Regional cruise sector remains resilient in face of Red Sea tensions

Expert says geopolitical issues unlikely to impact wider regional winter tourism

Two cruise ships operated by German company Aida anchored at Dubai Harbour in 2021.

A cruise industry leader has said he expects passengers to be largely undeterred by "geopolitical issues" facing the region, despite a major operator halting planned trips going through the UAE.

Dominic Noranho, regional manager for sales and marketing at Cruise Master, a Middle East agency representing more than 24 cruise operators, spoke of the tourism boost the sector provides and said the safety of those on board remained paramount.

The cruise industry has become a key component of regional tourism, with more than 150 cruise liners visiting the UAE each winter.

Mr Noranho said 95 per cent of those on board fly in from elsewhere.

“Generally, geopolitical issues are something that does not affect the attitudes of passengers from this part of the world,” he said.

“Cruise lines deploy these ships in this part of the world to boost tourism and bring inbound customers into the Middle East to experience the destination.

“For all cruise lines, the utmost priority is safety of the crew and the passengers.

“They will not jeopardise it in any way, and on a commercial perspective, the insurance costs are going to be really high for them to operate when it comes to such scenarios.”

He spoke after German cruise operator Aida announced it was to cancel its planned Orient cruises with the 3,300 passenger capacity Aidaprima, to and from Dubai or Abu Dhabi, in the 2025-26 winter season.

The giant 18-deck, 300-metre-long floating hotel with a smiling face painted onto its bow has become a familiar sight in Dubai’s purpose-built cruise terminal.

Parent company Aida announced all associated transfer cruises in fall 2025 and spring 2026 will also be cancelled due to regional safety concerns.

Dubai Harbour Cruise Terminal welcomed 300,000 passengers in the last cruise season. Photo: Dubai Media Office

Since November 2023, more than 70 commercial vessels have been attacked in the Red Sea by Yemen’s Houthi rebels, with two vessels sunk.

The attacks have forced merchant ships to take longer routes around Africa to avoid potential flashpoints, with the cruise industry also suffering disruption to regular tourism routes.

In a statement, Aida Cruises said it was committed to long-term planning and due to the currently uncertain situation in the Middle East, would not be offering UAE cruises this winter, deploying vessels to Northern Europe and the Canary Islands instead.

“With this decision, the company aims to provide its guests with reliable clarity about their vacation trips in the coming winter season as early as possible,” a representative for Aida said.

Most cruises unaffected

Those booked on cruises transiting through the UAE have been offered a cancellation voucher worth 10 per cent off the price of previous cabin bookings, redeemable until September 30, 2025.

Despite the Aida cancellations, other cruise operators contacted by The National said they were planning to continue winter bookings as normal.

Bookings for winter cruises that usually depart from the UAE in December typically begin in mid-September, so Mr Noranho said it could be too soon to tell if there is likely to be further disruption.

“In the routings of what MSC, Costa and Celestial currently have within the Arabian Gulf that is purely touching only the GCC countries, I don't see a concern there,” he said.

“Most of the cruise lines deploying their ships here in the Middle East have stopped sailing via the Suez Canal, and they are coming all the way around Africa, which makes the cost of repositioning also expensive.

“It's quite natural when the operational costs go up, the ticket cost also would go up, but that has not led to customers shying away because it's not such an exorbitant cost for them to decide not to travel.

“The way the UAE in particular has positioned itself as a cruise hub for cruise lines passing through the region has made this a key aspect of the tourism industry today.”

Red Sea tensions

Cancellations of cruise routes due to tensions at sea are not unprecedented.

In May 2024, Seabourn Cruise dropped Red Sea ports from its 90-day Grand Africa voyage, while Holland America Line also followed with changes to its world cruise on board Volendam to avoid the same waters after consultations with security experts.

In 2019, P&O Cruises scrapped its winter programme to Dubai and the Arabian Gulf due to terrorist attacks on shipping tankers in the Straits of Hormuz.

At the time, P&O Cruises president, Paul Ludlow said the detention of a British-flagged tanker by the Iranian authorities heavily influenced the decision.

"The safety of our guests and crew is absolutely paramount and given our UK status, coupled with the uncertainty in the region, we had to make this difficult decision,” he said.

According to Cruise Lines International Association (CLIA), the global cruise industry is currently in a rapid growth phase.

Cruise liners around the world carried 31.7 million passengers on holidays in 2023, with 37.7 million expected in 2025 and a further 10 per cent increase forecast by 2028.

The industry, however, has been criticised for overtourism by flooding already popular coastal communities with thousands of extra tourists, as well as for its environmental impact.

More than 350 extra cruise shops are under construction or due to take to the seas to meet the growing, projected demand with Gen-X and Millennials leading the market.

In its annual State of the Cruise Industry report CLIA highlighted the industry's economic impact, by contributing $168 billion to communities and supporting 1.6 million jobs.

“The report shows that cruising continues to be one of the most dynamic and resilient sectors in tourism, growing in line with strong demand for cruise holidays, particularly among younger generations and new-to-cruise travellers," said Bud Darr, president and chief executive of CLIA.