Allan E. Jordan reports
Cruising in Asia continues to be one of the fastest growing segments of the industry, and despite a market correction in China, the outlook for the region continues to be strong. Marking its fifth anniversary, the Asia Cruise Cooperation (ACC) continues to support the development and growth of cruising in the region.
Started in 2014 as a partnership between Hong Kong and Taiwan, the ACC has grown to include Hainan, Hong Kong, Korea, the Philippines, Taiwan, and Xiamen, and today encompasses a total of 21 ports in the six destinations. Working collaboratively, the partners are seeking to support the development of cruising in the region with infrastructure investments, efforts with the cruise lines, and a new direct-to-consumer television marketing program to build awareness and interest in cruising.
The ACC highlights that cruise tourism is one of the fastest-growing sectors in Asia. Between 2012 and 2018, the ACC estimates a 33 percent average annual growth in cruise tourists to nearly 4.26 million in 2018. Each of the partners has participated in this growth. In the past five years, Hong Kong, for example, has experienced a 140 percent increase in ship calls with passenger throughput up 360 percent. The Philippines had an increase up to 178 cruise calls, including major cruise lines such as Royal Caribbean International, MSC Cruises, Carnival Corporation’s cruise lines, Genting, as well as Oceania Cruises, Silversea Cruises, and Seabourn Cruise Line. Xiamen, which has been receiving cruise visitors for over 30 years, expects to double its cruise calls in 2019 with over 200,000 passengers.
While a number of ships have recently been repositioned away from China, long-term the market will continue to add new ships. Costa Cruises, for example, took delivery of the new Costa Venezia at the end of February and starting in May, the new ship will be dedicated exclusively to Chinese guests, offering cruises departing from Shanghai. In addition, in April Genting’s rechristened the 20-year old SuperStar Virgo as the Explorer Dream, while Royal Caribbean International took delivery of its first Quantum Ultra Class ship, the Spectrum of the Seas, which starting in June will be homeported in Singapore.
The members of the ACC are working to make the cruise lines aware of the attractiveness of the region and each destinations’ appeal. The six destinations within the ACC are well positioned to meet the consumers’ focus on new experiences and the desire to explore local cultures. The six destinations offer a broad range of cultural experiences and diversity from the lush nature to beautiful beaches, history and major cities. These messages for the consumer will all be highlighted as part of a new regional TV program the ACC is launching cooperation with the Discovery TLC channel.
Supporting the long-term positive outlook for cruising in the region, the six destinations are each working to expand their cruise infrastructure. Hong Kong, which has traditionally been one of the homeports for cruise ships in the region, points to the opening of the Kai Tak Cruise Terminal in 2013 as its tipping point. A state-of-the-art facility, it can handle the world’s largest cruise ships. Hong Kong has continued to make major investments in its infrastructure, such as the recently opened high-speed rail link that connects Hong Kong with 44 rail stations in mainland China. Making China more accessible for cruise passengers, it also makes it easier for people living in central and western China to travel to the cruise ships sailing from Hong Kong. In addition, the world’s longest sea crossing, a bridge that links Hong Kong, Zhuhai, and Macao, was recently inaugurated.
With cruise lines anxious to provide their passengers with new destinations, the ACC members are working to increase the diversity of their ports. The Philippines, which for example has over 700 islands, is expanding ports in the Northern Philippine and Subic Bay, once home to the U.S. Navy, is also becoming a popular cruise destination. Similarly, Hainan has also made it more convenient for foreign tourists with visa-free and visa-on-arrival policies.
Around the region, the destinations are working to expand their port facilities to support cruising, including offering modern dedicated facilities able to handle the world’s largest cruise ships up to 225,000 GT. In April, Korea will be opening an international passenger terminal at the Port of Incheon with a shopping and resort complex and access to Seoul. Xiamen has also accelerated its cruise infrastructure development with a new terminal due in mid-2019. Taiwan will also be completing a modern port terminal in Kaohsiung by 2020 that will handle the world’s largest cruise ships and provide more convenient access to Taiwan’s local culture. Additionally, facilities are also being enhanced in Taiwan’s Port of Keelung. The Solaire Cruise Center, expected to be completed by 2021, will be the first cruise-dedicated terminal in Manila.
The destinations are also working with the cruise lines to build regional itineraries and expand Asia as a cruise destination. They are collaborating to support the cruise lines with shorter regional itineraries that appeal to Chinese travelers who typically take short holidays and working to build their homeport programs. In 2016, and again in 2018, The Philippines, for example, was the homeport for a successful three-port cruise program and in 2018 Taiwan was homeport for a fly/cruise program from the UK operated by Noble Caledonia. Xiamen will also be homeport for a new Chinese cruise program, Piano Island, launching in the fall of 2019, and the China State Shipbuilding Corporation is expected to launch its cruise joint venture, CSSC Carnival Cruise Shipping Limited, late in 2019.
As it marks its fifth anniversary, the ACC is continuing to expand its efforts to support and develop the regional cruise market. The partners are excited by the opportunities and look forward to welcoming a broad range of travelers to their countries.