Alan Lam reports

Three years after its launch, HNA Tourism & Yacht management Co. Ltd., the first cruise ship and yacht management company in Mainland China, has decided to suspend its cruise operation in China.

The company’s only vessel, the 1986-built Henna, completed its last 5-night itinerary to Japan and returned to Shanghai with 1,000 passengers on board on 17 November. The ship left its Shanghai homeport on 27 November and is currently at anchor near Zhoushan (舟山).

Launched in 2012, the company is a subsidiary of the HNA Group, a major aviation, tourism and capital management conglomerate based in China with an extensive network of assets and partners around the world.

HNA has been one of the two Chinese domestic cruise brands. The company cited “decision by shareholders” to redefine its business areas as the reason for this cessation. It will however continue to be involved in cruise tourism in other capacities, such as a sales agent.

Based in Shanghai, Henna has undertaken cruises mainly to Taiwan and Japan. The company’s operation has not been smooth since its inaugural sailing in 2013. In September of the same year, the ship was impounded in Jeju, South Korea, with 2,300 passengers and crew onboard, over a commercial dispute with another Chinese firm. The incident cost the company dearly. Thereafter competition and the price pressure in the Chinese market have forced the company to retreat.

This development also raises the question as to whether or not, despite the recent exponential growth, there is as yet a big enough market in China for cruise operators.