A Study on the Trends of the Global Cruise Tourism Industry, Sustainable Development, and the Impacts of the COVID-19 Pandemic

Li-Ying Lin, Chang-Ching Tsai and Jen-Yao Lee
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Li-Ying Lin: Department of International Development, Ocean Affairs Council, Kaohsiung 806614, Taiwan
Chang-Ching Tsai: Department of Tourism Management, National Kaohsiung University of Science and Technology, Kaohsiung 807618, Taiwan
Jen-Yao Lee: Department of International Business, National Kaohsiung University of Science and Technology, Kaohsiung 807618, Taiwan

Sustainability, 2022, vol. 14, issue 11, 1-28

Abstract: Stable financial operation is the essential factor for the sustainable development of the cruise tourism industry. The cruise industry was one of the fastest growing before the COVID-19 pandemic. The industry is capital intensive, has an enormous supply chain, serves to improve many ports-of-call economies, hires an immense quantity of people worldwide, and has a substantial economic contribution worldwide, especially in coastal countries or areas. COVID-19 has disrupted what had been an unending development of growth and success for the cruise industry. This study aims to analyze the financial performance of the worldwide cruise industry and realize the trends in the cruise tourism industry. The study examines the statistical data of the top three cruise companies that account for nearly 74.6–91.8% of the worldwide cruise tourism for 2015–2021. The financial analysis includes economic structure, solvency, operating ability, profitability, and financial leverage. We also analyze the economic indicators of the top three cruise companies with frequency analysis, correlation analysis, regression analysis, and the financial management risks of the top three cruise companies with the Z-Score Model. In addition, the study organizes and summarizes the impact of the COVID-19 pandemic on global cruise tourism. The study found that from mid-March 2020 until July 2021, the temporary suspension decreased passenger numbers, operating losses, and stock price losses. The research results confirm that the COVID-19 pandemic has caused the suspension of cruise ships worldwide. The break has led to a sharp drop in the number of cruise passengers, resulting in a significant decrease in operating income and profits of cruise companies, and the debt-to-assets ratio and leverage ratio have increased significantly. The excessive debt ratio will affect the sustainable operation of cruise companies and the sustainable development of the cruise industry. Because of the enormous impact and damage caused to the cruise industry by the COVID-19 pandemic, it is suggested that the cruise industry should take effective preventive strategies against highly contagious infectious diseases, deploy these strategies ahead of time, and strengthen the resilience and pandemic prevention ability of the cruise industry, to achieve the goal of sustainably developing the cruise industry.

Keywords: cruise tourism industry; sustainable development; financial management; Coronavirus disease (COVID-19) (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
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