Shanghai Energetically Developing Cruise Industry

By Wang Jun, Du Wenyu and Chen Xinguang

In the persistent downturn of the global shipbuilding market, the large cruise market suddenly booms and has become the only short-supply product in today’s world shipbuilding industry.As China’s most important water portal, international passenger transport port and Asia’s largest location of home port for cruise ships, Shanghai is facing unprecedented opportunity for independently developing its cruise ship manufacturing industry.

Under the strong impetus of government and market, the Chinese cruise ship industry is becoming a new growth sector of ocean economy. The next five years will be a key period for rapid development of the Chinese cruise ship economy and construction,marine equipment and operation towards maturity, modernization and internationalization. According to estimation, the Chinese cruise tourism market is growing at a rate of annual average 40%, tourist number will hit 5 million person-times by 2020 and 10 million person-times by 2030 and the Chinese cruise ship market will become the world’s most important cruise ship market.

Cruise ship industry dubbed as“gold industry floating in the sea”has huge pulling effect on consumption,manufacturing and culture sectors and is expected to bring a large number of jobs for cruise home-port areas and boost an increase in consumption power. As China’s most important water portal,Shanghai has unique advantages in developing its cruise ship industry.

Regional Advantages

Shanghai port, located in the center of China’s north-south coastline and estuary to the Yangtze River, internally connects the whole Yangtze River basin and externally connects the whole world,luxury cruises can arrive at Korea, Japan,Philippines and China’s Hong Kong and Taiwan, and this regional advantage is unique among Chinese coastal cities.Shanghai is a port city that was the earliest to receive international cruises and a coastal port which accommodates the most international cruises in China.Wusong port of international cruise is Asia’s busiest international cruise home-port and will become an important axis of the world cruise tourist line.To date, world’s three largest cruise groups -- Carnival Cruise Lines, Royal Caribbean and Star Cruises -- have set up their respective branches and enterprises in Shanghai and established many regional cruise tourist lines with Shanghai as home port. As a result,Shanghai witnesses a yearly jump of international cruises and tourists arriving at Shanghai.

Industrial Advantages

At present, in response to the“Belt and Road” initiative, Shanghai Municipal Government is building Shanghai international shipping center, with promoting cruise industry development and building the largest cruise home-port in Asia-Pacific region as its important integral and main carrier for Shanghai international cruise city construction. Shanghai CSSC International Cruise Industry Park in the Baoshan Industry Park,as an important functional area and supporting area for Shanghai to develop its cruise industry, will actively widen its industrial chain for cruise economy,strive to transform its scale advantage of cruise berthing to industrial advantages and comprehensively improve Shanghai cruise economy development energy level and radiation and driving capacity for regional economy.

Tourism Advantages

Shanghai possesses well-known scenic spots such as the Bund, Yu Garden, Nanjing Road and Disneyland and attracts tourists of all countries. The city has more than 1000 travel agencies,more than 70 international brand fivestarred hotels, more than 100 tourist attractions (scenic spots) including 29 above 4A tourist attractions (scenic spots)and more than 300-voyage annual cruise reception capacity. In 2016 Wusong port of international cruise received more than 400 cruises and about 2.5 million exit and entry tourists, driving development of the Chinese cruise ship market. In top ten cities most favored by tourists for cruise travel, the Yangtze River Delta area has six -- Shanghai, Hangzhou, Suzhou,Wuxi, Ningbo and Nanjing, providing solid tourist basis for Shanghai cruise travel, enabling more cruise tourists to select Shanghai as the berthing and sight-seeing destination and even the place of origin.

Policy Advantages

Shanghai is both an international shipping center and Asia’s largest cruise home-port city. It is also a bridgehead for the national “Belt and Road” development strategy zone,providing unprecedented opportunity for Shanghai cruise industry development.For the purpose of accelerating the Shanghai cruise industry development,the Shanghai Municipal Government issued “Twenty Opinions on Seven Aspects for Developing Shanghai Cruise Travel Industry” in 2003. The Municipal Government formulated“12th Five-Year Development Program for Shanghai Cruise Industry” in 2010 and “13th Five-Year Development Program for Shanghai Cruise Industry”in 2016, identifying the development strategies and goals for the Shanghai cruise industry. In 2015 it issued“Model Version of Shanghai Cruise Tourism Contract”, “Announcement on Opinions for Supporting Shanghai Cruise Industry Development” and other documents, and in 2016 it launched“Shanghai Cruise Tourism Operation Code”. The launching of these cruise policies has greatly promoted a new round of development for the Shanghai cruise industry.★