Coronavirus concerns loom over cruise industry

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The rapid spread of the coronavirus disease is taking a toll on the $46 billion global ocean cruise industry.

Dominated by three U.S.-listed companies, Carnival Corp,Royal Caribbean Cruises Ltd, and Norwegian Cruise Line Holdings, the industry is under sharp scrutiny following the virus outbreak that has left one ship quarantined in Asia.

The long-term impact of the virus on the industry is unclear and some analysts have cautioned investors against dumping cruise stocks. The big three of the cruise industry – Carnival, Royal Caribbean and Norwegian Cruise Line – have nearly 200 ships in their global fleet. Norwegian declined to comment on the long-term impact of the virus on its business. Carnival and Royal Caribbean did not immediately respond to requests for comment.

Carnival’s Diamond Princess has remained docked in Yokohama, Japan, since Feb. 3 after a man who disembarked in Hong Kong was diagnosed with the virus. With 218 passengers and crew infected, the British-flagged ship has the biggest cluster of infected people outside China.

 

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