Cruise ship residents forced to leave Cambodia as fuel costs surge
The Villa Vie Odyssey suspended operations after fuel prices rose sharply, prompting hundreds of long-term passengers and crew to disembark in Sihanoukville while the company seeks temporary accommodation and financing.
Hundreds of people who had been living permanently on the Villa Vie Odyssey were ordered to leave the ship in Cambodia after the operator said soaring fuel costs made the cruise financially unsustainable. The vessel, which offers long-term rentals and purchases of onboard residences, had been cruising for more than two years and could accommodate up to 650 occupants.
Villa Vie Residences announced on Tuesday that it was suspending operations and would disembark the 203 passengers and 156 crew members currently on board. The company said monthly fuel expenses per cabin, which had averaged about $1,800, had risen to $6,000-$8,000 in parts of Asia following the Iran conflict, creating a shortfall that threatened its operating model.
"The company cannot simply pass increases of that scale on to residents, and the resulting shortfall has placed its current operating model under unsustainable financial pressure," the statement read.
Deputy governor of Preah Sihanouk Province Long Dimanche confirmed the numbers and said some passengers had already flown out while others waited in the port city of Sihanoukville. The ship is scheduled to refuel before departing Cambodia on Saturday.
Residents shared videos on social media expressing disappointment, though some welcomed the chance to explore Southeast Asia. Randy Cassingham, a resident who writes about his lifestyle on ResidentialCruising.com, noted that CEO Kathy Villaba posted a message giving residents until 2 p.m. to disembark and arrange assistance for their belongings.
Cassingham described the situation as a cascade of problems, citing the business model, management errors, and the fuel crisis. Since the Iran war began in February, the company had tried to cut fuel use by slowing itineraries and extending port stays, but those steps were insufficient.
"We have been unable to continue carrying the resulting operating losses," the company added, saying it would seek to restructure and recapitalize within the next 60 days, though no financing has been secured.