Singapore investing heavily in cruise infrastructure

Channel NewsAsia 16 Nov 11;

SINGAPORE: Singapore is investing heavily in cruise infrastructure as a strategy to ensure the industry becomes an engine of growth for the tourism sector.

Speaking at the inaugural Cruise Shipping Asia 2011 Convention, Minister of State for Trade and Industry Mr Teo Ser Luck said upgrading work at the International Cruise Terminal will see the number of berths double by the second quarter of next year.

The Terminal will also be able to accommodate the largest cruise ships of today.

It's location near the Marina Bay will also mean cruise passengers can have easy access to iconic attractions like Gardens by the Bay and the Marina Bay Sands Integrated Resort.

Mr Teo said Singapore is also committed to developing a robust ecosystem to support the local cruise industry.

It is working with stakeholders to ensure that ships enjoy high service standards when they call here.

Singapore is also working closely with ASEAN partners to spur investments in infrastructure to string together cruise itineraries.

Mr Teo said the intention is to create a "cruise playground" in the region to take advantage of the varied landscapes, tropical climate and multi-cultural appeal.

- CNA/fa

Strong wave of growth seen for cruise industry in Asia
Asians expected to make up a third of global passengers by then, from 8% now
Lynn Kan Business Times 18 Nov 11;

(SINGAPORE) The number of Asian cruise passengers could reach 11 million by 2030, up significantly from 1.5 million passengers now.

The Asian explosion will be part of the worldwide passenger increase to 35 million from 19 million now, according to Michael Bayley, executive vice-president of Royal Caribbean International.

This means that Asians would also make up some one-third of the world's cruise passengers in 2030, up from a meagre 8 per cent currently.

'Asia-Pacific is severely under-penetrated,' Mr Bayley said.

The explosion in the numbers of cruise passengers worldwide means that the industry would have to make huge investments.

By some estimates, about US$6.3 billion a year has to be spent just on building cruiseships to support the doubling of cruise passengers.

These vessels may not head to Asia just yet, as many expect cruise lines to deploy their existing tonnage here.

But in time to come, the Asian cruise market may be significant enough to warrant newer ships.

'Brand new tonnage may not come here right away, but that 10-year tonnages are coming here is a positive thing. This region got cruiseships which were 20 years old,' said Steve Odell, senior vice-president for UK, Europe and Asia-Pacific at Silversea Cruises.

Cruise operators at the conference Cruise Shipping Asia agreed that Asia looks increasingly attractive as a source market, because of the two most populous nations, China and India. The region's middle-class growth will also supply cruise liners with plenty of first-time customers.

With Asian destinations getting more attention, and if cruiseships calling at Asian harbours get larger, Asia-bound volumes can only grow.

Next year, Asia will get its largest cruiseship touring the region: the 15-deck Voyager of the Seas, which can take well over 3,000 passengers.

'You don't need many Voyager of the Seas to get the volumes up,' said Mr Odell.

Yet, there are reasons to doubt that an Asian boom might happen quickly. The low awareness among Asians about cruising as a mode of travel is one reason.

'Either they have no perception about cruising or the wrong perception that it is for older people and expensive,' said Mr Bayley.

To fix that, Asian countries need more sophisticated and savvy travel agents to change the image of cruising as more than a casino at sea.

Knowledgeable and well-trained travel agents have been the reason for the European market ballooning to more than five million people from about slightly over one million 10 years ago.

While Asian destinations have proved popular, the on-land facilities and itineraries are less so. Asian governments have been developing harbours and cruise terminals assiduously, without paying heed to the surrounding infrastructure and attractions.

'There is a need for quality infrastructure. There can be many new Asian ports to call at, but we need to take people to places where they feel comfortable,' added Mr Odell.