IN THIS ISSUE:
1.Carnival Goes to Extremes
2. Norwegian Goes Hawaiian
3. Passengers Go Cruising!

1. Carnival Goes to Extremes:

What's your idea of an "extreme" shore excursion?

• A shopping trip to a two-level mall with no escalator or elevator?
• A 3-hour "motorcoach tour" on a non-air-conditioned bus with a broken toilet?
• A five-mile "snowshoe safari" up a frozen river to a glacier?

If you picked the third option, Carnival's got a pair of snowshoes waiting for you. Carnival - the line some claim is best known for testing the limits of interior ship design - is out to test the physical limits of their most adventurous "fun ship" passengers. Their list of 2003 Alaska shore excursions has expanded to include ten new outings that lay out some serious challenges to their passengers. Most include lots of scenery and long, in-depth visits to parks, waterways, or forests; all require an above-average level of physical exertion.

Here's a sampling, including some highlights:

• Stuff in a Salmon: Near Juneau, board jet-powered catamarans that ply the waters teeming with sea lions and humpback and killer whales. Once ashore, you'll feast at a salmon bake, surrounded by rugged mountain and glacier scenery.
  
• Grab a Crab: Hop into a 25-person inflatable skiff and head out to a "crab boil." Heck, prior to the dinner, you can even roll up your sleeves and take part in checking and hauling in the crab pots for harvest.
• Walk up a River: The easy part of this tour is the climb over the mountain wilderness aboard the White Pass & Yukon Railway. The hard part is trekking up the frozen Skagway River strapped in a pair of snowshoes. Don't ask why - you do it because it's there. Not tough enough? An alternate tour combines the train trip with a helicopter ride deep into the wilds. Your reward is a tough, not-for-beginners four-mile hike.
• Sit on an Ice Field: But first, you've got to get to the ice field. That's where the helicopter comes in. Landing atop a 1,500-square-mile ice field, you'll be issued trekking poles, rain gear, boots and gloves for an hour of exploring the scenery (and your sanity, perhaps)!
  

The tours are available in conjunction with Carnival's northbound (Vancouver to Seward, Alaska) or southbound (Seward, Alaska to Vancouver) 7-night cruises aboard their new Carnival Spirit, and are offered from mid-May into September.

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Here's the story: The United States government has recently taken steps to approve the U.S.-registry of three Norwegian Cruise Lines ships, a move that will allow inter-island Hawaii cruising. Two of ships are the yet-to-be-completed 81,000-ton ships originally intended to serve the now-bankrupt American Classic Voyages, Inc., owners of American Hawaii Cruise Lines. NCL purchased the 2,100-passenger ships and sent them to Europe for completion. NCL recently chose their Norwegian Star as its third re-registered ship to serve the Hawaii market.

Here's some background information: With only a few exceptions, the Passenger Services Act of 1886 forbids a foreign vessel from transporting passengers between U.S. ports, either directly or by way of a foreign port. Currently, for tax and other cost-saving reasons, the ships of all major cruise lines are "foreign vessels." They are not registered in the United States and are therefore subject to the restrictions imposed by the P.S.A. Currently, NCL operates the Bahamian-flagged Norwegian Star in the Hawaii market but with itinerary and other restrictions in compliance with the P.S.A. and various state regulations; the ships may operate roundtrip Hawaii service (passengers originate and terminate in the same city so there's no transportation between U.S. cities in violation of the act); an international port of call is required (NCL chose Fanning Island, the closest international island able to accept a cruise ship); and there's no casino gambling onboard. Still, as the only year-round player in the Hawaii cruise market the Norwegian Star has been quite successful.

Here's the deal. With U.S. registry, the three ships will be permitted to operate inter-island cruises wholly within the state of Hawaii and also between U.S. West Coast ports and Hawaii. But to remain in the good graces of the Passenger Services Act, Malaysian-owned NCL will have to staff the ships with an all-U.S. crew and pay taxes as a U.S. entity. NCL has agreed to these and other requirements.

What's in it for you? In a word - flexibility. With U.S. registry, NCL's Hawaii itineraries can be expanded in a number of ways. For starters, inter-island travel will allow passengers to originate their cruise in one Hawaiian port and end it in another. The long trip to Fanning Island will no longer be necessary, though NCL promises to maintain the trip with at least one of the ships. Also, passengers will once again - it's been decades since this was possible! - be able to board a ship in Los Angeles or San Diego, cruise directly to Hawaii and disembark. Currently, ships make a short run south of the border to Ensenada, Mexico, where they board their passengers for the 5-night cruise to Hawaii. San Francisco and Seattle can now be part of the Hawaii "connect the dots" s cruise strategies, too.

When? In about a year. NCL expects to have at least one ship sailing inter-island itineraries by the summer of 2004.

CLIA (Cruise Lines International Association) reports that the year 2002 was yet another record year for North American passenger counts. Even with an uncertain economy and concerns over world events, the number of North Americans who took a cruise in 2002 came in at 7.6 million - a substantial growth over 2001's tally of 6.9 million.

As in the past, the cruise industry has proven itself as the most resilient, flexible, and profitable component in the travel industry. Despite taking on over a dozen new ships, the cruise lines filled those cabins through aggressive pricing, creative itinerary adjustments, and strong marketing reminders of the continued value of cruising to the leisure traveler.

Still, the year 2003 will present even more challenges for the cruise lines as they compete to fill their existing ships - as well as 14 new liners scheduled to enter service. Current estimates put the number of North American cruise customers for the year 2003 at 8.3 million.

North America accounts for almost 90% of the total world cruise passenger market.