Cruise ships, hotels suffering

Garwin Davis, Staff Reporter

WESTERN BUREAU:

THE local cruise shipping and hotel sectors have been taking a pounding since last week's terrorist attacks in the United States which, according to industry insiders, have been costing the country millions of dollars in earnings.

The hotel sector has already lost an estimated $250 million, and a source in the cruise shipping industry puts losses since the incident at about $450 million.

He said the passengers who arrived on those ships last week didn't bother to disembark, and if the six ships that are scheduled to come to Jamaica this week do not leave port, the loss for the week will be US$2.5 million or J$100 million - "and that's a conservative estimate".

Many cash-strapped guests remained stranded at hotels up to yesterday, unable to get back to their U.S. destinations. The hotels, following an appeal from Tourism Minister, Portia Simpson Miller, have been bearing most of the cost, which include food, accommodation and telephone calls. They, however, have been privately bemoaning the mounting costs, noting that their resources have been stretched to the limit.

"I don't know how much longer we can continue," explained one hotel owner who requested anonymity. "There are no guests coming in and the ones that are stuck here we have to be taking care of. It is a no-win situation which we are in and it is really draining our resources. It is very difficult to complain as one runs the risk of appearing unsympathetic. Talk to any other hotelier and I guarantee you will be hearing the same thing."

But some guests staying at several north coast properties didn't appear overly worried about returning home. "There has to be a reason why the airports are closed so as long as it takes we are okay with it," said Travis Smith, a New Jersey resident who is vacationing with his family in Ocho Rios. He noted that while his hotel has been very accommodating, he has been bearing most of the cost for his family's over-stay.

Others, though, were eager to get home. "We are broke and need desperately to get back home," said Elizabeth Winker, a guest at the Jamaica Grande hotel. "We have had a good time here but we need to get back to our home in Atlanta."

Air Jamaica yesterday resumed normal activities with its flights to the U.S.

Cruise shipping, one of the island's mainstay, is already affected by the attack in the U.S. and related interests have been taking measures to cushion what they think will be devastating effects. When the news broke last week about the terrorists attacks, passengers who were already on board ships at sea, according to one cruise official, became disengaged for the remainder of their voyage.

"That literally took all the fun out of the cruise," said Carnival cruise director, John Heald. "While I was doing the orientation for the Jamaican leg of the cruise, hardly anybody showed up."

That, merchants say, explained why their sales last week were so dismal. "Nobody was in a shopping mood," said Ravi Daswani, owner of Royal Shop duty free store. "The tragedy in the U.S. simply dampened the spirit of everyone."

And indications are it could get worse. With several of the major airports in the United States still closed for security reasons and others operating on a limited basis, there are now concerns whether any cruise ships will be coming into port this week. The fear stems from the fact that a majority of passengers joining the ships at their home port in either Fort Lauderdale or Miami have to do so by using inland flights.

"It is difficult to say what is going to happen," Mr. Heald told Ocho Rios merchants last week. "There are just too many uncertainties right now with the travelling industry to get an accurate picture."

The cruise-shipping sector runs a close second to the hotel industry in terms of foreign exchange earnings. A loss of an entire week's fleet of vessels which averages between six or seven ships and nearly 20,000 visitors, officials say, could cost the local economy millions in port and head taxes, ground transportation and water.

"It's difficult to pinpoint what the actual dollar amount would be but it would be a monumental loss," said president of the St. Ann Chamber of Commerce, Andrew Grant.

And in anticipation of ships coming in with reduced passenger occupancies, at best, a number of duty free merchants whose businesses rely mostly on cruise shipping, say they are forced to cut back drastically on purchase orders.

"It is a situation of grave uncertainty," explained Kumar Sujanani, vice-president of the duty free merchants association of Jamaica. "One vessel has already indicated that it is not coming in and I am told that another is seriously contemplating a similar move."

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