Posted on 01/24/2022 8:11:28 AM PST by Capt. Tom
The chairman and CEO of Genting Hong resigned on January 21, a clear sign that the once-thriving cruise company is slowly but surely unraveling. Tan Sri Lim Kok Thay founded the company in 1993 and gradually built it out to be the most significant cruise operation in Asia.
However, after failing to pay debts due, an arrest issued by a US judge for one of the Crystal Cruises ships, reservations that have been put on hold, and stocks that have been halted from trading in Hong Kong, the end of the story seems near for the company that owns Dream Cruises, Star Cruises, and Crystal Cruises.
Tan Sri Lim Kok Thay Resigns The man who founded Genting Hong Kong in 1993 has stepped back from the company he ran for almost 30 years. Tan Sri Lim Kok Thay, a Malaysian billionaire, stepped down with immediate effect last Friday, January 21, as announced by Genting. Lim still owns 76% of the Genting Hong Kong stocks. The deputy CEO and group president Au Fook Yew also tendered his position with the CEO.
While many expected cruise lines to suffer from the pandemic and a global pause in operations, it seemed as if many, if not most, managed to come out relatively unscathed.
However, Genting Hong Kong, which made considerable investments in its fleet of three cruise lines in recent years, is now heading for liquidation—making it a perfect example of how the pandemic destroys even the most prominent companies.
The Genting group of companies in Singapore, Hong Kong, and Malaysia all operate separately, so the problems in Hong Kong will likely not affect the other businesses, despite that Lim has a majority stake in all.
Asia’s Tourism Sector in Trouble The problems for Genting Hong Kong come as the Asian tourism industry is cautious about restarting operations. China is pursuing a zero COVID strategy, Hong Kong is battling Omicron outbreaks by banning cruise ships from operating, and Singapore only allows cruises for locals. Several other countries in the region, such as the Philippines, are still locked down entirely for tourism, while others only allow in tourists with heavy entry requirements placed on them.
For the largest cruise operator in Asia, this caused severe issues. Although Dream Cruises did operate three ships in Hong Kong, Singapore, and Taiwan, and Crystal Cruises has been operational for several months now, Genting still reported a 1.7 billion dollar loss in May last year.
With stocks plunging, and the German authorities denying debt insurance protection for payments due at the Genting-owned MV Werften (which filed for insolvency earlier this month), the company has no further funding options.
What is Happening to the Three Genting Cruise Lines? A US court has ordered the arrest of Crystal Symphony for missing fuel payments to Peninsula Petroleum Far East Pte Ltd., making it divert course from its intended port call in Miami, sailing to Bimini instead. On Sunday, some passengers were taken by ferry to Port Everglades in Fort Lauderdale; others were left to rebook their own travel arrangements.
Both Dream Cruises and Star Cruises have stopped taking bookings on their website last Saturday, January 22. According to Dream Cruises, this is only for an initial period of two weeks, with sailings due to resume on February 4. However, at the same time, Crystal Cruises has decided to return all crew home and lay up the three operational vessels until April.
Crystal Cruises President Jack Anderson said: “From the bottom of my heart, thank you for your tireless dedication and devotion to Crystal and your understanding in this very difficult situation. You are the heart and soul of the Crystal Family. We look forward to returning to the world’s oceans and rivers later this year”
Slowly but surely, the largest cruise company in Asia, which pioneered the cruise industry in the region almost 30 years ago, is falling apart. The departure of Au Fook Yew and Tan Sri Lim Kok Thay seems to be another nail in the coffin and a step closer to a company heading for liquidation.
Many big players in the cruise industry will be watching with added interest, as the region is still seen as the most significant growth market in the world. One that Carnival Corporation and Royal Caribbean have wanted to include in their business models for years.
Royal Caribbean-Carnival-Norwegian, have been able to continue because each of them have borrowed many Billions of dollars more compared to Genting. -Tom
This will be only one of many cruise lines to sink due to the Wuhan Flu.
I love cruising and hate to say but there’s no way I’ll gamble my deposit money on a cruise until we get a better President in office who isn’t intent on cratering the global economy.
With oil predicted to be above $150 per barrel by the end of 2023, all travel industries will be idle.
Brings real meaning to “deserting a sinking ship”.
I love cruising and hate to say but there’s no way I’ll gamble my deposit money on a cruise until we get a better President in office who isn’t intent on cratering the global economy.
I dont see how these cruise lines can pay off the Billions of dollars of borrowed money with a recession coming on.
Maybe the creditors are willing to wait for many years to get paid back.
All that talk about "pent up demand" is BS to me.-Tom
I know we can't choose our names, but I would have serious reservations about investing money with a person with this name.
What is this hidden message:”The departure of Au Fook Yew...”? That is comedy gold!
What is this hidden message:”The departure of Au Fook Yew...”?
and, “The deputy CEO and group president Au Fook Yew.”
That is comedy gold!
Maybe he will get a job as Biden’s Press Secretary?
If the ships aren’t maintained and used, how long until they’re useless?
Not booking. Hoping to get money back from cruise deposits we bought 2 years ago.
Royal Caribbean-Carnival-Norwegian, have been able to continue because each of them have borrowed many Billions of dollars ...
When do they have to pay the piper?
I am not related to Nostradamus, and don’t have a clue what future holds for cruise industry.
I live in the present. Right now cruise prices on ships which are sailing are dirt cheap. And ships were barely
Half full on my cruises in Sept & Nov.
You can book on carnival on day before sailing.
So little chance of deposit lost.
Until they rid themselves of the mask/vax BS no price is low enough..
AS they keep postponing cruises, they get hit with no income and having to pay their crews.
And they may also have to pay dockage fees if they can't anchor their ships.
I think it is up to the creditors now whether the big three, CARIBBEAN-CARNIVAL-NORWEGIAN, are allowed to continue, without scaling back their fleets. A form of chapter 11 bankruptcy. -Tom
Its not very far off Carnival just extended their only jabbed cruise rule through to Dec of this year ..
and backed up the final day to cancel 22 cruises from Dec to Feb 15 but for all cruises through to April 24 ...
However those who do cancel their future cruises lose their $600 OBC for those 2020/21 cancelled cruises if theyre not used by Sept 23
Were running out of months to use all of them ...
I am so sorry...and, where do you, and all of the other PAYING pax, go to get your $$$ back, once they do?
Just sickening, to see all of this happening.
Like someone said, on another, unrelated thread....we are on our own.
:-(
After already sailed on 2 cruises during last 3 months,
the mask nuisance was minimum. Did NOT need mask in open air, and if you had a drink in hand, did NOT need mask. No mask when eating in any dining room. During shows, the theater was dark, and we had masks removed, no one was checking.
So only place need mask is in elevators and passageways.
As for the vaccine requirement all of us are fully vaxxed, and the 48 hour negative covid test was no out of pocket cost at our pharmacy.
Besides the low prices, what I enjoyed was the UN-crowded ships. No lines, no waiting, because ships were barely half full. And the staff was going out of their way to pamper us.
Do not overpay anything to the cruise line.
MSC cruises owes me $175 due to overpayment for on board expenses, and after several calls, just get the run around. I am kissing it good bye.
Do not overpay anything to the cruise line.
MSC cruises owes me $175 due to overpayment for on board expenses, and after several calls, just get the run around. I am kissing it good bye.
No worries….I’ll never do that. I don’t do cruises.
We used to fly to our fave destinations….like Hawaii, Europe, NYC, Colorado….but, not anymore since the crazed leftists have put the final nail.
Now, we load up our comfy car with great snacks, our pets and our grands (on some trips) and, travel TX.
So sorry you’re having to deal w/these cruise line woes. When’s your next cruise?
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