Carnival shares were higher on Tuesday by 0.20% as Abu Dhabi signalled that it would allow the resumption of cruise travel.
Abu Dhabi has announced the resumption of cruise liners in the country starting from 1st September, after months of closure due to the pandemic.
In 2019, the country’s maritime tourism sector saw impressive growth, with a record-breaking year for the sector. Around 500,000 visitors arrived in the country’s ports throughout the year which marked a 46% increase compared to 2018. Similarly, the number of cruise calls witnessed a rise of 43% in 2019.
“We are delighted to welcome all cruise liners back to Abu Dhabi after a challenging year. This comes as part of the efforts to enliven the Emirate’s tourism sector after the impressive results we have achieved in combatting the spread of the pandemic, and yet another step towards strengthening the UAE capital’s position as a world-class hub for maritime tourism. We will continue to work closely with our partners at Abu Dhabi Ports to further boost the maritime tourism sector and attract more businesses and tourists providing them with unparalleled services and experiences while exploring Abu Dhabi and its diverse offerings.” said the Executive Director of Tourism and Marketing at DCT Abu Dhabi.
The news is another welcome boost for the cruise industry but investors have been questioning their support for the share price at the current level.
Venice’s Giudecca Canal on Saturday saw the first cruise ship departing the city since the beginning of the pandemic.
The 92,000-tonne ship collected 650 passengers en route to Bari in southern Italy.
But there was confusion over why it had been allowed to port after the Italian government previously said cruise ships would no longer sail past St. Mark’s Square. The ship saw protestors waving signs from small boats as they fear the environmental impact from large ships and that will be another headwind for the likes of Carnival in the future.
For now, the rise of cases of the Indian virus variant is another issue for the cruise industry.
The Carnival share price has retreated after another test of the 1850p level and there is a risk of a top here. The price was higher on Tuesday but that is still a weak bounce from last week’s selling and the stock is still at risk. Support comes in at the symmetrical triangle line around 1650p but if that level gives way then a move towards the 1350p level is possible with the 50 moving average. The share price will need to close above the 1850p level to save the uptrend.
A major cruise operator has cancelled all summer season voyages in Australia until the end of 2022 and that has sparked fears of an industry boycott. Cruise liner Cunard said it would halt all summer voyages to Australia and New Zealand for the 2021-22 season. The cruise operator blamed coronavirus complications, with international border closures being the biggest issue. The pause on voyages has sparked fears of further cancellations and could see pressure on the government to change course.