Swine flu affects cruise industry

The recent outbreak of swine flu in Mexico has had a negative effect on the profits of one cruise firm, it has been revealed.

Carnival admitted that it has had to change the routes of 27 cruise ships to avoid the risk of contaminating passengers with the deadly illness.

The division of P&O Cruises and Princess Cruises conceded this would have a negative financial effect on its second quarter earnings.

Analysts said this impact would equate to around five cent a share, due to the last minute changes in itineraries.

The cruisline warned that this devaluation could worsen to ten cents a share before recovering from the blow.

Micky Arison, Carnival chairman and chief executive, said: "Our vessels are resuming their original itineraries as soon as practical, but will all be back by the middle of June.

"The Mexican coastal resort areas where our ships call are some of the most popular destinations for North American vacationers."

The cruise giant, thought to be the largest in the world, will begin stopping at Mexican ports once more in June.

In the wake of the swine flu outbreak, Carnival slashed prices on some of its cruises to fill empty spaces as tourists were put off travelling.

However, passengers that cancelled due to health concerns were not offered refunds, only the chance to reschedule.

The firm hopes that holidaymakers will not be put off going to Mexico in the future.

Gerry Cahill of Carnival said, "Mexico has so many wonderful sites and attractions and feedback from our customers suggests that the majority support a resumption of port calls in Mexico.

"We know that they and our port destination partners are very much looking forward to our return."

Tourism experts have said that the swine flu epidemic will mean a wash-out summer for the Mexican tourism industry, as holidaymakers avoid the country for fear of contracting the illness.

Tourism minister Rodolfo Elizondo has revealed it could take until December for travellers to regain confidence in the country's health and safety.

Miguel Torruco, head of the National Tourism Confederation, said: "The summer for foreign tourism is obviously lost."

However, many countries, including the US, UK and Canada, have now lifted their travel restrictions on Mexico.

While airlines begin to resume flights to Cancun, analysts fear it may take longer for consumers to put their fears behind them.

© Adfero Ltd