Dubai’s cruise industry faces choppy economic seas
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Although the UAE has removed a key obstacle to the growth of Dubai’s cruise tourism industry, the sector still faces a host of challenges due largely to global and regional economic woes.
Earlier this month the UAE removed a key stumbling block to its growing cruise tourism sector by allowing multiple entry visit visas for cruise passengers for the first time. The previous visa law imposed extra fees and required extensive paperwork from the visitors of 32 nations who are not permitted to get visas on arrival in the UAE, as reported by ameinfo.com.
DP World chairman Sultan Ahmed Bin Sulayem welcomed the new decree, saying it is ‘a very positive move that will make a tangible difference to the cruise industry in Dubai’.
However, while Dubai can boast that its cruise tourism sector has achieved steady growth in recent years, it currently faces many of the same headwinds that are plaguing the cruise tourism industry worldwide, says cruise industry analyst Tony Peisley.
He told AMEInfo that cruise lines’ profits are ‘way down’ globally due to rising fuel costs and high regulatory fees, while at the same time the sluggish economy, particularly in Europe, is forcing the operators to lower their prices. Therefore, even though passenger numbers may still be strong, many cruise liners are losing money because of the discounts that customers are getting.
He cites the recent decision by Royal Caribbean to pull its Middle East cruises out of Dubai after this winter as a reflection of the difficulties facing the market. “What is happening is that cruise lines are being less patient and are not keeping ships in places if they think they can make more money somewhere else with those ships,” he said.