MercoPress. South Atlantic News Agency

Falklands: Cruise numbers to slump as major operator pulls the plug

The Norwegian Sun company refused to comment the decision.

Retailers in Stanley are being urged to work smarter for the tourist dollar as future domestic cruise seasons face potentially devastating losses.

Despite last week’s announcement by the Tourist Board of a £4.2 million boost to the economy from last year’s cruise programme – and another healthy summer season ahead – the outlook for 2010-2011 is far from bright, with our most popular cruise liner pulling the plug on ten money-spinning visits.

The Norwegian Sun is scheduled to bring up to 23,590 passengers to the Falklands this summer – more than any other vessel – but it won’t be here for the following season.

And the loss of the super liner is set to punch a £1 million-plus hole into the Islands’ economy, slashing local cruise income by a third.

It is not the only ship to cancel, with the Minerva also pulling out during 2010-2011, and taking with it a payload of up to 1,675 passengers over five visits.

Only three other ships are bringing more passengers to the Falklands this year – the Star Princess (22,477), the Veendam (11,403) and the Infinity (4,898).

Each of these is still including the Falklands in its future itineraries.

But the withdrawal of the Norwegian Sun and the Minerva is a heavy blow – and local retailers and tour operators will have to bear the brunt.

Falkland Islands Tourist Board General Manager Jake Downing said he was hopeful the company which charters the Minerva might find another vessel, and there was still potential demand for another major operator to step into the breach in the wake of the Norwegian Sun’s cancellation.

But he conceded there were no guarantees the loss would be recouped.

“We have to make the most of what we have got,” he said. “We have to try to push the average spend up for each cruise customer – by offering different products and making it easier to shop.”

He said many visitors now demanded swift and secure payment methods, and tourist outlets should look at introducing “chip and pin” credit facilities, as well as reviewing the products on their shelves.

“I think we have some good retail offerings, but we have to keep moving,” he said. “That is one of the reasons the Tourism Strategy Group has been set up – to work on long term strategies for the Islands.”

The reasons for the pullout of the two ships are unclear. While the global recession and the competitiveness of the cruise market are doubtless contributory factors, the impending ban on the use of heavy fuel oils in the Antarctic – ratified last month by the International Maritime Organisation – will also be preying on the minds of operators plying their trade in the region. However, the Norwegian Sun’s parent company refused to comment.

Local government charges also needed to be kept in check, according to John Pollard, General Manager/Director of Sulivan Shipping Services.

“We are an expensive port and we have to be careful about our pricing,” he said, referring to government port duties, passenger taxes and immigration fees. “We have to recognise that, and we have to be careful about not driving the industry away.”

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