The sinking of the yacht Horizon on the Philippines coast has led to the cancellation of a week-long event on the world’s busiest shipping route.
The vessel was carrying over 1,000 passengers and crew when it was lost off the coast on Sunday, officials said.
A spokesman for Philippine Coast Guard said the vessel had drifted into a reef when the crew did not follow instructions.
The crew were rescued by fishermen, the spokesman said.
Horizon, a 50-meter-long yacht owned by Dutch company Alstom, sank at around 3:30 a.m.
(7:30 p.m, GMT) on the shore of the central island of Cebu, the coast guard said in a statement.
The crew was able to save the vessel before it sank, said a statement from the Coast Guard.
The yacht, which had been sailing on the Philippine coast, was carrying 1,500 passengers and six crew, it added.
The passengers were from France, the Netherlands, Norway and Australia, the statement said.
The Coast Guard is still investigating the cause of the disaster, which has killed seven crew members.
Horizons sister ship, the 50.6-meter Ponce, sank off the southern Philippines in August after it hit a reef.
It has been three months since Horizon’s last voyage, and there has been no indication the vessel is in bad shape.
It was carrying more than 1,800 passengers and 10 crew members when it sank off Pampanga, Philippines.