Seatrade Connection - June 2004 issue
Industry Celebrates 20 Years of Cruise Shipping

The 20th edition of the Seatrade Cruise Shipping Convention convened in mid-March in Miami amid an atmosphere of optimism and positive business expectations for 2004 and beyond. From a gathering of less than 150 shipping industry executives in New York in 1985, the annual event has in just two decades burgeoned into the world's leading cruise industry event.

Business Outlook Good for 2004

In the conference's opening address, Cruise Lines International Chairman Mark Conroy gave an upbeat assessment of the current state and near future of the cruise industry.

Conroy, president and CEO of Radisson Cruises, noted that 2003 saw an improved travel climate and continued industry growth.

"We saw renewed strength in the stock market, higher consumer confidence, an average consumption rate of 102.6 percent and a record 9.5 million cruise vacationers last year," he said.

Sources of ongoing concern for the industry include terrorist acts and elevated security levels, the economy, additional berth capacity and such potential health threats as SARS.

Conroy addressed the notion of overcapacity by pointing out that "even in years of peak cruise ship capacity growth, demand has exceeded increases." He noted that in 2002, capacity rose 12.3 percent, but was offset by a 15.3 percent rise in number of passengers. In 2003, an 8.9 percent capacity rise was offset by more than 10 percent more cruisers.

"2004 caps a five-year building boom during which 62 ships entered the CLIA fleet, but looking ahead we will see a lull in new ship introductions," Conroy said.