The European Travel Commission´s second annual report on the state of the travel and tourism industry, shows that Europe enjoyed another record tourism year in 2005, with arrivals up more than 4 percent over 2004. The result is especially impressive given that Europe suffered more than its share of disasters in 2005 –from terrorist attacks to floods, droughts and forest fires.

The effects of record-high fuel costs are trickling down from cruise lines to their ports and passengers, and those costs continue to surge. Cruise lines say they are taking pains to ensure that the passenger experience is not affected by slight changes in itineraries, embarkation and arrival times and slower cruising speeds, all meant to take the edge off fuel costs.

The emergence of the condominium hotel sector is becoming ever more apparent in the European hotel investment landscape. This alternative investment vehicle is already well established in the U.S. and Asia and is set to become a part of the European hotel scene. Interest in the European condominium hotels sector has increased significantly in the past two years following many years of intermittent development and association with other shared ownership vehicles, says Jones Lang LaSalle Hotels in its recent research report: “Condominium Hotels-Europe´s Latest Hotel Phenomenon.”

Carnival Corp.´s shares fell about 6 percent May 16 after the company reduced its earnings target, based on lower revenue yields, higher fuel costs and a change in accounting. Carnival said that earnings for fiscal 2006 are now expected to be in the range of $2.65 to $2.75 per share, roughly in line with 2005 earnings of $2.70 per share. It expects earnings for second-quarter 2006 to be in the range of $0.43 to $0.45 per share.

The cruise lines just can´t seem to get a break in the bad-news department. Royal Caribbean top executive Adam Goldstein took to the airwaves to defend Royal Caribbean´s actions following the disappearance of Connecticut honeymooner George Smith. The industry also was the focus of congressional hearings on cruise ship safety. A pirate attack on a Seabourn vessel raised concerns about terrorism at sea.

Small Caribbean and Central American countries have suffered devastation and thousands of deaths from increasingly frequent hurricanes, and forecasters predict another rough season this year for the region and its tourist resorts. International relief agencies warn poor countries are not prepared to cope with the disasters and say deaths will continue to rise.