• Two cruise ships operated by German company Aida pictured at Dubai Harbour on March 21, 2021
    Two cruise ships operated by German company Aida pictured at Dubai Harbour on March 21, 2021
  • A cruise ship is docked at harbour after turning back due to positive coronavirus in Singapore July 14, 2021. Reuters
    A cruise ship is docked at harbour after turning back due to positive coronavirus in Singapore July 14, 2021. Reuters
  • Cruise ship Oosterdam crew members receive Janssen Covid-19 vaccine in IJmuiden in July on the first day of coronavirus vaccination of cruise ships that sail under the Dutch flag.
    Cruise ship Oosterdam crew members receive Janssen Covid-19 vaccine in IJmuiden in July on the first day of coronavirus vaccination of cruise ships that sail under the Dutch flag.
  • Virgin Voyages' cruise liner The Scarlet Lady will launch from Portsmouth in August on sailings open only to vaccinated UK residents.
    Virgin Voyages' cruise liner The Scarlet Lady will launch from Portsmouth in August on sailings open only to vaccinated UK residents.
  • Cruise ships docked at the new terminal in Dubai Harbour on July 2, 2021
    Cruise ships docked at the new terminal in Dubai Harbour on July 2, 2021
  • Recruitment firms for major cruise liners said profits were 70 per cent down on pre-pandemic levels and fear it could take at least another year for business to recover.
    Recruitment firms for major cruise liners said profits were 70 per cent down on pre-pandemic levels and fear it could take at least another year for business to recover.

Gulf cruise ships prepare to set sail amid fightback against pandemic


Nick Webster
  • English
  • Arabic

As cruise ships prepare to return to the seas after an enforced 14-month break due to the pandemic, one of the hardest hit industries is facing a challenging future.

While many staff will return to work, life on board is set to be very different and that will reflect in salaries and the number of cruise ships operating.

Recruitment firms for major cruise liners said profits were down 70 per cent on pre-pandemic levels and fear it could take another year for the industry to recover.

“At the moment we have a very limited number of openings as we are mostly trying to deploy our returning crew who have been sitting at home,” said Mathew Dymtchev, director of operations at Odyssey International Maritime and Hotel Management.

People are still nervous about what the travel restrictions will be and what happens if someone gets covid on board.
Vivek Menon,
Deira Travel

“The companies that I am working with are gradually reopening from August 1, but are unlikely to be fully operational until September 2022.

“We are supplying crew for about 50 ships but with the travel restrictions, vaccination and different safety protocols for new crew, recovery will take some time.

“From our research around 85 per cent of these people are ready to come back to work, but that does not mean they will all do so.”

Staff joining cruise ships face strict new safety protocols.

Changes to the layout on board to incorporate social distancing measures have also been implemented at substantial cost.

'Oosterdam' crew members receive a dose of the Janssen Covid-19 vaccine.
'Oosterdam' crew members receive a dose of the Janssen Covid-19 vaccine.

Odyssey supplies crew to ships operated by global travel firms, including Oceania Cruises, Virgin Voyages, Regent Seven Seas, Crystal Cruises, Seabourn Cruise Line, Thompson Cruises, Princess Cruises and Cunard.

While most businesses in the Gulf have returned to some kind of normality, tourism continues to feel the strain and suffer from the pandemic’s fallout.

Based on a market-wide survey of more than 1,000 professionals in the region, 52 per cent said their organisation was in ‘business as usual’ or ‘growth’ phases of operation.

Of those still recovering, 28 per cent expected their operations to be back to pre-pandemic levels or beyond in the next 12 months, suggesting 80 per cent of organisations will be back on their feet, if not growing, by 2022.

The cruise ship industry, however, is likely to continue to suffer for some time, Mr Dymtchev said.

“It has been difficult, to say the least, and it will take far longer to recover and be much harder than any of us thought,” he said.

“The gravity of the situation was vastly underestimated by the industry as a whole.

“This time last year we thought we would be back within three months but it has been a much extended period of intermission.”

The US Centres for Disease updated guidance for resumption of cruise operations in May.

It included mandatory masks and regular disinfection. Trial voyages were also completed ahead of relaunching passenger cruises.

European ports imposing different safety protocols for new crew joining vessels has complicated recruitment further.

A cruise ship is docked at harbour due to a Covid-19 case on board in Singapore. Reuters
A cruise ship is docked at harbour due to a Covid-19 case on board in Singapore. Reuters

“If we send someone from Dubai fully vaccinated to join a crew in Southampton it will take a month of preparation in advance,” said Mr Dymchev, who established the SOS Crew Charity Foundation during the pandemic to support out-of-work staff.

“If someone is arriving in Venice, Italy they use also quarantine for seven days and have a PCR test, or for 14 days if they are unvaccinated. That makes things complicated and expensive.”

Despite international travel resuming as border restrictions ease, the cruise liner industry remains uncertain.

The first five post-pandemic voyages onboard the Cunard-run Queen Elizabeth liner were cancelled after crew members tested positive for Covid-19.

Cases were identified on new crew joining the ship in June as it was preparing to begin short-term voyages around the UK.

Royal Caribbean cruises resumed in June after a year-long suspension but also recorded two cases of the virus onboard its Celebrity Millennium vessel.

The global industry was worth around $150 billion prior to the pandemic and supported more than 1.2 million jobs worldwide.

Profits have now been considerably reduced due to falling demand and quiet schedules.

Travel agent Vivek Menon said 30 per cent of bookings were for cruise ships before Covid-19.
Travel agent Vivek Menon said 30 per cent of bookings were for cruise ships before Covid-19.

Several onboard outbreaks plunged the industry into crisis in early 2020, with the Diamond Princess one of the worst hit.

The 18-deck ship operated by Princess Cruises was in dock in Yokohama, Japan, when the virus spread through passengers on board, infecting more than 600 and claiming at least nine lives.

Meanwhile, a Genting Cruise Lines' ship on a "cruise to nowhere" returned to Singapore on Wednesday after a passenger, 40, was suspected to have Covid-19, the city state’s tourism board reported. The nearly 3,000 passengers and crew on board have been confined to their cabins, with contactless meals delivered.

Although Dubai’s new cruise terminal has already welcomed several super-sized liners into port this year, travel agents said the industry would need time to recover.

“Covid has been a nightmare for the cruise ship sector,” said Vivek Menon, a booking agent for Deira Travel.

“Prior to Covid, about 30 per cent of our total bookings were for cruise ships travelling all over the world.

"Now fewer than five per cent of all our travel enquiries are for these kinds of holidays so it has had a huge impact.

“People are still nervous about what the travel restrictions will be and what happens if someone gets Covid on board.

“There is a lot more nervousness about these kinds of holidays.”

UAE currency: the story behind the money in your pockets
While you're here
2018 ICC World Twenty20 Asian Western Sub Regional Qualifier

Event info: The tournament in Kuwait is the first phase of the qualifying process for sides from Asia for the 2020 World T20 in Australia. The UAE must finish within the top three teams out of the six at the competition to advance to the Asia regional finals. Success at regional finals would mean progression to the World T20 Qualifier.

Teams: UAE, Bahrain, Saudi Arabia, Kuwait, Maldives, Qatar

Friday fixtures: 9.30am (UAE time) - Kuwait v Maldives, Qatar v UAE; 3pm - Saudi Arabia v Bahrain

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Dhadak 2

Director: Shazia Iqbal

Starring: Siddhant Chaturvedi, Triptii Dimri 

Rating: 1/5

Updated: July 16, 2021, 4:13 AM