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COVID 19 Action Plan Coming Soon – All for One, One for ALL

On the 11 April 2020 Prime Minister Mia Mottley addressed the nation to update on COVID 19. One of the decisions made was to establish a Jobs and Investment Council that includes former ministers of Finance Arthur and Sinckler. She also promised to address Barbadians soon on what an economic plan for the country will…

On the 11 April 2020 Prime Minister Mia Mottley addressed the nation to update on COVID 19. One of the decisions made was to establish a Jobs and Investment Council that includes former ministers of Finance Arthur and Sinckler. She also promised to address Barbadians soon on what an economic plan for the country will look like.

COVID 19 is a pandemic which continues to stymie ALL the economies of the world.  Sensible individuals have to admit that it will take a herculean effort by ALL well being Barbadians to push start the economy.

The past is the past.

We are here now.

We have to dust off our backsides and look the future in the eye with conviction.

Let us join hands and show we care about Barbados.

“What need in the country now …“- Mia Mottley

 

380 responses to “COVID 19 Action Plan Coming Soon – All for One, One for ALL”

  1. NorthernObserver Avatar
    NorthernObserver

    @peterlawrencethompson
    Avoid all their brands: Cockspur, Malibu, Plantation, and others

    The BRANDS were NOT sold WITH WIRR. Malibu was never owned by locals, but made for the owners by WIRR. Pernod Ricard is the current owner. Brands…Cockspur, J&R, Stade were never owned by WIRR. Depending on who you talk to, they were sold to some foreign national living, at least part time, in Barbados, as per one of your earlier suggestions. (Woodland Radicle Inc) Some have even said your old schoolmate CH is involved.

    I know the rest are mildly pissed at Maison Ferrand. But what do you expect? These are not rum people, they are marketers. The shelf space they can attain boggles the mind. They are VOLUME masters. Which is exactly why WIRR was sold, total incompetence, largely from GEL/Hanschells.

    Contractor General. Waste of time, just another well paid Pawn to be ‘interfered with’. ALL the potential solutions, depend largely on the QUALITY of the people who oversee. It is easy to make tenders public, to have them available to anybody, to have pre-quals if needed, to OPEN them promptly AND IN PUBLIC, to publish the results. This still does not stop the contractors from fixing prices among themselves? This requires owners who know when they are being taken, and scrap or negotiate the prices, WITHOUT interference. This applies to ALL public contracts, not just the construction ones.

    A good start is an independent public tendering body, which coordinates with all public bodies, to post, accept and open tenders. This is the beginning of a level playing field.

  2. peterlawrencethompson Avatar
    peterlawrencethompson

    @Northen Observer
    “ A good start is an independent public tendering body, which coordinates with all public bodies, to post, accept and open tenders. This is the beginning of a level playing field.”
    ++++++++++
    This is much better than a contractor General

  3. Enuff Avatar
    Enuff

    Miller
    Chase? LMBAO! Why would I run away from a fair and sensible question? That’s what cowards, frauds and liars do–run or change the argument.

    PLT
    Yes, the debate on the anti-corruption bill needs to be concluded, the legislation enacted and the Commission established. It is long overdue and should be central to the response knowing opportunities for kickbacks will be numerous. You want to bet on the cruise industry’s future?

    David
    How will anything be financed? Policy based on feelings is usually bad policy; and sometimes what’s good in theory is impractical therefore bad policy.

  4. WURA-War-on-U Avatar
    WURA-War-on-U

    Construction = CORRUPTION continually dipping their thieving hands in the treasury as though it belongs to them..

    and all the known thieves and parasites SUCKING ON TAXPAYERS AND PENSIONERS..

    all of it = KEEPING CORRUPTION ALIVE AND WELL..

    get rid of all the parasites and thieves….get rid of corrupt ministers who ROB THE PEOPLE…

  5. WURA-War-on-U Avatar
    WURA-War-on-U

    “You want to bet on the cruise industry’s future?”

    wuhloss…look how the narrative has changed..

    no…you bet on the PEOPLE WHO PAY YOUR SALARIES…you give them free reign to build FREE ENTERPRISE to GROW THE ECONOMY….they are the MAJORITY POPULATION WHO PAY ALL THE TAXES AND FUND THE ISLAND….

    stop BETTING ON MINOIRITY THIEVES AND PARASITES….with the PEOPLE’S MONEY…

  6. WURA-War-on-U Avatar
    WURA-War-on-U

    Miller…with every post…Fowl Enuff for years now has had the PROPENSITY to PIMP for minorities…it is all about the narrow fowl mind giving them all the opportunites and people’s money on the island. at the EXPENSE OF….and NEGLECT of the same people, who owns the money, who generates billions of dollars…

    ….it is a long standing behavior, shameful, destructive and disgraceful…and displays the LACK of strength of the WEAKEST black mind, forever groveling to BEG BACK for what they allowed to be STOLEN….totally assbackwards.

  7. peterlawrencethompson Avatar
    peterlawrencethompson

    @Enuff
    “You want to bet on the cruise industry’s future?”
    ++++++++++++
    Damn right! If I find an opportunity to invest in the imminent demise of the Cruise industry I will be on it like white on rice.

  8. peterlawrencethompson Avatar
    peterlawrencethompson

    @Enuff
    … and what about the promised freedom of information legislation? and the investigations and prosecutions of corrupt individuals from both the political and business realms?… We are waiting…

  9. David Avatar
    David

    @Peter

    It is premature to swear the demise of the cruise industry. It will depend on if treatment/vaccine is found in short order and consumer appetite for leisure travel. What we know is that the industry will have to change how it does business. That said Barbados should use the opportunity to expand our earning sectors by improving the mix i.e. services and commodities. This is where CARICOM comes into play.

  10. Tron Avatar
    Tron

    According to BARBADOS TODAY, Marla Dukharan estimates that this year we could be plunged into a recession with up to -15% of GDP. She also shares our assessment that GDP will not recover that quickly because tourists stay away.

    Well, that’s common sense. However, our government advisers will probably propose massive tax increases again, especially for tourism. Nothing more than sham bookings. Of course, they will also shy away from proposing massive cuts in public services. So they will follow the logic of the ballot box. Furthermore, Enuff has already proposed debt-financed repair projects to appease the naive black masses and the white sponsors (Baloney, Williams brothers, Jerkham).

    In other words, we are expecting a monster recession, which will be dealt with by the “usual” measures (2008-2020).

    So far, the official forecasts have been far too positive. For EVERY year since 2008. Why should THIS year be any different? The native gov consultants must finally put aside their Caribbean, culture-bound frivolity and face reality.

  11. Vincent Codrington Avatar
    Vincent Codrington

    Wuhnuh wasting time with this strategic brain storm. Culture always trumps strategy. Ask what is our culture and we done have the answer.
    After this crisis we will reconstruct what we feel comfortable with. We did so after every major exogenous shock. Meanwhile, please concentrate on surviving this one. We can do without the tea leaves readings and the crystal ball gazing.

  12. Hants Avatar
    Hants

    Criminals still busy.

    https://barbadostoday.bb/2020/04/23/vendor-dealt-a-hard-blow/

  13. Hants Avatar
    Hants

    Tourism officials are consumed with determining strategies to keep Barbados top-of-mind in its major markets with a near $30 million fund,

    https://barbadostoday.bb/2020/04/23/action-team-picked-to-jumpstart-tourism/

  14. WURA-War-on-U Avatar
    WURA-War-on-U

    Wuhloss…they just all WATCHED IN REAL TIME HORROR….as dependency tourism disappeared before their very eyes.

    Fowls dont think that far especially when they are DEFENDING the oppression, suppression and disenfranchisment of their own people GENERATIONALLY..

    #snakeoildontsellanymore..

    Only fowls buy snakeoil or try to get it for free……and they don’t count.

  15. Enuff Avatar
    Enuff

    VC
    Repeat dah!!

    PLT
    FOIA too, but I always like to remind BU that FOIA exists in many places, including Tdad and…..? You would lose yuh money betting on the demise of the cruise industry. Land-based tourism will also bounce back. There’s a reason why people return to a destination 4 and 5 times.

  16. David Avatar
    David

    https://youtu.be/EyIvNxy8Xtw

  17. Hants Avatar
    Hants

    Should create work for painters and gardeners.

    ” I think $20 to $30 million, and then there will be a blending of financing with the private sector to be able to re-capitalise what we call the Small Hotel Redevelopment Fund. That fund will be to enable a lot of hotels to refresh themselves and use this down period [for renovations and reconstruction”

  18. John A Avatar
    John A

    Based on article in the Nation by Maria Bradshaw one has to ask how much faith can be placed in the covid numbers from the government. How many further cases like the one mishandled in the article by Ms Bradshaw exist?

  19. Miller Avatar
    Miller

    @ Enuff April 23, 2020 9:22 AM
    “You would lose yuh money betting on the demise of the cruise industry. Land-based tourism will also bounce back. There’s a reason why people return to a destination 4 and 5 times.”
    ++++++++++++++++++++++++++++++++++++++++++++++++++

    Are hoping to see that “bounce back” by December 2020 or within a more realistic 2 to 3 year horizon?

    By that time Bim would have turned into another unsafe destination because of the highly possible economic and social dislocation resulting from mass unemployment and significantly reduced incomes resulting from the effects of Covid.

    That’s the risk or downside of putting too many of your forex eggs in that fragile tourism basket.

    Why not see yourself in the travelling boots of the average UK tourist barely recovering from the economic effects of Covid-19; with possible subsequent waves returning in the winter months the high season of the local tourism season?

    Would you opt for such an expensive destination, based on its current rates and overrated services and offering mainly sea, sand and sun to get a tan and constant beach harassment and hassle from the local ZR-culture?

    Don’t you think that the competition would be extremely stiff with cheaper regional destinations like Jamaica, Antigua and St. Lucia going after the much contracted tourism winter pie?

    Even Tobago is planning to go after a larger slice of the contracting tourism pie as a source of dwindling foreign exchange to help stem the losses from that twin-island state oil exports and reduced management fees and profit remittances from the other territories through the likes of Massy and ANSA McAl.

    The future face of tourism is that one focussed on eco-tourism with concerns about climate change and environmental issues certainly high on the agenda.

    Clearly not the kind of traveller your Hyatt Lighthouse would be catering to.

  20. Vincent Codrington Avatar
    Vincent Codrington

    I have every confidence in the figures published by the COVID – 19 Management Team. It is the interpretation /inferences that commenters make that I have to interrogate.

  21. de pedantic Dribbler Avatar
    de pedantic Dribbler

    Re mishandling and faith in cov19 numbers…we have spoken to those issues often here… so I look at it as the numbers are as accurate as one wants them to be! … If limited testing is done due to the small number of kits then the results can be no different than seen.

    Regardless of the exact concern on the mishandling (in the article of which I am unaware) it has been evident that folks who should have been quarantined where not and thus that tracing was too lax… the interview with that Bajan-Brit on local radio brought home (literally so) the grave problems caused by that type of mishandling: where one visiting NY relative infected an entire extended, close-knit family unit.

    Back in US they recently updated their stats to identify a case back on Feb 6 in California as a likely first case…and they presume that case may have been from community-spread (what I interpret as the virus passed indirectly from touching a contaminated object) … Do we have some of that yet NOT identified in Bim! … We gotta trust the numbers as given … and leave the conjecture for later, I presume!

    We are in a good place …but a practical twist of the old adage springs to mind: no island can operate in the world economy by itself!

    Any reopening done will be limited to on-island activities principally… any and all businesses which create a majority % of their revenue from external sources will remain ‘quarantined’ until their external customers and business vendors reopen!

  22. John A Avatar
    John A

    @ Vincent

    Then how do we take the article by Ms Bradshaw in the Nation? How many additional infections have occurred as a result of how that particular case was handled?

    I await clarification from the covid boss on this one.

  23. Tron Avatar
    Tron

    If one believes the following statistics,

    https://tradingeconomics.com/barbados/tourist-arrivals

    after 2007, tourism has only recovered in 2015. After the 2020 massacre, this would mean that tourism would not reach the same or higher level until 2028. If we assume that the winter season 2020/21 will be extremely weak because of corona and also 2021/22 (if there is no vaccine yet), the recovery would be postponed even to 2030.

    In the meantime, the island will fall into an economic hole. The painting of the hospital and the redistribution of non-existent funds is not enough.

    What we need are not cloud castles, but realistic programmes. If the native advisors cannot find a solution, Bert and the IMF should step in and take over government business. We should finally admit to ourselves that the independence of the island has failed. Almost all the former British colonies are much worse off today than in colonial times.

    Self governance in former colonies does not work.

  24. David Avatar
    David

    Can we take the discussion about the covid numbers to one of the other blogs please?

    Leave this one to what was intended.

  25. Vincent Codrington Avatar
    Vincent Codrington

    @ John A at 10 :40 AM

    I am not aware of the facts of the reported case in the Nation Newspaper.. I am obeying the Curfew regulations. What are the facts?

  26. John A Avatar
    John A

    @ David

    Yes but the handling of the virus and its infections will dicate a safe lifting of the curfew without risk of another shutdown. The economic recovery we want to speak on cannot occur until the virus’ s true status is known and under control. If this isn’t done then we will end up where Trump is now, in that he is saying one thing ‘re reopening and the medical people are saying another.

    In my view the true status of the virus must be known in order to facilitate a safe reopening and recovery of our economy.

  27. David Avatar
    David

    @John A

    The authorities know what you know.

  28. John A Avatar
    John A

    @ Vincent

    Like you I too am obeying the lockdown, however I would hate to think I am doing all of this only to find that the covid people are mismanaging cases as outlined in Ms Bradshaw’s article.

    Of course this can all be clarified by a statement from the covid boss man outlining what happened.

  29. WURA-War-on-U Avatar
    WURA-War-on-U

    “By that time Bim would have turned into another unsafe destination because of the highly possible economic and social dislocation resulting from mass unemployment and significantly reduced incomes resulting from the effects of Covid.

    That’s the risk or downside of putting too many of your forex eggs in that fragile tourism basket.

    that is what happens when ya play an evil, treacherous hand of SELLING OUT YA OWN PEOPLE for DECADES…and ended up LOSING EVERYTHING…

    one smart DIED at too smart’s door..

  30. de pedantic Dribbler Avatar
    de pedantic Dribbler

    @David, I see now that the article referred above was noted on another blog, but I’ll add to my other 2 cents on it here.

    I understand the ‘anger’ of the family but I come away with the same sense of hopelessness for the loss of commonsense as I did when I listened to the interview of the Bajan-Brit who has recovered from cov19 but whose mum, aunt and brother remain infected.

    I am not beating up on anyone… I look at these matters as ‘what would I have done in either of those instances – as a well informed, concerned Bajan – …. without being prolix, I surely would have been a bit more careful and doubly cautious with my elderly mum around…. I would have quarantined here in her room and cared for her with an expectation that she was infected (masked up, no contact with others unnecessarily, cleaning regularly etc etc) until Paragon came or I took her there.

    We can blame the govt all we want on their response tactics but good lord all this data presented DAILY is for us to act SENSIBLY when confronted by possible infections …in short ANY flu symptoms should be handled as cov19 until proven otherwise.

    In neither of the cases highlighted did the relatives display that level of blunt reasoning …it seems to me. That’s unfortunate and distressing and one wonders what are we actually INTERPRETING and UNDERSTANDING from all these warnings.

  31. Vincent Codrington Avatar
    Vincent Codrington

    @ dpD at 11:08 AM

    I agree with you 100%.
    No one wants to take responsibility for their actions or in actions. Some want the GoB agencies to baby sit them. That is not the function of these agencies. I make these remarks without reading the newspaper report.

  32. Vincent Codrington Avatar
    Vincent Codrington

    @ John A

    We are all in uncharted waters. In the best of times we do things that others with 20/20 hind sight label mismanagement. I try not to be one of them.

  33. John A Avatar
    John A

    @ Vincent.

    I see 2 opposing forces at work with this virus as I will try to explain now.

    First we have the health authorities whose job is to ensure that a well managed process is put in place for screening and treatment. We therefore expect this to be done properly.

    Secondly we have the business community who want the country reopened as they are losing money big time closed. We also have government hurting badly from the closure, as no Vat can be collected from companies whose doors are closed.

    It is therefore critical that when we reopen our doors we are sure that the statistics we use to make this decision on are accurate! If this is not done then 2 things could happen. A: we would have to close the country after opening it or B: we would open and have to battle with infections which slipped through the net.

  34. David Avatar
    David

    @John A et al

    Please take the discussion about the numbers here:

    https://barbadosunderground.net/2020/04/21/flattened-curve-covid-19/

  35. de pedantic Dribbler Avatar
    de pedantic Dribbler

    @John A, whenever govt and business are ‘opposing forces’ its generally one of greed (profit or tax revenue) and almost always a total disregard for the public good (particularly by the business but in many instances also by the governing authority’s power overreach) …. many examples of both are around: oil explorations on the business side and the Branch Davidian Waco, US type gov’t matter (imperfect tho it be), as two.

    On this issue I have been flabbergasted from day one by this ‘opposing side’ argument made by the leaders like Johnson, Trump, Bolsinaro et al…it is simply counter-factual and makes no logical sense progressively.

    If two outcomes will give you basically the same result but can be approached from different paths then the only valid ‘opposition’ is the cost of impact of the two alternatives to the final result: the one with the lesser impact prevailing.

    The impact here is the cost of human life… which path will give us the lowest death toll. I have no idea but the models suggest that it’s a gradual re-opening.

    In either case there WILL BE recession and long lasting economy hardship… companies reopening soon to no meaningful business revenue towards a profit position will STILL falter and fail … it’s very, very hard for any small business but in all practical considerations so too for govt with no tax revenue… thus the govt-business opposition by leaders is a false debate: We are in this together and will raise and fall the same.

  36. Tron Avatar
    Tron

    The native government advisers wanted to finance the outrageous wage increase for civil servants (monstrous 5 percent) with numerous taxes on tourism. I already warned against this idiocy in 2018. Now their charade falls on their feet.

    Government advisors have betrayed Mia Mottley, our beloved Prime Minister. It is time for her to punish her advisors properly and quickly. For starters, I suggest she chops off the little finger of her closest economic advisor’s right hand – as a warning to all other figures around here.

    The leader of the High Table did the same with John Wick. Now it takes a bitter revenge that the teachers at Harrison College teach their students only poetry and mentally clouded nationalism instead of economics. Failure must be punished.

  37. NorthernObserver Avatar
    NorthernObserver

    @PLT
    you can always short the cruise lines…..Royal has fallen from 135 to 35 in a matter of weeks, but there is still $35 more to go?

  38. John A Avatar
    John A

    @ Northern

    The banks will soon be paying the companies that own the ships to keep them!

  39. Hal Austin Avatar
    Hal Austin

    Are we going to get any reports on the economic contraction facing Barbados? There is almost total silence on how the economy is performing, or not, as the case may be.
    Is anyone going to ask the Czar/acting prime minister/finance ministers about the economy? What is the rate of unemployment? Arfe any businesses facing insolvency? Is the economy in recession?

  40. Tron Avatar
    Tron

    Normally, these figures are prepared on a quarterly basis. So let’s see how the economy performed in Q1 and Q2. But Q4 and Q1/2021 are even more interesting because of the winter season. We will have very few tourists. Either people in the north have other worries than sunburn or they can no longer afford an overpriced holiday. Especially in the UK, the European Wuhan, so to speak, with its third-world-level hospitals.

    The decisive factor, however, is not the government’s statement, but that of the IMF. Especially the recommendations for action of the IMF. The IMF has already been very unhappy about numerous brain-burning “reforms” such as the massive wage increase for civil servants. I hardly believe that the IMF will go through this madness again. As things stand at the moment, Barbados is unable to service its international loans as contractually agreed. We are facing a new default at the latest with the first major repayments to private investors.

  41. NorthernObserver Avatar
    NorthernObserver

    The discussions seem, same old to me…..many are prefaced by “As I have said before……….”

    We have the nationalists vs the regionalists, the welfare state vs the non-welfare state, various currency proposals though not a soul touched dollarization other than in passing, not a soul touched the current system which places power in the hands of a very few for extended periods. Not a soul touched bankruptcy legislation or the many other names it goes by, both personal and corporate.

    Like others, I too have my biases, and it would be hypocritical to propose those things I do not do myself.

  42. Enuff Avatar
    Enuff

    Miller
    Which industry bouncing back by December 2020, besides BU talk shop? COVID-19 has heavily impacted many sectors, including tourism, retail/restaurant, manufacturing, agriculture and construction in many countries. Diversification does not mean throwing away or neglecting the golden egg layer, but feeding and facilitating the other fowls on the farm. As TheoGaz asked recently, wey the shovel ready replacement? If we are entering a long-term period of social distancing, we all will adapt and industries will. Your reasons for why people choose a destination is secondary school level, you can do better. Regarding eco-tourism, this was to be the game changer going 20+ years now; but 20% of 200 is still less than 2% of 200,000. So in 2019, travel and tourism generated about US$2.9T globally, eco-tourism accounted for about 0.01%. You should note that culture/heritage is encapsulated in the concept of eco-tourism and ecotourism is not the only form of sustainable travel. So tourists may not want to go lay down in a tent in Costa Rica to watch birds but prefer fish from Judy in Oistins before wukkin up in the Gap or glamping in St.Joseph. As for COVID, eco-tourism is far more vulnerable given its focus on group-based activities, communal accommodation etc.

  43. Tron Avatar
    Tron

    Northern,

    It may well be that we are presenting well-known ideas here. And I do not know for sure if my personal suggestions are right.

    However, it remains a fact that Barbados is one of the islands with the lowest growth since 2008.The particular Barbadian path of a completely over-priced currency combined with low productivity, constantly rising taxes, an excessive welfare state and an equally excessive civil service has proved to be a dead end.

    If various governments refuse to reform for 12 years and Barbados is getting worse and worse economically, it will probably not be the BU commentators who are to blame, but social and economic policy since 1966, where DLP and BLP differ only in nuances.

  44. Critical Analyzer Avatar
    Critical Analyzer

    Has anyone thought what would happen if we are able to get COVID fully controlled or eradicated in Barbados by the end of June or July and keep it that way until flu season starts.

    Would that not spur some sort of tourism boost for tourists running from the flu season resurgence of COVID.

  45. peterlawrencethompson Avatar
    peterlawrencethompson

    @David April 23, 2020 8:28 AM
    “It is premature to swear the demise of the cruise industry. It will depend on if treatment/vaccine is found in short order and consumer appetite for leisure travel.”
    ++++++++++++++++++
    Four other coronaviruses already circulate in human beings. How many have we successfully developed vaccines for? Zero. They cause common cold symptoms and we don’t have vaccines for any of them despite the fact that a successful cold vaccine would make the pharmaceutical industry billions and billions.

    Vaccines normally take years, if not decades, to develop. Researchers hope to achieve the same amount of work for COVID-19 in only a few months. Their chances of success?… slim to non-existent.

    The optimistic experts think a vaccine is likely to become available by mid-2021, about 12-18 months after the COVID-19 emerged. That would be a unprecedented scientific feat and there are no guarantees it will work.

    How many of the hotel businesses in Barbados will survive on 5% or less of their accustomed income until mid 2021? Very few.

    It is time to take off the rose coloured glasses and confront reality, instead of indulging in comforting self delusion.

  46. peterlawrencethompson Avatar
    peterlawrencethompson

    @Critical AnalyzerApril 23, 2020 2:53 PM
    “Would that not spur some sort of tourism boost for tourists running from the flu season resurgence of COVID.”
    +++++++++++++++++
    Increased visitor traffic will inevitably cause a resurgence in COVID-19 cases in Barbados. Even if we test every single arriving visitor with the new fast testing technologies like the Abbott machine that are becoming available, those tests have only a 98% accuracy rate; this means that for every A340 landing with 300 tourists aboard we could, in a worst case scenario, be admitting up to 6 who are COVID-19 infected but test negative.

  47. Tron Avatar
    Tron

    @ peterlawrencethompson April 23, 2020 2:56 PM

    Your problem, dear PLT, is that you argue rationally and based on facts. This will earn you a lot of respect here on BU, but not in local politics. The decisions of the politicians only want to anticipate the voting behaviour at the ballot box. Politics thus acts irrationally. This is why various governments in Barbados are doing exactly the opposite of what would actually make sense.

    @ Critical Analyzer April 23, 2020 2:53 PM

    And how do you want to prevent the plague from being reintroduced and everything starting all over again? Just imagine the chaos, we have thousands of tourists on the island in November and suddenly the government declares a new lockdown.

    It is currently not foreseeable that the virus will leave North America and Europe, i.e. our tourist markets, so quickly, not even in summer. In the winter the numbers could go up again.

    First and foremost, we would have to subject all people arriving at the airport to a reliable rapid test and provide adequate quarantine facilities. Is that even medically feasible? Who would pay for it? Is that what the tourists want? Maybe for a few billionaires, but hardly for the vast majority of tourists, especially as they are now financially stranded.

    Even then, cruise ships can no longer dock. The risk is much too high. If the shipping companies survive, they won’t come back until 2022. If we have the vaccine then.

  48. John A Avatar
    John A

    @ Northern

    Based on $35 a share Royal basically must be insolvent in terms of liabilities to share value. I don’t see any bank refinancing them at this level so will The Donald step in next?

  49. NorthernObserver Avatar
    NorthernObserver

    @Tron
    possibly you need to ask yourself the value of growth? Isn’t that some number, which is a result of a mathematical formula based on other numbers, all of which are subject to some degree of manipulation.
    What is an ‘over priced currency’? For that matter, what is an ‘under priced’ (valued) currency? Several of the ails you mention….are they the result of currency or ………..?????. You already grasp readily what a politician’s major concerns are, and how that conflicts with their decision making.
    There is really no need to go back to 1966, or belabour past decisions….it is April 23 2020. Plan YOUR plan and execute. Its all about whatever makes YOU happy. At a later date, you can explain it however you choose.
    Just remember, you always have a choice. Sometimes you just have to look hard to see your options.

  50. peterlawrencethompson Avatar
    peterlawrencethompson

    @Enuff & @David,
    I’m a bit more familiar with Carnival Cruise Lines than the other companies, so I will tell you why they are a corporate cadaver.

    They ended 2019 with $530 million in cash & cash equivalents. Since then they have tapped $3 billion from their revolving credit facility and also raised $4 billion at a hefty 11.5% interest (normal large corporations can borrow at about 2% interest) and sold another $2 billion in stock. This means they have a war chest of about $9.5 billion at the moment. They are also carrying $17 billion in debt and other long term liabilities. It is costing them about $1 billion a month to keep their fleet shipshape for whenever they get the OK from the Centers for Disease Control (CDC) to sail again. That means that as bleak as things are (and paying an 11.5% interest rate is very bleak) the company can go nine months without needing to raise more cash.

    So let’s pretend that the CDC actually lets them go sailing next January. They need to sell $1.5 billion worth of cruises just to break even in operating income. This doesn’t even take into account the extortionate interest rates that they are paying on short term debt, and nobody is going to extend long term debt. They have to achieve 90% of their record 2019 sales levels just to keep from going further into debt. What are their chances? Zero in my opinion.

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