WNAM REPORT: China’s cruise economy is witnessing a steady recovery, bolstered by the visa-free policy for international tourists and the resurgence of the global cruise market.
In the first half of 2024, cruise ports in Shanghai handled over 90 international cruise voyages, recording more than 180 entries and exits, with over 840,000 passengers traveling through these ports.
China’s first domestically built large cruise ship, Adora Magic City, has welcomed over 150,000 tourists as of early June since its maiden commercial voyage at the beginning of the year, according to its operators.
The cruise economy, with its long industrial chain, is often referred to as the “golden industry that floats.” Market analysts said the cruise economy plays a crucial role in expanding domestic demand, unlocking consumption potential and cultivating new economic drivers.
With a coastline stretching 18,000 km, China has seen steady improvements in its port infrastructure. The country boasts abundant tourism resources and is experiencing rapid growth in the service industry, making it a major destination for international cruise liners.
Data from the online travel service provider Ctrip showed that bookings for cruise trips in July have recovered to 70 percent of the level seen in the same period in 2019.
Liu Zinan, chairman of Royal Caribbean Cruises, Asia, believes that the total market size of China’s cruise economy will recover to 70 percent of its 2019 level in 2024, and fully recover by 2025.
The recovery of China’s cruise sector is in line with the global market resurgence. According to a report released by the Cruise Lines International Association in April, the passenger volume of cruise ships worldwide reached 31.7 million in 2023, surpassing the 2019 level by 7 percent.
To boost the industry, China has implemented a series of targeted policies. In May, a policy was rolled out allowing visa-free entry for foreign tourist groups arriving on cruise ships at any of the country’s cruise ports along the coastline.
In June, new regulations were unveiled to facilitate the replenishment of supplies for international cruises at Chinese ports.
Huo Fupeng, an official of the National Development and Reform Commission (NDRC), noted that the cruise sector plays an important role in driving its upstream and downstream industries, spanning equipment manufacturing, transportation, leisure tourism, insurance, and service trade.
Huo said that the NDRC will work with other government departments to promote the high-quality development of the cruise industry, with a focus on boosting cruise operations, equipment manufacturing, infrastructure construction, and tourism consumption.
The positive momentum in China’s cruise travel industry reflects a broader recovery trend in the country’s service sector, which can significantly boost domestic demand and overall economic growth.
China’s economy grew 5 percent year on year in the first half of 2024 despite rising challenges at home and abroad.
The International Monetary Fund recently revised the country’s 2024 economic growth forecast to 5 percent, up from 4.6 percent in April, citing a rebound in private consumption and strong exports in the first quarter.
