Cruise industry warns sailing shutdown will cost UK economy at least £888 million

The 90-day suspension of cruises will cost the UK economy £888 million and lead to the loss of 5,525 jobs and £287 million in wages, industry body Cruise Lines International Association (Clia) has warned.  

According to new data from the association, which represents more than 95% of the world’s cruise fleet, the global suspension of cruise operations is having a significant impact on communities and businesses in the UK.  

Across the UK, the industry supports 40,517 direct jobs paying £1.35 billion in wages. These are the cruise line employees, both on board and shoreside.

However, a fifth of the 435,000 people employed in the businesses supported by the cruise industry across Europe are also based in the UK, paying £3.05 billion in wages. These include an extensive supply chain featuring travel agencies, hotels, local transport operators, and port agents and the industry also supports catering companies, including many small and family-run businesses providing specialist food produce.

For example, Fred Olsen Cruise Lines serves a number of products on board that are made locally to its Suffolk headquarters, such as Stokes Sauces condiments, and beers from Adnams and St. Peter’s Brewery, while P&O Cruises uses salad growers, chocolate makers, local fisheries and many other artisan producers based in Hampshire.  

When you take these indirect jobs into account, the total predicted economic loss rises to £2.37 billion, 13,788 jobs, and £746 million in wages for a 90-day suspension.  

For every 1% drop in cruising in the UK, Clia anticipates 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. 

Andy Harmer, director, Clia UK and Ireland, said: “The cruise industry generates £10 billion 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 90-day suspension we can anticipate a loss of more than 5,525 UK jobs and an economic cost of £888 million to the UK.”  

He added: “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.”   

This morning, both P&O Cruises and Cunard extended their pause in global operations until July 31 at least, and neither line ruled out extending beyond that date. They first announced they were starting to shut down operations on March 16.

Cunard’s president Simon Palethorpe said: “These are extraordinary times and this global outbreak continues to challenge Cunard and the travel industry as a whole. We would love nothing more than to bring our fleet back in to service, and give our guests the holidays they deserve and long for, but with the lockdowns and travel restrictions in place around the world, this is simply not possible at this time.”   

Fred Olsen’s managing director Peter Deer has confirmed his cruise line will extend its pause beyond May 23, but has not a given a date. He said: “At this stage I am not able to confirm a date when we can expect to resume normal operations, as what I don’t want to do is set an expectation and not be able to deliver what we promise. What I can say is that we are keeping a very close eye on the latest guidance from the relevant authorities, including the UK Government and Public Health England, as well as overseas policies.”