Cruiseship operators turn to upgrades

Transport and shipping bank DVB has said that the short term future of the cruise ship sector would lie in the upgrade of existing vessels and the renegotiation of newbuild orders.

Given the current low levels of consumer confidence and the global financial crisis, the German bank said that cruise companies were more likely to upgrade their vessels rather than pursue the more costly route of building a new vessel. The bank estimated that the refit market would exceed $1 billion this year. Furthermore, the bank added that Europe, currently the world leader in cruise shipbuilding and upgrades/refurbishment, would begin to see competition from other regions, especially the Bahamas.