Carnival Cruise Lines to make Keelung a permanent base

The harbor city of Keelung in northern Taiwan last week saw its 500,000th visitor for the year, breaking a long-standing record.

The news comes as authorities announce that Carnival Cruise Lines has decided to make Keelung a permanent base for its Sapphire Princess liner from May next year. The Sapphire Princess can carry over 2,600 passengers and will stop by Kagoshima, Nagasaki and Okinawa on its Japan cruise.

Star Cruises, Royal Caribbean International and Costa Cruises have already made Keelung one of their bases. Carnival is the fourth to do so.

Bruce Krumerine, vice CEO of the British-American cruise operator, visited the harbor's facilities on Oct. 28, the second time he has visited with the harbor authorities with his entourage. Krumerine is also considering to have the liner Sun Princess permanently based in Keelung.

A harbor official said Keelung's cruise traffic has been growing in 2013 because cruise operators have been seeking to compensate declining business in Europe and North America with new opportunities in Asia.

The number of passengers for unscheduled cruises in past years was around 60,000 persons each year. But this year will see about 150,000 passengers.

Star Cruise, which operates scheduled cruises each year in Taiwan, has also applied for nine unscheduled cruises.

With Taiwan gradually opening its market to China, cruise liners will also see their business grow, local media said.

Source: Want China Times 

Economic woes hit Yangtze River cruise industry

A pedestrian street lined with luxury shops, a cinema, a circuit racetrack and even a rooftop golf court and helipad. No, it's not a pocket of one of the world's top cities, but facilities found aboard four of the world's largest river cruise ships, Yangtze Gold 2 and Yangtze Gold 3 and their sister ships, Gold 5 and Gold 6, which were put into service on the Yangtze River in May and June.

The four luxury cruise ships, along with another ship also put into service in June, has added another 3,000 seats to the Yangtze River cruise market and represents part of a plan by the Chongqing municipal government to boost tourism on the Three Gorges.

But the launch of the luxury ships has not delivered the promised boom to tourism.

The slowdown of economic growth nationwide and globally has resulted in river cruise companies experiencing a fall in customers.

These two factors have forced some old river cruise ships to slash the price of a cruise from 2,500 yuan ($393) to 1,500 to 2,000 yuan.

In an effort to boost the market, the tourism authority has organized a month-long promotional activity in August and river cruise companies have offered promotions on family trips and discounted tickets.

Two companies, Century Cruises and the Yangtze Gold Cruises, have decided to delay the date of the maiden voyage of their cruise ships, in a move aimed at buffering market pressure.

Both companies have ships that were due to be unveiled in October. Now both have decided to delay the maiden voyage to the end of this year.

The lacklustre state of the industry has raised questions on whether the rapid of the river cruise industry went too far.

"So far (the sudden increase in number of luxury ships) has given the market an unprecedented strike," said
Li Qing, a market manager at Century Cruises, which has five five-star river cruise ships on the Yangtze River.

"We need to follow the patterns of development of the market," Li said, adding that it might take another two or three years for the river cruise market to mature.

Coping with the gloomy economic environment

According to statistics provided by Chongqing's tourism authority, the city recorded a total of 1.1 million passengers taking the river cruise to visit the Three Gorges area in 2011, a 60 percent increase from 2010.

However, in the first half the number of tourists taking river cruises was only 446,000, a 6 percent decrease year on year, according to the maritime safety administration of Chongqing.

Despite the sudden increase in the number of luxury ships, the total passenger volume of luxury ships decreased by 2.1 percent.

"Data from travel agencies and scenic spots are showing that there is a palpable decrease in the number of tourists," said Li Qing.

Zhou Ling, who works at the reception desk for Century Cruises, said her ship is registering 50 or 60 less tourists than before. The cruise ship she works on has a total capacity of 300 passengers.

"In larger ships there were larger vacancies. Some even have less than 100 passengers," she said.

Data from Yangtze River Gold say the company's ships were only about 85 percent full, according to Jiang
Zongyu, the market manager at the State-run Chongqing Tourism Investment Group.

Another river cruise company, DaMei Three Gorges Cruises, were also only able to fill 70 to 80 percent of seats on the cruise ships, according to Dai Guoqun, manager of the company.

Slashing cruise ticket prices seems an inevitable decision.

Data provided by the Chongqing office of China International Travel Service suggests almost all river cruise companies have slashed the ticket price of cruise ships.

"The price of luxury ships were cut by a larger degree compared with the old cruise ships, as the latter has less profit margin," said an employee at the agency who gave only her surname, Liu.

River cruise companies are also keen to attract customers with more diverse packages, such as organizing summer camps for children or promotions on Qixi, the traditional Chinese day of romance, which fell on Aug 23 this year.

On Aug 5, a wedding was held on the Yangtze Gold 5, as part of efforts by the company to diversity its river cruise business. She Yangyi, a manager at Yangtze Gold Cruises, told Chongqing Economic Times that the company is planning to further diversify its business by renting its cruise ships to individuals or companies.

For many Chinese, the ticket price remains the defining factor in choosing the kind of river cruise they take.

Luo Menglin, a bank clerk, said even after the river cruise companies cut their prices, it still seems too expensive to him.

Luo took a cruise to the Three Gorges scenic area years ago on a small cruise ship and it was not a very pleasant holiday in a third class cabin.

"For me a luxury cruise ship is way too expensive. I wish they could focus on upgrading the smaller river cruises and make sure they cater to a variety of income groups," he said.

Moving five-star hotels

"It feels like working at a moving five-star hotel," said Xiao Yongyan, who works at souvenir shop aboard Yangtze Gold Two.

Xiao has worked on the cruise ship since it was put into operation and loves the atmosphere on board.

The design of the Yangtze Gold cruise ships seems to be trying to deliberately defy the traditional concept of river cruise ships. It has a gymnasium, swimming pool, three panoramic lifts and bars and a cigar lounge.

The spacious inner room and the decorative roof lighting are reminiscent of a hotel environment.

The six-deck ships, all the same size, have a maximum passenger volume of 570 people and 200 crew.

The ships are 150 meters long and 25 meters wide, significantly smaller than ocean cruise liners, which can carry more than 6,000 passengers.

But they could easily dwarf any inland river cruise ships in the world.

"The ships were the largest size we could get considering the voyage conditions of Yangtze River," said Jiang.

Over the past two years, 14 more five-star river cruise ships were put into operation to ply the tourism waterway to the Three Gorges scenic area, increasing the total number of river cruises from 12 to 26.

In 2010, the municipal government listed the development of tourism to the Three Gorges scenic areas as the priority in its work plan and the development of luxury river cruise ships is regarded as a key part of that plan.

Meanwhile, the building of the Three Gorges Dam has greatly refined the voyage conditions of the waterway of the Yangtze River, making it possible for the building of large river cruises.

"Previously the river section in Chongqing was filled with dangerous shoals and the depth of water is far below the standard of luxury ships," said Qin Zhongfan, a staff worker from the Yangtze Gold Cruises, a subsidiary company of the Chongqing Tourism Investment group.

Meanwhile, the Yangtze Gold Cruises is planning to build another seven luxury river cruise ships starting at the end of this year.

However, Zhang Lingyun, vice-dean of the tourism institute of Beijing Union University, has cautioned that a further increase in the number of cruise ships could result in fierce price wars between cruise ship companies.

"The number of cruise ships that are put into operation should be based on adequate market research," Zhang said, adding that the lure of the Three Gorges scenic area has decreased since Three Gorges Dam was put into service.

Zhang said one of the major problems of the Yangtze River cruise is the homogeneous service offered on the ships. He said river cruise companies should focus on improving services on board rather than price wars.

"River cruise ships cannot compete with ocean cruise liners in terms of luxury," he said.

Zhang believes Yangtze River cruise companies could try to diversity their service, including organizing conferences or other similar services.

Source: By Xu Wei in Chongqing (China Daily)

Leisure cruise industry in China goes full steam ahead

China's cruise tourism business is booming. There is a growing number of tourists, harbor infrastructure is much improved and the government is lending considerable support. More or less everyone at the 17th China International Fair for Investment and Trade, running right now at China's southeast coast resort of Xiamen, agrees that the industry is on the up.

Since Xiamen, Taiwan and Hong Kong set up the "straits cruise ring," the era of Chinese cruises has finally come, said Wang Chi, chairman of the cruise division at the China Ports & Harbors Association.

From October, Xiamen will be the home port of four cruise tours, with destinations including Keelung, Kaohsiung and Taichung in Taiwan, Hong Kong, and Boracay island and Manila in the Philippines. It was only two years ago that Xiamen became a cruise ship destination.

According to Su Zhijun, official in charge of resource planning with Xiamen Tourism Bureau, the city is constructing a new harbor specifically for cruise ships and is working with Shanghai, Zhoushan, Hong Kong, Macau and Taiwan to develop the cruise market together. In five years, Xiamen will have a harbor able to accommodate cruise ships of 220,000 tonnes.

Besides government support, increasing market potential and improved infrastructure have pushed China's cruise industry forward.

Thirteen provinces and cities from the Chinese mainland and Kinmen, Matsu and Penghu in Taiwan released a package of 70 reciprocal measures to develop cross-strait tourism on Saturday, the first time tourism authorities on the Chinese mainland and Taiwan have met together to form policies.

Cruises have become more and more popular among middle-class Chinese tourists in recent years.

According to the China Cruise & Yacht Industry Association, from 2006 to 2012, the number of overseas cruises departing from the Chinese mainland increased from 24 to 170, up six times.

In 2012, 285 international cruises arrived at the Chinese mainland, up 8.8% year-on-year. That's more than 600,000 cruise tourists from home and abroad, up 31.9% compared to the figure for 2011, according to CCYIA.

Cruise tourism is gaining momentum in China, a fact agreed upon by industry insiders around the globe.

"Although the Asian cruise market only accounts for about 0.1% of the global market, it is developing at a tremendous speed," said Mr William Ng Ko Seng, COO of Star Cruises. That is the reason Star Cruises plans cruises from Xiamen.

The global cruise market is moving eastward. The center for the cruise industry will shift from the Mediterranean and the Baltic to Asia. That's the opinion of Wang Chi, who believes that cruises from Xiamen will attract cruise enthusiasts to fly there from every corner of the world.

"The cruise industry may become a new driving force for Xiamen in the near future," said Wang.

Cruise tourism not only brings profits from tickets, but means opportunities for other industries such as food and beverage.

Industry leaders are quick to point out challenges Chinese cruises face.

"The first thing we should do is to improve infrastructure. International cruises are becoming larger and larger," said Lai She-Jan, president of Taiwan Visitors Association.

Lai added that only when infrastructure reaches international standards can harbors on both sides of the strait develop its services to offer customs clearance service for 2,000 tourists per hour.

Wang Chi, on the other hand, said it is difficult to locate target consumers for cruises in China.

"The major cruise tour consumers in the world are elderly people because they have spare time and money.

On the Chinese mainland, most of these people cannot afford the expense," said Wang. Cruises usually last for eight days, a luxury for young Chinese people who have few vacation days year-round.

Source: Xinhua

Tips for Cruise Trip in Yangtze River

Attention! You really should take a cruise to appreciate the beautiful views along a river banks. A great many China Tours cover the Yangtze River cruise, especially the Shanghai Tours. Yangtze River is the mother river to Chinese. In China, people are so proud of this amazing river. On the comfortable cruise, you can not only relax yourself, but also enjoy the beauty of this river.

Today we are going to talk about some essential tips when taking this cruise trip.

I General tips for the scene spots

1.Tourist will appreciate Grand Three Gorges on the cruise, so pay attention to the right position to see these spots.

2.Pay attention to the boarding time when you get off the cruise to see other scene.

 II Tips for preparat

1.Rain gear is essential as weather along with Yangtze River is undeterminable.

2.Bring a thin sweater or coat to keep warm from the high wind in this autumn.

3.Catering on common cruises can hardly satisfy your desire for its less kinds but more expensive food. So buy some food and living goods is necessary.

4.Please wear light shoes for climb on the three gorges. stive system. Besides, Cruises in Yangtze River are equipped with clinics and doctors. And they charge a little.

5.We suggest you to get a full insurance for tourism as tickets for the cruise include limited one.

6.You’d better pick up usual pills of the common cold remedies, and the dige ion

III Tips on the cruises

1.There is no limit for your carried baggage. Both the luggage rack and the foreground can provide storage service.

2.Meal is only free on non-alcoholic beverages and beer. If you need any alcoholic drinks and strong drink, you need a separate fee. Meanwhile, a free drink there has quantity limitation. Drinks and foods are forbidden to be brought to restaurants, bars and recreation center.

3.According to Chinese law, people in public activity area can’t smoke, please go to the deck or smoking room in a cruise for smoking. Some cruises also have a smoking room floor and smokeless ones that can be booked in advance.

4.Water in the Yangtze River is cloudy, so water for living there can’t drink directly. Drinking water there is boiled and filtered seriously

5.Considering the safety and fire factors, rooms on the cruises are banned to use your own appliances. If you need to use portable computer and other appliances, you can go to the designed area or let the managers know in priority. Cruise there are equipped with the general 220v power, your equipment must meet these requirements. Besides, part of the cruise ship is equipped with 110v power.

6.When you check in on the cruise, you’ll have a boarding card which you need to sign your name and room number on the back. It will record all your spending on the trip. And when reaching your destination you should pay all your expense in the front desk in cash or by credit card.

Source: China Daily

Hong Kong Turns Airport Into Cruise Terminal

Hong Kong has turned a former airport into an HK$8.2 billion ($1.1 billion) cruise terminal as the city seeks to woo wealthy Chinese travelers to help it become Asia’s hub for luxury liners.

The terminal, built at the city’s former Kai Tak Airport, will open on a public holiday today. Royal Caribbean Cruises Ltd. (RCL), one of the operators, expects to draw mostly Chinese tourists to travel from the iconic Victoria Harbour, said Zinan Liu, regional vice president for the Miami-based company.

“China is quite small compared to the U.S. and Europe in terms of market size, as the cruise market is still in its infancy,” Liu said in a telephone interview yesterday. “But it is certainly taking off, as its growth rate is doubling every year.”

China will overtake the U.K. in 2 to 3 years as Royal Caribbean’s second-largest market after the U.S., as demand from the Chinese middle class rises, Liu said.

Hong Kong joins Singapore in adding a second terminal capable of handling the world’s biggest cruise ships as cities across Asia expand facilities to capture a share of the growing vacation market. Worldwide cruise vacationers are expected to increase 3.3 percent from a year earlier to 20.9 million this year, with Asia accounting for 6.5 percent of the traffic, according to industry data and analysis provider Cruise Market Watch.

Royal Caribbean’s ocean liner Mariner of the Seas will dock today at one of the two berths built for the terminal. The second one will be completed next year.

Aircraft Carrier

Royal Caribbean, the world’s second-largest cruise operator, owns a 20 percent stake in a consortium that operates the terminal. Another 20 percent stake is held by Shun Tak Holdings Ltd. (242), founded by gambling magnate Stanley Ho. Worldwide Flight Services, which provides airport and air-cargo services, has the remaining 60 percent.

The group has agreed to pay the government about HK$13 million as fixed rent for the 10-year operation and another variable rent of 7.3 percent to 34 percent of gross receipts.

In addition to the existing Ocean Terminal in Tsim Sha Tsui, the Kai Tak Terminal on the eastern Kowloon peninsula can accommodate the world’s largest cruise ships or an aircraft carrier, said Jeff Bent, managing director of the consortium.

“It is important for Hong Kong to have a facility that can accommodate modern cruise vessels and their passengers efficiently and comfortably,” Bent said in an e-mail reply to questions. “It is to our mutual benefit that Hong Kong and Singapore both have modern facilities like this.”

With modern facilities in Asia, cruise lines will be more likely to deploy ships to the region, compared with other parts of the world, Bent said.

Singapore opened its second cruise terminal last year as operators including Royal Caribbean seek to tap the region’s growing appetite for travel and make up for slowing demand in Europe.

Economic Benefits

The new Hong Kong terminal has the flexibility to convert waiting halls into exhibition venues outside peak seasons and is expected to bring as much as $2.6 billion in annual economic benefits, the government said last week. It will generate as many as 8,900 new jobs in the next decade, it said.

Kai Tak Airport, which opened in 1925, was considered one of the most challenging aircraft landing locations in the world as it was built in the densely-populated Kowloon City. The former airport was shut in 1998 and was replaced by an airport at Chek Lap Kok on the outlying Lantau Island.

The number of Chinese passengers at Royal Caribbean quadrupled to 100,000 last year from 25,000 in 2010 and is expected to double to 200,000 this year, Liu said. Disposable income per capita for urban households in China has doubled since 2008 to almost $1,200 in the first quarter, according to Bloomberg Industries data.

The company already has home ports in the Chinese cities of Shanghai and Tianjin, as well as Singapore, and it plans to set up one in Hong Kong later this year, the executive said.

“Shanghai, Tianjin, Singapore and Hong Kong all have their own unique appeal to travelers,” Liu said. “The cruise market in this region is going to be so big, and they don’t necessarily need to compete for guests.”

Source: Bloomberg By Vinicy Chan & Jasmine Wang

China's first luxury liner cruises into service

Henna, the first passenger cruise liner from the Chinese mainland, begins its maiden voyage from Sanya in Hainan province to Halong Bay in Vietnam on Jan 26, 2013. Henna will return to Sanya on Jan 28. The voyage marks the first liner from the Chinese mainland formally entering the cruise tourism market. Henna is 223 meters long, 31 meters wide, has 739 passenger cabins which can accommodate 1,965 people. The ship boasts a restaurant, duty free shop, theater, banquet hall, meeting rooms, bars, swimming pools, spa and fitness center. [Photo by Huang Yiming/Asianewsphoto]

Italian shipbuilder eyes development of Chinese cruise industry

(Xinhua) Italian shipbuilder Fincantieri is exploring the possibility of joint ventures in cruise shipbuilding for the Chinese market, a statement from the group said on Friday.

Fincantieri teamed up with Carnival Corporation, the world's largest cruise line based in the United States and England, and with China CSSC Holdings Limited, a division of Beijing-based China State Shipbuilding Corporation.

"This would be an unprecedented, three-way collaborative effort to build the first-ever cruise ships to be made in China," the statement said. Memorandums of understanding were signed in China's Hong Kong by representatives of the three parties, Xinhua learned from Fincantieri.

If the agreement goes through, Fincantieri would work with CSSC to develop the production capacity of cruise ships in China. The Italian group, with its experience as one of the world's largest shipyards, would provide specialized services and components to CSSC's shipyards.

For its part, Carnival Corporation would work closely with China CSSC Holdings Limited and Fincantieri and contribute its expertise to creating the vision, definition, and specifications for the China-built cruise ships, the statement explained.

China could see 4.5 million cruise passengers by 2020, according to the Chinese Ministry of Transport (MOT), and is expected to be the second largest global cruise market after the United States in the next several years based on economic growth, increased spending power of Chinese consumers and growing demand for cruise vacations, the statement noted.

"New international scenarios are emerging; with them, new challenges arise in addition to existing ones and we are glad to contribute, together with Carnival, to developing the cruise shipbuilding capacity in China for the Chinese market," Fincantieri's CEO Giuseppe Bono said.

"We are collaborating with two of the world's top shipbuilders to establish a framework for a world-class Chinese shipbuilding venture designed to help accelerate growth and demand for cruising in China in the years to come," Arnold Donald, CEO of Carnival Corporation, added.

State-owned Fincantieri is one of the world's largest shipbuilding groups, which in over 200 years of maritime history has built more than 7,000 vessels. It is the world leader in cruise ship construction and boasts strong performance in other sectors, from high value-added naval vessels to mega-yachts.

With its headquarters in the northern city of Trieste, the group has more than 20,000 employees and 21 shipyards on four continents. Last year, Fincantieri acquired VARD, a company listed on the Singapore Stock Exchange that builds offshore support vessels for oil and gas extraction and production.

Source: xinhua via china daily

Global Cruise Lines Set Sail for China

(AP) — Royal Caribbean's newest ship has attractions not usually seen on cruise liners, including bumper cars, a skydiving simulator and a glass observation capsule on a mechanical arm that lifts its passengers high into the air.

What's also a surprise is the vessel's intended home port: Shanghai.

After floating out of a German shipyard last week, the $935 million Quantum of the Seas will spend the winter running between New York and the Caribbean before moving to its new base next summer in mainland China's financial center.

It's a gutsy move for the world's second biggest cruise company. Cruise operators have traditionally sent older vessels to developing countries while saving their most advanced ships for U.S. and European customers. But surging growth in China means it's a market operators can no longer ignore.

Carnival Corp., the No. 1 cruise company, will become the first global cruise operator to have four ships based in China when it deploys its Costa Serena to Shanghai in April.

The race for China underscores the growing strength of the leisure and travel industries in the world's No. 2 economy as authorities try to spur domestic spending rather than trade and investment as an engine of growth.

Executives are confident about China's prospects even as its economy struggles with a prolonged slowdown from double digit rates of expansion, saying that growth is still strong when compared with developed markets.

Miami-based Carnival expects to carry 500,000 Chinese cruise passengers in 2015, up from 350,000 this year.

"We know that's just a drop in the bucket to what lies ahead in terms of the market in China, which we believe is going to someday represent more than half of all the cruise guests," Carnival CEO Arnold 

Donald said in a phone interview.

The Asian Cruise Association estimated last year that the overall Asian market, which totaled 1.3 million passengers in 2012, could nearly triple to 3.8 million in 2020, including 1.6 million from China.

Carnival is even more optimistic, predicting the number will grow to 7 million by 2020 or about a fifth of the global market.

"For the next five to 10 years, greater China including Hong Kong will play a critical role to the global cruise industry's development," said Zinan Liu, Royal Caribbean Cruises Ltd.'s managing director for China.

While the U.S. and European are showing signs of revival, "there's no region like China and Asia that will grow as rapidly," he said.

Liu said Royal Caribbean expects to carry 400,000 Chinese cruise passengers in 2015, double the number from last year, from four main ports — Shanghai, Hong Kong, Xiamen and Tianjin.

The company's 18-deck Quantum of the Seas, which carries 4,180-passengers, arrives in Shanghai in May next year, joining two other Royal Caribbean ships based in China. It's also expanding operations in Hong Kong to better market to customers in neighboring Guangdong, the richest province in mainland China, Liu said.

For Carnival, the addition of the Costa Serena will raise its China capacity by 3,780 passengers. The company has two other Costa brand vessels stationed in Shanghai as well as one with its Princess brand.

While companies are salivating over the growth potential of China's newly wealthy middle class, hurdles remain.

One factor complicating efforts to pitch cruises to mainland Chinese is that "the vast majority of the population have no concept of a cruise," said Donald, Carnival's CEO.

Unlike American or European cruise passengers, who tend to be older and have the time to take two week journeys, Chinese cruise travelers are younger and have less vacation time. That limits the possible itineraries and presents a challenge in cultivating repeat travelers.

Shanghai software engineer Cao Ying took a five-day cruise to Japan and South Korea with her husband on Carnival Corp.'s Sapphire Princess, operated by its Princess Cruises brand, after he took one with other staff at his Internet company to entertain clients.

The 30-year-old loved the dining, the shows, the spa and the helpful staff. But she complained that there wasn't enough time during port calls.

"I think travelling by cruise is a good experience, but the downside is that you couldn't really see a lot. I couldn't go to visit the places I would like to go in a foreign country," said Cao. "So unless it's a free trip, I wouldn't take a second cruise, even to go to another country."

Another big complaint is insufficient cruise ports and related facilities. China's focus in the past few decades on export manufacturing means ports are geared to shipping containers rather than leisure travelers.

Uncoordinated infrastructure development was highlighted when Shanghai opened a new $260 million cruise terminal on the city's historic riverside Bund in 2008, only to discover that many big ships couldn't access it because of a low bridge downstream. Another $140 million terminal with two berths opened at the river's mouth in 2011 to accommodate those vessels.

Hong Kong christened a new $1.2 billion cruise terminal last year, but the Norman Foster-designed facility has so far been infrequently used. Visits are expected to pick up in coming years.

Visitors have criticized the terminal, built at the end of the old Kai Tak airport's runway jutting into the scenic harbor, for being hard to access by bus or taxi. A smaller terminal near the city center is more popular and a home base for ships operated by Genting Group's Star Cruises.

China's "lack of infrastructure is the biggest impediment to growth," the annual World Travel Market industry conference, said in a report last year that recommended government intervention to realize improvements.

Source: Associated Press by Kelvin Chan

Is China the New Epicenter of the Cruise Industry?

China appears to be the new epicenter of the global cruise industry as rivals Carnival Corp. and Royal Caribbean Cruises Ltd. (RCCL) both boost capacity out of Shanghai.

Carnival Corp. announced on May 12 that it will deploy four ships in Shanghai in 2015, increasing its cruise capacity in China by 140 percent from 2013.

The move follows RCCL’s surprising announcement last month that the splashy new 4,180-guest Quantum of the Seas would move to Shanghai in May 2015 after operating just six months from New Jersey’s Cape Liberty. What’s more, RCCL on May 9 revealed plans for a fourth Oasis-class vessel, leading industry observers to speculate that one of the world’s largest cruise ships would set sail for Asia soon.

Here’s how Carnival’s China deployment shakes out: The 3,780-passenger Costa Serena, part of Carnival’s Italian cruise brand Costa Cruises, will be based in China year-round starting in April 2015, joining two fleetmates — the 2,680-guest Costa Atlantica and 2,394-passenger Costa Victoria. 

Carnival’s Princess Cruises brand also will operate the 2,670-passenger Sapphire Princess out of Shanghai from May 21 through September. Princess will return to China in 2015, but the exact deployment won't be announced until the fall.

“We have never been more committed to China as a market of great strategic importance for our company, and with today’s news we will be the only global cruise company to have four ships operating out of China,” Carnival Corp. CEO Arnold Donald said in a press release.

What’s prompting this growth? Carnival Corp. says China is expected to become the second-largest cruise market in the world by 2017. Currently, the U.S. is the biggest cruise market by far, generating more than half of the estimated 21.7 million passengers who sail on ships operated by members of the 

Cruise Lines International Association this year.

Carnival’s Costa brand began sailing from China in 2006. The corporation now operates 10 offices in Asia, including five locations in China — Shanghai, Beijing, Tianjin, Guangzhou, and Chengdu. Carnival also is growing in Japan, Singapore, Hong Kong, Taiwan, and Korea.

Meanwhile, RCCL’s newbuild plans include a third 5,400-passenger Oasis-class ship for delivery in spring 2016 followed by the fourth in 2018. They join the 225,282-gross-ton Oasis of the Seas and Allure of the Seas, which entered service in 2009 and 2010 and share the title of the world’s largest cruise ships. Operating out of Port Everglades in Fort Lauderdale, they continue to generate premium fares and are especially popular with families.

So where will the third and fourth Oasis-class ships operate? “We believe that over the next 12-18 months, RCL could announce the movement of an Oasis-class ship to Asia (at least for part of the year),” Timothy Conder, a financial analyst with Wells Fargo Securities, wrote in a research note.

Rod McLeod, a veteran cruise executive who now consults in the industry, said an Asia deployment for an Oasis-class ship is likely under consideration, although he thinks Europe might come first, possibly with a homeport in the U.K. The company is testing Europe this fall when the Oasis of the Seas offers a few cruises as it heads for a dry dock in Rotterdam, the Netherlands. And next summer, Allure of the Seas will sail in Europe, offering round-trips from Barcelona and Civitavecchia near Rome.

“Knowing what I know today and what I’ve seen over the last couple of years, I would say Europe is the logical next step for them,” McLeod said. “However, I wouldn’t be shocked — I’d be surprised but not shocked — to see them move one (Oasis-class ship) over to Asia. … The Quantum is a significant commitment to the Asia market. They still have another card up their sleeve, if they choose to use it, and that is to put an Oasis-class ship over there. I’m not saying it’s going to happen anytime soon, but as an option down the road, it’s has to be there.”

Source: Travel Pulse

Carnival Deploys Liner for Booming China Cruise Market

(Bloomberg) Carnival Corp. (CCL) will dispatch a fourth ship to China next April, escalating the battle for passengers in the fastest-growing cruise market.

The Miami-based cruise company, the world’s largest, is transferring the 3,780-passenger Costa Serena to Shanghai from Europe to join three other company ships that travel to ports in Japan and South Korea, Alan Buckelew, Carnival’s chief operating officer, said in a telephone interview.

“We’re growing by leaps and bounds,” Buckelew said. “It’s a market that can support that kind of growth.”

Carnival is squaring off against Royal Caribbean International Ltd., the No. 2 operator, which said last month its newest ship, the 4,180-guest Quantum of the Seas, will start sailing from Shanghai to Japan and Korea next May, after an inaugural season traveling from New Jersey to the Caribbean.

Cruise vacations are a relatively new travel option in China, with Carnival first entering the region in 2006. China is poised to become the world’s second-largest market, after the U.S., by 2017, according to the World Travel Market and Euromonitor International.

Chinese cruise customers are typically younger than travelers from Europe and the U.S. with many 25-to-45-year-olds traveling with their children and parents, Buckelew said. The Chinese tend to have less vacation time, so itineraries focus on three- to five-day voyages, he said.

Social Media

One reason the Chinese market is growing fast is that its younger customers are active in social media, Buckelew said.

“They’re taking pictures of the meals they’re eating, pushing them out to their friends,” he said. “The cruise story is getting out a lot quicker.”

The Sapphire Princess, Carnival’s first premium-priced ship in the region, begins a four-month season in Shanghai on May 21. Customized touches for the market include Tai Chi classes and English-style afternoon tea.

Princess and Costa cruises are two of the 10 lines operated by Carnival.

The seven-year-old Costa Serena features a two-level spa with Turkish bath, a Grand Prix-racing simulator, water slide, casino and outdoor jogging track. Meals, entertainment and gift-shop items will be changed to reflect Chinese tastes, with a nod to well-known global labels.

“It’s very luxury and brand-name oriented, particularly for the European and American brand names,” Buckelew said.

Carnival has been trying to improve its image and reassure passengers after incidents in recent years including onboard illnesses, a fire on a Triumph cruise and the wreck of its Costa Concordia ship off the Italian coast in 2012. It has introduced a $25 million marketing campaign and made investments in ship safety and entertainment.

Source: Bloomberg News by Christopher Palmeri 

Royal Caribbean to Move Top Ship to China

(WSJ) Beijing— Royal Caribbean Cruises Ltd. is bringing its newest ship to China in an effort to draw more revenue from the world's biggest travel market.

The cruise company plans to move the Quantum of the Seas to Shanghai in 2015 from its current port in New York, said Adam Goldstein, Royal Caribbean's president and chief operating officer. It will add to Royal Caribbean's existing two ships in China.

The ship, which has 16 decks and features attractions like simulated sky diving, can carry 4,180 guests and will sail from Shanghai to destinations in Japan and South Korea, Mr. Goldstein said in an interview.

The move was prompted in part by Chinese consumers who want access to the biggest and newest offerings, he said. Quantum of the Seas has an indoor sporting complex where tourists can drive bumper cars, play table tennis and learn the trapeze.

"We're looking to get first-time cruisers to choose our brand," Mr. Goldstein said.

China's travel market is booming. Brokerage CLSA estimates that as China's per capita income rises, outbound mainland tourists will reach 200 million by 2020, doubling from 2013. Chinese tourists became the world's biggest travel spenders in 2012, when outlays on outbound travel swelled to $102 billion, up 40% from 2011, according to the most recent annual figures from the United Nations World Tourism Organization.

Efforts to attract China's tourists are heating up, as everyone from the Hawaii Tourism Authority to Air New Zealand Ltd. executives are launching campaigns to win over the tourism dollars. Vancouver's tourism office is tapping Chinese celebrities to tout trips to the Canadian city.

Miami-based Royal Caribbean said sales in China have doubled over the past five years, though it won't disclose specific figures. But it says the cruising market in the country is still nascent. U.S. travelers account for 52% of world-wide passengers on cruises, followed by U.K. and Ireland, with 8%, according to industry association Cruise Lines International Association. China doesn't yet appear in the top 10, according to the group.

The industry has been under scrutiny in recent years. In January hundreds of passengers on Royal Caribbean's Explorer of the Seas ship from New Jersey to the Caribbean were stricken with a gastrointestinal illness. The cruise operator cut short the 10-day trip. Rivals have also faced graver problems over the past couple of years, such as a tragic sinking and engine fires.

Mr. Goldstein said incidents such as these have received widespread media attention but predominantly because they are so rare.

Royal Caribbean, which operates its namesake line and Celebrity cruises, reported in January a fourth-quarter profit of $7 million, compared with a $393 million loss in the same period a year earlier. Revenue in the fourth quarter improved to $1.85 billion, up 2.7% from the same period a year earlier.

Source: Wall Street Journal by Laurie Burkitt

Cruise ship sector sailing full steam ahead in China

China's cruise ship industry has seen explosive growth in recent years and the nation will soon become the world's fastest growing emerging market for cruise tours, reports the party-run People's Daily, citing Cheng Juehao, deputy director of the Research Institute of Cruise Economy at the Shanghai International Shipping Institute.

China's coastal areas, including the island province of Hainan, have seen the prosperous development of the sector. This year alone, 190 cruise ships will bring more than 160,000 tourists to the Hainan resort city of Sanya, boosting its GDP by over 1.6 billion yuan (US$258 million), the paper said, adding the figure is likely to break 2 billion yuan (US$322 million) in 2015.

Figures compiled by the China Communications and Transportation Association showed that three major cruise harbors — Shanghai, Tianjin and Sanya — received a combined 377 cruise ships with 1.168 million tourists in 2013, a significant increase from 2012. Experts estimate that the market will contribute 51 billion yuan (US$8.2 billion) to China's economy in 2020, the paper said.

International cruise ship operators have accelerated their operations in China. Currently, the three major international cruise ship firms — Carnival, Royal Caribbean and Star Cruises — have dispatched five cruise ships into the Chinese market, with an additional one coming in May.
　　
Meanwhile, more and more domestic enterprises are stepping into the industry. Bohai Ferry Co recently bought a US cruise ship, the first medium-sized cruise ship fully owned and run by a Chinese firm. The ship can carry 1,000 passengers, and Bohai plans to establish a fleet in the future.

Several large-scale operators including Shanghai International Port Group are also planning to invest in the cruise ship industry, Cheng said, adding that cruise ship tours will gradually move from serving the general public to adding luxurious, high-end products.
　　
On March 18, the Ministry of Transport unveiled a guideline for the development of the country's cruise ship industry. The ministry said it will begin to develop the industry now that the nation's per capita GDP has reached over US$5,000, while the industry will enter the fast expansion period when reaching US$10,000-$40,000. Currently, China's per capita GDP has broken above US$6,000, and some coastal provinces have such figures already breaking above US$10,000, reaching the standard for developing the cruise ship industry, the paper said.

Source: Want China Times