You are a private equity associate at Sterling Ventures, evaluating the potential acquisition of SeaScape Cruises, a luxury cruise liner operating in the Pacific. SeaScape has carved a niche for itself with unique offerings like underwater dining, ocean-floor excursions, and personalized concierge services. The due diligence process reveals the following characteristics of SeaScape and its market:

• Brand Equity: SeaScape's offerings have earned it a significant reputation, resulting in a loyal customer base and consistent premium pricing.
• Exclusive Contracts: SeaScape has exclusive five-year agreements with key Pacific island nations, granting it preferential docking rights and access to unique coastal experiences.
• Regulations: The cruise industry faces strict environmental and safety regulations, demanding considerable compliance investments.
• Capital Intensiveness: The custom ships SeaScape uses for its signature experiences are expensive to build and maintain.

Given the above, which of the following is the MOST robust barrier to entry for competitors considering entering SeaScape's luxury cruise niche?

• The brand equity and loyalty SeaScape has garnered over the years.
• The exclusive contracts with Pacific island nations.
• The environmental and safety regulations in the cruise industry.
• The capital-intensive nature of maintaining custom luxury cruise ships.