Page 226 - 2018 White Paper on the Business Environment in China
P. 226
8 White Paper on the Business Environment in China
Poland through Russia and the former Soviet republics all the various roles that need to be fulfilled by cruise
to China, will now offer its UPS Preferred Customer ship staff. China is expected to overtake the U.S. and
Program, full container load, and less-than-container load Europe at some point to be the largest cruising market
multimodal rail service to Changsha, Chongqing, Suzhou in the world. Between 2012 and 2014, the number of
and Wuhan stations in China in addition to the already Chinese cruise-goers increased by around 79 percent.
existing Zhengzhou and Chengdu stops. The four stations The actual number in 2014 was roughly 703,000 people.
were chosen for their proximity to provincial industrial 2015 figures increased even further, up to 986,000. Zheng
manufacturing, commercial and cultural centers in Weihang, Executive Vice President of the China Cruise
interior China, UPS said. UPS said the added stations will and Yacht Industry Association, predicts that by the year
give customers “more options to reduce supply chain 2030, seven million Chinese holidaymakers will enjoy
costs” and provide them with a better balance between their vacations on cruise ships every year. Furthermore,
the cost of transportation and time in transit. “Our four out of ten Asians embarking on cruises in the APAC
China-Europe rail services can save customers up to 65 region are under 40 years old. Perhaps the most curious
percent versus airfreight, and improve time-in-transit by statistic is that as recently as 2016, 84 percent of Asian
40 percent versus traditional ocean freight service,” said cruise-goers were using cruises to visit other destinations
Cindy Miller, President of UPS Global Freight Forwarding. within the APAC region, rather than pursuing other cruise
The UPS China-Europe rail service also offers closed circuit markets. As of 2016, Japan was the most frequented
TV and GPS monitoring for added security, temperature- country, with 1,526 port calls in 2016 (Smith).
controlled containers, simplified import/export customs
clearance processes and track-and-trace capabilities. Rail China’s major port cities saw a growing number of
service, UPS added, also emits 25 times less CO2 than inbound and outbound cruise ships in 2016, totaling
aircraft over the same distance, and also less nitrogen 1,040, according to the China Cruise and Yacht Industry
oxide, non-methane hydrocarbons and sulfur dioxide Association. In 2016, the number of outbound Chinese
compared to sea freight (Woods). cruise passengers topped 2 million for the first time, and is
expected to reach 2.6 million in 2017. Chinese vacationers
Sea Cruises are expecting to take to the seas by taking 3.5 million
cruise trips annually by the year 2020, becoming the
A burgeoning Chinese middle class is beginning to most dynamic cruise market in the Asia-Pacific region.
embrace luxury vacation cruises. The government boosts The nation is already the world’s eighth-biggest cruise
the trend by supporting more lenient annual leave market. Eighteen cruise ships were operating in China’s
policies for employees. Unlike most developed countries major port cities in 2016, a jump from just one ship in
where wealth tends to be concentrated in the hands 2006 when China first started to build its cruise industry.
of retirees and older professionals, the rapid economic “China’s cruise market has huge development potential,”
evolution of China has put the generation of the 25- to said Li Qinggang, Director of Tianjin Dongjiang Maritime
45-year-olds into the privileged position of being able Safety Administration. Tianjin International Cruise Home
to afford a cruise. The Chinese government has defined Port, the largest in Asia, received 138 voyages in 2016 and
cruise vessels as “strategic equipment” for the nation, is expected to receive 150 in 2017 (Ming). Lines including
which means that development support and subsidies Royal Caribbean Cruises and Carnival have sent a flotilla of
are high on its list of priorities. With government’s help, luxury vessels to China to tap the market. “Right now it’s a
ports are working hard to upgrade their infrastructure learning process,” said Ken Muskat, Chief Executive Officer
for new tonnage and more ships. The Wusongkou at SkySea Holding International. “Everybody is adapting
International Terminal in Shanghai now claims to be the and learning more about what the Chinese market
largest of its kind in Asia (MarEx). is looking for.” Most make shorter trips—five days on
average—and call in South Korea and Japan, the top two
The Asian cruise industry is now ranked second in destinations in Asia outside of China (Whitley and Dong).
the world, overtaken by the Mediterranean in 2016. With
60 ships operating in the APAC region, 14 of those year- China still has nowhere near the 11 million plus
round, and a grand total of 7,918 days travelled during from America who cruise each year. Still, companies are
2016 by these ships—this industry is surging forwards. bringing bigger and better ships to the Yellow Sea and
And that means that more jobs are going to be created. seeking new destinations in an effort to persuade Chinese
In shipbuilding, in testing, operation, maintenance, and travelers that a cruise is more than just a means of getting
226
Poland through Russia and the former Soviet republics all the various roles that need to be fulfilled by cruise
to China, will now offer its UPS Preferred Customer ship staff. China is expected to overtake the U.S. and
Program, full container load, and less-than-container load Europe at some point to be the largest cruising market
multimodal rail service to Changsha, Chongqing, Suzhou in the world. Between 2012 and 2014, the number of
and Wuhan stations in China in addition to the already Chinese cruise-goers increased by around 79 percent.
existing Zhengzhou and Chengdu stops. The four stations The actual number in 2014 was roughly 703,000 people.
were chosen for their proximity to provincial industrial 2015 figures increased even further, up to 986,000. Zheng
manufacturing, commercial and cultural centers in Weihang, Executive Vice President of the China Cruise
interior China, UPS said. UPS said the added stations will and Yacht Industry Association, predicts that by the year
give customers “more options to reduce supply chain 2030, seven million Chinese holidaymakers will enjoy
costs” and provide them with a better balance between their vacations on cruise ships every year. Furthermore,
the cost of transportation and time in transit. “Our four out of ten Asians embarking on cruises in the APAC
China-Europe rail services can save customers up to 65 region are under 40 years old. Perhaps the most curious
percent versus airfreight, and improve time-in-transit by statistic is that as recently as 2016, 84 percent of Asian
40 percent versus traditional ocean freight service,” said cruise-goers were using cruises to visit other destinations
Cindy Miller, President of UPS Global Freight Forwarding. within the APAC region, rather than pursuing other cruise
The UPS China-Europe rail service also offers closed circuit markets. As of 2016, Japan was the most frequented
TV and GPS monitoring for added security, temperature- country, with 1,526 port calls in 2016 (Smith).
controlled containers, simplified import/export customs
clearance processes and track-and-trace capabilities. Rail China’s major port cities saw a growing number of
service, UPS added, also emits 25 times less CO2 than inbound and outbound cruise ships in 2016, totaling
aircraft over the same distance, and also less nitrogen 1,040, according to the China Cruise and Yacht Industry
oxide, non-methane hydrocarbons and sulfur dioxide Association. In 2016, the number of outbound Chinese
compared to sea freight (Woods). cruise passengers topped 2 million for the first time, and is
expected to reach 2.6 million in 2017. Chinese vacationers
Sea Cruises are expecting to take to the seas by taking 3.5 million
cruise trips annually by the year 2020, becoming the
A burgeoning Chinese middle class is beginning to most dynamic cruise market in the Asia-Pacific region.
embrace luxury vacation cruises. The government boosts The nation is already the world’s eighth-biggest cruise
the trend by supporting more lenient annual leave market. Eighteen cruise ships were operating in China’s
policies for employees. Unlike most developed countries major port cities in 2016, a jump from just one ship in
where wealth tends to be concentrated in the hands 2006 when China first started to build its cruise industry.
of retirees and older professionals, the rapid economic “China’s cruise market has huge development potential,”
evolution of China has put the generation of the 25- to said Li Qinggang, Director of Tianjin Dongjiang Maritime
45-year-olds into the privileged position of being able Safety Administration. Tianjin International Cruise Home
to afford a cruise. The Chinese government has defined Port, the largest in Asia, received 138 voyages in 2016 and
cruise vessels as “strategic equipment” for the nation, is expected to receive 150 in 2017 (Ming). Lines including
which means that development support and subsidies Royal Caribbean Cruises and Carnival have sent a flotilla of
are high on its list of priorities. With government’s help, luxury vessels to China to tap the market. “Right now it’s a
ports are working hard to upgrade their infrastructure learning process,” said Ken Muskat, Chief Executive Officer
for new tonnage and more ships. The Wusongkou at SkySea Holding International. “Everybody is adapting
International Terminal in Shanghai now claims to be the and learning more about what the Chinese market
largest of its kind in Asia (MarEx). is looking for.” Most make shorter trips—five days on
average—and call in South Korea and Japan, the top two
The Asian cruise industry is now ranked second in destinations in Asia outside of China (Whitley and Dong).
the world, overtaken by the Mediterranean in 2016. With
60 ships operating in the APAC region, 14 of those year- China still has nowhere near the 11 million plus
round, and a grand total of 7,918 days travelled during from America who cruise each year. Still, companies are
2016 by these ships—this industry is surging forwards. bringing bigger and better ships to the Yellow Sea and
And that means that more jobs are going to be created. seeking new destinations in an effort to persuade Chinese
In shipbuilding, in testing, operation, maintenance, and travelers that a cruise is more than just a means of getting
226
