Norwegian Cruise Line Holdings, headquartered in Miami, has issued a stern warning to Florida, threatening to relocate its ships following Governor Ron DeSantis’s enactment of a law prohibiting businesses from mandating proof of COVID-19 vaccination. The company argues that this state legislation conflicts with federal health guidelines, which permit cruise operations in U.S. waters provided nearly all passengers and crew are vaccinated. CEO Frank Del Rio emphasized the tension between state and federal jurisdictions, stating, “Lawyers believe federal law supersedes state law, but we hope this doesn’t escalate into a legal or political battle.” Norwegian Cruise Line Holdings, which also owns Oceania Cruises and Regent Seven Seas Cruises, is exploring alternative bases in other states or the Caribbean if Florida remains inhospitable. Del Rio revealed these plans during the company’s quarterly earnings call, expressing optimism that a resolution could still be reached through ongoing discussions with DeSantis’s office. The governor’s recent executive order and subsequent legislation, which also grants him authority to override local pandemic-related measures, were framed as efforts to protect individual freedoms and privacy. However, the cruise industry, which has been grounded in U.S. waters since March 2020, is eager to resume operations. Federal guidelines from the CDC allow vaccinated cruises to bypass trial voyages and commence regular trips, provided 98% of crew and 95% of passengers are vaccinated. Despite these challenges, Norwegian reported a surge in bookings, signaling potential recovery by early 2022, even as the company posted a $1.37 billion loss in the first quarter of 2021.
