4 MAY 2020

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Article from BTNews 4 MAY 2020

CRUISE SPECIAL FROM CLIA

New data reveals economic impact of suspension of operations.

Also see MAY CRUISE ISSUE

Cruise Lines International Association (CLIA), the body that represents more than 95% of the world’s cruise fleet, reports new data revealing the extent of the industry’s impact in the UK.

“The cruise industry generates £10bn for the UK economy each year. We understand the significant impact, therefore, that our decision to suspend operations has on the livelihoods of people who work in our sector, and on businesses that rely on the cruise industry in all parts of the country. Unfortunately, our research shows that for a 60-day suspension we can anticipate a loss of more than 3,000 UK jobs and an economic cost of £539m to the UK,” said Andy Harmer, director, CLIA UK and Ireland.

  • A fifth of the 435,000 people employed in businesses supported by the cruise industry across Europe are based in the UK.  As well as cruise line employees – both on board and shoreside – the industry supports an extensive and diverse supply chain.  This includes travel agencies, hotels, local transport operators, and port agents, as well as catering companies, including many small and family-run businesses providing specialist food produce. Across the UK, the industry supports 40,517 direct jobs paying £1.35bn in wages, and 88,519 total jobs paying £3.05bn in wages.
  • Unfortunately, the global suspension of cruise operations will impact communities and businesses.  For every 1% drop in cruising in the UK, up to 530 jobs can be lost. Each day of the suspension results in the loss of 55 direct jobs and 139 total jobs in the UK. 


For a 60-day suspension, the anticipated impact for the UK is:

  • Direct economic loss of £539m, 3,350 jobs, and £174m in wages.
  • Total economic loss of £1.43bn, 8,359 jobs, and £454m in wages. 


For a 90-day suspension, the anticipated impact for the UK is:

  • Direct economic loss of £888m, 5,525 jobs, and £287m in wages.
  • Total economic loss of £2.37bn, 13,788 jobs, and £749m in wages. 


“Choosing to suspend operations was the right thing to do, and we know the cruise industry is resilient. We have put public health at the heart of our response, and we will continue to respect the guidance from international and national health authorities. We are using this time to enhance further our protocols that we will all benefit from, and we look forward to playing our part in the recovery, when the time comes for society to travel once more.” - Andy Harmer, Director, CLIA UK and Ireland.

www.cruiseexperts.org

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