Royal Caribbean Cruise Lines 2002 Annual Report Download - page 5

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ROYAL CARIBBEAN CRUISES LTD.
but also raised our operating and financial
leverage. That leverage will become a posi-
tive force in the near future as the pace of
our capital expenditures subsides. Our
remaining three ships under construction
represent $1.3 billion of the approximately
$5.5 billion in combined contract com-
mitments for 13 ships in 1999-2004. We
have successfully absorbed double-digit
capacity increases of 20.8 percent and 15.0
percent the past two years. Our capacity
growth slows to 12.2 percent and 10.4 per-
cent this year and next, respectively, and
thereafter drops quickly.
Royal Caribbean International and Celebrity
Cruises served a record 2.8 million guests
last year – a million more than as recently as
1999 – and logged 18.1 million guest cruise
days. The occupancy rate of 104.5 percent
(double occupancy equals 100 percent) was
one of our highest ever. Each succeeding year
that we attract one million people cruising
for the
first time
, as we did in both 2001 and
2002 and will do again in 2003, we broaden
a highly satisfied customer base.
As always, the safety of our guests is our high-
est priority. We are continuing to operate at
the highest security level with measures such as
comprehensive screening of everyone and
everything coming onboard our ships. Our
SeaPass computerized photo ID system, for
example, verifies the identity of each guest and
crew member as they come on or off a ship.
A MILESTONE TO CELEBRATE
Despite the gravity of world events, we reached
an exciting and significant milestone in 2002
– the company surpassed 50,000 berths.
Celebrity Cruises completed its stylish
Millennium class with Constellation, the fourth
ship in the series. Celebrity, the fastest-grow-
ing of the premium brands, has doubled its
capacity to 16,350 berths, compared to 1999.
Brilliance of the Seas and Navigator of the Seas joined
the Royal Caribbean International fleet. These
newbuilds from three European shipyards
expanded our fleet to 25 ships with a capacity of
53,000 berths. By the fourth quarter of 2003,
when both Serenade of the Seas and Mariner of the Seas
are afloat, our 58,200 berths will be triple the
capacity of a scant seven years ago. Jewel of the Seas