Recently, the "Ocean Spectrum" cruise ship, carrying nearly 4000 international tourists from multiple countries and regions such as Singapore, Malaysia, Thailand, Indonesia, and Australia, slowly docked and arrived at the Wusongkou International Cruise Port in Shanghai. This is the highest number of international tourists entering China on a single ship since its opening, and also the largest inbound tourist group to visit Shanghai before the arrival of the May Day holiday.
The "Ocean Spectrum" has returned to its home port in Shanghai, which has been separated for 4 and a half years. Starting from April 27th, it resumed operations on international cruise vacation routes to neighboring countries, bringing more than 3700 tourists to Fukuoka, Japan, and embarking on its maiden voyage. The Ocean Spectral, with a cost of 1.25 billion US dollars, is a 170000 ton super international giant ship specially designed by Royal Caribbean for the Chinese market in 2019, with a maximum passenger capacity of 5200 people. The reporter from First Financial News saw on site that the most expensive "Perfect Family Suite" on "Ocean Spectrum" includes multiple guest rooms, children's rooms, duplex slides, home theater, massage bathroom, etc. The staff stated that "Perfect Family Suite" is usually priced at around 200000 yuan for a 5-day flight, and during peak season, the price can exceed 300000 yuan.
As the only international cruise ship operating in China for the whole year of 2024, the return of "Ocean Spectrum" marks the return of Shanghai's position as an international cruise industry investment gateway in the Asia Pacific region, and the return of the healthy and rapid development track of the emerging Chinese cruise industry.
"China is one of the most important strategic markets for Royal Caribbean," said Mike Baylor, Global President and CEO of Royal Caribbean International Cruises. "During the pandemic, 'Ocean Spectrum' was the only international cruise ship that did not leave Asian waters, waiting for the day of its return to its home port in Shanghai."
It is understood that Royal Caribbean officially entered the Chinese market in 2009 and was one of the first international cruise enterprises to enter the Chinese market for development. The cruise business was once booming in China, but it has also encountered the problem of low price competition. In the industry reshuffle, some cruise companies have also withdrawn from the market. Under the impact of the epidemic, international cruise ships have temporarily stagnated in the Chinese market. Recently, with the restart of Mediterranean cruise routes in the Chinese market, the Royal Caribbean cruise has also returned, and the recovery of the Chinese cruise tourism market has significantly accelerated.
"Compared to many years ago, I now see several new characteristics in the Chinese cruise market. Firstly, there is a significant increase in younger consumers under the age of 30. Secondly, there is an increasing demand for suites and balcony rooms, rather than focusing on relatively low-priced inner cabins. Thirdly, the demand for long haul routes is increasing, and customer sources are becoming more international. In terms of sales models, we have undergone a transformation of cabin cutting in the past few years, no longer just simple charter sales. We are also increasing the proportion of direct sales. For example, after our restart of sales, the booking volume for direct sales has doubled compared to 2019, and travel agencies have completed 70% of cabin cutting sales within two months after opening. The cruise industry is a new scene." Caribbean Asia President Liu Zinan said in an interview with First Financial News.
It is worth noting that international cruise companies have encountered some problems when resuming routes in the Chinese market after several years. For example, in recent times, Mediterranean cruise ships have been complained about by tourists queuing up and disembarking, catering services, and other aspects.
Regarding this, Liu Zinan told First Financial reporters that Royal Caribbean has made many preparations in operation, such as controlling a passenger load rate of about 80%, reducing congestion and queuing, and adopting batch based dining and boarding/disembarking. "We have a long-term outlook on the Chinese market, and we must clarify the value chain to promote the development of China's cruise economy."
At present, Wusongkou International Cruise Port is one of the important visiting ports in Shanghai. It is expected that with the recovery of the cruise industry and the 15 day visa free policy for cruise arrivals, more and more overseas tourists will choose to take cruise ships to Shanghai, which is conducive to the recovery of inbound tourism.
According to the first quarter national immigration data recently released by the National Immigration Administration, over 141 million people entered and exited the country at ports in the first quarter, showing a rapid growth trend, with a significant increase in the number of foreigners coming to China. In the first quarter, under a series of policy measures to promote the exchange of Chinese and foreign personnel, the convenience of foreign personnel working, doing business, studying, traveling, and living in China was greatly improved, and cross-border personnel exchanges continued to heat up.