A Maltese-flagged cruise ship with 160 people on board which on Tuesday declared an emergency as it was sailing across the Drake Passage off the southern tip of South America is limping back to Ushuaia, its port of destination, according to a release from the Argentine Navy.
Tierra del Fuego province, in the extreme south of Argentina, and its capital Ushuaia is anticipating a 20% fall in the cruise business this coming season 2009/10 compared to 2008/09 according to the president of the regional tourism institute.
Less than a month for the beginning of the official cruise season 2010/11, prospects for Punta Arenas in the extreme south of Chile are not at all encouraging with an anticipated activity contraction of 33% over last year, according to the Empresa Portuaria Austral, EPA, which manages local port activities.
A Uruguayan cruise industry expert has brought up an interesting debate about the whole business for South America if Chilean port and auxiliary services costs remain so high that they end convincing some of the cruise companies to drop the traditional Pacific and Chilean leg of the tours.