Cruise Operators Upbeat Despite Stormy Economy, Rising Oil

The global cruise industry is putting on a brave face as it sails into seas darkened by a faltering U.S. economy, a weak dollar and record oil prices, major cruise ship operators said at their annual convention.

The triple threat represents serious risks for the industry which has been blessed with dramatic growth over the past decade.

But cruise representatives are confident that the powers of globalization and the opening of new cruise destinations such as Asia and South America can help them weather the storm.

The industry has boomed in recent years, with the Cruise Lines International Association (CLIA) reporting 12.6 million passengers in 2007, up from 12 million in 2006. Despite a possible recession in the United States, CLIA is predicting 12.8 million passengers in 2008.

The convention which wrapped up late Thursday was organized by CLIA and the Florida Caribbean Cruise Association, the latter overseeing more than 100 ships and 11 cruise lines –including Carnival Corporation and Royal Caribbean, the two largest cruise ship operators in the world.

Thousands of firms from 111 countries participated, hearing experts tout the latest onboard innovations, promote plans for new international destinations, and debate the future of the industry as a whole.