The 12th China Cruise Shipping Conference and International Expo was held in the ever-green Sanya in early November, bringing together cruise lines, Chinese government officials, ports and suppliers. The event was organized by the China Cruise and Yacht Industry Association (CCYIA).

For the government and its various ministries, along with state-backed companies, the message was about their efforts to raise efficiency and standards, followed by building ships and a supply chain.

For the industry, meanwhile, it was a balancing act of ongoing pricing and operational challenges weighed against a potentially bright future.

‘Ambassador Role’

The government’s higher vision for the local cruise industry is as an ambassador to raise China’s image around the world.

“We want to present a reliable and visually impactful image of China’s intelligence and ability to create new products to the world; that we aim not to be a superpower, but rather a strong power that comes in peace and the spirit of collaboration.” said Jiacheng Cai, vice director of the National Tourism Administration.

“China has successfully built aircraft carriers, but military ships display an image of confidence, not necessarily peace,” he said. “Cruise ships can be built in China and can carry Chinese passengers to every corner of the world. That will symbolize China’s growing strength and aspiration for peace. It will send a reassuring message to our friends around the world.”

Happy People

A clear directive from the 19th Communist Party Congress is to increase the “happiness” index of the Chinese population. Marine tourism is now seen as a key platform to execute this mission.

“China has become a key driver of growth in the cruise industry globally. This will be a new window to demonstrate China’s image to the world,” said Wenming Wu，chairman of CCYIA and the China Shipbuilding Industry Corporation (CSIC).

“The various supporting infrastructure in ports and manufacturing as well as financing and insurance are not in place,” he said. “We need to strengthen our collaboration with international companies in these areas.”

10 Million

“In China, we believe the next decade will witness explosive growth, going from 2 million to 10 million cruise passengers by 2026. Some argue that this is conservative,” said Qiang Wu, chairman of China State Shipbuilding Corporation (CSSC).

Wu said China, which is the world’s largest shipbuilder, sees the ability to build cruise ships as the jewel on its shipbuilding crown.

“We will focus on the domestic need for new ships,” he said. “We are focusing on the Asia-Pacific market. We pose no threat to our counterparts in Europe.”

While the existing joint venture with Carnival Corporation has ship deliveries projected in 2023 and 2024, respectively, it also includes four options.

There is the potential for the first ship to be delivered earlier, in 2022, to coincide with the 20th National Congress of the Communist Party, Wu said.

Excerpt from Cruise Industry News Quarterly Magazine: Winter 2017/2018