Cruise group wins over more travelers

Carnival Corporation, the parent company of Italian-based Costa Cruises, announced its cruise joint venture in China will order the first-ever cruise ships built in China this Wednesday.

The company forged a joint venture with China State Shipbuilding Corporation in 2015 to launch a cruise brand in China.

The joint venture has signed a new memorandum of agreement to order two new cruise ships to be built by China-based shipbuilding joint venture, specifically designed and tailored to suit Chinese travelers' tastes, with an option to order four additional ships.

The agreement was formalized at a signing ceremony in Beijing on Feb 22.

"The cruise industry in Asia is growing rapidly and the Chinese market is the key engine driving this growth," said Michael Thamm, CEO of Costa Group and recently appointed CEO of Carnival Asia.

Costa Cruises marked its 10th anniversary last year and hosted its 2 millionth guest in China. Thamm said he sees huge potential beyond the achievement.

The cruise liner has vowed to pour its resources into the Chinese market over the forthcoming year to help build out the industry's eco-system. With a growing Chinese middle class, more leisure and entertainment options are required to meet the growing demand for alternative lifestyles.

In recent years cruises have attracted more and more holiday goers, providing the chance to spend several days on the sea, feel the fresh breeze, eat exotic food while a quartet plays on the deck and visit different continents.

"The industry is still at an early stage of development and there remains lots of untapped potential. China's middle class population is continuing to grow, and with rising incomes, there will be huge appetite for leisure and recreation.

"In particular, we see huge growth opportunities in China's second - and third-tier cities, and even the inland cities, where cruises are still a new and novel holiday option," said Thamm.

Compared to the United States, where 12 million holiday goers took a cruise in 2015, representing 36 percent of total outbound travel, some 36 million Chinese citizens traveled overseas, but only 3 percent of them opted for a cruise.

The currently low market penetration rate indicates a significant opportunity for Costa Cruises, according to Thamm.

The company's priority is to build and grow the cruise category, and to cultivate the entire industry ecosystem in Asia, especially in China, where cruise holidays are not yet in the mainstream.

But such progress will require effort not only from the cruise company, but also the entire industry, including the tourism sector, the government and the media, he said.

To support the Belt and Road Initiative, Costa Group promoted a 46-day voyage earlier this year. Passengers on board were able to see 12 islands across nine countries. In 2015, the company also operated an 86-day world cruise voyage, China's first world cruise tour, which allowed the travelers to visit 28 destinations in 18 countries and regions.

To win consumers' trust, the key lies in the quality of Costa Cruises' offering, said Thamm.

"We will continue to invest huge efforts in enhancing our distinctive 'Italy at Sea' positioning and bring it to life more vividly for consumers. 2017 will see us further elevate our distinctive 'Italy at Sea' brand positioning with the launch of our 'Go Costa, Let's Festa' Italian Carnival, which will feature special cuisine, refreshments, shopping and entertainment activities," he added.

Costa Cruises offers various lines across Asia. Its four ships on the Chinese mainland, including the Costa Fortuna, the Costa Serena, the Costa Atlantica and the Costa Victoria, heavily feature Italian elements in all aspects, from interior design to onboard cuisine, echoing the "Italy at Sea" theme.

renxiaojin@chinadaily.com.cn