cens logo

International Cruise Lines Target Asian Market

Jun 30, 2014 | By CENS

To revive returns on investment and drive revenue growth, international cruise lines generally target the cruise travel market in Asia around China, a trend confirmed by John Tercek, vice president of Royal Caribbean Cruises, world's top-3 cruise line by market share, at the 2014 Asia Cruise Forum held June 18 in Kaohsiung, southern Taiwan.

At the venue, Tercek was invited to talk about the prospects of Asia's cruise travel market with some 100 industry specialists in the audience from cruise lines, including the other two top-3 firms: Carnival Cruise Lines and Norwegian Cruise Line.

Tercek indicated that global cruise tourists totaled 21 million last year, when the big three cruise lines commanded an 85% share of the market. The sector's overall revenue has steadily grown as a result, but the flipside, he stressed, is that profits have been gradually eroded by continuous, considerable investments needed to enhance cruise operators' capabilities to serve growing customers, given that the sector is a capital-intensive one.

To revive their profits, Tercek says that the world's major cruise lines are refocusing on almost saturated cruise travel markets in the Mediterranean Sea, Brazil and so forth to Asia, primarily because of the enormous growth potential.

For instance, the vice president said, there were around 5 million cruise travelers in China last year, or about 0.04% of the country's 1.34 billion population. With cruise tourism increasingly popular in Asia, he predicts the abovementioned ratio to surge to 0.5% to total about 5.6 million in China this year, when the overall number in Asia will soar to 16.5 million, including 5.5 million in India, 1.2 million in Indonesia and 650,000 in Japan.

With Asia gradually becoming the main driver of the world's cruise travel market, Tercek said that his company therefore has recently struck an agreement with the Taiwan International Port Corporation (TIPC), a government-linked operator of the island's commercial ports, to jointly set up a large cruise terminal and yacht harbor in Penghu, an archipelago off the western coast of Taiwan, as part of its effort to explore the Asian market.

On other trends in the sector, Tercek foresees ever more large cruise liners to be built to sustain the market in 2014-2018, when an estimate of 28 newly built cruise ships will be continually commissioned.

Taiwan Sees Fast-growing Cruise Tourism
With the government and TIPC's efforts to promote Taiwan's cruise tourism, the island's cruise tourism sector is rapidly growing.

At the forum, K.S. Yeh, Taiwan's Minister of Transportation and Communications (MOTC), indicated that Taiwan's cruise travelers are estimated to surge to 760,000 for a 40% notable growth this year from last year. The sector on the island has the potential to see continuing growth for several advantages, says  Yeh, including the island's pivotal position between China and Southeast Asian cruise network. Global cruise travelers will likely reach 30 million by 2020, with 40% in Asia, the minister says.

Chen Chen, Kaohsiung City Mayor, noted Kaohsiung City Government has actively worked with TIPC, Tourism Bureau under MOTC and related industrial bodies to develop cruise tourism in the city. Chen also predicted international cruise ship visits and passenger arrivals in Kaohsiung Port to notably rise to 47,000 and over 100,000, respectively, this year.

Meanwhile, the TIPC has also kicked off construction of cruise terminals in Kaohsiung Port and Keelung Port, scheduled to be completed in 2017 and 2018, respectively. The facilities will not just be new city landmarks, but also help attract more cruise passengers from all over the world by offering better convenience and comfort to drive overall tourist arrivals in Taiwan.

Tercek also evaluates Kaohsiung Port's potential to turn into a global cruise ship home port along with China's Xiamen Port in the future, though Taiwan has yet to be included in the world's top-10 home destinations at present.

According to MOTC's report, Taiwan's  tourists on non-scheduled cruises are estimated to surge to nearly 550,000 to generate output value of NT$2.63 billion (US$87.66 million) for the sector this year, with cruise liner visits to total 376. As of the end of this April, Taiwan's cruise passenger arrivals reached 159,000, sharply up 83.2% year on year. (SC)

Performance by World's Top 3 Cruise Lines
Company
Carnival Cruise Lines
Royal Carribbean Cruises
Norwegian Cruise Line
Year
2010
2013
2010
2013
2010
2013
Revenue
US$14.5 Bn.
US$15.5 Bn.
US$6.7 Bn.
US$7.9 Bn.
US$2.0 Bn.
US$2.6 Bn.
Net Profits
US$1.9 Bn.
US$1.1 Bn.
US$515 M.
US$473 M.
US$22 M.
US$101 M.
Returns on Investment
7.1%
4.0%
5.1%
4.6%
3.9%
6.8%
Source: Royal Carribbean Cruises


Industry In-Focus

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions</h2>

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions

Jan 14, 2019

The world waited with bated breath as Chinese and U.S. representatives met during this week to deliberate over whether the trade war would finally come to a reasonable conclusion. Throughout the entirety of the trade war early last year, from escalation to the tentative 90-day truce borne from the G20 Summit in Argentina between President Xi Jinping and U.S. counterpart President Donald Trump...


Taiwan Firms Kicks off 2019 at ArabPlast </h2>

Taiwan Firms Kicks off 2019 at ArabPlast

Jan 10, 2019

The biannual ArabPlast 2019 is marked as the most indicative benchmark as the largest trade expo for plastics, petrochemicals and rubber industry in the MENA region. The show kicked off on Jan. 5, attracting 336 exhibitors from 27 countries. Taiwanese exhibitors also attended, led by Taiwan Association of Machinery Industry in a 34-member strong delegation, a size just shy of China and India. ...


ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union</h2>

ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union

Dec 28, 2018

November 20 marks a huge milestone in Taiwan’s self-driving industry. The Automotive Research & Testing Center (ARTC) joined hands with 18 brands, including Acer ITS Inc., Global UniTek, Shin Wei Automotive Industrial and others of Taiwan’s top-to-bottom industrial chain to form the Autonomous Vehicle Industry Alliance. Their overall aim is to shore up support for a new, innovative operation m...



Industry Reports

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions</h2>

Latest Chinese-U.S. Trade Talks Mark Chance of Higher-Level Meetings and Ease Market Tensions

Jan 14, 2019

The world waited with bated breath as Chinese and U.S. representatives met during this week to deliberate over whether the trade war would finally come to a reasonable conclusion. Throughout the entirety of the trade war early last year, from escalation to the tentative 90-day truce borne from the G20 Summit in Argentina between President Xi Jinping and U.S. counterpart President Donald Trump...


ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union</h2>

ARTC Teams Up With 18 Companies to Form Self-Driving Vehicle Union

Dec 28, 2018

November 20 marks a huge milestone in Taiwan’s self-driving industry. The Automotive Research & Testing Center (ARTC) joined hands with 18 brands, including Acer ITS Inc., Global UniTek, Shin Wei Automotive Industrial and others of Taiwan’s top-to-bottom industrial chain to form the Autonomous Vehicle Industry Alliance. Their overall aim is to shore up support for a new, innovative operation m...


An Alliance Between Ford and VW Could be Announced as Early as Next Year</h2>

An Alliance Between Ford and VW Could be Announced as Early as Next Year

Dec 11, 2018

There is news of a far-reaching alliance between Ford Motor and Volkswagen, according to those familiar to the matter, reported CNBC. The two world’s largest automakers plan to announce the alliance next January, a partnership that would encompass sharing assembly plants in the U.S. to avoid new the wave of tariffs, joint marketing and distribution as well as product development, possibly on t...



Supplier News

Antrc Industrial Corp. offers bumpers, parts, decoration strips, skid plates, radiator, radiator grill, headlights and rear lights and will be exhibiting at Automechanika Shanghai to tap into the Asian markets. (photo courtesy of Antrc Industrial Corp.)

Antrc Industrial Corp. Aims for High-End Auto Parts Industry for Asian Markets

Dec 05, 2018

Antrc Industrial Corp. focuses on manufacturing plastic parts, metal parts and other automotive parts in the aftermarket industry. The firm can roll out parts and products that match with customers’ needs and the industry pulse in this changing and competitive market. Having deep roots in the AM industry, Antrc can deliver with its complete supply chain, from designing, molding making and finally...

ANTRC INDUSTRIAL CORP.


NHC and YangPo products satisfy demands for different automobiles. (photographed by Tseng Lung-nan)

Brake Maker Nan Hoang Rides on Biz Upswing to Offer More Clients the Best

Dec 04, 2018

For more than five decades, Nan Hoang Traffic Instrument Co., Ltd (NHC) has been one of the major manufacturers of specialty vehicle friction materials in Taiwan and around the world. Chairman Austin Cheng has been carrying out their “double-arrow developing plan” for this year. In one aspect, through its private label YangPo, NHC aims to adopt a more effective marketing strategy for selling own-...

NAN HOANG TRAFFIC INSTRUMENT CO., LTD.


Intime offers high-quality performance brake calipers. (photo courtesy of Intime)

Intime's Products Sought-after by Professionals Worldwide

Dec 04, 2018

Founded in 2013, Intime Auto Parts Co., Ltd., specializes in making performance brake calipers and performance shock absorber systems. Intime takes pride of its “n&b performance” series. The firm's n&b ceramic brake pads, which are made of low metallic NAO material, is capable of functioning without damaging the brake discs. Also notable is that the brake dust can be removed easily from the al...

INTIME AUTO PARTS CO., LTD.



Insiders' Views

Megvii Technology Founder and CEO Tang Wenbin

Part 1 Megvii Technology Founder Interview: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan

Sep 07, 2018

Using facial recognition to remove security checks and recognizing criminals sounds like technological applications out of a movie, though much of it is already implemented in everyday life. Having been founded for only seven years, Megvii Technology Limited, or more commonly known for its facial recognition and AI application Face++, owns critical technology by combining both, and now, recently ...

FOXCONN TECHNOLOGY


Megvii Technology Founder Interview Part 2: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan</h2>

Megvii Technology Founder Interview Part 2: Face++ AI Facial Recognition sets eye on Asia, starting with Taiwan

Sep 07, 2018

Tang Wenbin, founder and CEO of Megvii Technology, will be visiting Taiwan next week, but accepted an overseas interview with Economic Daily News on Sept. 6. This is the second installment of the interview. Aiming for a complete application; forming a city’s “brain” Q: What are the goals and strategy for the next phase? A: When the company first started off, we had to find a way to impl...

FOXCONN TECHNOLOGY


MPN's Editor-at-large Provides Holistic, In-depth Insights into U.S. Market for Powersports</h2><p class='subtitle'>Industry veteran suggests Taiwanese suppliers establish market presence as priority</p>

MPN's Editor-at-large Provides Holistic, In-depth Insights into U.S. Market for Powersports

Industry veteran suggests Taiwanese suppliers establish market presence as priority

May 24, 2018

One of the concurrent events held during the 13th Taiwan International Motorcycle Industry Show (Motorcycle Taiwan 2018), the seminar titled “Turning New U.S. Powersports Business Opportunities” was rounded off with overwhelming acclaim from the audience as a resounding success, mostly thanks to the excellent quality of the lecturers invited, all of whom are seasoned veterans and experts at high ...



Exhibition Highlights

Taiwan Firms Kicks off 2019 at ArabPlast </h2>

Taiwan Firms Kicks off 2019 at ArabPlast

Jan 10, 2019

The biannual ArabPlast 2019 is marked as the most indicative benchmark as the largest trade expo for plastics, petrochemicals and rubber industry in the MENA region. The show kicked off on Jan. 5, attracting 336 exhibitors from 27 countries. Taiwanese exhibitors also attended, led by Taiwan Association of Machinery Industry in a 34-member strong delegation, a size just shy of China and India. ...


2018 AAPEX Post-Show Report</h2>

2018 AAPEX Post-Show Report

Dec 24, 2018

The 2018 edition of Automotive Aftermarket Products Expo (AAPEX) kicked off from Oct. 30 to Nov. 1 at Sands Expo Center; a total of 6,269 exhibitors came from 43 countries/regions, a 4% growth compared to last year’s figures, using up over 5,000 booths. Organizers estimate that over 162,000 professional buyers from approximately 135 countries visited the largest show of its kind in the North Amer...


Source: show organizer

The 19th Fastener Trade Show Suzhou - China's leading one-stop purchasing platform for fasteners, machinery and supporting products

Dec 05, 2018

As a large international fastener specialized exhibition, the 19th Fastener Trade Show Suzhou will connect the upstream and downstream of fastener manufacturing industry. Focusing on end users and building a global fastener trade platform are the highlights of the show. The 17th Fastener Trade Show Suzhou, successfully held during 26-28 October 2017, was highly praised by exhibitors and visito...