News

Asian cruise market set to take off

1 Jul 2009

Seeing its potential as an alternative means of travel and taking a vacation, major Asian cities are putting the groundwork to welcome visitors arriving by sea and to vie for the coveted title as Asia’s cruising hub.

The premier cities - Hongkong, Singapore and Shanghai – have all announced multimillion dollar-plans for the upgrade of existing terminals and for the building of new ones.  

“People in Asia have just started to accept taking a cruise as a way of vacationing,” said Dario Rustico, Costa Cruises sales and marketing director for Pacific Asia operations. “Cruise is the fastest growing part of the tourism industry with the highest number of repeat customers and the highest amount of product satisfaction”.

In Hongkong, the decision to build a new cruise terminal at the old Kai Tak Airport by 2013 is a natural offshoot of a growing demand. Already one of the regular ports of call for many cruise liners in Asia, visitor figures by cruise ships have been steadily increasing in the last few years.

In 2008, overseas cruise passengers who arrived in Hongkong rose 25 percent from the previous year to reach 782,475. International liners made approximately 50 port of calls to the city during this period.

The Hongkong Tourism Board (HKTB) estimated that a cruise passenger in Hongkong spends about HK$2,114 (US$273) per visit and usually stays overnight.

“The HKSAR Government is committed to strengthen Hongkong’s position as a leading cruise hub in the Asia-Pacific region through the development of the new cruise terminal,” said a HKTB spokesperson.

Likewise, Singapore is looking to cement its position as a prime cruise stopover location.

The International Cruise Terminal at SCC@HarbourFront has been upgraded to convert its existing space from an exhibition conference hall into an operational cruise passenger terminal.

In addition, a new international cruise centre is currently being built in the Lion City scheduled for completion next year.

“Like any hub, we need to attract varied brands and types of ships to cater to different demand from tourists and locals alike to cruise to and from Singapore. This is also important to opening up the local market to a new holiday option, that is, a cruise holiday versus the traditional option of air travel holidays,” said Cheong Teow Cheng, president of Singapore Cruise Centre.

In Shanghai, another Asian cruise hub contender, is now building its second cruise terminal at Paotai Bay in Baoshan District’s Wusong Port. It is set to open in April 2010.

With the Shanghai World Expo arriving in the Chinese city next year, Shanghai is expecting the number of visitors arriving on cruise ships to double.

Cheong of the Singapore Cruise Centre noted the potential for growth of the cruising industry is not diminished despite the current economic slowdown.

“Asia as a region is developing as an attractive alternative cruise playground in the world,” he said.

This fact is not lost to regional and international cruise operators who have also spotted same business prospect.

Last October, Costa Cruises, Royal Caribbean Cruises, Silversea and Star Cruises signed a memorandum of understanding to promote development, professional growth and commercial success of the cruise industry in Asia.

“The Far East will play a crucial role in the development of the cruise industry,” said Massimo Brancaleoni, Costa Cruises vice-president for Pacific Asia operations.

And Asia’s emerging cruise hubs are optimistic that despite the bumpy waves of the economic slowdown, the cruise market will deliver its full potential.

Joshua Tan

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