With an eye toward accelerating growth in the Chinese cruise market, Carnival Corp. has signed a memorandum that could lead to a joint venture to build ships in China.
Carnival Corp., the world's largest cruise company with 10 brands, signed a memorandum of understanding on Oct. 14 with the China State Shipbuilding Corp. (CSSC) to explore a partnership that could expand to include Italian shipbuilder Fincantieri. If realized, Carnival Corp. and Fincantieri could help design the first-ever, world-class cruise ship built in China.
"This is really a breakthrough day for all of us at Carnival, as well as our friends at the CSSC and all Chinese travelers who are increasingly turning to cruises for their vacation experiences," said Carnival Corp. CEO Arnold Donald. The memorandum of understanding was signed at the Ninth China Cruise Shipping and International Cruise Expo in Tianjin.
China is expected to grow into one of the largest cruise markets in the world with 4.5 million passengers by 2020, according to the Chinese Ministry of Transport. The potential has spurred several U.S.-based cruise companies to quickly expand into the Chinese and greater Asian market.
Royal Caribbean International is moving its new Quantum of the Seas to Shanghai in May. Parent company Royal Caribbean Cruises Ltd. also agreed to sell the Celebrity Century to Chinese travel company Ctrip with the possiblity of forming a joint venture to manage the ship and "potentially broaden the relationship." Carnival Corp. has already committed to base four ships in China next year, a capacity increase of 140 percent in two years. The China deployment in 2015 includes Costa Serena, Costa Atlantica, Costa Victoria and a Princess Cruises ship.
The Chinese Ministry of Transport wants to develop China's cruise industry, even projecting that it could grow into the second largest cruise market after the U.S. in the next several years, based on economic growth, increased spending power of Chinese consumers and growing demand for cruise vacations in China.
Reflecting the company's commitment to China, Carnival Corp. recently announced that its Global Chief Operations Officer Alan Buckelew will move to China to oversee the company's growing operations in the country. Carnival Corp. says this is the first move of its kind by a publicly traded Global 500 corporation not headquartered in China.
The memorandum of understanding also includes exploring other possible joint ventures with CSSC, including a domestic cruise company, port development, talent development and training as well as supply chain and logistics.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
