What about Asia's growing cruise market

Justifiably, Asia is generating a lot of attention as the most exciting frontier in recent years for the cruise industry. We are seeing growing consumer awareness and interest in cruising, emerging infrastructure developments and more international cruise companies and brands entering the market. In Singapore, the country has invested about S$500 million in the new cruise terminal and cruise traffic is expected to reach 1.5 million by 2015, according to industry sources.

And while cruising is the fastest growing sector in the region’s travel industry, it’s still at an embryonic state with less than 0.05% of the population in Asia having taken a cruise. Based on this startling, yet opportunity filled statistic, we must ask ourselves, “What more can be done for the cruise industry to reach its full potential in Asia?”

A cruise market offering tremendous potential
With a population of nearly three billion, Asia has the potential to generate as many as five million cruise guests by 2020. The biggest driver to this potential is the region’s growing affluent base in emerging markets such as China and India. Demand in these two markets has grown for leisure travel in general, and also for alternative options like cruising, versus traditional land-based travel. For China specifically, the cruise market is undergoing rapid development, propelled by strong government support as evidenced by significant investment in the country’s cruise terminals, ports and infrastructure development.

The new cruise terminals in Shanghai and Tianjin, combined with the added capacity to handle more guests means companies can consider sending larger ships to homeport there. We can expect a similar scenario to play out in Singapore and Hong Kong too as they open their new cruise terminals over the next couple of years which will boost their cruise hub development plans. In addition, future possible developments in Xiamen, Sanya and other ports pose exciting opportunities.

How do we attract more consumers from Asia to try a cruise?

Cruise companies’ growing confidence in the region is evidenced by the increase in capacity being allocated to year-round itineraries, a significant change from the seasonal deployments of recent years. Today, the market is bustling with more cruise lines than ever.

To step up the momentum and help grow Asia’s cruise business even further, it’s essential for industry stakeholders to focus on a number of key building blocks. First, to develop an adequate infrastructure that can support more homeports for the increased capacity. These homeports should allow for direct boarding and maximum ease and convenience for guests. Second, the region’s port infrastructure needs to be developed to accommodate bigger ships – otherwise, growth opportunities will be stymied and itinerary options limited. Third, maintaining a focus on the guests’ needs - designing itineraries they want, with cruise lengths and products that suit the Asian vacation pattern, e.g. shorter cruises with multiple port stops; and improving on airlift, particularly during peak seasons for fly-cruise guests.

Cruise companies must also continue to work on consumer and trade awareness about cruising, and to promote its attractiveness as an enjoyable, convenient, value-for-money vacation option, as well as a top vacation choice in the region.

We should all work together to develop the future of the cruise market in Asia, as there’s a lot still to be done. For example, much depends on the cooperation between the various Asian authorities on visa, CIQ, embarkation and disembarkation processes to make the cruise experience as enjoyable as possible for all our guests. It is also critical for cruise companies to work closely with the Asian Cruise Association and national tourism organisations – these relationships are important - and will lead to a more robust industry for the future. Overall, these are exciting times for Asia and the cruise industry - opportunity abounds. 
 

Michael Bayley is the executive vice president, International for global vacation company Royal Caribbean Cruises Ltd.