Carnival cruises into Galveston in a bid to lift travel restrictions
Rally highlights sweeping impact to local economy in pandemic’s grip
It’s been 14 months since the pandemic swamped the cruise industry and federal orders docked ships.
The year-long hiatus in the cruise business has hit Galveston hard, according to the port’s largest cruise operator, Carnival Cruise Line, which said the industry accounts for $1.6 billion in annual economic activity and employs 27,000 people in Texas.
In an effort to highlight the enduring economic impact from the industry’s suspension, Carnival directed two of its ships into the Port of Galveston Sunday. The ships loomed large in the background during a rally Monday on the topic that drew around 60 attendees.
The Centers for Disease Control and Prevention issued its first No Sail Order in March 2020 and extended the order indefinitely on Sept. 30. In a letter last month to cruise line operstors, the CDC said it would consider rescinding the order by July if 98 percent of passengers and 95 percent of crew members were vaccinated.
Carnival said it is reviewing CDC guidance but has not said whether it would require vaccinations from guests or crew. Nevertheless, crew members from Carnival Vista and Carnival Breeze received COVID-19 vaccinations onsite from the University of Texas Medical Branch at Galveston as part of the Monday event.
Carnival launched its first year-round cruise program from Galveston in 2000 and is the only cruise operator with three year-round ships based there, carrying roughly 750,000 guests annually. The port has two terminals, one used by Carnival,
the other shared by Carnival, Disney Cruise Line and Royal Caribbean.
Construction will begin soon on a third terminal as part of a delayed deal between the Port of Galveston and Royal Caribbean Cruises, said Rodger Rees, CEO of the Port of Galveston. Royal Caribbean may decide to wait until cruises again set sail and revenue is flowing again to start construction, he said. Originally slated to be ready by later this year, Rees said the new terminal could be ready by late 2022.
Cruises account for around 65 percent of revenues for the port, Rees said; it lost $25 million in revenue last year and is on track to lose another $18 million this year, assuming cruises resume in July.
“What those numbers don’t indicate is the jobs that are not out there right now,” Rees said, noting it’s around 25,000 Texans without cruise-related jobs. “It’s a trickle-down situation.”
In a statement, Galveston Mayor Craig Brown said, “Cruising is so critical to the Galveston economy and today’s event clearly demonstrated our community’s desire that cruising return to bring much-needed visitors and jobs back to our community.”
“Today was yet another significant milestone in our efforts to resume cruising in the U.S.,” Carnival President Christine Duffy said in a statement. “We’ve said all along that we would like the cruise industry be given equal treatment of other travel and hospitality companies and this event sent a strong and unified message that we need to start sailing again.”