Developing Cruise Industry in Taiwan: Progress and Challenges

National Taiwan Ocean University

Feng-Ming (Chuck) Tsai, Assistant Professor

@102nd APP Annual Conference

08/17/2015

Curriculum Vitae

THSRC – Operation Strategy Department

(2003-2005)

NJIT – Ph.D. in Transpiration Management

(2005-2009)

NKFUST – Dept. of Logistics Management

(2010-2012)

NTOU – Dept. of Shipping and Transportation

Management (2012-now)

World Cruise Market Projection

Source: CLIA Annual State of the Industry Press Conference & Media

Marketplace, 2014

Source Market Passenger Volume Source Market Passenger Volume by Market

Market 2012 2013 2014 △2012-2013 △2013-2014

China 216,700 466,781 697,316 115.40% 49.39%

Singapore 189,378 248,378 163,232 31.15% -34.28%

Taiwan 106,487 136,376 137,305 28.07% 0.68%

Japan 82,232 100,384 119,383 22.07% 18.93%

India 49,442 80,496 91,165 62.81% 13.25%

Hong Kong 26,511 36,102 80,551 36.18% 123.12%

Malaysia 52,054 72,416 51,216 39.12% -29.28%

Indonesia 15,763 20,374 18,298 29.25% -10.19%

South Korea 13,973 15,462 16,491 10.66% 6.66%

Philippines 11,597 14,072 12,305 21.34% -12.56%

Thailand 5,234 7,882 5,767 50.59% -26.83%

Vietnam 158 1,221 703 672.78% -42.42%

Other Asia 5,002 5,194 4,308 3.84% -17.06%

Total 776,543 1,207,151 1,400,054 55.45% 15.98%

Source: Asia Cruise Trends, CLIA, 2014

Cruise Capacity in Asia, 2015

52

1065

5824

2.17

郵輪艘數

航次

營運天數

旅客人次

981

84

亞洲區域航程 遠途跨洲航程

Cruise Offered by Type, 2015

1

10

22

14

5

Cruise Ships in Asia by Size, 2015

Passenger Capacity

(million)

Operating Days

Cruises & Voyages

Ships

Meg

a

La

rge

Mid

-siz

e

Sm

all

Ex

ped

itio

n

Asia-Asia Voyages

Source: Asia Cruise Trends, CLIA, 2014

Scheduled Port Calls by Port, 2015 Scheduled Port Calls by Port ( 25 or more calls )

Port Transit Turnaround Overnight Total Port Transit Turnaround Overnight Total

Singapore 25 308 41 374 Yokohama/Tokyo 11 42 5 58

Jeju Isl 209 0 8 217 Nagasaki 55 0 0 55

Hong Kong 21 142 37 200 Koh Samui 52 0 2 54

Baoshan/Shanghai 22 143 18 183 Malacca 54 0 0 54

Georgetown/Penang 121 56 0 177 Krabi 52 0 0 52

Patong Bay/Phuket 136 0 4 140 Da Nang/Hue Chan

May 35 0 8 43

Port Kelang/Kuala

Lumpur 131 0 0 131 Tianjin/Beijing 3 33 5 41

Keelung/Taipei 33 94 3 130 Kobe 20 10 9 39

Ho Chi Minh City/Phu

My 90 2 38 130 Nha Trang 39 0 0 39

Fukoka 89 0 0 89 Cochin 28 3 8 39

Incheon/Seoul 85 0 4 89 Mumbai 28 0 9 37

Laem

Chabang/Bangkok 41 11 36 88 Hakata/Fukuoka 34 2 0 36

Langkawi 78 0 0 78 Puerto Princesa 22 0 14 36

Halong Bay / Hanoi 52 0 25 77 Cambodia 34 0 0 34

Yangon (Rangoon) 24 1 48 73 Klong Toey/Bangkok 13 1 17 31

Pusan/ Busan 70 0 1 71 Yonaguni 30 0 0 30

Naha / Okinawa 67 0 1 68 Colombo 23 2 4 29

Ishigaki 66 0 0 66 Xiamen 25 0 3 28

Kota Kinabalu 22 41 1 66 Kaohsiung 24 2 1 27

Benoa/ Bali 30 10 19 59 Hainan/Sanya 26 0 0 26

Source: Asia Cruise Trends, CLIA, 2014

Cruises Offered in Asia, 2015

2015 Cruise and Voyages Offered in Asia by Top 10 Brands

Brand Asia-Asia Voyages Total

Sailings

Star 麗星郵輪 352 352

Costa 歌詩達郵輪 211 04 215

RCI 皇家加勒比郵輪 166 07 173

Princess 公主郵輪 073 18 091

NYK 日本郵船 046 02 048

Celebrity 精緻郵輪 026 05 031

Silversea 銀海郵輪 018 03 021

Holland America

荷美郵輪 010 06 016

Windstar 星風(風之頌)郵輪 012 05 014

Oceania 大洋郵輪 006 02 014

Asia to Asia Cruises by Top 5 Brands

Brand 2013 2014 2015

Star 麗星郵輪 420 365 352

Costa 歌詩達郵輪 116 169 211

Royal Caribbean 皇家加勒比郵輪 106 120 166

Princess 公主郵輪 5 86 73

NYK Asuka II 日本郵船 47 42 46

Voyages through Asia by Top 5 Brands

Brand 2013 2014 2015

Princess 公主郵輪 11 14 18

Oceania 大洋郵輪 2 3 8

Royal Caribbean 皇家加勒比郵輪 4 1 7

Holland America 荷美郵輪 5 5 6

Silversea 銀海郵輪 6 8 6

Source: Asia Cruise Trends, CLIA, 2014

Cruise Industry Developing Policy in Asia

Cruise Industry Policy in Major Ports of Asia

Country

Policy Singapore China South

Korea Japan

Improve Cruise Terminal

Facility ◎ ◎ ◎

Develop Cruise Logistics

Service ◎ ◎ ◎

Personnel Training ◎ ◎

Regional Port Cooperation ◎ ◎ ◎ ◎

Simplify CIQS ◎ ◎ ◎

Implement Incentive

Policies ◎ ◎ ◎

Cruise Call Ports in Taiwan

Port of Keelung

Port of Hualien

Port of Kaohsiung

Port of Taichung

Penghu Port

New Cruise Terminal (Kaohsiung)

Port Facility Improvement Commercial Space Activated

(Keelung) CIQS Improvement

(Kaohsiung)

Dock Dredged (Keelung)

Base Location: Pier No. 19-20

Functionality: Commercial,

Passenger transportation, and

Entertainment

Site Area: 30,460M2

Floor Area: 80,100M2

Floors: 15 floors, 2 underground

floors

Draft: 10.5M

Construction duration: 2010-2017

Project Funding: 4.517 billion

Kaohsiung Cruise Terminal

Port of Call Development –

Penghu Port TIPC holds joint Venture with RCL.

The new terminal is designed for

225,000 tons-class cruise dock.

The Stakeholders of Cruise Homeport

Development

Strategies

Stakeholders

Operation

Strategies

Legislation/

Regulations

Demand and

Marketing

Strategies

Port & City

Collaborating

Strategies

Central

Government ◎

◎

Port Operator ◎ ◎ ◎

Cruise Lines ◎ ◎

Local

Government ◎ ◎

Hierarchy of Cruise Homeport Development

Develop Cruise Home Port

Operation Strategies

Port Facility

Port Development Strategy

Cross-Industry Alliance

Legislation & Regulations

Government Policy

Cruise Development Policy

Port Safety Regulations

Demand and Marketing Strategies

Cruise Itinerary Plan

Cruise Customer Requirements

Cruise Lines Marketing Strategies

Cruise Homeport Characteristic

Port & City Collaborating Strategies

City Planning

Local Government Coordination

Port & City Business Model

Findings and Analysis

The major criteria in each aspect:

Demand and Marketing Strategies - Cruise

Customer Requirements

Legislation & Regulations - Government Policy

Port & City Collaborating Strategies - Local

Government Coordination

Over all, Port Development Strategy, Port Facility,

and Government Policy are major criteria to develop

cruise homeport.

Cruise Homeport Economic Benefit

Direct benefit:

Port operation revenue,

Customers and crew

consumption, Cruise

logistics service and

supply chain

Cruise Homeport

Economic Benefit

Indirect Benefit：

Create job opportunities

related industries

(hotels, restaurants,

shipping management,

supplies, services).

Cruise Logistics Service

The Strategies of Developing Cruise Logistics Center

SWOT/TOWS Matrix

Strengths:

• Asian cruise lines Hub

• Ingredients quality

• Corporatization of port

operator

• Incentive policies for cruise

berthing

Weaknesses:

• Seasonal variance

• Frequency of cruise voyage

• Not familiar with integrated

logistics center

• The laws/regulations of supply

chain

Opportunities:

• Global cruise market in

Asia

• Cruise journeys increase

• Customers’ acceptance of

cruise trips

• Collaborate with neighbor

ports

SO operation strategy:

Provide integrated

logistics service

WO operation strategy:

Revise customs regulations

cruise Port

Threats:

• Competition from neighbor

ports

• Cruise line current logistics

pattern

• Limitation of cruise

itinerary between China and

Taiwan

ST operation strategy:

Offer promotion in

logistics service

WT operation strategy:

Diversify cruise logistics

service

Future Developing Strategies

Develop cruise logistics service

Attract international cruise lines

Plan cruise itineraries in East/Southeast Asia

Promote cruise industry economy

Thanks for your Attention!

Q&A

chucktsai@email.ntou.edu.tw