Page 228 - 2018 White Paper on the Business Environment in China
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8 White Paper on the Business Environment in China
from point A to point B. “We have still a huge challenge who can play the newcomers off against incumbent
ahead of us to create more consumer awareness of what a European suppliers (China Bulks). Tailoring ships to
cruise is, what that experience is like,”said Adam Goldstein, win over Chinese seafarers, however may provide an
President of Royal Caribbean. The cruise lines also have to advantage to local cruise lines that can adapt quickly to
tailor their offerings to fit their new demographic.“There’s the rapidly changing tastes of Chinese consumers, said
much more of an emphasis on shopping,” Goldstein said, Yu Dunde, CEO of Chinese online travel booking service
adding that Chinese passengers spend two or three Tuniu Corp. China has“too many similar offerings,”said Yu.
times as much in the on-board stores. “Plus we know that “To win the market, you’ll have to differentiate through
they’re shopping energetically in the ports of call.” But, activities, you have to give people something that other
according to Bloomberg, perhaps the biggest difference cruises can’t” (Whitley and Dong).
in China is that cruises are often a mutigenerational
holiday.“Chinese cruise travelers are very family-oriented,” Companies are trying to diversify, with more ships
said Muskat at SkySea, which counts Royal Caribbean and departing from southern ports like Guangzhou and
Chinese online travel service Ctrip.com International Ltd. Xiamen into the warmer waters of the South China Sea
as major backers. “They like to spend a lot of time with for the winter market, but stormy seas are brewing.
their family whereas in North America you can put the The nautical travel routes have become increasingly
kids in the youth program for seven days and not see uncertain due to the region’s politics. Both Royal
them again” (Whitley and Dong). Then again, most of Caribbean Cruises and Costa dropped calls to South
the ships sailing from China have larger casinos that you Korean ports in March 2017 for their cruises departing
would find on those in the Caribbean. from China amid escalating tensions between the two
countries over the deployment of a U.S. Thaad missile
One development may buoy the waters a bit for defense system (Whitley and Dong). Itinerary options
European cruise ship builders. Chinese companies are for short cruises from China are limited and pose the
building their own big ships. Shanghai Waigaoqiao immediate challenge for cruise lines cancelling calls to
Shipbuilding Co., a subsidiary of China State Shipbuilding South Korean ports following a political spat between the
Corp., is working with Italian cruise shipbuilder Fincantieri two countries. According to Korea Tourism Organization,
to build two vessels worth approximately $1.5 billion. The Chinese tourists represented 46.5 percent of all tourists
ships will be delivered to a new China-based joint venture monthly and 98,340 of the 129,411 cruise passenger
between Carnival, China State Shipbuilding Corporation arrivals in January 2017. Despite the growth potential
(CSSC) and China Investment Capital Corporation (CIC of China, the long-term impact could well influence the
Capital), and will be tailored for the Chinese market. The cruise lines’ future commitment to the region given its
first, carrying about 4,000 passengers, is expected to instability (Stephens).
be delivered around 2023 and the operator also has an
option for four more.The Shanghai shipyard said the order Other problems have occurred around Japan and its
is a substantial step forward that brings local builders southeastern neighbors concerning disputed islands,
closer to their dream of having a cruise vessel made in but so far it’s still full speed ahead for the industry. In
China (Whitley and Dong). SunStone Ships, a smaller the latest effort by Beijing to bolster its claims in the
Miami-based cruise outfit, ordered four more from China strategic waterway, a Chinese cruise ship embarked on
Merchants Heavy Industry, another state-owned yard its maiden voyage to the disputed Paracel Islands in
near Shanghai (China Bulks). China State Shipbuilding the South China Sea. Brunei, Malaysia, the Philippines,
Corporation has targeted its first new build launch for Vietnam and Taiwan also lay claim to parts of the
2022, followed by another ship in 2023 (Chinese Cruise). sea, through which passes about $5 trillion of trade
a year. Tourists will be able to visit the three disputed
It will not be easy for Chinese yards to build such ships. islands in the Crescent group of the Paracels. China has
Europe’s dominance came from developing clusters previously said it plans to build hotels, villas and shops
of niche suppliers. Cruise ships may look like hotels at on the Crescent group and has also said it wants to build
sea, but the materials and even the plumbing that are Maldives-style resorts around the South China Sea,
required to meet maritime regulations are very different though it is unclear if foreigners will ever be allowed to
to anything of used on land. Even so, the state is ready to visit. China claims 90 percent of the potentially energy-
hand Chinese shipbuilders the billions of dollars required. rich South China Sea (Blanchard). Indeed, it seems the
The real beneficiaries may well be Western cruise lines, growth of Chinese cruise tourism in the region could
228
from point A to point B. “We have still a huge challenge who can play the newcomers off against incumbent
ahead of us to create more consumer awareness of what a European suppliers (China Bulks). Tailoring ships to
cruise is, what that experience is like,”said Adam Goldstein, win over Chinese seafarers, however may provide an
President of Royal Caribbean. The cruise lines also have to advantage to local cruise lines that can adapt quickly to
tailor their offerings to fit their new demographic.“There’s the rapidly changing tastes of Chinese consumers, said
much more of an emphasis on shopping,” Goldstein said, Yu Dunde, CEO of Chinese online travel booking service
adding that Chinese passengers spend two or three Tuniu Corp. China has“too many similar offerings,”said Yu.
times as much in the on-board stores. “Plus we know that “To win the market, you’ll have to differentiate through
they’re shopping energetically in the ports of call.” But, activities, you have to give people something that other
according to Bloomberg, perhaps the biggest difference cruises can’t” (Whitley and Dong).
in China is that cruises are often a mutigenerational
holiday.“Chinese cruise travelers are very family-oriented,” Companies are trying to diversify, with more ships
said Muskat at SkySea, which counts Royal Caribbean and departing from southern ports like Guangzhou and
Chinese online travel service Ctrip.com International Ltd. Xiamen into the warmer waters of the South China Sea
as major backers. “They like to spend a lot of time with for the winter market, but stormy seas are brewing.
their family whereas in North America you can put the The nautical travel routes have become increasingly
kids in the youth program for seven days and not see uncertain due to the region’s politics. Both Royal
them again” (Whitley and Dong). Then again, most of Caribbean Cruises and Costa dropped calls to South
the ships sailing from China have larger casinos that you Korean ports in March 2017 for their cruises departing
would find on those in the Caribbean. from China amid escalating tensions between the two
countries over the deployment of a U.S. Thaad missile
One development may buoy the waters a bit for defense system (Whitley and Dong). Itinerary options
European cruise ship builders. Chinese companies are for short cruises from China are limited and pose the
building their own big ships. Shanghai Waigaoqiao immediate challenge for cruise lines cancelling calls to
Shipbuilding Co., a subsidiary of China State Shipbuilding South Korean ports following a political spat between the
Corp., is working with Italian cruise shipbuilder Fincantieri two countries. According to Korea Tourism Organization,
to build two vessels worth approximately $1.5 billion. The Chinese tourists represented 46.5 percent of all tourists
ships will be delivered to a new China-based joint venture monthly and 98,340 of the 129,411 cruise passenger
between Carnival, China State Shipbuilding Corporation arrivals in January 2017. Despite the growth potential
(CSSC) and China Investment Capital Corporation (CIC of China, the long-term impact could well influence the
Capital), and will be tailored for the Chinese market. The cruise lines’ future commitment to the region given its
first, carrying about 4,000 passengers, is expected to instability (Stephens).
be delivered around 2023 and the operator also has an
option for four more.The Shanghai shipyard said the order Other problems have occurred around Japan and its
is a substantial step forward that brings local builders southeastern neighbors concerning disputed islands,
closer to their dream of having a cruise vessel made in but so far it’s still full speed ahead for the industry. In
China (Whitley and Dong). SunStone Ships, a smaller the latest effort by Beijing to bolster its claims in the
Miami-based cruise outfit, ordered four more from China strategic waterway, a Chinese cruise ship embarked on
Merchants Heavy Industry, another state-owned yard its maiden voyage to the disputed Paracel Islands in
near Shanghai (China Bulks). China State Shipbuilding the South China Sea. Brunei, Malaysia, the Philippines,
Corporation has targeted its first new build launch for Vietnam and Taiwan also lay claim to parts of the
2022, followed by another ship in 2023 (Chinese Cruise). sea, through which passes about $5 trillion of trade
a year. Tourists will be able to visit the three disputed
It will not be easy for Chinese yards to build such ships. islands in the Crescent group of the Paracels. China has
Europe’s dominance came from developing clusters previously said it plans to build hotels, villas and shops
of niche suppliers. Cruise ships may look like hotels at on the Crescent group and has also said it wants to build
sea, but the materials and even the plumbing that are Maldives-style resorts around the South China Sea,
required to meet maritime regulations are very different though it is unclear if foreigners will ever be allowed to
to anything of used on land. Even so, the state is ready to visit. China claims 90 percent of the potentially energy-
hand Chinese shipbuilders the billions of dollars required. rich South China Sea (Blanchard). Indeed, it seems the
The real beneficiaries may well be Western cruise lines, growth of Chinese cruise tourism in the region could
228
