Leisure giants buoy cruise market

As more travelers seek fun on the high seas, new services appear on horizon

Genting Hong Kong was a pioneer of Asia's cruise industry, but it really only entered the spotlight last year when it created Dream Cruises and acquired Crystal Cruises to become a global leisure, entertainment and hospitality company.

"The Asian cruise market, especially in China, is rapidly growing," says Thatcher Brown, president of Dream Cruises. "We're willing to meet the needs of the emerging generation of confident, independent-minded and affluent Asian travelers through our new brand."

According to the China Cruise and Yacht Industry Association, the country's 10 major ports handled 629 cruise ships last year, up 35 percent year-on-year, with about 1.24 million Chinese passengers traveling overseas.

"Dream Cruises will cater to the large and rapidly growing premium market in China and Asia," Brown says.

The huge potential in the Chinese cruise market has already attracted a number of luxury foreign operators, including Costa Cruises and Royal Caribbean International.

Genting took on the bold initiative to grow the Asia-Pacific market as an international cruise destination with the founding of Star Cruises in 1993, building a strong reputation for top-class Asian hospitality.

"Integration of the parent company's experience in luxury cruises over the past 20 years and understanding of high-spending Chinese travelers' needs will be a great advantage for us to create the new brand," Brown says.

Dream Cruises, which Brown describes as Asia's first luxury cruise line, will launch its maiden vessel, the Genting Dream, in November. The ship is set to sail from its homeport of Nansha in Guangzhou, Guangdong province, offering two- to five-night cruises to Hong Kong, Sanya in Hainan province, and Da Nang and Halong Bay in Vietnam.

Its sister vessel, the World Dream, will begin operation in late 2017, according to a company source.

Both are undergoing fit-outs from Genting subsidiary Lloyd Werft Group, which was formed through a merger of the Lloyd Werft shipyard in Bremerhaven and Nordic Yard's three shipyards in Germany.

According to Genting, the shipyards will capitalize on the growing demand for new cruise ships and realize the company's global expansion plans for its three cruise brands.

According to company sources, two mega cruise liners for Star Cruises and eight for Crystal Cruises will be built in the shipyards in the near future, with the first two ships being designed with Chinese characteristics. They will be the first purpose-built cruise ships to be deployed for the Chinese market, the sources say.

"Genting Dream, with its maiden cruises departing from Guangzhou, will be a response to the needs of Chinese travelers, as well as those from greater Asia," Brown says.

He says the company's expansion plans in the Chinese mainland include moves into Xiamen, Fujian province, and a base in Sanya, offering services geared specifically to appeal to Chinese travelers.

Brown says Dream Cruises is aware of what is needed to expand its business in the highly competitive China market. The luxury sector has seen the entry of several leading international players into the Chinese market over the past few years.

"Genting has a history of more than 20 years in the luxury cruise industry - that is the DNA for Dream Cruises. And we understand very well the needs of the Chinese travelers," Brown says.

The Genting Dream, which is 335 meters long and 40 meters wide, will feature Chinese art, cuisine and onboard entertainment facilities, he says.

The ship will include the largest piece of "floating artwork" by Chinese pop artist Jackie Tsai, who is known for his work with international fashion labels Alexander McQueen and Shanghai Tang.

"Most of our front-line staff can speak Chinese, and we will have Chinese spa services and offer the very best of Chinese regional, Asian and international cuisine," Brown says.

Its cruises are priced from 999 yuan to 4,999 yuan ($150 to $760; 130 to 670 euros) a night, according to the company.

In an earlier interview, Edie Rodriguez, president of Crystal Cruises, said wealthy travelers from China have emerged as the dominant force in the travel industry.

"We see great opportunities to deliver luxury cruise services to them," he said, adding that he predicts Crystal Cruises' share of Chinese travelers will be double the 2 percent of last year.

Genting, which is listed in Hong Kong and Singapore, bought Crystal Cruises in May last year. Crystal is regarded as the world's most-awarded luxury cruise line.

"We will launch new classes of vessels, including yachts and river boats, and offer ocean and flight travel-like experience," Rodriguez said.

According to Ctrip, the Chinese online travel agency, more than 2 million Chinese passengers will travel overseas via cruises in 2017, with destinations covering Japan, South Korea, Southeast Asia, Europe and the United States.

In addition, other global cruise operators will boost their services in the Chinese market, with more lines to be opened soon.

Nanfang Daily, a newspaper based in Guangzhou, reported that Costa Cruises would add three new cruises in its Shanghai homeports by 2020. It launched a vessel service in the city in April. Royal Caribbean International has said it will also introduce a homeport service in China this month.

Michael Thamm, chief executive of Costa Cruises, says China will likely overtake the US to become the world's largest cruise market in the next decade.

He says his company's business revenue has increased 40 to 50 percent year-on-year on average in China since launching its Chinese operations in 2006.

"We'll continue to invest in China, aiming to get quickly integrated into the Chinese market," says Thamm, adding that the company is talking with Chinese authorities to establish joint ventures in the fast-growing market. "We'll introduce the largest fleet in China in the near future."

China's cruise industry, which began services in 2005, is mostly dominated by foreign operators, which provide more than 90 percent of products in the Chinese market, according to the China Cruise and Yacht Industry Association.

"Foreign operators need to further understand Chinese travelers' needs and offer tailored services," says Zheng Weighing, deputy director of the association, who added that the Chinese cruise market has gathered pace thanks to more high-end services being offered.

qiuquanlin@chinadaily.com.cn