Asia-based Dream Cruises has been through some tough times lately. The company was ordered to cease operations earlier this month, resulting in cruises canceled through January 19, 2022. As COVID-19 cases continue to rise, the cruise line has been forced to cancel even more cruises through February 2.
The cruise line, which has had no reported cases on board its ships, says the cancellations stem from a wealth of precautionary measures by the Hong Kong government. Still, it couldn’t have come at a worse time for the Dream Cruises owner. Genting, Asia’s largest cruise company, is facing serious financial problems both in Asia and at its subsidiary shipyard MV Werften in Germany.
No more seacations until February 2nd
The Hong Kong government has ordered cruise ship Genting Dream to cancel more cruises after the ship’s January cruises were already canceled through January 19, and it will sit idle until at least February 2.
Other sailings that have now been canceled include sailings on February 21, 23, 26, 28, 30 and 2, 2022. A statement on the company’s Facebook page reads:
“In accordance with the latest social distancing measures laid down by the Hong Kong SAR government, Dream Cruises has unfortunately had to cancel Genting Dream Super Seacation sailings. Dream Cruises would like to reiterate that this cancellation is due to the government order and is NOT due to incidents related to COVID-19 onboard the ship.”
Also read: Cruise Line has to cancel cruises departing from Hong Kong
As the situation in the Asian city-state continues to be in flux, Dream Cruises says it is now closely monitoring the situation and will be in touch with the local government when cruises may resume. February 4, 2022 has been set as the provisional resumption date.
Dream Cruises Options for Canceled Cruises
The company has set up several options for guests to transfer their trip, receive a future cruise credit, or a full refund.
Guests who transfer their original booking to a Hong Kong cruise between February 4 and April 27, 2022 will receive an onboard credit of HK$300 for a two-night cruise and HK$500 for a 3-night cruise. The offer is also open to guests who do not want to make a decision now. In this case, guests will receive a Future Cruise Credit.
Guests can also redeem all amounts paid for a full refund. The cruise line will refund all cabin fares, port fees and prepaid tips.
Genting’s financial situation is problematic
Additional problems with canceled cruises come as Dream Cruises owner Genting sees increasing financial difficulties. The company, owned by Malaysian billionaire Lim Kok Thay, operates Dream Cruises, Star Cruises and ultra-luxury cruise line Crystal Cruises.
Render via: Dream Cruises
Through various financial constructs, Genting also owns and operates the German shipyard MV Werften, which filed for bankruptcy this week. Here is the shipyard global dream, one of the largest cruise ships in the world with capacity for 9,500 guests, is under construction.
The company’s shares have been closed to trading since early January. The future looks bleak, as Genting said in a press release: “There is no guarantee that the group will be able to meet its financial obligations under its financing arrangements when they come due,” Genting Hong Kong said in a statement on Thursday.
The financial troubles arose after Germany’s export credit insurance agency Euler Hermes refused to approve insurance cover for the financing, citing “continued and prolonged decline in business activity as a result of Covid-19”.
The effects of the pandemic are hitting Hong Kong-based Genting hard; Losses totaled $743 million for the first half of 2021, up from $238 million a year earlier. It currently looks unlikely that Hong Kong cruises will be able to resume. This is especially true given the harsh measures the Chinese government is enforcing in mainland China, which are also being felt in Hong Kong.
