 2007, a 4.7 percent rise over the year before. During the first half of 2008, the increase in passengers was 5.4 percent.

"We are still cautiously optimistic that we will meet the forecast that we set at the beginning of this year of carrying 12.8 million passengers," the president and chief executive officer of CLIA, Terry Dale, said.

The report indicate that signs of impending change could be seen earlier in the year, even when the industry were experiencing growth. An example was that a substantial increase in passenger numbers, as much as 31 percent, came from overseas.

"As an industry, we're becoming more global," Dale added.

Numbers of North America passengers increased by less than one percent, attributed to high fuel costs, a depressed housing market, increased unemployment, reduced airline capacity and the U.S. credit crunch, which in combination saw Americans in growing numbers cutting back on leisure travel.

<< Eurostar sales rise despite affects of Channel tunnel fire | Travel News | United Airlines pilot arrested for being drunk >>