Cruise Companies Invest Big in Private Resorts to Address Overtourism

A New Wave in Cruise Tourism

As the cruise industry continues to sail through post-pandemic recovery, companies like Carnival, Royal Caribbean, and Norwegian Cruise Line are charting new waters by investing heavily in private resorts. These developments are not just a business strategy to boost revenue but also a solution to the increasing problem of overtourism.

Why Private Resorts?

The allure of cruising lies in visiting exotic destinations. However, the surge in tourism has led to overcrowding in popular spots, prompting cruise lines to rethink their itineraries. Enter private resorts—exclusive islands or beach destinations owned by the cruise companies themselves. These resorts promise a controlled environment where the companies can manage visitor numbers, ensuring a pleasant experience for guests while minimizing the impact on local ecosystems.

Major Investments in the Pipeline

• Carnival’s Celebration Key: With a whopping $600 million investment, Carnival is developing a resort on Grand Bahama. This resort aims to offer a plethora of activities and amenities, ensuring guests have an unforgettable experience.

• Royal Caribbean’s Perfect Day Mexico: Set to open in 2027, this resort is poised to be a game-changer. Following the success of their Perfect Day CocoCay, which significantly boosted their net yield by 8%, Royal Caribbean is optimistic about replicating this success in Mexico.

• Norwegian’s Expansion at Great Stirrup Cay: Norwegian Cruise Line is not being left behind. Their expansion plans at Great Stirrup Cay will enhance their offerings, making it a must-visit destination for their passengers.

The Bigger Picture: Addressing Overtourism

These developments are timely, as authorities in locations like Venice, Ibiza, and Juneau are pushing back against the influx of tourists. By limiting cruise ship access, these destinations aim to preserve their cultural and environmental integrity. Private resorts offer a viable alternative, allowing cruise companies to maintain their itineraries without contributing to the overcrowding issues.

The Future of Cruising

The future of the cruise industry is undoubtedly tied to these private ventures. Not only do they promise unique, tailored experiences for passengers, but they also offer significant economic benefits for the companies. As passenger capacity at these private islands is expected to more than double by 2025 from 2019 levels, the trend is clear: private resorts are here to stay.

For more insights on this topic, check out the Financial Times article.