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China's Cruise Industry on Course for Rejuvenation with Visa-Free Policy and Global Market Revival

Published July 22, 2024
7 months ago


In the wake of a challenging global environment, China’s cruise industry is charting a course towards substantial recovery, spurred by the implementation of supportive government policies and a resurgence in the international cruise market. With an aim to revitalize the sector, China has introduced a visa-free entry policy for international tourists traveling by cruise and has seen a significant uptick in voyages and passenger volume in the first half of 2024, marking a steady revival of its “golden floating industry.”


Shanghai, a major hub for cruise operations in China, has reported a vibrant increase in both voyages and passenger turnovers. Home to China's vastly growing cruise economy, it has seen over 90 international cruise voyages, combined with a considerable increase in both entries and exits, and an impressive log of over 840,000 passengers in transit. These numbers illustrate not only a recovery trajectory but also the profound potential of the cruise sector in boosting tourism and consumption-based economic activities.


A notable highlight is the success of China’s first domestically constructed large cruise ship, Adora Magic City, which has already hosted over 150,000 tourists. A symbol of China’s maritime manufacturing prowess, this ship signifies a whole new chapter for the national cruise industry. The significance of the cruise economy extends beyond the vessel itself as it contributes to various industries such as equipment manufacturing, leisure-tourism, insurance, and trade services, collectively fortifying the cruise sector's lengthy supply chain.


The coastline of 18,000 km provides an extensive canvas for the industry to grow, facilitating improvements in port infrastructure and aiming to position China as an attractive cruise destination. Online travel agencies, such as Ctrip, indicate promising consumer behaviors, with cruise bookings for July reaching 70 percent of those witnessed in the same period in 2019. Royal Caribbean Cruises, a major industry player, expresses confidence in the market's potential with projections of a return to 70 percent of its 2019 size by 2024 and a robust comeback by 2025.


Globally, the cruise sector is also experiencing robust growth. As per the Cruise Lines International Association, passenger volumes surpassed pre-pandemic levels in 2023, positively influencing China's industry.


To further bolster the sector, China’s government has complemented its visa-free policy with a slate of additional regulations aimed at simplifying the resupply process for international cruises at Chinese ports. This streamlining of operations is anticipated to pump vigour back into the country’s cruise ecosystem. The National Development and Reform Commission underscores the industry's crucial impact on its upstream and downstream sectors and commits to work collaboratively with other departments to promote high-quality development across all facets of the cruise business.


Reflective of the broader revitalization in China's service sector, this upswing in the cruise industry aligns with the IMF's upwardly revised 2024 economic forecast for China. In light of this promising scenario, the country’s economic growth is firmly within the 5 percent target for the same year.


With the government's firm backing and an optimistic global outlook, China's cruise economy is well poised to reclaim and surpass its former glory, catalyzing an economic ripple effect across various sectors and reinforcing the nation's overall economic growth.



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