CRUISE SHIPPING
Royal Caribbean’s Oasis of the Seas and Allure of the Seas, the world’s largest cruise ships
THE ALLURE OF CHINA Growing Chinese tourism spells good news for cruise lines
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hina’s emerging middle class—with its appetite for consumer goods and tourism—will figure prominently in the growth and globalization of the cruise industry in the years ahead. By 2017, China is expected to emerge as the second largest cruise market in the world. According to Richard Li, the Head of Retail Banking and Wealth Management at HSBC Bank in China, China has the world’s largest number of overseas tourists and the largest proportion of tourist spending. Chinese tourists made an estimated 98 million trips abroad in 2013, spending more than $120 billion on travel. Domestic tourism was also strong, with 3.3 billion domestic tourists spending 2.6 trillion yuan in 2013. Li expects outbound travel from China to reach 130 million this year, and exceed 200 million by 2020—three times the current number of departures from the U.S. All this is good news to cruise lines, since China wasn’t even in the Top Ten global cruise markets, according to the Cruise Lines International Association (CLIA), whose 63 members represent about 95% of the global cruise ship capacity. Just last month, Miami-based Carnival Corporation & plc—the world’s largest cruise company with more than 100 ships and 10 brands—announced it would be expanding its fleet based in China to four ships by 2015. Carnival’s plans call for the Costa Serena to join the Costa Victoria and Costa Atlantica in its Costa Cruises fleet in
Compiled by Marine Log Staff
Shanghai in April 2015. Additionally, P&O Cruises—another Carnival brand—has begun sailing the Sapphire Princess out of Shanghai. The Chinese cruise market is “growing by leaps and bounds,” Carnival COO Alan Buckalew recently told Bloomberg Businessweek. “It’s a market that can support that kind of growth.” The Asian Cruise Association estimates that annual cruise passengers from Asia will reach about 3.8 million in 2020, about 1.6 million from China. How important is the Chinese market to Royal Caribbean? Earlier this year, Royal Caribbean International said it would reposition its newest ship, the 4,180-passenger Quantum of the Seas, to Shanghai (Baoshan), China, in May 2015, pulling her out of the New York market. In China, Quantum of the Seas will join Mariner of the Seas and Voyager of the Seas in Asia, increasing the company’s capacity in the region by 66%. Royal Caribbean Cruises President & COO Adam Goldstein, says the move would “accelerate the growth of this vital market with a ship that will capture the imagination of travelers looking for a one-of-a-kind vacation experience.” Goldstein also notes that the move should please investors. “Every trend we are seeing in China tells us we can achieve real long-term competitive advantage and appealing returns on our investments in this fast-growing market by accelerating our presence there.” June 2014 MARINE LOG 35