Methods of Raising Funds for Purchasing of New Cruise Ships by International Corporations

• Main Author: Kizielewicz Joanna
• Format: Article
• Language: English
• Published: Sciendo 2017-06-01
• Series: International Journal of Management and Economics
• Subjects: business investment; capital expenditure; corporate investment; g3; g310
• Online Access: https://doi.org/10.1515/ijme-2017-0013

The world’s cruise corporations regularly purchase large, luxurious cruise ships. In accordance with the Cruise Line International Association, 33 new ocean cruise ships will be available on the market by 2020. These types of capital expenditures are associated with large financial outlays of up to $ 1 billion. The leading cruise corporations are not able to finance purchases of new units with their own resources and therefore look for different solutions. Available publications focus mainly on issues related to purchasing cargo ships, not cruise ships. The objective of the article is to identify sources of funding of new cruise ships. Our analysis identifies the average capital expenditure associated with purchasing new cruise ships and factors that influence it. The most popular methods for raising such capital are also provided. Our research methodology relies on data exploration method, a desk research method and comparative analysis.