The Hawaiian cruise industry was set back yesterday when NCL Corp. said it would move the largest of its three U.S.-flagged Hawaii ships to Europe.
The 2,466-passenger Pride of Hawaii, which began cruising Hawaiian waters in June, will leave in February 2008. Norwegian Cruise Line lost $116 million in the fourth quarter and cited its Hawaii operation as a reason. The Miami-based company said increased competition in Hawaii forced it to cut prices, making it difficult to earn a profit. Colin Veitch, NCL's president and CEO, said that Hawai'i now has four times as much cruise-cabin capacity serving it in 2007 as it did in 2004, when the firm started its NCL America unit.
Veitch said guests booked on Pride of Hawaii in February 2008 and beyond will be offered a $50 on-board credit per stateroom to switch to another NCL ship by May 1. Those who choose to cancel will receive a full refund.
The firm stressed that it remains committed to keeping the other two ships home-ported in Hawaii. Hawaii Senator Daniel Inouye, who helped clear the way for NCL to cruise interisland, said in a statement that he was disappointed with the announcement of the withdrawal, and that the cruise business has diversified the state’s tourism product.
NCL company carried 287,003 passengers in Hawaii last year and projects a total of 400,000 for this calendar year.