Page 26: of Maritime Reporter Magazine (February 2015)

CRUISING IN CHINA

The Chinese have proven themselves to be very capable at engineering, and capable of learning very fast. But cruise shipbuilding is a very challenging business to get into. Because

China will reach 4.5 million passengers importance. The company expects to of the type of specialized ship this is, and the by 2020, or representing about 50% of carry 500,000 cruise passengers in China global cruisers by some estimates. this year. UBS Global Research analysts extremely tight deadlines necessary to meet

The Asian Cruise Association (now Robin Farley estimates China will be a part of CLIA) took a more tempered about 6% of Carnival’s deployments in customer demand on delivery, this is not some- view of the market last year, estimat- 2015. ing that the overall Asian cruise market, Last April, the Royal Caribbean said thing you get into easily with success. For ex- which totaled 1.3 million passengers in its sales in China have doubled over the “ 2012, could nearly triple to 3.8 million in past ? ve years, though it did not provide ample, the logistics it takes to keep the product 2020, including 1.6 million from China. speci? cs.

By any measure or estimate, the Chi- That apparently was suf? cient to con- on schedule and on multiple tracks presents a nese cruise market is on the verge of vince the company to take the unprec- exploding, a fact not lost on the inter- edented step of committing its newest very steep learning curve, and is the type of ex- national players plying the China trade. vessel, the 4,180 berth Quantum of the

Also enticing, is the fact that Chinese Seas, to be based in Shanghai by the perience you probably can’t afford to learn on guests pay more for their typically short- spring.

er itineraries. “Royal Caribbean’s decision to base your own. It could prove extremely valuable to

Since 2013, cruise operators have re- Quantum of the Seas full time in Asia sponded by doubling the number of is a huge step forward – this is a ship

Chinese shipyards to partner with others that ships and increasing the number, routes leap-frogging the existing product,” ex- and timing of their cruises. As a result, claims Ted Blamey, principal of Chart have had success.

even in its early stages, that demand has Management Consultants, Australian already produced a measureable, and –based global experts in cruise tourism growing, positive impact on the earnings and strategy, and a producer of market of Carnival and rival Royal Caribbean, research for industry groups like CLIA – Bud Darr, Senior Vice President Technical so much so that Carnival plans to base and the former Asian Cruise Association. a fourth vessel, the 2,978-berth Costa “And Carnival’s decision to move its

Serena, in China this year, and last year COO to China speaks volumes about and Regulatory Affairs, Cruise Lines moved its COO in country as a sign of its intention to be a serious player in the both its commitment and the market’s Chinese market,” he adds.

International Association ” 26 Maritime Reporter & Engineering News • FEBRUARY 2015

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