Page 306 - 2022 White Paper on the Business Environment in China
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2 White Paper on the Business Environment in China
trips and 10 percent said they prefer river cruise were limited to one season, and catering was
trips, according to an earlier report by Shanghai the only revenue source of repeat purchases.
International Cruise Business Institute (Zhu). While international cruise enterprises have been
dominating China’s cruise market, accounting for
Lagging behind in cruise industry recovery, 90% of the total capital and 80% of the capacity,
China put forward the Regulations on Pilot Cruise the regulations only allow enterprises fully owned
Routes of Chinese-invested Ships Flying Flags of by Chinese entities or those with at least 51%
Convenience in Hainan Cruise Ports (For Trial Chinese-controlled shares to operate cruises to
Implementation) to give the cruise industry a nowhere. Even though cruise giants like Royal
boost. The official document sets cruise routes as Caribbean, Costa Cruises and MSC Cruises are
those departing from Haikou and Sanya, sailing open to cooperate with local players, they were
in approved waters and then returning to these not able to establish a joint venture soon enough.
two ports without docking in any other ports, Health and security were also major concerns. In
otherwise known as “cruises to nowhere”. An February 2020, 148 tourists or 16.4% of the total
industry expert added that these cruises would number of passengers on board of the Diamond
not sail on the high seas. Hainan is chosen as the Princess were infected with Covid-19, which
pilot port for several reasons. Firstly, Hainan is dampened tourists’ confidence in cruise safety. It
designated as a Free Trade Port for developing will take time for people to feel comfortable again
into an international tourism and consumption about cruising (CT).
hub, and it’s a natural choice to be the first port
to restart China’s cruise industry. Secondly, the Dream Cruises restarted cruises in Hong
Sanya Phoenix Island International Cruise Port Kong at the end of July 2021 with Genting Dream
is China’s first port designated for international offering two- and three-night “Super Summer
cruises, just an hour’s journey from merging into Seacations” with no port calls, in line with
major international routes, making it a good test government protocols and approval of cruises to
case for extending cruise routes to the high seas nowhere. “Like all Hong Kong residents, we have
in the future. The cruises will also offer more been eagerly looking forward to more vacation
attractive scenery alongside the Paracel Islands alternatives during this period when overseas
than routes sailing along the East China Sea and travel is not permitted. These new “Super Summer
the Bohai Sea areas. Lastly, Hainan has abundant Seacations” will provide Hong Kong residents the
tourism resources and a large customer baser to opportunity to enjoy the pleasures of cruising
support cruises. Between 2010 and 2018, annual again and will bring much-needed benefits to
visitor arrivals to the island province surged to the tourism industry,” said Kent Zhu, president
nearly 76.3 million from no more than 25.9 million, of Genting Cruise Lines. “With Hong Kong a
and revenues increased from 25.8 billion RMB historically key homeport and with our unique
(US$4 billion) to 95 billion RMB (US$14.7 billion), position as a home-grown cruise company based
indicating an annual growth rate of 15% and 18.3% in Asia… the crucial experience gained as the first
respectively, according to the official data released cruise line to resume in Asia with Explorer Dream
in 2019. Despite the pandemic, Hainan registered and World Dream in Taiwan and Singapore with
64.6 million visitors and 87.3 billion RMB (US$13.5 respectively, provides invaluable first-hand
billion) of tourism revenues in 2020, higher than knowledge on how to operate cruises in the
the level of 2017. Despite Hainan’s advantages safest possible environment and it is our goal to
in launching cruises, it will not be plain-sailing to also be the first to resume in Hong Kong," Zhu
restart cruising. These domestic cruise tours did added. Dream Cruises’ Genting Dream became
not generate much upselling revenues from duty- the first ship to re-start sailing in Hong Kong,
free businesses. Cruise capacity capping at 50% reviving the travel agent industry. Genting noted
of full capacity similar to the level of Hong Kong that the restart will not only revitalize the ailing
and Singapore cruises meant ticket revenues travel agent sector which has been adversely
were halved. Climate was another concern, as affected by the pandemic but will also benefit
winter is the only season cool enough for cruising the entire value chain related to goods, services
in Hainan. That means entertainment activities and materials associated with cruise operations.
306
trips and 10 percent said they prefer river cruise were limited to one season, and catering was
trips, according to an earlier report by Shanghai the only revenue source of repeat purchases.
International Cruise Business Institute (Zhu). While international cruise enterprises have been
dominating China’s cruise market, accounting for
Lagging behind in cruise industry recovery, 90% of the total capital and 80% of the capacity,
China put forward the Regulations on Pilot Cruise the regulations only allow enterprises fully owned
Routes of Chinese-invested Ships Flying Flags of by Chinese entities or those with at least 51%
Convenience in Hainan Cruise Ports (For Trial Chinese-controlled shares to operate cruises to
Implementation) to give the cruise industry a nowhere. Even though cruise giants like Royal
boost. The official document sets cruise routes as Caribbean, Costa Cruises and MSC Cruises are
those departing from Haikou and Sanya, sailing open to cooperate with local players, they were
in approved waters and then returning to these not able to establish a joint venture soon enough.
two ports without docking in any other ports, Health and security were also major concerns. In
otherwise known as “cruises to nowhere”. An February 2020, 148 tourists or 16.4% of the total
industry expert added that these cruises would number of passengers on board of the Diamond
not sail on the high seas. Hainan is chosen as the Princess were infected with Covid-19, which
pilot port for several reasons. Firstly, Hainan is dampened tourists’ confidence in cruise safety. It
designated as a Free Trade Port for developing will take time for people to feel comfortable again
into an international tourism and consumption about cruising (CT).
hub, and it’s a natural choice to be the first port
to restart China’s cruise industry. Secondly, the Dream Cruises restarted cruises in Hong
Sanya Phoenix Island International Cruise Port Kong at the end of July 2021 with Genting Dream
is China’s first port designated for international offering two- and three-night “Super Summer
cruises, just an hour’s journey from merging into Seacations” with no port calls, in line with
major international routes, making it a good test government protocols and approval of cruises to
case for extending cruise routes to the high seas nowhere. “Like all Hong Kong residents, we have
in the future. The cruises will also offer more been eagerly looking forward to more vacation
attractive scenery alongside the Paracel Islands alternatives during this period when overseas
than routes sailing along the East China Sea and travel is not permitted. These new “Super Summer
the Bohai Sea areas. Lastly, Hainan has abundant Seacations” will provide Hong Kong residents the
tourism resources and a large customer baser to opportunity to enjoy the pleasures of cruising
support cruises. Between 2010 and 2018, annual again and will bring much-needed benefits to
visitor arrivals to the island province surged to the tourism industry,” said Kent Zhu, president
nearly 76.3 million from no more than 25.9 million, of Genting Cruise Lines. “With Hong Kong a
and revenues increased from 25.8 billion RMB historically key homeport and with our unique
(US$4 billion) to 95 billion RMB (US$14.7 billion), position as a home-grown cruise company based
indicating an annual growth rate of 15% and 18.3% in Asia… the crucial experience gained as the first
respectively, according to the official data released cruise line to resume in Asia with Explorer Dream
in 2019. Despite the pandemic, Hainan registered and World Dream in Taiwan and Singapore with
64.6 million visitors and 87.3 billion RMB (US$13.5 respectively, provides invaluable first-hand
billion) of tourism revenues in 2020, higher than knowledge on how to operate cruises in the
the level of 2017. Despite Hainan’s advantages safest possible environment and it is our goal to
in launching cruises, it will not be plain-sailing to also be the first to resume in Hong Kong," Zhu
restart cruising. These domestic cruise tours did added. Dream Cruises’ Genting Dream became
not generate much upselling revenues from duty- the first ship to re-start sailing in Hong Kong,
free businesses. Cruise capacity capping at 50% reviving the travel agent industry. Genting noted
of full capacity similar to the level of Hong Kong that the restart will not only revitalize the ailing
and Singapore cruises meant ticket revenues travel agent sector which has been adversely
were halved. Climate was another concern, as affected by the pandemic but will also benefit
winter is the only season cool enough for cruising the entire value chain related to goods, services
in Hainan. That means entertainment activities and materials associated with cruise operations.
306
