Genting’s planned domestic cruise program in the Philippines, in partnership with the Department of Tourism, had to be called off after it declared bankruptcty in 2020 due to the Covid-19 pandemic.
Founded in 1993 with the first cruise line, Star Cruises, Genting Hongkong Ltd. (listed in the HK Stock Exchange) met into deep financial trouble filed for bankruptcy in August 2020 and informed the HKSE it was suspending all payments to creditors.
It cited the business impact of the Covid-19 pandemic and the need to preserve liquidity and funds to maintain critical services for the company’s operations.
It also asked its creditors not to enforce payment and sought a debt restructuring. Following this announcement its share prices dove over 40 percent and its owner Lim Kok Thay pledged almost all of his stake in Genting HK as collateral.
As of July 31, 2020, it owned US$3.37 billion of debt, including US$3.7 million in bank fees that were in default. In addition, Genting Hong Kong announced a 2020 first-half loss of US$742.6 million, more than ten times its 2019 first-half loss of US$56.5 million.
On August 28, 2020, Lim Keong Hui, Lim Kok Thay's son, stepped down as deputy CEO of Genting Hong Kong to "devote more time to other business commitments."
On September 1, 2020 Genting Hong Kong sold the Singaporean nightclub group Zouk for US$10.3 million to Tulipa, a firm owned by Lim Keong Hui.
DOT program in peril
Genting’s planned domestic cruise program in the Philippines, in partnership with the Department of Tourism, had to be called off.
Tourism Secretary Bernadette Romulo Puyat disclosed to Business Mirror that the planned cruises were under DOT’s Soul Circuit and Beyond Program.
Genting Cruise Lines (GCL) would have used Star Cruises’ MV Superstar Aquarius for the run starting March 28.
GCL’s cruises were proposed to sail from Manila to Boracay, Manila-Iloilo-Sicogon-Boracay, Manila-El Nido-Coron, Manila-Subic-Salomague (Ilocos Sur), and Manila-Iloilo-Guimaras.
Quoting a memo from her staff on February 9, Romulo Puyat said,
“GCL is currently exploring the state of their business in the region including cruise operations, to identify, examine and explore options to return back to operation. They are still maintaining their subsidiaries, including Resorts World Manila. As such, it was requested that the above proposed inaugural run (March 28) will be postponed to a later date.”
Two of its ships were recently seized by the US District Court for unpaid fuel bills. Genting also operates Dream Cruises and Crystal Cruises.
PH still on the radar of cruise operators
However, the DOT assures the Philippines is still on the radar of other international cruise lines.
Jing Esmaña, head of the agency’s Cruise Team said, “We have scheduled [port] calls for the later part of 2022. These are international calls by different cruise lines.”
She added, as of February 15, most of these scheduled cruises are onboard “vessels of Silversea, Oceania Cruises, Windstar, Celebrity and Norwegian Cruise Lines, scheduled for the later part of 2022 to 2024.”
Scheduled port calls this year include MV Blue Dream Star in Subic (weekly from May to June 2022); Celebrity Solstice (Celebrity Cruises) in Manila on December 8, 2022 and Subic on December 9; and Silver Shadow (Silversea Cruises) on December 13-15 in Coron, Manila, and Subic.
2023 cruises
In 2023, scheduled cruise calls are by MS Seven Seas Mariner (Regent Seven Seas) on March 7-9 in Manila, Puerto Princesa, Boracay; Star Breeze (Windstar Cruises) from March 28 to April 2 in Puerto Princesa-Coron-Manila-Hundred Islands-Pangasinan; Silver Muse (Silversea Cruises on April 17-21 in Pasacao (Camarines Sur)-Legaspi-Romblon-Coron-Manila; Serenade of the Seas (Royal Caribbean Cruise Line) on April 29 in Manila; Silver Whisper (Silversea Cruises) on October 30-November 2 in Manila-Romblon-Coron-Puerto Princesa; MS Seven Seas Explorer (Regent Seven Seas) on November 16-18 in Manila-Boracay-Puerto Princesa; and Coral Expeditions (from Australia) in October, but with no definite dates and destinations yet.
Silver Muse will also call on Coron and Manila on March 22-23, 2024.
Vaccination certificates
As this developed, the DOT welcomed the recent decision of the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) to recognize the Covid-19 vaccine certificates of 12 more countries, and whose fully vaccinated citizens are allowed to travel to the Philippines.
IATF Resolution No. 162 added the national/state vaccination certificates of Argentina, Brunei Darussalam, Cambodia, Chile, Denmark, Ecuador, Indonesia, Myanmar, Papua New Guinea, Peru, Portugal, and Spain, which are among the 157 countries whose citizens don’t need visas to travel to the Philippines.
“The DOT commits to working with other member agencies of the IATF in making the travel process and requirements to the country easier for balikbayans and foreign tourists alike. This move will greatly help in restoring jobs under the heavily impacted tourism industry,” Puyat said.
The Philippines and Singapore have also agreed on a Vaccinated Travel Lane to speed up the arrivals from the city-state.
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