MANITOULIN—There will be far fewer cruise ship visits to the Port of Little Current this year than has been the case in recent years past as shakeups in the global cruise ship industry caused by ripples from the pandemic have sunk a number of cruise ship companies.
This year only four stops are scheduled to arrive in Little Current, a far cry from the 44 seen in the summer season just a couple of years past.
But Island tour operator Lakeshore Excursions and the association representing cruise ship destinations on the Great Lakes are optimistic that there will soon be a significant turnaround.
Stephen Burnett, executive director of the Great Lakes Cruise Association which includes 18 cruise destinations and several associates, recently returned from the Seatrade Cruise Global conference in Florida, the global cruise industry’s seminal showcase gathering, and he was upbeat about the future.
“It was the best event in 22 years,” declared Mr. Burnett, who noted that there is tremendous interest in the Great Lakes globally, as the region is viewed as being a safe destination when compared to many of the world’s other signature tour destinations.
That is a sentiment echoed by Bruce O’Hare, who along with his wife Kelly and a couple of partners founded Lakeshore Excursions and grew that company into the premier cruise excursion company on the Great Lakes. Although Mr. O’Hare and his associates recently sold the company to Dawn Noble, he remains involved and is a media spokesperson for the company.
So, what gives with the precipitous drop in cruise ship visits to the Port of Little Current? It seems the Great Lakes are experiencing a bit of a perfect storm. “The industry is cyclical,” noted Mr. Burnett, “we have experienced years of success but we are competing in a global industry. Little Current has had fabulous opportunities, as have Killarney and the North Channel, but it is a very competitive business.”
But the real culprit in this case seems to be the ongoing impacts of the global pandemic as two of the main cruise ship companies that were visiting the Island, went into receivership and their stock of vessels sold off to the highest bidder, according to Mr. O’Hare. The good news is that those ships have been quickly snapped up by other operators and may soon be back in service on the Great Lakes and joined by ships from other companies seeking safe haven for their cruising clients.
“Of the four companies that brought five different ships, two went bankrupt,” supplied Mr. O’Hare. “This is no different for many of the companies. Two years of no revenue put the cruise companies on fragile ground.”
One of those companies, American Queen, were responsible for 35 visits in 2022.
Facing sunk costs in maintaining their fleets without a corresponding influx of revenue from cruise passengers companies were forced to borrow money and although pent-up demand was there once the gates were reopened, in the end for many companies it was too little too late.
“As anyone who has had to renew a mortgage recently can attest, the cost of that money has been tremendous,” noted Mr. O’Hare. “So, when the market opened back up, so did cost of borrowing.”
While the numbers of passengers in 2022 did reflect the pent-up demand, those numbers were still below pre-pandemic levels and in the end, the cost of financing proved too much for some companies—but things are far from gloom and doom.
“The market tends to find its own equilibrium,” noted Mr. O’Hare. “There is still lots of demand in travelling by cruise.” But the lack of capacity in the short term means there will be fewer visits this year.
“In the next year or so we expect to see more capacity in the Great Lakes and things will return to normal,” said Mr. O’Hare, who added that despite current appearances, “Great Lakes cruising is growing and there are several companies looking to bring cruise ships into the Great Lakes.” But he cautions that it is a two-year process as the industry plans its itineraries.
“Geo-political issues play a role,” noted Mr. O’Hare, echoing the assessment of Mr. Burnett that the Great Lakes region is seen worldwide as a relatively safe destination.
In the meantime, tour operators such as Lakeshore Excursions are constantly looking to develop and support new products to titillate the interests of the cruising public.
“The Great Lakes and St. Lawrence Seaway have incredibly attractive products,” noted Mr. O’Hare, who pointed to destinations such as Old Montreal and Niagara Falls as obvious examples.” Specific to Manitoulin Mr. O’Hare noted that “we have worked closely with our partners in the First Nations and, most recently, began offering tours of the Sheguiandah archaeological dig.” Killarney is also still seeing growth, particularly thanks to the addition of ships from the famed Viking Tours coming in to play.
“The Great Lakes have been a popular cruise destination for over 100 years,” noted Mr. O’Hare.
But the region cannot simply stand on its laurels. Many of the tour ships come with their own “product” onboard in the form of small submarines, kayaks and the scenery itself is a major draw.
“We are constantly working on helping to develop new product,” affirmed Mr. Burnett. The North Shore of Superior is one region that is showing great promise for cruising on the Great Lakes.
If there is one message that both Mr. Burnett and Mr. O’Hare have to offer it is a resounding “cruises will return.”
