Consolidated Water Reports First Post-COVID Cruise Passenger Ships to Arrive at Cayman Islands March 21, Further Bolstering Resurgence of Tourism for the Islands

Rhea-AI Summary

Consolidated Water Co. Ltd. (CWCO) anticipates a significant boost as tourism returns to the Cayman Islands, with the first cruise ships in two years set to arrive this month. The Cayman Islands' tourism ministry approved an initial 21 cruise ships to dock from March 21 to April 17, allowing around 75,000 passengers, approximately half of pre-COVID levels. The company's CEO stated that this resurgence is crucial for returning retail water sales to normal as tourism recovers. Recent government policy changes also eased COVID-19 restrictions, further supporting tourism recovery.

Positive

• Return of cruise tourism, beneficial for local economy and water sales.
• Government easing COVID-19 restrictions to attract more visitors.

Negative

• Initial cruise passenger limit restricts immediate revenue growth.
• Possible delays in full tourism recovery affecting water demand.

GEORGE TOWN, Cayman Islands, March 09, 2022 (GLOBE NEWSWIRE) -- Consolidated Water Co. Ltd. (NASDAQ Global Select Market: CWCO), a leading developer and operator of advanced water supply and treatment plants, anticipates the return of tourism to the Cayman Islands with the first cruise ships in two years scheduled to arrive this month.

The Cayman Islands tourism ministry has officially announced the approval of an initial 21 cruise ships to arrive at the Islands between March 21 to April 17.

The initial number of cruise passengers is limited to 75,000, or about half the volume in the comparable pre-COVID monthly period of April 2019 as reported by the Cayman Islands Department of Tourism. The limitation is expected to be lifted in late April.

The Minister for Tourism and Transport, Hon. Kenneth Bryan, stated: “Cruise tourism makes up a significant portion of our tourism industry, and the return of cruise passengers will bring welcomed relief to many Caymanians who depend on this industry for their livelihoods. Every cruise call that brings passengers to our shores is helping to support Caymanian employees and business owners that have been hard hit by the COVID-19 pandemic.”

Consolidated Water recently reported an increase in water demand in the Cayman Islands as the country’s Phase 5 reopening plan continues. The company operates seven seawater desalination plants that produce all of the piped drinking water on Grand Cayman, home to about 95% of the nation’s population.

“The resumption of cruise ships to the Islands for the first time in two years is a major milestone for Consolidated Water,” stated company CEO, Rick McTaggart. “We expect the resurgence of tourism to help our retail water sales return to normal levels over the coming months, as hotels and businesses begin to serve the thousands of tourists and vacationers coming back to the Islands.”

In February, the Cayman Islands government dropped all on-island COVID testing for vaccinated travelers, citing a decline in local infection cases. The Islands also no longer require post-arrival COVID-19 tests for fully vaccinated travelers, and the quarantine period for partially vaccinated and unvaccinated individuals was reduced from 10 to seven days.

The complete schedule of cruise arrivals is available on the Cayman Islands website here.

About Grand Cayman
Located 480 miles south of Miami, Florida, Grand Cayman is one of the largest financial centers in the world with over $1.8 trillion on deposit in more than 250 banks. A British Overseas Territory, the Cayman Islands are comprised of three islands: Grand Cayman, the country’s capital and commercial center, and the less populated sister islands of Cayman Brac and Little Cayman, located 80 miles to the northeast. The other major economic engine of the islands is tourism, which attracted more than 2.3 million visitors in 2019 to Cayman’s beautiful beaches, botanical gardens and wildlife.

About Consolidated Water Co. Ltd.
Consolidated Water Co. Ltd. develops and operates advanced water supply and treatment plants and water distribution systems. The company operates water production facilities in the Cayman Islands, The Bahamas and the British Virgin Islands and operates water treatment facilities in the United States. The company also manufactures and services a wide range of products and provides design, engineering, management, operating and other services applicable to commercial and municipal water production, supply and treatment, and industrial water and wastewater treatment. For more information, visit www.cwco.com.

Cautionary Note Regarding Forward-Looking Statements
This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "estimate", "project", "intend", "expect", "should", "will" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to (i) continued acceptance of the company's products and services in the marketplace; (ii) changes in its relationships with the governments of the jurisdictions in which it operates; (iii) the outcome of its negotiations with the Cayman government regarding a new retail license agreement; (iv) the collection of its delinquent accounts receivable in the Bahamas; (v) the possible adverse impact of the COVID-19 virus on the company’s business; and (vi) various other risks, as detailed in the company's periodic report filings with the Securities and Exchange Commission (“SEC”). For more information about risks and uncertainties associated with the company’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of the company’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting the company’s Secretary at the company’s executive offices or at the “Investors – SEC Filings” page of the company’s website at http://ir.cwco.com/docs. Except as otherwise required by law, the company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Company Contact:
David W. Sasnett
Executive Vice President and CFO
Tel (954) 509-8200
dsasnett@cwco.com

Investor Relations Contact
Ron Both or Justin Lumley
CMA
Tel (949) 432-7566
Email Contact

Media Contact:
Tim Randall
CMA
Tel (949) 432-7572
Email Contact

FAQ

What is the significance of cruise ships returning to the Cayman Islands for CWCO?

The return of cruise ships is expected to boost retail water sales for CWCO as tourism resumes, impacting the company's revenue positively.

How many cruise ships are scheduled to arrive in the Cayman Islands?

An initial 21 cruise ships are approved to arrive between March 21 and April 17, 2022.

What restrictions were lifted for travelers to the Cayman Islands?

The Cayman Islands government dropped on-island COVID testing for vaccinated travelers and reduced quarantine for others.

What is the current water demand situation for CWCO in the Cayman Islands?

Consolidated Water has reported an increase in water demand as the Cayman Islands continues its Phase 5 reopening plan.

What financial impact does the return of tourism have on CWCO?

The resumption of tourism, particularly cruise arrivals, is expected to help CWCO restore retail water sales to pre-COVID levels.