ROUNDUP: Hong Kong well placed to be Asia's leading cruise hub

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 ◆ ROUNDUP: Hong Kong well placed to be Asia's leading cruise hub

Hong Kong is well placed to become the leading cruise hub in Asia, given its advantages of geographic location, spectacular harbor facilities and its reputation as the most popular tourist destination in the region.

According to a study on the cruise market in Hong Kong that released recently, Hong Kong recorded a total passenger throughput for non-Hong Kong residents of about 230,000 in 2001, 201,000 in 2000 and 132,000 in 1999, respectively.

The study, commissioned by the Hong Kong Tourism Board (HKTB) and conducted by consultants Bermello, Ajamil & Partners, shows that Hong Kong is already the second busiest cruise port in Asia, following Singapore.

In 2001, the Asia Pacific region generated 840,000 conventional cruise passengers. It is estimated that the number of cruise passengers will grow by up to 10 percent per annum over the next 10 years.

Worldwide cruise passengers are expected to reach 13.6 million by 2005 and Asia Pacific will be one of the fast-growing areas in this market, according to the study.

Clara Chong, executive director of the HKTB, said that international cruise passengers were a particularly important contributor to the tourism industry, because they tend to come from higher income brackets.

At present, the cruise passengers only account for a small proportion of the total tourists in Hong Kong. The travel industry views the cruise sector as a fast growing market in the years to come.

"The report estimates that the economic benefit of the cruise sector to Hong Kong could reach as much as 3.3 billion HK dollars (423 million US dollars) by 2010," said Chong.

Chong said Hong Kong has natural advantages as a cruising hub.

"Our spectacular harbor is clearly a major selling point, but also important are our standing as a major international air transport hub, our prime location at the gateway to the Chinese mainland, and of course, our well-established position as Asia's most popular tourist destination," she explained.

Currently, Star Cruises, a Malaysia-based cruise line, is operating in Hong Kong. It offers cruise packages ranging from one night to four days and three nights to the nearby ports in South China and Vietnam. The cruise has become a popular travel program in Hong Kong.

Super Star Leo and Star Pisces, the two Star Cruises vessels operated in Hong Kong, often see full occupancy in the cruise, especially during the summer peak season.

The consultants' study notes that the North American market offers especially high potential for both first-time and repeat business, with research showing that 43 million people from North America plan to take a cruise in the next five years, and 80 percent of those who have already been on a cruise plan to take another.

Prospects for the European and Asian markets also look encouraging as incomes and leisure time increase. The Chinese mainland offers considerable long-term potential as its economy continues to grow.

Scott Lagueux, partner of Bermello, Ajamil & Partners, said that Hong Kong is in a strong position to benefit from this steady growth.

"The feedback we received from the 16 major operators we interviewed for this study was very positive towards Hong Kong as a cruise destination, rating it as a 'must' on Asian itineraries,"he commented.

Hong Kong will enjoy natural growth in cruise market volumes as the Asia-Pacific region's economy develops, Lagueux added.

To optimize long-term business opportunities and achieve the maximum projected economic benefit for Hong Kong, Lagueux said, there are three key factors: more berths, streamlined logistics and aggressive marketing.

The HKTB has already worked closely with regional operators to develop new, Hong Kong based packages, as well as aggressively promoting Hong Kong's advantages to the major international cruise lines.

"We have so far secured 24 international ship calls, involving 14 different operators, for 2003," said Clara Chong.

"Our overall aim is to help each cruise line develop more programs involving Hong Kong, differentiate their products from competitors and maximize their financial returns," Chong said.

"By doing so, we can also help maximize the economic contribution of this important and exciting market to Hong Kong's tourism industry," she added.