Location Characteristics of Cruise Terminals in China: a Lesson from Hong Kong and Shanghai
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sustainability Article Location Characteristics of Cruise Terminals in China: A Lesson from Hong Kong and Shanghai Xiaodong Sun 1 , Tsz Leung Yip 2 and Yui-yip Lau 3,4,* 1 School of Business Administration, East China Normal University, Shanghai 200062, China; [email protected] 2 Department of Logistics and Maritime Studies, The Hong Kong Polytechnic University, Hong Kong, China; [email protected] 3 Division of Business and Hospitality Management, College of Professional and Continuing Education, The Hong Kong Polytechnic University, Hong Kong, China 4 European Centre for Social Responsibility, 900003 Constanta, Romania * Correspondence: [email protected] Received: 12 August 2019; Accepted: 11 September 2019; Published: 16 September 2019 Abstract: Starting from the late 1960s, the cruise industry has appeared in two key regions, namely Europe and North America. However, the cruise industry has undergone fundamental changes which implies that the number of frequent cruisers is growing, with western travelers supposedly travelling to diverse cultures, attractive cruising destinations and exotic experiences in Southeast Asia for western travelers, and thus cruising in the Asian region has been happening at an enormous growing rate. Among the Asian regions, China is experiencing the fastest growth rates. Both Hong Kong and Shanghai established two cruise terminals which can be described as homeport cities in the 21st centuries. However, Hong Kong and Shanghai cruise terminals need to deal with neighboring competitors like Singapore, Japan, Vietnam, just to name but a few, in a challenging and dynamic environment. In order to examine Hong Kong and Shanghai’s potential evolution into an international cruise terminal hub, we suggest Connectivity, Regional Competitiveness, Utilization, Infrastructure, Security, Environmental Management (CRUISE) framework to seize attainable prospect of the external environment and investigate locational characteristics of cruise terminals in Hong Kong and Shanghai respectively. The first mover and sustainable competitive advantage will be performed. Academic and managerial implications of the research findings for cruise terminals are elaborated. Keywords: cruise terminal; Hong Kong; Shanghai; location characteristics; CRUISE framework 1. Introduction Broadly speaking, cruise is described as any fare paying voyage for leisure and pleasure on-board a passenger vessel whose primary objective is the accommodation of guests, normally visiting different destinations with flexible routes. In other words, cruises are proposed as “the transportation of pleasure-seeking travelers on ocean voyages offering one or more glamorous ports of calls” [1]. Cruise is also defined as “any fare paying voyage for leisure on-board a vessel whose primary purpose is the accommodation of guests and not freight normally to visit a variety of destinations rather than to operate on a set route” [2]. The major elements of a cruise product component consist of transportation, accommodation, dining, ship-board entertainment, recreational activities, domestic and foreign ports of calls, and shore excursions [3]. In the 1920s, cruising was the preferred mode of travel for the world’s social elite. Post Second World War (1945) cruising declined as a result of losing trade to passenger aircraft [4]. According to the Organization for Economic Cooperation Development (OECD) countries of Maritime Transport (1970), Sustainability 2019, 11, 5056; doi:10.3390/su11185056 www.mdpi.com/journal/sustainability Sustainability 2019, 11, x FOR PEER REVIEW 2 of 14 Sustainability(1970), there2019 was, 11 ,a 5056 decrease in sea travel (1957–1970), which further reduced the need for passenger2 of 14 ships [5]. Thanks to scientific and technological advancement, tremendous improvements have occurred in the design, power supply, accommodation, and catering facilities of cruise ships in the therepast 30 was years. a decrease Modern in cruise sea travel ships (1957–1970), create competit whichion further with land-based reduced the holidays, need for including passenger hotels ships [6]. [5]. ThanksWhile cruise to scientific travelers and are technological mainly motivated advancement, by relaxation, tremendous social improvements gathering, and have the occurred beautiful in theenvironment design, power and supply,scenery, accommodation, the worldwide andcruise catering industry facilities has shown of cruise a significant ships in the trend past 30towards years. Modernexpansion cruise over shipsthe past create decade competition [7]. The withglobal land-based cruise industry holidays, served including 7.2 million hotels passengers [6]. While in cruise 2000 travelersand 28.5 million are mainly cruisers motivated in 2018, byand relaxation, up to around social 30 gathering,million passengers and the in beautiful 2019 [8]. environment The cruise sector and scenery,has become the worldwideone of the most cruise dynamic industry and has profitable shown a significantsections in trend the entire towards leisure expansion and travel over industry the past decade[9]. [7]. The global cruise industry served 7.2 million passengers in 2000 and 28.5 million cruisers in 2018,In general, and up tothe around cruise 30 market million is passengers divided into in 2019 three [8 ].main The cruiseregions sector including has become North oneAmerica, of the mostEurope, dynamic and Asia and profitable[10,11]. The sections cruisein sector the entire contributes leisure andto atravel significant industry component [9]. of the global tourismIn general, industry, the especially cruise market in the is region divided of into Asia three [4,12]. main In regionsrecent years, including Asia North has recorded America, a Europe, higher andgrowth Asia rate [10 than,11]. other The regions. cruise sector Many contributesfrequent cruisers to a significantare looking componentfor attractive of destinations, the global tourismdiverse industry,cultures, and especially wonderful in the experiences region of Asia which [4,12 they]. In woul recentd find years, in AsiaAsian has regions, recorded for a example, higher growth mainland rate thanChina, other Hong regions. Kong Many(China), frequent Singap cruisersore, Taiwan are looking (China), for Japan, attractive and Vietnam. destinations, In order diverse to cultures,meet an andincreasing wonderful demandexperiences from cruise which passengers they would in the find forthcoming in Asian regions, years,for cruise example, lines are mainland continuously China, Hongincreasing Kong their (China), capacity Singapore, in terms Taiwan of the number (China), and Japan, size and of cruise Vietnam. ships. In Recently, order to meet the region an increasing of Asia demandhas demonstrated from cruise a passengersdramatic growth in the forthcomingin the cruise years, tourism cruise business. lines are In continuously2017, 10.4% of increasing global cruise their capacityships were in termsdeployed of the in number the region and sizeof Asia. of cruise Ind ships.eed, China Recently, accounts the region for around of Asia has6% demonstratedof the global acapacity. dramatic In growth 2017, the in thenumber cruise of tourism Asian cruisers business. exceeded In 2017, 4 10.4% million. of globalAbout cruise2.39 million ships were(59%) deployed cruisers insailed the regionfrom China of Asia. cruise Indeed, ports China (see Figure accounts 1). forStart around from 6%2016, of theChina global has capacity.already surpassed In 2017, the Germany number ofto Asianbecome cruisers the second exceeded largest 4 million. cruise passenger About 2.39 mark millionet in (59%) the world. cruisers We sailed have fromprovided China the cruise details ports in (seeFigure Figure 2. 1). Start from 2016, China has already surpassed Germany to become the second largest cruise passenger market in the world. We have provided the details in Figure2. Mainland China 47 59 Taiwan, China 11 9 Singapore 9 7 Japan 9 6 Hong Kong, China 6 6 2016 Malaysia 3 5 2017 India 6 4 [%] 0 5 10 15 20 25 30 35 40 45 50 55 60 65 Figure 1. Passenger volume by source market. Source: Cruise Lines International Association (CLIA),Figure 1. 2018b. Passenger volume by source market. Source: Cruise Lines International Association (CLIA), 2018b. In terms of infrastructure, the global homeport system is mainly distributed in the Caribbean, Mediterranean, and Alaskan regions [10,11]. In Asia, Shanghai Wusongkou is the largest home port, followed by Singapore and Hong Kong (China) [13], see Table1 for scheduled calls by port. In China, both Shanghai and Hong Kong are now positioned in the Asia Pacific Cruise Center as well as operating two cruise terminals in one city. For a cruise city, the prerequisite of a sustainable cruise business is being included in attractive cruise itineraries. The location of the cruise terminal is one of the most important factors affecting cruise liners to select both departure ports and ports of call. To this end, identifying port location characteristics is one of the fundamental managerial requirements to develop a sustainable cruise tourism business. SustainabilitySustainability 20192019,, 1111,, 5056x FOR PEER REVIEW 33 of of 14 11944 12000 10000 8000 6000 4000 2397 2189 1926 2000 1337 921 769 510 504 445 0 Figure 2. Top 10 cruise regions by passenger (‘000) in 2017. Source: Cruise Lines International AssociationFigure 2. Top (CLIA), 10 cruise 2018b. regions by passenger (‘000) in 2017. Source: Cruise Lines International Association (CLIA), 2018b. Table 1. Top 10 scheduled