Update on cruise tourism developments in Southeast Asia

Moderated by Ted Blamey, principal, CHART Management Consultants, the ‘Cruise Tourism Developments in Southeast Asia’ panel that took place on November 12 at Seatrade Cruise Asia delved into the successes driving the resurgence of cruise within the region.

Cruising across Asia is at various stages in its recovery - East Asia is building slowly to regain its past prominence; Southeast Asia is strong, principally out of Singapore, while South Asia is seeing a real boost based on home-grown cruise operation Cordelia Cruises.

Asia saw remarkable growth from 2014 to 2018 (its peak year) with deployment rising from 50 to 77 ships.

In 2023, 69 ships operated in Asian waters (offering 876 sailings versus 1,992 in 2018).

Singapore’s recovery has been exceptional, especially last year when source market penetration reached 5.6% which is 2.5 times more than in 2019 making it Asia’s largest source market with 817k passengers in data shared by Blamey at Seatrade Cruise Asia. Penetration was a high 5.6% in 2019 but soared to a world record 14% in 2023. 

Next in the table came India with 373,853 passengers, largely driven by Cordelia Cruises’ domestic deployment. Malaysia and Indonesia are next with slow growth seen in the Philippines.

The pre- and post-pandemic shift in Asian source markets is quite significant with East Asia accounting for 76% in 2019 and dropping to just 26.5% in 2023.

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Discussions shifted to South East Asia’s resurgence and potential for further growth.

Jacqueline Tan, CEO, Singapore Cruise Centre highlighted shorter cruises as driving much of Singapore’s growth last year while Errol Chicano, commercial manager Asia Pacific & Indian Ocean, Intercruises Shoreside & Port Services, highlighted Singapore’s good infrastructure, two cruise terminals and airport and port connectivity as important growth drivers.

Tina Cortez, president, Travel People Ltd. Inc said The Philippines’s low penetration was partly due to a lack of homeporting activity - plus Filipinos prefer to fly to Singapore and sail from there. ‘With a 111m population we could definitely grow,’ she said.

Malaysia 

In Malaysia it is ‘time to upgrade facilities’ so cruise ships sail to the region, said Dato’ Sri Koh Yock Heng, president & co-founder, group MD, Malaysia Cruise Industry Association & Apple Vacations. He deliberated on whether or not the Malaysian government can ‘put in effort to provide incentives to attract cruise lines.’ 

The Philippines 

Cortez said, ‘expedition is what we would like to promote for the Filipino market.’ She recounted her experience of two expedition sailings in the Philippines, describing them as ‘an exciting and very unique experience – very authentic’ where passengers ‘get to feel the community.’ She added, ‘There are a lot of islands in the Philippines that can only be reached by these small vessels.’ 

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Cortez hopes to see the Philippines as a homeport destination hosting turnaround calls in the future. ‘We’ve identified Cebu as a possible homeport,’ she stated.  

Vietnam

‘Southeast Asian markets have huge potential,’ asserted Chicano, where awareness of the cruise industry is growing. He highlighted Vietnam’s promise as a cruise destination, while emphasising ‘awareness and infrastructure are very important when you are applying to be a homeport country’. This includes good airlift and hotel capacity. 

Singapore 

Asked whether Singapore has capacity to receive more cruise calls, Tan responded that there are ‘limitations’ when it comes to berthing in Singapore, stating ‘we are a small country’ and describing competition on land as well as at sea. 

Singapore has seen the return of high-end and luxury cruise vessels since the pandemic and Tan ‘would love to see’ a cruise line from either of these segments homeport. National Geographic Orion is among the expedition vessels to sail Singapore. 

While the country has ‘development potential, some of it is not fully ready for larger vessels,’ she stated.  

Cruise lines ought to do more marketing ‘to cultivate Singapore as a source market,’ she also remarked.

Seatrade Cruise Asia is taking place at the Shangri-La The Fort, Manila from November 12-13, colocating with Seatrade Maritime Crew Connect Global.