RCCL part of coalition opposing PortMiami stadium

By Tom Stieghorst
PortMiamiA proposal to build a 25,000-seat soccer stadium on a neglected corner of PortMiami is drawing opposition from a group of port users, including Royal Caribbean Cruises Ltd.

The planned stadium would be adjacent to RCCL’s headquarters campus at the port.

A coalition called the Miami Seaport Alliance was recently formed to oppose the stadium, which would house a new professional franchise partly owned by soccer superstar David Beckham.

The Miami-Dade County Commission, which governs the world’s busiest cruise port, voted in December to have the county manager begin negotiations with Beckham’s group.

There are several other non-port sites under consideration, but Beckham prefers the port site for its views of the downtown skyline.

Renderings of the proposed stadium have been created by Arquitectonica, the Miami firm that designed the nearby American Airlines Arena, home to the Miami Heat professional basketball team.

According to John Fox, president of the Miami Seaport Alliance, the area around the port entrance is already congested.

“When there’s a Heat game, or things going on at the Arsht Performing Arts Center, we now have an art museum that’s fantastic, there’s a children’s museum there, there’s a science museum coming,” Fox said. “And so, even forgetting the cruise and cargo interests, there’s horrendous, horrendous traffic problems.”

Currently, the only way to access Dodge Island where the port sits is over a bridge from downtown Miami, though a $1 billion tunnel connecting the port to a freeway is nearing completion.

RCCL-ProposedSoccerStadiumAttractionsFox, who is the former vice president of government relations at RCCL, said an open-air stadium is simply not an appropriate use of the port.

“Is there another seaport in the world that would even consider putting a sports arena with 30,000 fans right in the middle of its public property?” he wondered.

Beckham’s real estate adviser has said that games would occur at night, after cruise ships have departed. But Fox said there was no way a single team could guarantee the league’s schedule.

The stadium would take about 12 acres on the port’s southwest corner. There is currently a warehouse on the parcel used by the Marine Spill Response Corp. The port’s master plan calls for development of office towers, hotels and other such uses there.

Wary of competition, Miami’s Downtown Development Authority is supporting the Beckham stadium, which might also include ancillary development but be far less intensive.

Fox said his group includes seven or eight members, including another cruise line besides Royal Caribbean, labor unions, stevedore companies and freight forwarders. Two other cruise lines, Carnival Cruise Lines and Norwegian Cruise Line, have said they’re not involved.

The closest cruise terminal to the proposed stadium is Terminal J, which is used by Oceania, Regent Seven Seas, Crystal and Azamara.

Fox said that if the stadium were to be built and make access to PortMiami more difficult, it could mean an exodus of cruise ships and passengers to other East Coast ports, particularly Port Everglades 30 miles to the north.

“The [port] users are concerned that this will either choke off the economic engine or bring it to a halt,” Fox said, though he added that the decline would be gradual.

“This isn’t going to happen overnight,” he said. “But as businesspeople … make decisions about where to put their freight or their cruise lines, certainly this is one of the things that needs to be considered.”

Quantum’s China deployment reflects a new economic reality

By Tom Stieghorst
Shanghai, future homeport for QuantumThe decision to make Shanghai the home for Royal Caribbean’s Quantum of the Seas has immediate implications for U.S. travel agents who had been looking forward to selling the ship’s originally scheduled cruises from South Florida and New Jersey.

The Shanghai deployment is the clearest sign yet that the U.S. and Europe will have to compete for the future attention of a cruise industry they’ve grown accustomed to thinking of as their own.

“We were in a two-theaters-of-operation mode for the last 20 years,” said Adam Goldstein, president of Royal’s parent company, Royal Caribbean Cruises Ltd. “Now, its North America, Europe and Asia-Pacific.”

In addition to China, Australia is getting strong support from North American cruise companies.

Lisa Lutoff-Perlo, Royal Caribbean’s senior vice president for operations, said the plan had always been an Asia deployment for one of its upcoming ships.

“We have clearly accelerated that with the decision to send Quantum to Asia,” she said.

In its announcement, Royal Caribbean said Quantum would sail year-round from Shanghai on three- to eight-day cruises to Korea and Japan.

Details about the itineraries will be available in a month or two, said Christopher Allen, Royal Caribbean’s assistant vice president of global deployment and itinerary planning.

Goldstein said the Chinese market has evolved from being in research-and-development mode to one that is contributing to the company’s profitability.

He said that even without the ability to sail to Japan from China, due to political tensions between the two countries, 2013 was a profitable year for China-sourced business.

Royal Caribbean has been sailing the Voyager of the Seas and Mariner of the Seas from China. Although the addition of the 4,200-passenger Quantum will increase Royal Caribbean’s capacity in the market by 66%, Goldstein said he’s confident it will sell.

“This year, there’s more of a desire by [Chinese] travel agents and tour operators to go to Japan,” he said.

China has grown at a blistering pace, as has its outbound tourism, Goldstein said. “The Chinese have a very strong belief that they have emerged as an economic powerhouse,” he said, adding that the feeling they should be at the forefront of every industry comes along with that.

Goldstein said that the tourist experience in Singapore, Hong Kong, Macau and Shanghai is world-class, so the positioning of a top-of-the-line ship there is seen as only natural.

Although he has said several times that Caribbean countries need to take heed of the global competition for ship calls, Goldstein said the Quantum announcement was less a reflection on the Caribbean market than a sign of the new world economic order.

Quantum of the Seas under constructionThat order might not be good news for U.S. travel agents, who typically profited from the power of a line’s newest ship to fill fast and command premium prices.

U.S. agents, particularly those in South Florida, benefited from that effect when Royal Caribbean introduced its last new Oasis-class vessels, the Oasis of the Seas and Allure of the Seas, based in Fort Lauderdale.

The move of the Quantum to Asia means a new lineup of Royal Caribbean ships in important East Coast ports.

After the Quantum leaves New Jersey in May 2015, it will be succeeded by the Liberty of the Seas until November.

The Anthem of the Seas, which will debut in the summer of 2015 doing European cruises from Southampton, England, will then take up the New Jersey routes to Bermuda and the Caribbean.

Vicki Freed, senior vice president of sales, trade support and service, said she had already heard from some agents in the Northeast U.S. who want to have clients sail on all three New Jersey-based ships in one year.

“They feel like they’re getting the trifecta,” Freed said.

But Fort Lauderdale, which had announced itself as the winter home of the Anthem, will have to make do with the Navigator of the Seas, along with its monopoly on the Oasis-class ships.

Royal Caribbean officials took pains to say that New York, South Florida and China are all important markets. As Royal Caribbean becomes more global in its deployment, the key will be to strike the proper balance, said Lutoff-Perlo.

“North America is always at the forefront of everything we think about because it is such an important market for us now. Always has been and always will be,” Lutoff-Perlo said.

One area that has lagged in Royal Caribbean’s deployment is the U.S. West Coast, particularly Los Angeles. Freed said that the line hoped to be back one day, but noted that itinerary options were somewhat limited.

Allen added: “I think that that’s a market we will continue to review and continue to look at the opportunities, and when the time is right we’ll be excited to come back to the West Coast.”

The decision to move the Quantum to China shed new light on the announcement of “Dynamic Dining,” which eliminates the main dining room on the Quantum for five smaller, alternate dining venues, a style more in tune with Asian preferences.

Lutoff-Perlo said that during a 50-day repositioning cruise from New Jersey to Shanghai in 2015, workers would modify the retail, gaming and galley areas of the ship to adjust for Chinese tastes.

She said that a press conference in Shanghai to announce the Quantum’s commitment to China was heavily attended and lasted a long time.

“The world is changing. How our ships are sourced is changing,” Lutoff-Perlo said. “The fact that these ships are popular all over the world is much different now than it has been in the past.”

Royal Caribbean makes ship change for summer 2015

By Tom Stieghorst
Royal Caribbean will send the Explorer of the Seas to Europe in the summer of 2015 instead of the Adventure of the Seas as previously announced.

Adventure of the Seas will continue to sail from San Juan while Explorer will homeport at Southampton, England, and offer three- to 16-day roundtrip cruises from late April through September 2015.

Prior to starting European service, Explorer will have a month-long drydock to be revitalized and receive features such as virtual balconies.

Last week, an Adventure of the Seas cruise was delayed in San Juan for three days after propulsion issues led Royal Caribben to replace the ship’s propellers, which took longer than expected.

The delayed cruise was the final one before a scheduled drydock for maintenance.