Revival of Asia Cruise Market Discussed at Shanghai Cruise Summit

Spectrum of the Seas

The 2024 Shanghai International Cruise Summit was recently held in Shanghai and the revival of the Asia cruise market served as the central theme with over 350 attendees.

Following a rough summer for the cruise industry in China, stakeholders were motived to overcome the challenges ranging from pricing to regulatory issues.

In addition to an industry leader panel, other panel discussions included destination experiences, embarkation/debarkation, shipbuilding, sustainability and supply chain.

The event coincided with a new report on the cruise market, showing Shanghai as the top port in China with 613,003 guests in the first half of 2024, followed by Tianjin and Sanya.

Guobin Yang, chairman, Cruise and Yacht Branch of China Tourism Automobile and Cruise Association, Chairman of CCTD (CSSC’s Cruise Technology Development arm) and also Chairman of Adora Cruises.

Yang discussed China’s cruise industry development from a macroeconomic perspective, pointing out that between 2018 and 2023, the country began developing its own supply chain infrastructure and shipbuilding infrastructure; however, international companies and partnerships still led the market.

Yang said that he believes that for the country’s cruise industry to be truly developed, it must have strong local capabilities to support the industry, and he sees China now progressing toward domestic lines taking a lead role, with international partners in a supporting position.

Yang pointed to low market penetration in China, and questioned whether expanding passport access for citizens could help grow the market. He said these restrictions even impact Adora’s own employees, who cannot board company ships without passports.

Yang suggested that the government allow National Identification Cards for “cruises to nowhere,” regardless of whether the cruise ship is Chinese- or foreign-flagged.

He also said Chinese ship designers and shipyards need to create innovative products that better match customer needs.

Additionally, the market should establish operational policies that align with international standards. Yang cited Okinawa as an example of efficiency. Its port, smaller than Shanghai’s Wusongkou, is highly efficient and has lower fees.

Zinan Liu, chairman of Royal Caribbean Group Asia, said there were regulatory challenges when it came to direct sales of cruises. He also said the embarkation and disembarkation process could be improved at Asian ports.

Jacquline Ng, director, Singapore Tourism Board, said that while Asia commands less than 10 percent of the global cruise market, it has the a large middle class population and a booming tourism market, meaning there should be significant potential if countries work together. She suggested that destinations work together to create a tale of diverse cultures available on a single cruise.

 

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