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Cruise News for the Corporate Travel Professional

March 2014 Edition

China considers best practice in developing it's cruise Industry

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China is considering national guidelines to facilitate and secure the sound development of China's cruise industry to address demand from a growing number of wealthy people.

Initiated by China National Tourism Administration, China Cruise and Yacht Industry Association will start compiling a general plan for the development of the Chinese cruise industry by the end of this month. It is expected to be released in October this year. The plan will elaborate on the orientation, goal and development path of the Chinese cruise industry as well as mapping out cruise routes.

Zheng Weihang, vice-chairman of the association, said in a previous media interview that the plan will also touch upon the construction of cruise terminals and the building up of China's own cruise fleet.

Pilot cities for cruise tourism development and a training system for people showing a talent for the industry will also be discussed under the plan.

Meanwhile, a guideline to promote the cruise transportation industry compiled by the Ministry of Transport is also anticipated.

A full industry chain, including the construction of ports and the supply of ships, is expected to be completed soon in China, said Zhen Hong, secretary-general of the Shanghai International Shipping Institute. Given the rapid growth of the cruise industry at present, such a plan is considered indispensable for the regulation of the operation of cruise companies in the future.

"China has built its own cruise terminals so far, but it has not created its own liners yet. The general plan being worked out at this point is to ensure a faster and more systematic growth of the Chinese cruise industry. The industry is expanding so rapidly that we can foresee a much bigger demand in the Chinese market," Zhen said. According to a recent market survey of China's largest online travel agency Ctrip.com, the number of customers taking cruises amounted to 10 percent of the company's total in 2013. But taking a cruise is gaining increasing popularity among the Chinese, especially the rich and the increasing numbers of the Chinese middle classes.

Consequently, Ctrip has invested 200 million yuan ($32 million) to develop its cruise trips. By February, Ctrip had offered travel packages involving 17 cruises. With these itineraries, Ctrip can attract at least 40,000 customers taking cruises this year.

"The Chinese cruise market is at a preliminary stage. It is vital for travel agencies to strive to take the initiative and the lead in the market," said Yang Lei, senior director of the cruise business department of Ctrip.

While the Chinese cruise industry is accelerating its growth, overseas companies are further reaching into the Chinese market with more luxurious trips and ships to attract high-end customers. Princess Cruises announced in mid-February that its Sapphire Princess liner will have 24 itineraries during the China season, six months after it officially announced it was entering the Chinese market. It is expected to attract some 65,000 passengers during the four-month period in China.

Jan Swartz, president of Princess Cruises, said the company will provide tailor-made services and special itineraries to Chinese customers based on their in-depth understanding of the nation's market.

According to the 2013 Cruise Tourism Market Research report conducted by the leading travel website Qunar.com, more than half of respondents said they would spend 4,000 to 6,000 yuan on cruise trips. Shanghai has become the city with the most people buying cruises in China, followed by Beijing, Hangzhou, Tianjin, Suzhou and Wuxi. Gao Xing, product director of Baidu Inc's travel site Qunar, said although they started late in China, cruise trips have become quite safe and secure nowadays and are mostly preferred by parents with children and elderly couples.