China’s Cruise Industry in 2016–2017: Transformation, Upgrading and Steady Development

Abstract

At present, China is growing from a big tourism country to a powerful tourism country. China’s cruise tourism, motivated by both the government and the market, is striking toward a big cruise market with global influences. In 2016, cruise passengers reached 2.28 million in China, ranking the second in the global cruise market. Shanghai becomes the largest cruise terminal of the Asia-Pacific region, and the fourth largest around the world, of which the international status in the global cruise industry is greatly promoted, and the cruise industry is becoming a critical stimulation for regional economic transformation and upgrading. Today, China’s cruise industry is experiencing major transformations: market development from super-expected growth to steady growth, development orientation from quantity-focused to market structure transformation and upgrading, and product supply from the pattern of “demand stimulated by supply” of large and new ships to the pattern of “supply guided by demand”. The knowledge of market laws, the focus on product quality and the improvement in new product development have resulted in increased satisfaction of tourists. As the cruise industry actively integrates into “the Belt and Road” strategy, development driven by innovation is foreseeable, the key period for structural transformation and upgrading and the successful transition to the stage of steady growth. However, there are still wicked problems to be solved in the development of China’s cruise industry. Many bottlenecks are to be broken and innovations in development paths and patterns are needed. Upstream of the industry chain, the construction of home-made cruise ships still face the obstacles of complexities in technical research, lagged-behind supportive system and the lack of senior construction talents. In the midstream of the industry chain, the lack of diversity in cruise route design is still a stubborn problem; the domestic market is still dominated by foreign cruise operators; domestic cruise enterprises develop slowly with the lack of innovation for cruise products. Downstream of the industry chain, domestic cruise ports are still subject to poor profitability. Most cruise ports are poorly attractive to tourists, distribution channels of cruise products are restricted and the imbalance in the supply of and demand for cruise talents is still sharp. China is always believed to be the post promising cruise market. The solid social and economic development foundation, the arrival of the mass tourism era and the strong support for the cruise industry from government at all levels have brought along unprecedented opportunities to and promote steady and sustainable development of China’s cruise industry. A great era calls for great reform. In the background of comprehensive deepening reform of the state, China’s cruise industry will greet innovation and reform beyond imagination and continuously inject vitality to the cruise industry of the world.