This industry adds €65 billion to the European economy, but is its bad reputation fair?

The cruise industry contributes over €65 billion to the European economy, supporting more than 445,000 permanent jobs across the continent. However, it has faced criticism for its environmental impact and overtourism. Gianni Onorato, CEO of MSC Cruises, discussed the industry's response to these criticisms in an interview with Hannah Brown.

Despite comprising less than 2% of global travel packages sold, cruise passengers make up only around 3% of daily visitors in cities like Barcelona. Cruise companies aim to spread tourist arrivals more evenly throughout the year by taking passengers to new destinations. Cruise itineraries are set two years in advance, allowing destinations to plan for incoming visitors and small businesses to adapt to increased demand.

The cruise industry has made progress in reducing carbon emissions through the implementation of dual-fuel engines, which can switch between traditional marine fuel and cleaner alternatives. However, only around one in eleven cruise ships are equipped with these engines. Gianni believes that most remaining ships will be decommissioned and replaced by 2050 to meet the EU's climate-neutral maritime industry target.

Technological advancements, such as energy-efficient HVAC systems, are being retrofitted to reduce energy consumption on board. Cruise passengers are also changing, with a younger demographic and a growing market for solo travelers. Multi-generational holidays are also becoming popular, catering to families with separate activities and shared experiences.

The limited production of cruise ships in Europe, with major shipbuilders in Italy, France, Germany, and Finland, has led to controlled growth, benefiting investors and the industry's long-term future. While this growth may be limited, Gianni believes it is a positive outcome for the industry.