£300m losses for the owner of Costa Concordia

By Finance

The owner of Carnival Micky Arison who owns the cruise ship Costa Concordia that sank near Giglio island lose fifth of his shares value. That means £300m off his paper fortune gone away. The multibillionaire owner ($4.5bn) saw the biggest drop of the value of his shares. The market value of his company fell with more than a billion.
The damaged ship will cost initially $95m (£62m).
Despite the numbers analysts predict the total amount to be bigger. Costa Concordia tragedy will affect the whole cruise business. The result will be drop in cruise prices and lower cruise activity.
Part of the tourists that planned their holiday in the summer probably will cancel their cruise and look of other opportunities.
Arison is at 169th place in the statistics by Forbes magazine, for 2010 he had $7m in pay and bonuses from Carnival.
Losing such an enormous cruise liner will hit mostly the insurers who have to pay up to $1bn.
Costa Concordia was built at a price of $450m and insured for $405m by XL, RSA and Generali.
Insurers loss will be about $500m-$1bn.
Carnival is the world's biggest cruise operator.