Royal Caribbean and STB in Marketing Deal to Promote Singapore

Royal Caribbean International has signed a first-ever multi-million  dollar  marketing  collaboration  with the  Singapore  Tourism  Board  (STB)  and Changi Airport Group (CAG) to promote cruising out of Singapore and, in turn, attract the cruise line’s largest number of overseas fly-cruise guests here.

The tripartite collaboration – which runs between 2015 and 2018 – is estimated to pull in over
170,000 overseas visitors to Singapore to sail on Royal Caribbean’s cruises over that period, resulting in a projected growth of over 50 percent.

This will be done via a series of marketing campaigns, research studies and channel development activities, such as partnerships with the media and trade, in markets not only within Asia such as India, Indonesia, Malaysia, the Philippines, China, Hong Kong, Japan, Korea and Taiwan, but also beyond the region in Australia, Europe and North America.

Royal Caribbean also plans to increase its number of sailings from Singapore during this period to over 40 a year. Currently, the cruise line’s 3,840-guest Mariner of the Seas makes around 30 voyages annually. Her next Singapore season which will be the largest ever starting from this

October will feature more long cruises of seven to 15 nights, aimed at attracting more overseas fly-cruise guests.Sean Treacy, Managing Director, Singapore and Southeast Asia of Royal Caribbean Cruises Ltd. said: “Having deployed ships here regularly for the last seven years, Royal Caribbean now looks
forward to its next phase of significant growth in Singapore. Our three-year deployment plan is our strongest commitment ever to this market and we see great potential in Singapore as a
source market and regional cruise hub. We highly appreciate this collaboration which will be a tremendous support for our business goals in Singapore and Southeast Asia, as well as the strong efforts of the Singapore Government for being so proactive in driving the cruise business in the country.”

Said  Neeta  Lachmandas,  Assistant  Chief  Executive  (Business  Development  Group),
Singapore Tourism Board: “The tripartite collaboration is a significant development not just for Singapore but also for Southeast Asia. We hope Royal Caribbean’s commitment will inspire new cruise itineraries around the region to offer more reasons for travellers to take to cruising, and also motivate our neighbouring ports and destinations to invest and realise fully the tremendous potential of the Asian cruise industry.”

Providing a link between Royal Caribbean International, Singapore and its regional neighbours is Changi Airport’s strong connectivity to 320 cities worldwide, along with some 6,700 weekly flights, giving Singapore a strategic advantage to effectively tap fly-cruise traffic from across the globe and serve as a cruise hub for Asia.

CAG’s Senior Vice President for Market Development, Mr Lim Ching Kiat, said: “This collaboration represents the synergistic efforts by CAG, Royal Caribbean and STB to effectively tap fly-cruise traffic from across the globe and serve as a cruise hub for Asia. Changi Airport will continue to  leverage  on  its  network and  work with airlines  and  travel  agents to  promote fly-cruise packages through Singapore.”

Royal Caribbean a partner in Malaysia project

By Tom Stieghorst

Royal Caribbean International is one of the companies signing a memorandum of understanding to co-develop a destination called Melaka Gateway said to cost $12 billion over 10 years.

The project will be built on three islands in Malaysia covering 609 acres. It will include a cruise terminal, a 1,000-slip marina and a ferry terminal as well as luxury hotel and condominium components.

The lead developer is KAJ Development. The prime minister of Malaysia officiated at the unveiling last week of a master plan for the project, which is expected to boost tourism to Malaysia by 2.5 million visitors over 12 years.

Amid Asia tensions, uncertainty over expansion

Amid Asia tensions, uncertainty over expansion

By Tom Stieghorst
*InsightMaritime disputes in Asia have thrown a crimp into the cruise industry’s plans to expand in that fast-growing area of the world, and signs are the problem is growing worse.

The latest is a report in the Wall Street Journal that China is challenging archaeological exploration of hundreds of shipwrecks, many of them distant from its own shores.

The article says China views the wrecks as proof of Chinese exploration of islands in the South China Sea, in areas close to the Philippines, Malaysia, Vietnam and Brunei.

According to the report, of particular concern was an incident last year off the coast of the Philippines, when Chinese vessels forced a French archaeological team to abandon its exploration of a 13th century Chinese junk.*TomStieghorst

Already, China and Japan are in a standoff over disputed islands in the East China Sea. As a result, Royal Caribbean International and other cruise lines are not including Japan on their itineraries from China, opting for only Korean ports on cruises from northern Chinese cities.

The tensions in that area have escalated, too, with China claiming air rights over a wide swath of international ocean, including the disputed islands known as Diaoyu in China and Senkaku in Japan.

In its new air defense identification zone, China seeks to require all aircraft to file flight plans before entering the area. Japan and the U.S. immediately sent military planes into the space unannounced, to challenge the newly asserted Chinese zone.

None of this can improve the chance that China will get more big cruise ships. Until the uncertainty clears, the cruise industry’s Asia expansion, certainly in China, will not be full steam ahead.

Speaking on a third-quarter conference call to analysts, before China asserted its new air defense rights, Royal Caribbean International President Adam Goldstein said Royal had been hoping in 2013 to announce plans to resume calls in Japan on its China cruises aboard the Mariner and Voyager of the Seas. Instead, it has been forced to open 2014 bookings with only Korean destinations again.

“This is, of course, frustrating particularly since we do not see any signs of positive geopolitical change in the dynamic between China and Japan,” Goldstein said. “We continue to build our brand, our distribution and our management team in China with a view to making the best of the itinerary options that are available to us.”