Page 30: of Maritime Reporter Magazine (February 2015)

CRUISING IN CHINA operators have sent aging vessels into terminals in operation, but more work

Even though Meyer Werft GmbH and Fincantieri the market. Going forward, this won’t needs to be done. So far, it reportedly do. This is why Quantum of the Seas has three more under construction and

SpA share the bulk - 72% - of the European order is expected to give Royal Caribbean a another ? ve or so in the planning stages. distinct boost in the coming ? ght for book through 2017, including 24 cruise liners with mind space and market share.

Reading the Tea Leaves • Fewer open decks and more in-

What will happen once the Chinese space for 76,161 passengers, contracts placed in terior spaces devoted to more activi- skillset catches up with the West, and ties – Westerners typically go on vaca-

Japan and possible orders in China, “represent a when that might be, is anyone’s guess, tion to relax. The Chinese, typically, but it behooves European cruise liner threat to Europe’s continued preeminence in cruise do not. They are also not sun worship- builders to get in the game now, to build pers, and they like to keep busy. They the relationships necessary for when the shipbuilding.” CLIA Europe June market report. want to do things and then go back elephant in the shipyard is able to stand and talk about what they did. The on its own. In the meantime, there is

Chinese tend to travel in groups, also, money to be made in helping the Chi- means more servicing and more wear erate in a substantial way,” notes Darr.

so activities and spaces need to be de- nese build their own cruise ships, the and tear over time. This creates opportunity for cruise line signed to enable them to stay together. possibility of setting up lucrative joint • Last-minute bookings – the Chi- operators, which can further in? uence • Fewer bars and western- nese are famous for booking late, and the market and build mind share and ventures within China going forward, style restaurants. The Chinese, say and the potential for enough demand to online, which could negatively impact contacts by also teaching domestic cruise

Blamey, don’t like to drink before feed East and West shipyards. the ability of cruise lines to sell space partners the business of cruising, and by dinner, eat with strangers or linger “As potential goes, you have to look and estimate capacity and sale as far helping local and state governments to over a meal. They drink to be social, at China with a very optimistic eye. in advance as they do in the West. plan and ? esh out the other pieces of the eat in a family group and eat quickly,

Whether or not our industry can suc- cruising picture – ports, sizeable termi- he adds. At least one cruise operator nals, ef? cient movement of passengers ceed in business only time will tell, but

Many Parts Make Up A Whole has already ripped out and replaced you can see the investment in time and

Solving the issue of building up the and supplies on and off cruise ships, des- its dining room in response. resources that will be necessary to bring tination activities and other events. available stock of cruise liners, and mak- • More space devoted to high-end

One thing the Chinese are very good that to fruition,” says CLIA’s Darr. ing sure they meet the unique needs of retail and gambling - the Chinese are

One thing is for sure, the leaders in cruise at, according to Blamey, is designing and

Chinese vacationers, is just the tip of the big shoppers and gamblers. building high-quality infrastructure, and industry ownership, operation and ship iceberg when it comes to building out the • Shorter itineraries – The Chi-

Chinese cruise market. There are other getting it done quickly. It has already builders have read the tea leaves, and are nese have signi? cantly less vacation begun to modernize some key ports, leading the way for the rest of the indus- challenges to be addressed as well. Those time than their western counterparts, try to work out a peace with their Chinese building out berths capable of support- ships need places to go. They need to be and so need short trips. This is true ing cruise ships. “Both Singapore and competitors that, if they play their cards able to dock, and they have to be serviced even for retirees. Shorter trips, agree right, will eventually lead to a win for ev- in an ef? cient manner. Passengers need Hong Kong have recently expanded their

Darr and Blamey, means the cruise access to terminals and all manner of cruise ports and many coastal cities in eryone in this game – shipbuilders, tour- lines will have to ? nd more people ists, cruise operators, local attractions, the

China have developed port infrastructure transport to get to and from their cruises. to sell more cruises to, at gener- in the last eight years,” observes UBS’ Chinese government, etc. – and launch a “Without infrastructure, you can’t op- ally higher ticket prices. More trips lucrative, golden age of Chinese cruising.

Farley. Overall, China has ? ve cruise

On Nov. 21, officials from

China CSSC Holding Ltd and cruise ship builder Fincantieri

S.p.A sign a Memorandum of Understanding at CSSC’s headquarters in Beijing.

Under the MOU, both parties will consider setting up a joint venture to build cruise ships re Credit: China State Shipbuilding Corporation fortheChinesemarket for the Chinese market. 30 Maritime Reporter & Engineering News • FEBRUARY 2015

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