MIAMI BEACH, Florida (AP) - The cruise industry's outlook is positive this year despite economic pressures such as high fuel costs, the weak dollar and the struggling housing market, leaders of the world's largest cruise lines said.

While not immune to a weakening economy, the industry has proven it is "recession resistant" because the all-inclusive nature of its vacations provide value for travellers who may be cutting down on discretionary spending, said Dan Hanrahan, marketing committee chairman for Cruise Lines International Association.

Examples of the industry's resilience are an average of 105 percent occupancy for ships belonging to association cruise lines, and in the results of internal surveys of travel agents that predicted this year's bookings and sales would as good or better than they were in 2007, Mr. Hanrahan said.

"There's this belief amongst people that they deserve their vacations," said Mr. Hanrahan, who also is president and CEO of Celebrity Cruises and Azamara Cruises, units of Royal Caribbean Cruises Ltd. "The fact that cruising provides such value is what's helped the cruise industry weather this storm so far."

In the past four years, the industry, led by Carnival Corp. and Royal Caribbean, has fought through two active hurricane seasons in the important Caribbean sector, unflattering media reports about cruise safety, a downturn in the housing market that has hurt consumer spending and rising fuel prices.

It has seen some significant shifts, such as the increasing popularity of European cruises, the growing size of cruise ships and the investment of private equity firms in cruise operators such as Norwegian Cruise Line.

Mr. Hanrahan said 12.6 million passengers took cruises in 2007 with 10.3 million of those coming from North America. The industry expects an increase in world-wide cruise passengers this year to 12.8 million people - as lines plan to add eight new ships in 2008 and more than 35 new vessels in the next four years.