Page 384 - 2021 White Paper
P. 384
1 White Paper on the Business Environment in China

impacted every passenger market worldwide, Chi- Since its opening in October 2011, the terminal
na's fundamental growth drivers remain resilient has welcomed 2,200 cruise ships carrying over
and robust. Boeing and its European rival Airbus 13 million passengers. Several liners from the
have been jostling to increase market share in world's top cruise liner companies — Carnival,
China, but they also face rising competition from Royal Caribbean, Norwegian, MSC and Genting —
state-owned plane maker Commercial Aircraft have made their maiden voyages in Asia from the
Corporation of China. Boeing projected a need Wusongkou terminal. All cruise liners operating at
for 6,450 new single-aisle airplanes over the next the port have been suspended since January 2020
20 years, while China's widebody fleet will require to prevent the spread of the coronavirus outbreak.
1,590 new planes, accounting for 18% of the total When cruises resume, ships will be allowed to
deliveries, which fell from a year ago due to an- berth at the port only under strict coronavirus
ticipation of a slower recovery in global long-haul prevention measures, with the approval of national
traffic (Newshub). authorities. According to local plans, returning
cruise liners will serve as "floating resorts," inviting
Cruises tourists to go onboard and use their theaters,
gyms and restaurants and swimming pools, all
Many cruise operators are gradually returning under strict COVID-19 prevention measures. With
to sailing, with a watchful eye on the China market operations of most cruise liner ports suspended
and new global outbreaks of COVID-19. Though during the pandemic, foreign crews have been
impacted heavily by the COVID-19 outbreak, the forbidden from disembarking on foreign shores.
nature of people to pursue social togetherness The Wusongkou terminal allowed entry of Chinese
and the huge potential of the cruise industry will crew members of the Quantum of the Seas liner
not be reversed by the pandemic. Cruises are a in April, after they had been at stranded at sea
driving force of the tourism industry. Cruise ships for over 60 days. The new sailings were exclusive
around the world were the sites of the earliest to residents of Singapore. Cruise operators said
clusters of infection earlier this year, forcing cruise they will ensure rigorous protocols that include
operators to shut down operations and countries testing and screening, upgraded ventilation and
to close their ports of welcome. Carnival Corp air-conditioning systems, enhanced filtration,
removed 13 ships from its fleets in 2020. Shanghai stringent cleaning practices, below-capacity
officials, however, remain upbeat about the future passenger numbers for greater physical
of the industry once the world emerges from distancing and expert onboard medical care. On
the pandemic. China was the largest emerging board, performance audiences will be smaller.
cruise liner market before COVID-19 struck. To Buffets are out for the time being, replaced by
allay consumer fears, cruise ship companies and seated dining and staggered meal times to allow
terminals are going all out to demonstrate steps for social distancing. Facilities such as spas, pools
they are taking to ensure the health and safety and children’s activities will be limited in number
of passengers. However, the ultimate fate of the at any one time (Hu and Yang).
industry depends on consumer sentiment. Many
potential cruise passengers are taking a wait-and- Asia is expected to remain a growth market,
see attitude. Liners that use Wusongkou as their thanks largely to the region's expanding middle
home port are expected to launch onshore tourist class, which is increasingly willing to spend on
activities to publicize their return to operation. travel. Passenger capacity in the region had been
Many cruise companies have expressed their growing since 2013, topping 4 million in 2019.
hopes of restoring operations as soon as possible. Joel Katz, CLIA's managing director for Australasia
The Wusongkou terminal is the busiest in Asia and and Asia, said: "When the time is right, we
the fourth-largest of its kind in the world. It can envisage cruise operations are likely to resume
berth four luxury liners at one time. in controlled phases and on a regional basis,
particularly while international travel is restricted.
In different regions this may involve domestic
cruises, short itineraries, or operations within a
regional bubble." Governments and international

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