Yesterday, I attended the annual Seatrade Global conference in Fort Lauderdale. In the morning, the "state of the industry” featured the usual cruise tycoons extolling on the billion dollar cruise industry. Carnival Corporation’s CEO Arnold Donald, Norwegian Cruise Line Holdings CEO Frank Del Rio, MSC Cruises Executive Chairman Pierfrancesco Vago, and Royal Caribbean Cruises CEO Richard Fain all spoke glowingly to an audience of enthusiastic cruise attendees that the cruise lines were enjoying a booming business.
The most talked about statistic was that over 25 million passengers around the world will be welcomed on board cruise ships this year.
But there was a troubling undercurrent at the convention.
“NCL’s cruise executive, Frank Del Rio, who received nearly $32 million in compensation in 2015, said that the industry was benefiting because of what he called the "Trump Effect."
CNBC reporter and moderator, Susan Li, encouraged Del Rio to explain the "Trump Effect" to the attentive audience.
Del Rio said that because of President Trump, the stock market was at all time high and fewer regulations and pro-business tax cuts were good for his business.
Del Rio also said that he "loved" the NCL cruise destinations, including cruises to his native Cuba, "because they make us money."
Del Rio’s comments about the "love" of more money and "fewer regulations" seem to be the essence of the "Trump Effect." President Trump is aggressively taking steps to gut the Environmental Protection Agency (EPA), as evidenced by his appointment of Oklahoma attorney general Scott Pruitt to head that federal agency. Pruitt has a record of trying to destroy the environmental protections that the EPA is responsible for enforcing. He has built his political career by trying to undermine the EPA’s environmental protections and has even disputed the effects of climate change.
The cruise industry has always struggled with its environmental image.
Just two days ago, a British cruise ship smashed into a pristine and beautiful reef on Raja Ampat in Indonesia and then caused further damage when the captain insisted that tugs drag the cruise ship off the ancient reef.
There are few travel industries which can wreak havoc on rare, biodiverse marine habitats as effectively as the cruise lines.
Damaging reefs is not an usual event in the world of cruising, as the cruise lines have recently demonstrated time after time. But the damage is not just due to the reckless operation of cruise ships but is often the intentional acts of dredging old reefs and filling native mangroves with the pulverized coral to make way for deeper ports in the Caribbean to accommodate the larger and large cruise ships which are dominating the cruise industry today.
Of course, the cruise industry just witnessed the spectacle of the Department of Justice fining Princess Cruises a record $40,000,000 fine after its investigation uncovered wide-spread illegal practices involving dumping oil at sea around the world by the Caribbean Princess, Star Princess, Grand Princess, Coral Princess and Golden Princess over the course of nearly a decade. Meanwhile, the cruise executives at the helm of the Princess organization at the time of the dumping have continued to be promoted to lucrative positions in the Carnival corporation.
"Magic pipes" and shady environmental shipboard practices have long been part of the history of the cruise industry.
The fine seemed to be déjà vu of the early 2000’s when the major Miami-based cruise lines, NCL, Carnival and Royal Caribbean, paid tens of millions of dollars in fines and pled guilty to multiple felonies for dumping oil into the oceans, falsifying ship logs and lying to the U.S. Coast Guard about the environmental crimes.
So, in an industry with a history like this, it’s troubling to see a CEO of a major cruise line excited about the benefits of fewer environmental regulations under the Trump presidency. Yes, the cruise executives will earn lots of more millions of dollars, but the reefs and waters around the world will pay a heavy price for such short-sightedness.
Interested in more articles about the "Trump Effect?" Read:
Skift (by Hannah Sampson) – Cruise Executives at Odds Over the Trump Effect.
Seattade (by Anne Kalosh) – Strong demand, record orderbook, China, ‘Trump effect’ boost cruising, top leaders say.
Miami Herald (by Chabeli Herrera) – Cruising is booming, thanks in part to the ‘Trump Effect,’ but there’s a catch.
Take a moment and read: Donald Trump is preparing to make massive policy changes at the EPA and Trump to environment: This is war.
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Top – Dredge and fill in Falmouth – Jamaca Gleaner
Middle – Reef in Raja Ampat, Indoneasia – AFP via the newspaper
Bottom – Anchor damage in Cayman Islands – Don Foster’s Dive Cayman via Cayman Compass