Asian nations push for more exposure in cruise market
By ADRIAN SAINZ
14 March 2007
MIAMI BEACH, Florida (AP) - The Port of Shanghai is getting a new cruise passenger terminal. Southeast Asian nations are teaming up on a Web site for cruise travelers. Officials from China are using the 2008 Olympics to promote a triangle of northern cruise ports.
Asia is cruising's new frontier.
Representatives from the Asia-Pacific region this week began an aggressive marketing campaign with the goal of making Asia a competitor in the world cruise market. In town for the Seatrade Cruise Shipping Conference, many toured ports in Miami and Port Everglades to get a sense of U.S. port operations.
"Asia is blooming, maybe because people are too familiar with the south Caribbean or South America, and you know Europe is too expensive," said Michael C.Y. Chang, director of the Taipei Economic and Cultural Office in New York. "Most of the countries in Asia are in a very good shape and it's reasonable in cost and it has major wonders and culture."
Today, the Asia-Pacific region lags behind the Caribbean, Europe and Alaska as a cruise destination. But Asian officials say there is long-term growth potential for a region with improving ports and alluring destinations. They predict that cruising in the region will grow 40 percent to 1.5 million passengers in 2010.
Infrastructure is mentioned as a major obstacle for ship and passenger capacity, with many ports falling short of having adequate transportation in and out of port facilities. Security, deployment costs and marketing to Asian travelers are other challenges.
The world's largest two cruise operators, Carnival Corp. and Royal Caribbean Cruises, are establishing a presence in Asia. Carnival Corp.'s Costa Cruises already offers Asia-Pacific vacations on the Costa Allegra, and Royal Caribbean's Rhapsody of the Seas will become the largest ship in the region when it deploys in December. Both ships will target Asia as a source market.
Colin Veitch, president and CEO of Norwegian Cruise Line, a wholly owned subsidiary of Star Cruises Group, said Star Cruises, which sails in the Asia-Pacific region, has seen bureaucratic issues related to cruising in China and a reluctance of Asians to take trips longer than two or three days.
"From listening to what goes on out there, I know Star's operation is somewhat different, very localized, and is concentrated on very short cruises," Veitch said. "The Asian domestic market appears to be really quite small in terms of what we understand of a cruise vacation. My personal view is, I think it's going to take some time for that to develop."
The Port of Shanghai is addressing some infrastructure concerns by investing in a terminal to hold three 80,000-gross-ton cruise ships and 1 million passengers per day. Shanghai's busy port already is served by Costa, Princess Cruises and Holland America Line, which fall under the umbrella of Carnival Corp.
"Cruises are quite new to the Chinese people, so it's important for us to educate the public about the cruise ship lifestyle," said Chen Xuyuan, president of the Shanghai International Port Group.
The port of Tianjin is billed as the gateway to Beijing, which will host the 2008 Summer Olympics. Two other north China ports, Dalian and Qingdao, are set to have new cruise terminals within the next three years.
China is working closely with Korea and Japan to boost cruise travel in northeast Asia.
Meanwhile, the Association of Southeast Asian Nations, or ASEAN, collaborated on a Web site to promote the Southeast Asian cruise industry, which is predicted to grow 5 percent per year until 2020, to about 820,000 passengers. The site directs users to a site for each ASEAN country and gives executives access to port information.
The ASEAN Cruise Working Group also plans to train travel agents on cruising, pursue infrastructure development and build relationships with the cruise industry, said chairman Kevin Leong.
Taiwan had just 24,000 cruise passengers last year and does not have direct sailings to China because of political issues. However, it would like to increase its exposure to cruise passengers by targeting source markets of the United States, Japan, Hong Kong and Macau, said Kuo Su Tsan-Yang, deputy general of Taiwan Tourism Bureau.
Another company in the region is Seabourn Cruise Line, which services ports in Singapore, Malaysia, Vietnam and elsewhere. Peter Cox, Seabourn's director of itinerary planning and development, cites security as a concern for cruise lines looking at the Asia-Pacific market.
Bombings in Bali and incidents in the Philippines have led Seabourn to stop sailing to Indonesia and the Philippines for now.
That said, there is "tremendous" potential for growth in Asia, but not right away, Cox said.
By ADRIAN SAINZ
14 March 2007
MIAMI BEACH, Florida (AP) - The Port of Shanghai is getting a new cruise passenger terminal. Southeast Asian nations are teaming up on a Web site for cruise travelers. Officials from China are using the 2008 Olympics to promote a triangle of northern cruise ports.
Asia is cruising's new frontier.
Representatives from the Asia-Pacific region this week began an aggressive marketing campaign with the goal of making Asia a competitor in the world cruise market. In town for the Seatrade Cruise Shipping Conference, many toured ports in Miami and Port Everglades to get a sense of U.S. port operations.
"Asia is blooming, maybe because people are too familiar with the south Caribbean or South America, and you know Europe is too expensive," said Michael C.Y. Chang, director of the Taipei Economic and Cultural Office in New York. "Most of the countries in Asia are in a very good shape and it's reasonable in cost and it has major wonders and culture."
Today, the Asia-Pacific region lags behind the Caribbean, Europe and Alaska as a cruise destination. But Asian officials say there is long-term growth potential for a region with improving ports and alluring destinations. They predict that cruising in the region will grow 40 percent to 1.5 million passengers in 2010.
Infrastructure is mentioned as a major obstacle for ship and passenger capacity, with many ports falling short of having adequate transportation in and out of port facilities. Security, deployment costs and marketing to Asian travelers are other challenges.
The world's largest two cruise operators, Carnival Corp. and Royal Caribbean Cruises, are establishing a presence in Asia. Carnival Corp.'s Costa Cruises already offers Asia-Pacific vacations on the Costa Allegra, and Royal Caribbean's Rhapsody of the Seas will become the largest ship in the region when it deploys in December. Both ships will target Asia as a source market.
Colin Veitch, president and CEO of Norwegian Cruise Line, a wholly owned subsidiary of Star Cruises Group, said Star Cruises, which sails in the Asia-Pacific region, has seen bureaucratic issues related to cruising in China and a reluctance of Asians to take trips longer than two or three days.
"From listening to what goes on out there, I know Star's operation is somewhat different, very localized, and is concentrated on very short cruises," Veitch said. "The Asian domestic market appears to be really quite small in terms of what we understand of a cruise vacation. My personal view is, I think it's going to take some time for that to develop."
The Port of Shanghai is addressing some infrastructure concerns by investing in a terminal to hold three 80,000-gross-ton cruise ships and 1 million passengers per day. Shanghai's busy port already is served by Costa, Princess Cruises and Holland America Line, which fall under the umbrella of Carnival Corp.
"Cruises are quite new to the Chinese people, so it's important for us to educate the public about the cruise ship lifestyle," said Chen Xuyuan, president of the Shanghai International Port Group.
The port of Tianjin is billed as the gateway to Beijing, which will host the 2008 Summer Olympics. Two other north China ports, Dalian and Qingdao, are set to have new cruise terminals within the next three years.
China is working closely with Korea and Japan to boost cruise travel in northeast Asia.
Meanwhile, the Association of Southeast Asian Nations, or ASEAN, collaborated on a Web site to promote the Southeast Asian cruise industry, which is predicted to grow 5 percent per year until 2020, to about 820,000 passengers. The site directs users to a site for each ASEAN country and gives executives access to port information.
The ASEAN Cruise Working Group also plans to train travel agents on cruising, pursue infrastructure development and build relationships with the cruise industry, said chairman Kevin Leong.
Taiwan had just 24,000 cruise passengers last year and does not have direct sailings to China because of political issues. However, it would like to increase its exposure to cruise passengers by targeting source markets of the United States, Japan, Hong Kong and Macau, said Kuo Su Tsan-Yang, deputy general of Taiwan Tourism Bureau.
Another company in the region is Seabourn Cruise Line, which services ports in Singapore, Malaysia, Vietnam and elsewhere. Peter Cox, Seabourn's director of itinerary planning and development, cites security as a concern for cruise lines looking at the Asia-Pacific market.
Bombings in Bali and incidents in the Philippines have led Seabourn to stop sailing to Indonesia and the Philippines for now.
That said, there is "tremendous" potential for growth in Asia, but not right away, Cox said.