Artist's rendering of Royal Beach Club Lelepa. Image: Royal Caribbean International.
While Carnival prepares to withdraw two ships from Australia in 2028, Royal Caribbean is signalling increased activity in the region, with construction of its new Royal Beach Club Lelepa destination in Vanuatu approaching a major milestone.
During Royal Caribbean Group's third-quarter earnings call on 27 October 2026, Royal Caribbean International President and CEO Michael Bayley confirmed that the official groundbreaking ceremony for Lelepa is expected to take place in approximately two weeks.
Bayley also revealed that the company expects to have four ships operating out of Australia in 2028, compared with three in 2027, as it increases its presence across the Asia-Pacific region.
The announcement comes at an interesting time for Australian cruising, following Carnival Cruise Line's recent decision to remove Carnival Adventure and Carnival Luminosa from the Australian market in March 2028.
For Vanuatu, where tourism operators are already concerned about the potential loss of cruise visitors, Royal Caribbean's continued investment could provide some welcome reassurance.
Royal Caribbean's Lelepa Project Reaches Another Milestone
Royal Beach Club Lelepa is scheduled to welcome its first cruise passengers in October 2027, becoming Royal Caribbean's first exclusive cruise destination in the Southern Hemisphere.
The project has been several years in the making, having originally been announced in 2019 as Perfect Day at Lelepa before evolving into the current Royal Beach Club concept.
Speaking during the company's 27 October earnings call, Bayley confirmed that the official groundbreaking ceremony would take place in approximately two weeks.
The Vanuatu Government had previously announced plans for the ceremony to be held in November, bringing together representatives from Royal Caribbean, government officials and local communities.
Preliminary construction work is already underway, so the upcoming ceremony represents a formal milestone rather than the beginning of all work on the project.
According to Vanuatu's Department of Tourism, the development represents an investment of approximately VT 6.5 billion and is described as the largest tourism investment in the country's history.
What Will Royal Beach Club Lelepa Offer?
Located on Lelepa Island, off the northwestern coast of Efate in Vanuatu, the new destination is being designed specifically for Royal Caribbean cruise passengers.
Unlike some of the company's other beach club destinations, entry to Lelepa will be included in the cruise fare.
According to Royal Caribbean's published plans, passengers can expect:
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Two beach areas, including a quieter adults-only retreat and a family-friendly beach with organised activities.
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Complimentary beach loungers, umbrellas, towels and tender transfers.
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Included food and selected drinks at the destination's dining venues.
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A nature trail, beach games and opportunities to enjoy the surrounding waters.
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Additional experiences and rentals available at an extra cost.
The development will also include a local Mamas Market, providing opportunities for Vanuatu vendors to sell their products to visiting passengers.
Royal Caribbean plans to feature Lelepa on South Pacific itineraries departing Sydney and Brisbane from October 2027.
For Australian families, the inclusion of a dedicated beach destination without an additional entry fee could be an attractive feature, particularly as cruise holiday costs continue to attract attention.
Artist's rendering of Royal Beach Club Lelepa. Image: Royal Caribbean International.
Royal Caribbean Plans More Ships for Australia
Perhaps the most interesting part of Bayley's comments was his reference to Royal Caribbean's growing Australian presence.
During the earnings call, he stated that the company expects four ships operating out of Australia in 2028, compared with three in 2027.
He also confirmed that Royal Caribbean has been shifting additional capacity into the wider Asia-Pacific region.
The comments suggest confidence in the Australian cruise market at a time when other operators have been reducing their presence.
Royal Caribbean has already announced an expanded 2027–28 Australian season, with Anthem of the Seas sailing from Sydney and Voyager of the Seas operating from Brisbane.
Ovation of the Seas is also scheduled to return to Australia, joining Voyager in Brisbane for the 2027–28 summer season.
However, the reference to four ships in 2028 should not necessarily be interpreted as four vessels permanently based in Australia.
Cruise ships frequently move between regions, and Royal Caribbean has not yet clarified the exact deployment arrangements behind Bayley's comments.
Nevertheless, the planned increase is encouraging news for Australian cruisers, particularly those concerned about reduced competition and fewer choices in the years ahead.
Welcome News for Vanuatu Following Carnival's Withdrawal
Royal Caribbean's investment also comes at an important time for Vanuatu's tourism industry.
Earlier this month, Carnival Cruise Line announced that Carnival Adventure and Carnival Luminosa would leave Australia in March 2028, reducing the company's local fleet to Carnival Splendor and Carnival Encounter.
The decision prompted concern in Vanuatu, where cruise visitors provide an important source of income for local businesses and communities.
In an official statement issued on 15 October, Vanuatu's Ministry of Trade and Commerce confirmed that Carnival's withdrawal would reduce cruise calls to Port Vila, Mystery Island and other destinations from mid-2028.
The ministry highlighted the potential impact on tour operators, transport providers, market vendors and communities that rely on cruise tourism.
It also made clear that Carnival's decision was driven by operating conditions in Australia, rather than any problems with Vanuatu or its destinations.
The government is now working with cruise lines to establish how many port visits will be lost and what that will mean for local businesses.
Against that backdrop, Royal Caribbean's expansion plans and substantial investment in Lelepa offer a more encouraging development.
However, the benefits won't necessarily be spread evenly across Vanuatu.
A purpose-built beach destination on Lelepa may create employment and business opportunities for surrounding communities, but it won't automatically replace spending by Carnival passengers visiting Port Vila, Mystery Island or other established ports.
The actual impact will depend on future itineraries, passenger numbers and how much of the development's spending remains within the local economy.
Jobs and Business Opportunities for Local Communities
Vanuatu's government has outlined several potential economic benefits from the Lelepa development.
The project is expected to support approximately 300 to 400 jobs during development, with more than 150 operational positions once the destination opens.
Additional staff will also be required to live and work on site.
Royal Caribbean has indicated that it intends to source as many goods and services locally as possible.
The company plans to work with Vanuatu producers and suppliers to identify opportunities to provide food, beverages and other products for the destination.
Training and workshops for local businesses are also being discussed to help them meet the requirements of supplying a major international cruise operation.
These arrangements could create opportunities beyond direct employment at the beach club.
At the same time, the project has attracted environmental and community concerns, including questions about coastal habitats, fishing grounds and the effects of cruise tourism on the island.
Royal Caribbean has said its environmental impact assessment has been approved by the relevant Vanuatu authorities.
The longer-term success of the project will depend not only on attracting cruise passengers, but also on ensuring that local communities benefit from the investment.
What Does This Mean for Australian Cruisers?
The contrasting announcements from Carnival and Royal Caribbean highlight how differently cruise operators are approaching the Australian market.
Carnival has pointed to regulatory uncertainty and operating conditions as factors behind its decision to redeploy Adventure and Luminosa.
Royal Caribbean, meanwhile, is investing in a new South Pacific destination and signalling increased regional capacity.
That doesn't mean Royal Caribbean will replace all the cruise capacity being lost, particularly when the companies operate different ships, itineraries and pricing structures.
It does, however, suggest that Australian cruisers will continue to have new options to consider.
For Vanuatu, the hope will be that Royal Caribbean's investment brings lasting economic benefits while the country works to retain cruise visits to its existing destinations.
With the official Lelepa groundbreaking expected in November and the first cruise visits scheduled for October 2027, the next 12 months will be an important period for the development.
And for Australian cruisers watching the recent changes to the local market, it's encouraging to see at least one major operator planning for growth rather than withdrawal.
