Cruise lines hedging bets on Bermuda

WHILE it may have been discovered by Spain just over 500 years ago, it was 104 years later that an English sailing vessel wrecked on a mid-Atlantic archipelago. The survivors of that wreck claimed that island and called it Bermuda.

Now, all these years later, a shipwreck of another kind is taking place in Bermuda. This one has to do with cruise lines pulling their ships out of Bermuda. It appears to be yet another victim of the economy, but it could also be a pressure tactic -- more on that later.

Carnival, Holland America and Princess have already announced over the last few months they are pulling out of Bermuda on their regular back-to-back cruise series. Beyond 2012, that leaves Norwegian, Royal Caribbean and Celebrity as the only major lines serving this island with the Union Jack on its flag.

Carnival was first to announce it was reducing its schedule to just one stop in 2012. That was followed by an announcement from Princess, that its Caribbean Princess -- a regular to Bermuda over the past three years -- is vacating the island in 2012 but for one stop. Holland America and its properly sized Veendam (1,300 passengers) are pulling out in 2013.

When you see a seven-day cruise advertised for $399, you can be sure the cruise line is probably making very little profit. Where they will make money is onboard, in duty free shops, bars and -- yes -- casinos. By law, casinos are not allowed to be open when the ship is in Bermuda. This rule applies in most ports, but remember that in most cases the ships are only in a port for one day. By evening, the ships are on international waters and the casinos are open.

The cruise lines are giving many reasons for leaving. One of the reasons they are not giving, but I personally believe is plausible, is that they're trying to apply pressure to the Bermuda government to revisit its "no casino" operations while in port. This reminds me of the way the cruise lines put pressure on Alaska to repeal the $50 head tax last year. The exodus could, of course, also be that too many ships are chasing too few passengers.

According to the Royal Gazette newspaper in Bermuda: "Local observers say Bermuda's ban on gaming is partly responsible for the exodus."

Whatever the reason, opponents who fought -- and won -- to keep the casinos closed in port are now willing to talk.

Meanwhile, here are the major lines sailing to Bermuda in the spring and summer in 2012:

-- Royal Caribbean, from New York and Baltimore. Baltimore departures will be mainly six- and eight-day cruises aboard Enchantment of the Seas. New York departures, out of Bayonne, N.J., will be five- and seven-day cruises aboard Explorer of the Seas.

-- Holland America's Veendam, with seven-days cruises out of New York.

-- NCL has two ships, both sailing seven-day cruises. The Gem departs from Boston, and the Dawn from New York.

-- Celebrity's Summit is also sailing out of New York (Bayonne) on seven-day rotations.

Will they all be sailing in 2013? That decision could now be in the hands of Bermuda's government.

-- Postmedia News

Visit portsandbows.com for daily updates on the latest cruise news, best deals and behind-the-scenes stories from the industry. You can also sign up for an email newsletter on the site for even more cruise information. Phil can be contacted directly at portsandbows@gmail.com

Republished from the Winnipeg Free Press print edition December 17, 2011 D2