Cruising to growth

Share prices of cruise tourism companies have risen sharply this year as investor expectations for revenue and profit growth continue to increase. The cruise tourism industry association is as optimistic and expects passengers’ number to reach 31.5 million in 2023– 6% above 2019. Additionally, cruise tourism is forecast to outgrow general international tourism 27% by 2026, making it one of the fastest growing sectors of tourism. Companies owning cruise ships are likely to benefit given cruise capacity is projected to grow 14% over the time period 2023 to 2027 whereas passenger numbers are expected to grow 25%. So, demand will likely outstrip supply likely leading to potentially higher prices and profit margins.

Source: Cruise Lines International Association, December 2022.