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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: TobagoJack who wrote (31671)4/16/2003 7:56:37 PM
From: TobagoJack  Read Replies (1) of 74559
 
Cruise ship abandons HK's troubled waters
Thursday, April 17, 2003
hongkong.scmp.com
PETER MICHAEL
Superstar Leo, the flagship of Hong Kong's luxury cruise liners, has been withdrawn from local waters in yet another blow to the tourism industry.

Asia's largest cruise liner company, Star Cruises, has relocated its biggest ship from Hong Kong to Australia in a bid to battle cancellations caused by fears over Sars.

A Star spokesman said the Superstar Leo, which was delivered to Hong Kong in 1998, would now be based in Sydney and its sister ship, the Superstar Virgo, would switch bases from Singapore to Fremantle in Western Australia. Both ships carry up to 2,000 passengers.

The Star Pisces will continue to be based in Hong Kong.

"We believe the tourism industry will bounce back once Sars is over," said the spokesman, revealing that the Superstar Leo had left for Australia on Monday and was not due back in Hong Kong until late August. Hong Kong Travel Industry Council executive director Joseph Tung Yao-chung said: "The feeling is not good. It is a very big blow. But at the moment there is nothing we can do about it. Obviously it is a business decision.

"It is not only the cruises that are not coming, but the flights have stopped, and the travel industry has been very hard hit and we are very, very worried about it."

According to HSBC Securities, Star Cruises stands to lose an estimated $30 million - based on pre-Sars takings - by basing the two ships away from the lucrative Hong Kong and China markets for up to four months.

A Sydney Ports spokeswoman said the ships would base themselves in Australia for at least three months - possibly longer if the outbreak remains a threat.

Australian Tourism chiefs welcomed Star's decision. Tourism Task Force Australia deputy chief executive Stephen Albin said the cruise industry had been reeling since the Norwegian Star liner left Australian waters in 2000.

"We are very concerned about Sars but this is welcome news for the local cruise industry," he said.

"This is one bright spot in a very gloomy picture."

The relocation of the ships comes after two Star crew members were hospitalised with suspected Sars in Malaysia and Singapore last week. They were discharged after tests showed they had bronchitis.

A Norwegian Cruise Line ship over the weekend refused to allow four Hong Kong tourists aboard in Honolulu. They showed no Sars symptoms but the shipping line has imposed tight restrictions on passengers from Sars-infected countries.
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