(WSJ) Beijing— Royal Caribbean Cruises Ltd. is bringing its newest ship to China in an effort to draw more revenue from the world's biggest travel market.
The cruise company plans to move the Quantum of the Seas to Shanghai in 2015 from its current port in New York, said Adam Goldstein, Royal Caribbean's president and chief operating officer. It will add to Royal Caribbean's existing two ships in China.The ship, which has 16 decks and features attractions like simulated sky diving, can carry 4,180 guests and will sail from Shanghai to destinations in Japan and South Korea, Mr. Goldstein said in an interview.
The move was prompted in part by Chinese consumers who want access to the biggest and newest offerings, he said. Quantum of the Seas has an indoor sporting complex where tourists can drive bumper cars, play table tennis and learn the trapeze.
"We're looking to get first-time cruisers to choose our brand," Mr. Goldstein said.
China's travel market is booming. Brokerage CLSA estimates that as China's per capita income rises, outbound mainland tourists will reach 200 million by 2020, doubling from 2013. Chinese tourists became the world's biggest travel spenders in 2012, when outlays on outbound travel swelled to $102 billion, up 40% from 2011, according to the most recent annual figures from the United Nations World Tourism Organization.
Efforts to attract China's tourists are heating up, as everyone from the Hawaii Tourism Authority to Air New Zealand Ltd. executives are launching campaigns to win over the tourism dollars. Vancouver's tourism office is tapping Chinese celebrities to tout trips to the Canadian city.
Miami-based Royal Caribbean said sales in China have doubled over the past five years, though it won't disclose specific figures. But it says the cruising market in the country is still nascent. U.S. travelers account for 52% of world-wide passengers on cruises, followed by U.K. and Ireland, with 8%, according to industry association Cruise Lines International Association. China doesn't yet appear in the top 10, according to the group.
The industry has been under scrutiny in recent years. In January hundreds of passengers on Royal Caribbean's Explorer of the Seas ship from New Jersey to the Caribbean were stricken with a gastrointestinal illness. The cruise operator cut short the 10-day trip. Rivals have also faced graver problems over the past couple of years, such as a tragic sinking and engine fires.
Mr. Goldstein said incidents such as these have received widespread media attention but predominantly because they are so rare.
Royal Caribbean, which operates its namesake line and Celebrity cruises, reported in January a fourth-quarter profit of $7 million, compared with a $393 million loss in the same period a year earlier. Revenue in the fourth quarter improved to $1.85 billion, up 2.7% from the same period a year earlier.
Source: Wall Street Journal by Laurie Burkitt
from China Travel & Tourism News http://ift.tt/1iB6EFm
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