REGION’S CRUISE SECTOR TIPPED TO GROW DESPITE RED SEA CRISIS
Experts at Arabian Travel Market believe Middle East routes have ‘huge potential’ in long term
The Middle East’s cruise sector is lagging behind global competitors as it seeks to navigate the Red Sea crisis, but industry experts have said the region still has high potential for growth.
Major cruise operators have adjusted itineraries and cancelled voyages as Yemen’s Houthi rebels have carried out attacks on commercial vessels in the key shipping route.
Dave Goodger, managing director of EMEA Tourism Economics, an Oxford Economics company, said the frequency and occupancy of cruises in the Red Sea were down on last year, but the industry was “very resilient”.
“There is this perception of risk and [tourism is] driven by perceptions,” Mr Goodger said during a panel discussion at the Arabian Travel Market in Dubai.
“When there are adverse effects, people tend to stay away, but travellers come back.
“There is an impact today, but that’s not to say it’ll impact the industry tomorrow.”
While cruise travel is outpacing global demand for international tourism more broadly, with the exception of Asia, the Middle East’s recovery is slower, the latest report by Tourism Economics says. Cruise occupancy is at 111 per cent in the Caribbean and 107 per cent in the Mediterranean, compared with 90 per cent in the Middle East and Africa.
Occupancy above 100 per cent means extra passengers were added to a cabin, taking it beyond its capacity – for example, children staying with their parents in a two-person cabin.
However, the report says, the Middle East has clear longterm potential once safe passage through the Suez Canal becomes possible.
Turky Kari, executive director of marketing and corporate communications at Saudi Arabia’s Aroya Cruises, said that once the company’s first ship sets sail in December, it will pass through the Red Sea.
“We are very confident, and all Red Sea authorities and the Saudi government support this 100 per cent,” he said.
Aroya comes under the management of Saudi Arabia’s Public Investment Fund’s cruise company, Cruise Saudi. It plans to launch three cruise ships within 10 years, add seven new ports by 2030 and serve 1.3 million passengers a year.
Its first cruises will last three nights, departing from Jeddah and then spending a day at sea before stopping at a private island along the Red Sea coast.
A seven-night cruise will follow in January, heading from Jeddah to Ain Sokhna and Sharm El Sheikh in Egypt, then Aqaba in Jordan. Aroya also plans to launch cruises in the Gulf and the Mediterranean.
The region’s cruise sector has “huge” potential, said Saud Almheiri, cruise tourism and yachting lead at the Dubai Department of Economy and Tourism. “But people in the region need to be more aware that they can cruise in our own back yard. They don’t need to fly six hours to the Med or 15 hours to the Caribbean.”
This is why Cruise Arabian Alliance was set up in March, he said – to foster co-operation in the region as countries work together to maintain service levels and educate the market.
“We’re strong, but we’re stronger together,” said Mr Almheiri.
Lakshmi Durai, chief executive of Middle East cruise agency CruiseExplore, said the more liners there are in the region, the better for the sector.
“One cruise line is not competitive to another cruise line,” she said.
“There is a huge number of people who take land vacations every year from here. Instead of a staycation, why not a ‘cruisecation’?
“Cruises are very easy to sell. They’re all inclusive, it’s one vacation to see multiple locations, there are no flight costs. Cruising in the Gulf is a fantastic winter vacation.”
Ultimately, the future of the industry is bright, Mr Goodger said. “There are two words I use in general when focusing on travel as a whole, with a lot of economic disruptions, and that’s cautious optimism.
“But when talking about cruising, it’s optimism.”