Outlook15 May 2023 10:43
Outlook
The scheduled launch of new cruise ships in the year ahead means the number of available berths across the global cruise fleet will reach all-time highs in 2024, and when combined with industry occupancy rates reaching pre-Covid-19 levels, the industry will be propelled to exciting new highs.
Industry booking patterns have been rebuilt to market norms over the last 12 months, and all major cruise lines have reported record booking trends for 2023.
Looking further into the future, long-established demand and supply trends in the cruise industry have re-established themselves as key drivers of cruise industry growth. According to Cruise Industry News, by the end of 2027, passenger capacity in the cruise industry is forecast to grow to over 40 million, a growth rate of 45% from pre-covid levels.
The medium to long-term demand trends have been largely unaffected by Covid-19. The growing appetite for leisure travel, if anything, has perhaps been increased by Covid-19. The introduction of so many new classes of cruise ships in such a short time reflects the industry's drive to continue attracting new customers.
Before Covid,-19, it was a requirement for many cruise ports to invest significantly in their infrastructure to meet the needs of the growing number of cruise ships and the growing size of cruise ships as well as the increased demand from passengers for an improved cruise port experience. Those requirements have re-emerged even stronger, as the anticipated growth in the industry brings exciting prospects and potential risks for those involved in the cruise port industry. Cruise ports will face some substantial obstacles due to the growing size of cruise ships and the continuous growth and segmentation of the passenger base.
GPH’s significant experience and know-how in port and destination development and global cruise port operations, honed from our experiences worldwide, means we are well-positioned to play a primary role in this investment and industry growth in the years ahead.
In the 2024 Reporting Period, we expect to welcome 11.8 million passengers to our consolidated and managed cruise port portfolio. A more detailed financial outlook will be provided when GPH releases its financial statements for the Reporting Period. Our inorganic growth aspirations continue and we expect to add San Juan Cruise Port and St Lucia Cruise Port to the network in the 2024 Reporting Period with additional opportunities under review.
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