RCL Royal Caribbean Cruises Ltd.

Risks

• The global COVID-19 pandemic has had, and will continue to have, a material adverse impact on our business and results of operations. The global spread of COVID-19 and the unprecedented responses by governments and other authorities to control and contain the spread has caused significant disruptions, created new risks, and exacerbated existing risks to our business.
• Adverse worldwide economic or other conditions could result in prolonged reduction in the demand for cruises and passenger spending, adversely impacting our operating results, cash flows and financial condition including impairing the value of our goodwill, ships, trademarks and other assets and potentially affecting other critical accounting estimates where the change may be material to our operating results.
• Our operating costs could increase due to market forces and economic or geopolitical factors beyond our control.
• Conducting business globally may result in increased costs and other risks.
• Price increases for commercial airline service for our guests or major changes or reduction in commercial airline service and/or availability could adversely impact the demand for cruises and undermine our ability to provide reasonably priced vacation packages to our guests.
• Fears of terrorist attacks, war, and other hostilities could have a negative impact on our results of operations.
• Fluctuations in foreign currency exchange rates, fuel prices and interest rates could affect our financial results.
• Changes in U.S. or other countries’ foreign travel policy may affect our results of operations.
• Disease outbreaks and an increase in concern about the risk of illness could adversely impact our business and results from operations.
• Incidents on ships, at port facilities, land destinations and/or affecting the cruise vacation industry in general, and the associated negative media coverage and publicity, could affect our reputation and impact our sales and results of operations.
• Significant weather, climate events and/or natural disasters could adversely impact our business and results from operations.
• Our reliance on shipyards, their subcontractors and our suppliers to implement our newbuild and ship upgrade programs and to repair and maintain our ships exposes us to risks which, if realized, could adversely impact our business.
• An increase in capacity worldwide or excess capacity in a particular market could adversely impact our cruise sales and/or pricing.
• Unavailability of ports of call may adversely affect our results of operations.
• Growing anti-tourism sentiments and environmental concerns related to cruising could adversely impact our operations.
• We may lose business to competitors throughout the vacation market.
• Our liquidity could be adversely impacted if we are unable to satisfy the covenants required by our credit facilities.
• If we are unable to appropriately balance our cost management and capital allocation strategies with our goal of satisfying guest expectations, it may adversely impact our business success.
• Our attempts to expand our business into new markets and new ventures may not be successful.
• Risks associated with our development and operation of key land-based destination projects may adversely impact our business or results of operations.
• Our reliance on travel agencies to sell and market our cruises exposes us to certain risks which, if realized, could adversely impact our business.
• Disruptions in our shoreside or shipboard operations or our information systems may adversely affect our results of operations.
• The loss of key personnel, our inability to recruit or retain qualified personnel, or disruptions among our shipboard personnel due to strained employee relations could adversely affect our results of operations.
• Business activities that involve our co-investments with third parties may subject us to additional risks.
• We have a partial ownership interest in Silversea Cruises and as a result may be unable to control the amount of cash we receive or retain from the operation of Silversea Cruises and are limited in the flexibility we have to support Silversea Cruises’ operations.
• Past or pending business acquisitions or potential acquisitions that we may decide to pursue in the future carry inherent risks which could adversely impact our financial performance and condition.
• We rely on supply chain vendors and third-party service providers who are integral to the operations of our businesses. These vendors and service providers are also affected by COVID-19 and may be unable or unwilling to deliver on their commitments or may act in ways that could harm our business.
• If we are unable to keep pace with developments in technology or technological obsolescence, including technology in response to the COVID-19 pandemic, our operations or competitive position could become impaired.
• We are exposed to cyber security attacks and data breaches, including the risks and costs associated with protecting our systems and maintaining integrity and security of our business information, as well as personal data of our guests, employees and business partners.
• Litigation, enforcement actions, fines or penalties could adversely impact our financial condition or results of operations and/or damage our reputation.
• The potential unavailability of insurance coverage, an inability to obtain insurance coverage at commercially reasonable rates or our failure to have coverage in sufficient amounts to cover our incurred losses may adversely affect our financial condition or results of operations.
• A change in our tax status under the U.S. Internal Revenue Code, or other jurisdictions, may have adverse effects on our income.
• We are not a U.S. corporation and our shareholders may be subject to the uncertainties of a foreign legal system in protecting their interests.
• Provisions of our Articles of Incorporation, By-Laws and Liberian law could inhibit others from acquiring us, prevent a change of control, and may prevent efforts by our shareholders to change our management.