Cruise Industry:High-Quality Development for the Future

By Liu Zhiliang

On November 14,CSSC Shanghai Waigaoqiao Shipbuilding Co.,Ltd.(SWS) and CSSC Cruise Technology Development Co.,Ltd.and its subsidiary Adora Cruises Limited officially signed delivery related documents,China's first domestically built large cruise ship “Adora Magic City”was christened and delivered and the cruise is on the run-up for operation after eight years of scientific research and five years of design and construction.

At present,the recovery of China's cruise industry has accelerated significantly.Various regions have issued policies to support the development of the cruise industry,domestic cruise enterprises have accelerated the deployment of international cruise routes,and the hardware and software conditions of major domestic cruise home ports are constantly improving.As the core of building the local cruise industry ecosystem,the delivery of “Adora Magic City”not only means that the development of China's shipbuilding industry has entered a new stage,but also will further promote the recovery and development of China's cruise industry,and the future trend is highly anticipated.

In general,in order to achieve a stable and healthy development trend of China's cruise industry,China still needs to continue to cultivate the domestic cruise consumer market and create a good market environment for the development of the cruise industry.In the meantime,the upstream and downstream of the cruise industry chain will strengthen cooperation,further innovate the cruise operation business model,and gradually build a complete local cruise ecosystem,and only by this can China's cruise industry move towards a sustainable and healthy and high-quality development future.

Policy support leads to resurgence

Since last year,with the global epidemic situation gradually improving,the global cruise market has gradually recovered to the pre-pandemic level.China attaches great importance to the development of the cruise industry.On December 7 last year,China released a circular on further optimizing the COVID-19 response,which loosened the development of cruise tourism with 10 new measures.On December 27,the Notice on Interim Measures for the International Exchange of Chinese and Foreigners offers pilot for international cruise ships and then gradually let loose.

According to related policy released this year,the pilot waterway ports are tentatively set as cruise ports in Shanghai and Shenzhen,and the number will increase depending on the situation.The pilot program will cover cruise transport between Shanghai and Shenzhen and neighboring countries and regions.The pilot is tentatively scheduled for six months to one year,and will be optimized and adjusted in accordance with the national epidemic prevention and control policies,entry and exit tourism policies and market conditions.On August 10,the Ministry of Culture and Tourism issued the Notice which lifted pandemic-era restrictions on group tours for more countries,including Japan and South Korea.And cruise tourism ushered in a great benefit.The roll-out of a series of policies marks the official start of the full recovery of China's cruise tourism,and also means that the door of international cruise routes to enter the Chinese market and domestic cruise enterprises to carry out international routes has been ＂opened＂ again,which effectively boosts the confidence of domestic and foreign cruise enterprises in the development of China's cruise market.

Meanwhile,China's major cruise home port cities have also unveiled various policies to promote the cruise industry to seize the opportunity of recovery and achieve high-quality development.The Executive Meeting of Shanghai Municipal People's Government considered to promote cruise economic development,the meeting in principle agreed Shanghai Action Plan for Promoting the High-Quality Development of International Cruise Economy (2023-2025),calling for firmly seizing the global cruise economy restart window period,promoting the cruise economy whole industry chain development,speeding up cultivating core competitive advantages,and improving the contribution,radiation and influence of the cruise economy.

Local cruise enterprises grow rapidly

In recent years,with the development of China's cruise industry,China's local cruise enterprises accelerate the rise.At present,a dozen Chinese local cruise enterprises are operating ＂China Merchants-Yidun＂,＂Blue Dream Star＂,＂Mediterranean＂,＂Gulangyu＂,＂Dream＂,＂China Taishan＂and other cruise ships.Despite the influence of the epidemic and other factors,some early local cruise ships have retreated from the market,but under the strong promotion and investment of the market,policies and central enterprises,the fleet of local cruise enterprises is still developing.

With the gradually resurgent cruise trips,in June 2022,＂China Merchants-Yidun”jointly operated by China Merchants Shekou Industrial Zone Holdings Co.,Ltd.and China Merchants Viking Cruises officially set sail from the coastal route.＂Nanhai Dream＂ started its 4-day and 3-night Xisha tour route.On March 26 this year,＂China Merchants-Yidun＂ also started an 8-day and 7-night southeast coast cultural tour betweem Shanghai and Shenzhen,and subsequently launched ＂Shanghai-Zhoushan Cultural Tour＂ and other routes.

Under the policy supporting,China home port international routes have gradually restarted.On May 26,Shanghai Blue Dream International Cruises ＂Blue Dream Star＂ as a pilot cruise set sail from Shanghai Wusongkou International Cruise Terminal,started its Shanghai-Fukuoka-Shanghai 5 day and 4 night Japan Kyushu classic tour,became the first pilot outbound international cruise after 3-year suspension due to the epidemic.The China Merchants Viking cruise's first outbound route is ＂15-day Gentle and Elegent Japanese Loop Tour＂.On June 18,＂China Merchants-Yidun”set sail from Shanghai International Passenger Center at the North Bund,docked at nine destination ports including Fukuoka,Osaka,Kochi and Kagoshima and returned to Shanghai,successfully completing the first sea trial carrying passengers on the route on July 2.

Aside from ＂China Merchants-Yidun＂ and ＂Blue Dream Star＂,“Mediterranean”of Adora Cruises has successively opened international routes with Tianjin and Qingdao as its home ports,and “Orient Dream”has opened the operation of international routes with Tianjin as its home port.At the same time,with the christening and delivery of ＂Adora Magic City＂,it will be officially put into operation on January 1,2024,carrying out the international cruise route with Shanghai as its home port,and timely launch the ＂Maritime Silk Road＂ cruise route,let the wisdom and strength of the ＂Ancient Silk Road＂continue to break the waves on the＂21st Century Maritime Silk Road＂.Adora Cruises announced cooperation with a number of international and domestic professional crew service agencies,aiming to recruit 3,000 cruise professionals for its fleet,including the first new domestic large cruise ship,to cultivate the core competitiveness of Chinese cruise brands.In addition,a number of domestic cruise companies said that they are communicating with the ports of popular destinations such as Japan,South Korea and Southeast Asia,integrating marketing channels,and studying route deployment,and will announce their deployment plans in the Chinese market at an appropriate time.

Compared with ＂first come,first served”for domestic cruise enterprises,the international cruise enterprises in the domestic resumption of navigation still need some time.According to the experience of the European and US cruise markets,it will take at least six months to one year from the policy in place to normal operation,and it will take a year and a half for the market to recover to the pre-epidemic level.At present,it is difficult for international cruise companies to adjust and deploy back to Chinese ports in short time.Due to the particularity of cruise tour products,February-March each year is a key period for international cruise companies to deploy global routes in the next year.This year's routes were deployed last year and sold to the fourth quarter.

Even so,international cruise companies have expressed their expectation of returning to the Chinese market,and have demonstrated their determination to explore the Chinese market with concrete actions.MSC Mediterranean announced that ＂Glory＂will operate from March 16 to April 24,2024 international routes from Baoshan Wusongkou Cruise Terminal to neighboring countries.It will launch the first batch of spring itinerary totally including nine voyages including five days and four nights or six days and five nights,＂Glory＂ will also become the first international cruise ship to return to Chinese mainland home port.Royal Caribbean International Cruises has announced that its oversized luxury cruise ship ＂Ocean Spectrum＂will return to Shanghai in April 2024.During the May Day holiday next year,it will begin a cruise holiday route from Shanghai to neighboring countries which will last four nights and five days or seven nights and eight days.

Armed with soft and hard ware,cruise home ports consolidate industrial foundation

Cruise home port is one of the core hubs of the cruise industry chain.It not only accommodates cruise ships,tourists,cities and scenic spots,but also connects cruise building and cruise operation,which plays a decisive role in the development of the cruise industry.According to the requirements of the National Coastal Cruise Port Layout Plan,a port layout with 2-3 cruise home ports as the lead,departure ports as the theme and ports of call as the complement will be established along the coast nationwide by 2030.

In recent years,with the vigorous development of the cruise industry,the construction of domestic cruise home ports has embarked on the fast track of development.The development of cruise home ports provides good hardware conditions for the development of China's cruise industry.At present,China has initially formed a relatively complete coastal cruise port layout,and built cruise terminals with complete functions and facilities.

In the past three years,all major cruise home ports in China have been under great pressure,not only have had to fight the impact of the epidemic,but also to face the pressure of business operation and personnel loss.However,with the recovery of the cruise market,domestic cruise home ports are taking multiple measures to further improve conditions in various aspects.

Shanghai Wusongkou International Cruise Port has actively improved the hardware,renovated the ＂Oriental Eye＂ terminal building,built 14,000 square meters membrane structure wind and rain corridor,optimized power equipment,equipped with three berthing shore power stations;at the same time,applied information means to reshape the passenger customs clearance process and improve passenger customs clearance efficiency.In 2019,the average entry customs clearance time of the “Ocean Spectra”reached three hours.In 2023,the average entry customs clearance time for the “Blue Dream Star”was shortened to 2 hours.Shandong Port Cultural Tour Group comprehensively implemented the upgrade renovation project of Qingdao cruise home port,invested and built the first domestic＂Container Tribe＂ commercial complex,promoted comprehensive environmental improvement of Qingdao cruise home port,accelerated the cruise port area transformation and renovation,and took ＂cruise +＂ industry as the link,cultivated with diligent care ＂cruise+cultural tour,cruise+port city,cruise+healthy culture,cruise+duty free＂ modern marine cultural tour new formats.Xiamen International Cruise Home Port Group made effort to build serene port,green port,intelligent port,and cultural port,its new terminal to be put into operation by the end of the year is expected to meet three large cruise berthing at the same time,the first set of 16 MVA cruise shore-based power supply system was put into use in 2022,the second will be completed in September and provided with shipconnected power supply conditions in September.

Now,the cruise home port has ushered in the opportunity of＂resumption＂,but the large-scale investment in the early stage of ＂start＂has also become a challenge.How to solve the contradiction between hardware configuration lead and utilization laggard is still an extremely difficult test for the major cruise home ports.In the early days of the resumption of the cruise industry,the major cruise home ports still need to face the situation of ＂not enough to go round＂.All cruise home ports need to seek common ground while shelving differences,step up interaction and connectivity,give full play to regional and cultural characteristics,maximize the interests of the routes,and achieve common development.In the meantime,the port should strengthen cooperation with cruise companies,vigorously promote cruise culture,and achieve winwin situation between ship and port.It is not advisable to seek development with ＂price war＂.Each cruise home port should find its own positioning,realize differentiated development and seek benign development ways.

Build a complete cruise product spectrum

Large cruise ship,known as the synthesizer of the industrial field,is a highly systematic and integrated giant system engineering,condensing the crystallization of modern industry and culture and art,is the concentrated embodiment of the comprehensive strength of national manufacturing and scientific and technological level,and is the only high-tech ship that China's shipbuilding industry had not conquered and achieved the delivery record previously.

On November 6,2018,at the first China International Import Expo(CIIE),the cooperative design and construction contract of 135,500 GT Vista class large cruise ship was officially signed,and the project of c was officially launched.After eight years of scientific research,five years of design and construction,China's first domestically built large cruise ship ＂Adora Magic City＂ was officially christened and delivered at CSSC SWS,meaning China has successfully picked up “the last pearl in the crown＂ of the shipbuilding industry,It is a milestone event in China's progress from a major shipbuilding country to a shipbuilding power.

The gross tonnage of the ＂Adora Magic City”is 135,500 tons,with an overall length of 323.6 meters,a molded breadth of 37.2 meters,a design draft of 8.26 meters and a maximum height of 72.2 meters.The cruise carries 107 systems,55,000 equipment units,including 25 million parts and components,and lays 4,750 kilometers cables,365 kilometers pipes and 120 kilometers wind pipes.The cruise has 2,125 guest rooms,which can accommodate 5,246 passengers,and is equipped with a 16 floors of living and entertainment public area of 40,000 square meters,known as “a floating modern city”.

In the process of construction,SWS,by adopting the introduction,digestion,absorption and reinnovation mode,ganged and managed 361 primary suppliers,1105 secondary marine equipment enterprises,as well as gathered more than 5000 engineering and technical personnel from more than 30 countries.It successively broke through center of gravity,safe return,power system,integrated power grid,cabin environment,vibration noise and a series of key and core technologies throughout the whole life cycle of cruise,formed the ability of large cruise design and construction and complex giant system engineering managemen,and continued to build the standard system of cruise industry in China.

At present,China State Shipbuilding Corporation Limited(CSSC) has achieved a series of important milestones in the key technologies of overall design.In December 2021,the 150,000 GT large cruise ship independently developed and designed by CSSC Cruise Technology Development Co.,Ltd.won the AIP certificate granted by RINA.In November 2022,the 80,000 GT cruise ship independently developed and designed by CSSC won AiP certificate granted by CCS.This will enable China's shipbuilding industry to further grasp the initiative of the development of domestic large cruise ship projects,which is of great significance to promote the independent and controllable R&D of Chinese cruise ships and the construction of cruise industry chain and supply chain.China's shipbuilding industry has gradually formed a relatively complete cruise product spectrum.

China's shipbuilding industry has also achieved good results in the construction of polar cruise ships.China Merchants Industry Haimen Base has built and delivered six polar expedition cruise ships,and is expected to deliver the seventh polar expedition cruise ship in 2025.In the construction process of six polar expedition cruise ships,China Merchants Industry Haimen Base has broken through the technical shortcomings such as safe return design and analysis,cruise system function debugging and navigation test,and design of cruise structure,and has overcome more than 100 key technical problems,and made new breakthrough in the field of cruise construction.This series of polar expedition cruise is the first new polar expedition cruise ship of the same size in the world to adopt the safe return technology,reaching the highest ship safety design standard.And the project won the Commendation Award of the 7th China Grand Awards for Industry this year.

In general,since China officially entered the field of cruise construction in 2018,China's cruise industry has continued to promote the whole chain and integrated development of the upstream,midstream and downstream industries,from ＂cruise construction to cruise operation,then to cruise port and cruise tourism supporting services＂.With the official delivery of China's first domestically built large cruise ship,China's cruise industry has truly entered the development stage of the whole cruise industry chain.The development of China's cruise industry needs a long period of cultivation,which cannot be accomplished overnight.China's cruise industry should base itself on the new development stage,implement the new development concept,strengthen alliance,pull together in the same condition,actively seize opportunities,plan scientifically,break the traditional industrial boundary,accelerate the construction of new business forms and new pattern of the cruise industry with the idea of integrated development,and meet the next golden period of the cruise industry.