Background of International & Local

Cruise Business
The world’s largest cruise ship Symphony of the Seas (WILDE, 2015)
World’s most popular cruise destinations Glacier Bay, Alaska (Levine, 2018)
The average age of cruise passengers 46 (Cuskelly, 2017)
Average cruise holiday length ~ Seven days (WILDE, 2015)
One of the HK renowned cruise business company Genting Hong Kong
Number of Curies Berths in HK Four
The amount of HK Gov. invested in cruise promotion in 2018-19 14 millions (Hong Kong Tourism Board, 2019)
The nearest Cruise port of HK Shekou Cruise Center
Numbers of passengers which Kai Tak Cruise Terminal can handle per hour 3,000 (Hong Kong Tourism Board, 2019)

International Cruise Business

• One of the fastest growing segments in the world tourism business
• Recorded 27 millions passengers in 2018
• Expected to grow to 39 millions by 2027 (cruise industry news, 2018)
• Revenue of cruise corporations represents 3% of total international tourism receipts
(Kester, 2002; Klein, 2005; Dowling, 2006)

• Asia Pacific showing a strong result on it (UNWTO, 2013)

• Asia are expected to grow 8-10% (capital HK, 2017)
• Having a total 10 million capacity in 2017
• Owning 4.1% market share
• 21.3% capacity growth from 2005 to 2006 (cruise industry news, 2018)
Local Cruise Business
• Hong Kong owning serval advantages
• Victoria Harbor is wide, deep & no air draft limit
• Located at strategic geographic position in Asia pacific
• Owning the Kai Tak Cruise Terminal & Ocean Terminal
• Government invested 14 millions to HKTB to promote cruise tourism
• Increased 46% cruise passages (Commerce and Economic Development Bureau, 2018)
• Continuous in 2018-2019 by inviting actor Daniel Wu (HKTB, 2019)
Latest Trends of International Cruise
Business
Trends
1. Total restoration
Stressed out from fast-paced lives, travelers are seeking
ways to check out from daily responsibilities and
rejuvenate more than ever before
2. Onboard with smart tech
Travelers use tech in daily lives and are expecting smart
tech when vacationing as well
3. Conscious travel
Travelers want to see the world in a conscious, mindful
way
4. Access is the new luxury
Travelers are setting sights on destinations that were
previously out of reach
5. Gen Z at sea
Generation Z (born mid-1990s to mid-2000s) is set to
become the largest consumer generation in the next
two years and, this age bracket prefers authentic
experiences over material items
6. Working nomads
Combining work with leisure time is on the rise. Many
modern travelers or “digital nomads” are opting for
trips where they can work remotely which cuts down on
time off and lost wages
7. Female-centered cruising
The number of female travelers is increasing, it is
common to see female groups on cruise ship
8. Going solo
Solo traveling is rising in popularity. Cruising
allows for solo travel without the worry of
arranging a ton of details while visiting even
the most far-reaching destinations
Business Solutions
Offering total wellness in the form of restorative spa
experiences, onboard oxygen bars, healthy menu choices
for a wide variety of diets, and the latest in fitness
innovations
Provide a highly personalized travel experience by
adopting keychains, necklaces, bracelets, apps and more
in order to while on and off the ship
Working to local destinations to local cultures, landmarks
and minimize environmental footprints
Launching new route to mysterious destinations e.g.
Galapagos Islands to Antarctica
Provide multiple destinations cruise lines and unique
experiences, such as music festivals at sea, to attract this
new category of cruisers
Provide widely connected WiFi, desks and work-friendly
cafes
Creating female-centered itineraries based on
interests and connecting women with other women
Waiving the single supplement to all individuate guests
traveling, offer a higher proportion of single cabins
(Cruise Lines International Association, 2019)
 How Those Trends Affect HK Cruise
Business

Going Solo

More HK people love solo travel Cruise liners are targeting solo travelers

Cruising might become the preferable option for HK solo travelers

Might provide demand toward cruising

Cruise liners might see the potential in HK

Stimulate HK cruise business development

Onboard with Smart Tech

Hong Kong people rely on smart tech Cruise liners are adopting smart tech

HK people might see the cruise offering match with their preference

Might provide demand toward cruising

Cruise liners might see the potential in HK

Stimulate HK cruise business development

 Influential Factors of Hong Kong
Cruise Business
Influential Factors of Hong Kong Cruise Business Positive Negative
1. Cruise service in Asia market segment especially in China ✓
is not mature yet (Sun, Feng, & Gauri, 2014)
2. A Fusion of East and West culture in Hong Kong (Capital, 2017) ✓
3. The expanding cruise tourism business in Asian countries i.e. ✓
Singapore, South Korea, Taiwan and Vietnam
4. Locating in the strategic geographical position in Asia ✓
Pacific (HKTB, 2019)
5. Local government support (Capital, 2017) ✓
6. Low usage rate in Kai Tak Cruise Terminal ✓
7. The formation of Hong Kong Cruise & Yacht Industry Association ✓
(Capital, 2017)

8. Talented and experienced hospitality workforce (Study Moose, 2016) ✓

1. Cruise service in Asia market segment especially in China is not mature yet
• The curies development in Asia still developing
• Lack of infrastructure & support service (Sun, Feng, & Gauri, 2014)
• Lower the pace of cruise development in Hong Kong

3. The expanding cruise tourism business in Asian countries i.e. Singapore, South Korea,
Taiwan and Vietnam
• Increasing competition
• Top 10 market by total calls in 2017, Hong Kong rank at 8th, after Japan, China, Singapore, South Korea,
Thailand, Malaysia and Vietnam
• Top 10 ports by total calls in 2017, Hong Kong rank at 5th, after Japan, China, Singapore and South Korea

5. Local Government support

• Construction of the Kai Tak Cruise Terminal which cost around HK$6.6 billion
• Promoting “fly-cruise” tour: allocated an additional funding of $10 million to cooperate with cruise lines or
travel agents (So, 2017)
• Step up promotion in major cities along the high speed rail network to launch promotion programs to package
& promote “rail-cruise” products (Tourism Commerce and Economic Development Bureau, 2018)

7. The formation of Hong Kong Cruise & Yacht Industry Association

• Promote & facilitate long-term development of HK cruise industry
• Organize cruise-related training courses with Hong Kong Cruise Academy, provide talented & experienced
hospitality workforce (Hong Kong Cruise & Yacht Industry Association, 2019)