Hong Kong has been developing into a leading regional cruise hub in recent years. While enjoying its competitive advantages, the city also encounters various challenges. In this issue, Prof. Cathy Hsu, Chair Professor of the School of Hotel and Tourism Management shared her recent research findings and recommendations on Hong Kong’s competitiveness as a regional cruise hub.
How is the current trend of the cruise industry?
The cruise industry has experienced a stable growth with an average of 7.2% annual growth rate of passenger numbers over the past two decades. With the rising role of Asia in the global economy, the cruise industry also starts to explore new markets in Asia, particularly in the China market. In 2015, the number of mainland Chinese tourists taking cruises is expected to surpass one million. Such rapid growth of the cruise industry in Asia provides both excellent opportunities and big challenges to Hong Kong.
What are Hong Kong’s competences and challenges in cruise tourism?
With strategic geographical position in the Asia-Pacific region, Hong Kong has become a must-see destination for cruise passengers and other international tourists visiting Asia. While the development of port infrastructures in Asian cities and the growth of the Chinese outbound travel market reinforce Hong Kong’s role, the city is also facing fierce competition from neighbouring ports or rivalries in Guangzhou, Shanghai and Shenzhen in mainland China, Singapore, South Korea, Taiwan and Vietnam which are joining or expanding the cruise tourism business.
Please explain your study.
To consolidate its position as a preferred port for cruise lines and travel, Hong Kong saw the priority of further developing its competitive advantages. Recently, my research team conducted a comprehensive study of what it takes to become a competitive regional cruise hub. Employing rigorous research methodologies, including interviews, focus groups and surveys, the study systematically analyzed the supply and demand factors, developed effective strategies for Hong Kong’s development as an Asia-Pacific cruise hub and drew implications for formulating future cruise tourism-related policies.
What would you recommend in developing Hong Kong as a regional cruise hub?
We took into account the demand, supply and cross-community relations. On the demand side, we offered recommendations such as marketing to a three-hour radius region, increasing mainland residents’ awareness of short- and long-haul itineraries and increasing Hong Kong residents’ interest in cruise holidays.
On the supply side, we advised the need to promote Hong Kong and attract more cruise ships, the practical necessity of enhancing transportation to and from the Kai Tak Cruise Terminal, encouraging onboard immigration clearance and initiating cross-governmental agency collaboration. Also, we encouraged numerous modes of cross-community collaboration, such as regional collaboration to avoid duplicate offerings, arrangement of special visas for cruise passengers and the establishment of a cruise trade association, along with cruise research and education.
I believe this study would provide important information for the Hong Kong government to formulate strategic plans and draw policy implications to support the development of the city’s cruise industry.