MIAMI - Carnival (NYSE:CCL) Corporation & plc (NYSE/LSE: CCL; NYSE: CUK), the world's largest cruise company, announced Thursday its plan to invest $100 million to extend the pier at its forthcoming exclusive destination, Celebration Key, on Grand Bahama island. This investment aims to double the site's arrival capacity by adding two additional berths by 2026, enabling it to accommodate up to four of Carnival’s largest Excel-class ships simultaneously.
The expansion is set to welcome nearly 4 million guests annually to Celebration Key by 2028, significantly boosting the local economy. The announcement was made at the 25th Annual Grand Bahama Business Outlook by Deputy Prime Minister and Minister of Tourism, Investments & Aviation in The Bahamas, The Honorable I. Chester Cooper.
Christine Duffy, president of Carnival Cruise Line, stated that the construction of the second pier supports the company's growth plans and solidifies its commitment to the future prosperity of Grand Bahama. The Bahamian government has expressed strong support for the project, recognizing the substantial economic opportunities it will provide.
Celebration Key is designed with expansion in mind, featuring a mile-long white sand beach, the Caribbean’s largest freshwater lagoons, and various dining, shopping, and entertainment options. Carnival Corporation is collaborating with Bahamian officials and community leaders to involve local businesses and talent in the development, which is expected to generate significant job opportunities.
The project, now valued at $600 million, is Carnival Corporation's largest investment of its kind. With the original two berths operational by 2025, the site is projected to generate over 700 permanent jobs and welcome 2.2 million guests each year to Grand Bahama. The full completion of the project is anticipated to create over 2,500 direct Bahamian jobs and contribute $9.7 billion to the Bahamas GDP over the next two decades, according to an economic impact study.
The information in this article is based on a press release.
InvestingPro Insights
As Carnival Corporation (NYSE: CCL) commits to a significant expansion in the Bahamas, the financial metrics provided by InvestingPro shed light on the company's current market standing. With a market capitalization of $19.42 billion, Carnival stands as a substantial entity in the leisure industry. Despite not having paid dividends recently, an important InvestingPro Tip points out that Carnival is a prominent player in the Hotels, Restaurants & Leisure industry, highlighting its influential position in the market.
InvestingPro Data also reveals that Carnival has experienced a substantial revenue growth of 77.44% over the last twelve months as of Q4 2023, showcasing the company's ability to generate sales amidst challenging times. This growth is complemented by a gross profit margin of 49.56%, indicating efficiency in Carnival's operations. However, it's worth noting that the company has faced volatility, as reflected by a P/E Ratio of -239.59, which suggests that investors are anticipating future earnings growth, supported by an InvestingPro Tip that net income is expected to grow this year.
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