**5. Asia through 1995: green shoots**

In regard to early growth in Asia, Coggins [9] writes:

*"The mid-1990s were times of surprise developments in the Asian market. Through Western eyes this region is often seen as a homogeneous market. However, it is* 

**245**

*Globalization of the Cruise Industry: A Tale of Ships Part II - Asia Post 1994*

*diverse, both geographically and market-wise. Stretching from Tasmania in the south to the Kamchatka Peninsula in the north and the International Dateline in the east to the Irrawaddy River in the west, the Greater Asian cruise region can be divided along the Sunda Straight Line into the Asia and South Pacific regions. Both of which followed different paths of development. The Asia region can be further divided into Southeast Asia with Singapore as the dominant homeport and hub of developments in the early 1990s. Destinations in this region are in Thailand, Malaysia, Vietnam, Cambodia, and Indonesia. Hong Kong serves as the major homeport for the Central Asia region. Destinations are Northern and Central Vietnam; Coastal China, north to Shanghai and south to Hainan Island; Taiwan; and the Philippines. Shanghai and the Beijing port cities serve as hubs for the China region. Destination ports are found in Southern Japan, South Korea, and Vladivostok in Far Eastern Russia. The final region, Japan, consists mainly of the* 

*Market-wise the region is multi-tiered. The South Pacific region's growth has been driven by locally sourced passengers in Australia and New Zealand. Markets for the other regions can be divided into Western sourced and local sourced passengers. Traditionally, Western sourced passengers usually visited the region between January and early May as part of World and Circle-the-Pacific Grand cruises. These passengers trended to be affluent and travelled on premium and luxury lines such as Princess, HAL, Cunard, SilverSea, Seabourn, HAPAG, and P*&*O Cruises. However, all Western cruise lines now operating year-round in Asia also market those cruises to Western audiences. Prior to globalization of the industry in the Asian region, the local sourced cruise market was concentrated in Japan. Many of these passengers were part of corporate charters. The rest were those wanting to travel in a Japanese culture cocoon provided by the market's ships. Geography and ships spending more than 4 months a year in the region are the determinants for* 

*Fueled by an increase in Japanese cruisers, industry expectations prior to 1994 were that Japan would lead Asia's breakout as the third global cruise region. This was encouraged by the 1989 maiden voyages of the boutique sized Oceanic Grace and the medium sized Fuji Maru. These were joined by similarly sized Orient Venus and Nippon Maru the following year. The world class Asuka debuted in 1991. The excitement generated by these five ships in a market known for its older and smaller ships convinced The Seatrade organisation to hold Cruise Forums in Yokohama in 1990 and 1993. In 1992, the Asian fleet consisted of 24 ships over 20 lines. These ships sailed out of Japan, Tahiti, Australia, and a number of Asian ports for both local and Western sourced markets. That year the 1961-built Shangri-La World and 1965-built Royal Pacific inaugurated short cruises out of Singapore. In 1994 short cruises started out of Bali. Details on ships' age, size, and passenger capacity can be found in Appendix A.* **Table 2** *contains the ship and company distribution across various Asian cruising regions 1990 through 1996. The volatility of the Asian* 

*DOI: http://dx.doi.org/10.5772/intechopen.88157*

*Japanese Islands and their many ports.*

*which ships are included in this study.*

*Market 1990 through 1995 is shown in* **Figures 7***–***9***.*

*By 1995 Singapore had become the epicenter of the growth in Southeast Asia. Walking onboard Star Cruises Langkapuri Star Aquarius in late 1994 as part of Seatrade's Asia Pacific 94 Cruise Shipping Convention's ship visit program, I instantly felt that cruising in Asia had changed forever. The result of this impression was a May 1995 presentation on the Asian Cruise Market at Cruise and Ferry 95 [25]. Aquarius was the equivalent of any contemporary North American cruise ship of equal size. Star's competitiveness was reconfirmed by a one-night cruise out* 

*Education, Human Rights and Peace in Sustainable Development*

lished in both Chinese and English.

**4. Methodology**

The cruise industry in general has not been the subject of many academic articles. A search of the topics cruise industry and repeat passengers, cruise industry and globalization, and cruise industry and repeat purchase behavior of the Academic Search Premier, Business Source Premier, and ABI Inform databases resulted in only 18 academic articles since 1997. Of these only four were relevant to this chapter. This is probably due to cruising's relative position in the hospitality, tourism, and shipping industries. There are two good resources from the textbook perspective. Mancini [15] approaches the industry from the view of the travel agency professional and is excellent for achieving CLIA certification. Gibson [12] gives a detailed comprehensive analysis of the industry from the operational perspective. In 2011 the Shanghai International Cruise Economy Research Center was established. Located in Shanghai's Baoshan District, the center has produced a body of work on the Chinese cruise industry. Since 2014, they have published an annual report on China's cruise industry. Titled The Green Book of the Cruise Industry, Annual Report on China's Cruise Industry [16], the collection of academic articles is pub-

Using a grounded theory approach, this chapter looks at changes in the quality, not necessarily the quantity of the supply (ships) as a leading indicator of an inflection point in demand and the emergence of a port or region as a major cruise center serving a largely indigenous market. This chapter covers the development of Asia into a global cruise center. The purpose of the research, initially conducted in 2013, was to examine the growth of the modern cruise industry from the viewpoint of the quality of the hardware, the ships, and to identify any patterns that could be applied to the rapidly evolving Asian market. Specifically, Asia had reached the inflection point similar to the late 1980s and early 1990s in North America when the industry moved rapidly through several generations and the late 1990s and early 2000s in Europe when the industry jumped from first- and second-generation ships to fifth and sixth generation and beyond. This development is described in depth in Coggins [9]. Data from *Cruise Industry News Annual* 1995–2017 [1, 17, 18] and *Berlitz Guides to Cruising* 1983–2017 [19–23] was examined to develop a chronicle of the industry's growth. Daymon and Holloway [24] quoting Pettigrew (1997) (p. 338) wrote "A grounded theory approach enables you to undertake processual research, that is, research that focuses on 'a sequence of individual and collective events, actions and activities unfolding over time in context.' For example, grounded theory studies have the potential to offer original insights into how things happen,…" (p. 118). In summary, they conclude, "Grounded theory is an under-utilized but potentially important research approach for public relations and marketing communications. It holds great potential for tracing social processes in their context. It begins without hypothesis and allows both the data and theoretical sampling to guide the choice of conceptual framework and emerging theory. Researchers follow a systematic,

structured process of data collection and analysis" (p. 128).

In regard to early growth in Asia, Coggins [9] writes:

*"The mid-1990s were times of surprise developments in the Asian market. Through Western eyes this region is often seen as a homogeneous market. However, it is* 

**5. Asia through 1995: green shoots**

**244**

*diverse, both geographically and market-wise. Stretching from Tasmania in the south to the Kamchatka Peninsula in the north and the International Dateline in the east to the Irrawaddy River in the west, the Greater Asian cruise region can be divided along the Sunda Straight Line into the Asia and South Pacific regions. Both of which followed different paths of development. The Asia region can be further divided into Southeast Asia with Singapore as the dominant homeport and hub of developments in the early 1990s. Destinations in this region are in Thailand, Malaysia, Vietnam, Cambodia, and Indonesia. Hong Kong serves as the major homeport for the Central Asia region. Destinations are Northern and Central Vietnam; Coastal China, north to Shanghai and south to Hainan Island; Taiwan; and the Philippines. Shanghai and the Beijing port cities serve as hubs for the China region. Destination ports are found in Southern Japan, South Korea, and Vladivostok in Far Eastern Russia. The final region, Japan, consists mainly of the Japanese Islands and their many ports.*

*Market-wise the region is multi-tiered. The South Pacific region's growth has been driven by locally sourced passengers in Australia and New Zealand. Markets for the other regions can be divided into Western sourced and local sourced passengers. Traditionally, Western sourced passengers usually visited the region between January and early May as part of World and Circle-the-Pacific Grand cruises. These passengers trended to be affluent and travelled on premium and luxury lines such as Princess, HAL, Cunard, SilverSea, Seabourn, HAPAG, and P*&*O Cruises. However, all Western cruise lines now operating year-round in Asia also market those cruises to Western audiences. Prior to globalization of the industry in the Asian region, the local sourced cruise market was concentrated in Japan. Many of these passengers were part of corporate charters. The rest were those wanting to travel in a Japanese culture cocoon provided by the market's ships. Geography and ships spending more than 4 months a year in the region are the determinants for which ships are included in this study.*

*Fueled by an increase in Japanese cruisers, industry expectations prior to 1994 were that Japan would lead Asia's breakout as the third global cruise region. This was encouraged by the 1989 maiden voyages of the boutique sized Oceanic Grace and the medium sized Fuji Maru. These were joined by similarly sized Orient Venus and Nippon Maru the following year. The world class Asuka debuted in 1991. The excitement generated by these five ships in a market known for its older and smaller ships convinced The Seatrade organisation to hold Cruise Forums in Yokohama in 1990 and 1993. In 1992, the Asian fleet consisted of 24 ships over 20 lines. These ships sailed out of Japan, Tahiti, Australia, and a number of Asian ports for both local and Western sourced markets. That year the 1961-built Shangri-La World and 1965-built Royal Pacific inaugurated short cruises out of Singapore. In 1994 short cruises started out of Bali. Details on ships' age, size, and passenger capacity can be found in Appendix A.* **Table 2** *contains the ship and company distribution across various Asian cruising regions 1990 through 1996. The volatility of the Asian Market 1990 through 1995 is shown in* **Figures 7***–***9***.*

*By 1995 Singapore had become the epicenter of the growth in Southeast Asia. Walking onboard Star Cruises Langkapuri Star Aquarius in late 1994 as part of Seatrade's Asia Pacific 94 Cruise Shipping Convention's ship visit program, I instantly felt that cruising in Asia had changed forever. The result of this impression was a May 1995 presentation on the Asian Cruise Market at Cruise and Ferry 95 [25]. Aquarius was the equivalent of any contemporary North American cruise ship of equal size. Star's competitiveness was reconfirmed by a one-night cruise out* 

#### *Education, Human Rights and Peace in Sustainable Development*


#### **Table 2.**

*Cruise lines and ships operating in Asian cruise regions 1990–1995.*

*of Singapore on SuperStar Gemini in 1995. Star Cruises was founded in 1993. In 1994 they started operations with two 1989 and 1990-built state of the art Baltic Sea ferries, Athena and Kalypso. Employed on the highly competitive Sweden-Finland run these ships were the equivalent of the latest cruise ships. An unexpected devaluation of the Swedish Krone created a financial crisis for their original owner, Rederi AB Slite. Unable to pay for new ships under construction in Germany, the line was forced into bankruptcy and their ships became available at an attractive price. Converted for cruise service in Asia they were renamed Langkapuri Star Aquarius and Langkapuri Star Pisces. Star Aquarius was assigned to Singapore and Star Pisces to Hong Kong. They signaled a marked departure from the obsolete ferries and aging ocean liners usually deployed in emerging markets. Star operated short 2–3 day cruises that appealed to the Asian cruise passenger. The ships were equipped with multiple dining venues, a large casino, and top local entertainment. The cruises were priced so that they could be enjoyed by the average citizen, even taxi drivers. This was made possible by unbundling the cruise offering into a basic fare based on accommodations that included a basic dining package, Other* 

**247**

**Figure 7.**

**Figure 8.**

*Asia/Pacific cruise lines by region 1990–1995.*

*Asia/Pacific cruise ships by region 1990–1995.*

*Globalization of the Cruise Industry: A Tale of Ships Part II - Asia Post 1994*

*dining venues required extra payment. The Langkapuri prefix was later dropped. Star Aquarius was joined by competitors, cruise ships the 1990-built Nautican, ex-Crown Monarch, and the 1969-built Leisure World, ex-Skyward. By 1996 Star Cruises was leading the expansion in Asia adding 1988-built cruise yacht sisters MegaStar Aries and MegaStar Taurus and the 1992-built SuperStar Gemini ex-Crown Jewel. U.S.-based Renaissance Cruises was also operating 1989-built boutique sisters Renaissance I and Renaissance II. These cruise yachts targeted a North American and worldwide fly-cruise passenger base. The same year P*&*O Spice Island Cruises started with 3–5 day cruises out of Bali with the 1962-built Bali Sea Dancer, ex-Illiria, and Klub Awani started short cruises out of Jarkarta with the 1966-built Awani Dream-I ex-World Renaissance. Two ships under Malaysian ownership, Empress Cruise Lines' 1966-built The Empress ex-Sunward, and Berjaya Holiday Cruise's 1962-built Coral Princess also entered service. By* 

*1996 Star was fully established with a fleet of 5 ships."*

*DOI: http://dx.doi.org/10.5772/intechopen.88157*

*Globalization of the Cruise Industry: A Tale of Ships Part II - Asia Post 1994 DOI: http://dx.doi.org/10.5772/intechopen.88157*

#### **Figure 7.**

*Education, Human Rights and Peace in Sustainable Development*

*of Singapore on SuperStar Gemini in 1995. Star Cruises was founded in 1993. In 1994 they started operations with two 1989 and 1990-built state of the art Baltic Sea ferries, Athena and Kalypso. Employed on the highly competitive Sweden-Finland run these ships were the equivalent of the latest cruise ships. An unexpected devaluation of the Swedish Krone created a financial crisis for their original owner, Rederi AB Slite. Unable to pay for new ships under construction in Germany, the line was forced into bankruptcy and their ships became available at an attractive price. Converted for cruise service in Asia they were renamed Langkapuri Star Aquarius and Langkapuri Star Pisces. Star Aquarius was assigned to Singapore and Star Pisces to Hong Kong. They signaled a marked departure from the obsolete ferries and aging ocean liners usually deployed in emerging markets. Star operated short 2–3 day cruises that appealed to the Asian cruise passenger. The ships were equipped with multiple dining venues, a large casino, and top local entertainment. The cruises were priced so that they could be enjoyed by the average citizen, even taxi drivers. This was made possible by unbundling the cruise offering into a basic fare based on accommodations that included a basic dining package, Other* 

*Cruise lines and ships operating in Asian cruise regions 1990–1995.*

**246**

**Table 2.**

*Asia/Pacific cruise lines by region 1990–1995.*

**Figure 8.** *Asia/Pacific cruise ships by region 1990–1995.*

*dining venues required extra payment. The Langkapuri prefix was later dropped. Star Aquarius was joined by competitors, cruise ships the 1990-built Nautican, ex-Crown Monarch, and the 1969-built Leisure World, ex-Skyward. By 1996 Star Cruises was leading the expansion in Asia adding 1988-built cruise yacht sisters MegaStar Aries and MegaStar Taurus and the 1992-built SuperStar Gemini ex-Crown Jewel. U.S.-based Renaissance Cruises was also operating 1989-built boutique sisters Renaissance I and Renaissance II. These cruise yachts targeted a North American and worldwide fly-cruise passenger base. The same year P*&*O Spice Island Cruises started with 3–5 day cruises out of Bali with the 1962-built Bali Sea Dancer, ex-Illiria, and Klub Awani started short cruises out of Jarkarta with the 1966-built Awani Dream-I ex-World Renaissance. Two ships under Malaysian ownership, Empress Cruise Lines' 1966-built The Empress ex-Sunward, and Berjaya Holiday Cruise's 1962-built Coral Princess also entered service. By 1996 Star was fully established with a fleet of 5 ships."*

**Figure 9.** *Asia/Pacific cruise berths by region 1990–1995.*

#### **6. Asia: post 1995—blossoms and an early winter**

In 1996, the principal indigenous Asia fleet consisted of 26 ships with 16,204 berths. The Japan-based fleet included seven ships in four lines. Two of these were built in the early to mid-1970s, the rest between 1989 and 1991. These ships were Japan Cruise Line's 1975-built *New Utopia* and 1990-built *Orient Venus*, Mitsui OSK's 1972-built *Shin Sakura Maru* and 1989-built *Nippon Maru*, NYK Cruises' 1991 built *Asuka*, and Showa Lines' 1989-built *Oceanic Grace*. K-Line's 1974-built *Song of Flower* is not included since she was marketed and deployed worldwide. In 1997 she was transferred to Radisson Seven Seas Cruises. The fleet stayed stable until 1998. That year Showa sold *Oceanic Grace* to P&O Spice Island Cruises and left the cruise business, and *New Utopia* was retired. Meanwhile, Japan Cruise Line's *Pacific Venus* entered service. In September of the following year, *Shin Sakura Maru* left service leaving the fleet at five ships over three lines with 3056 berths. The fleet remained unchanged until 2002 when *Orient Venus* was withdrawn along with *Fuji Maru*. The fleet stabilized at three ships, three lines, and 1904 berths until 2006. That year *Asuka* was sold and *Asuka II*, NYK's subsidiary Crystal Cruises' 1990-built *Crystal Harmony*, replaced her. This raised the number of berths to 2280. As of mid-2013 the Japan-based and -oriented fleet remained at three lines with three ships and 2280 berths. In a March 2012 press release, Princess Cruises announced the deployment of the 1995-built *Sun Princess* to Japan from April to July 2013. The deployment and itineraries were specifically targeted at the local market. This marked the largest deployment by a Western brand since the *Queen Elizabeth* 2 operated out of Japan in the late 1980s. This will be discussed further under the pan-Pacific category.

In 1996, Windstar Cruises' 1987-built *Wind Song* and Club Mediterranee's 1992-built *Club Med II* sail-assisted cruise yachts operated out of Papeete, Tahiti. In 1998 these were redeployed and the luxury cruise ship 1998-built *Paul Gauguin* took up residence. *Paul Gauguin* was designed and built for Tahiti service and was still there in 2017. The passenger cargo ship *Aranu* began service between Tahiti and the Marquesas in 2000. *Aranu* is not included in the statistics since her primary purpose is transportation. In 2013 Windstar's 1988-built *Wind Spirit* resumed their Tahiti service.

**249**

*Globalization of the Cruise Industry: A Tale of Ships Part II - Asia Post 1994*

Indonesia saw a number of cruise ventures in the late 1990s. P&O Spice Island Cruises operated the 1962-built former Mediterranean cruise liner *Illiria* as *Bali Sea Dancer* from 1995 to 1997. In 1998 she was replaced by the *Oceanic Grace* operating as *Oceanic Odyssey*. In 1999 P&O Spice Island Cruises fell victim to the Asian financial crisis and was shut down. There was another start-up attempt out of Jarkarta in 1996 and 1997. Klub Awani started short cruises with the 1966-built *Awani Dream I*, the former *World Renaissance*. She was joined a year later by the former 1976-built *Cunard Countess* as *Awani Dream II*. In 1998 Klub Awani succumbed to the Asian

There was a brief attempt at cruising out of the Philippines by Mabuhay Holiday Cruises. They operated the converted 1983-built Japanese ferry, *Fuji Sunshine*, as *Mabuhay Sunshine* on short cruises out of Manila. Operations ceased after 1 year,

Siam Cruise Company operated the converted Stockholm-Helsinki ferry, 1962 built *Svea Jarl*, as *Andaman Princess* out of Pattaya, Thailand, since the early 1980s. The December 2004 Indian Ocean Earthquake and Tsunami was disastrous for the company as many of its ports were severely impacted. Even though *Andaman* 

The atmosphere in Asia 1996–1998 was one of optimism and expansion. Royal Caribbean operated *Sun Viking* out of Singapore for North American cruisers. Carnival was in discussions with Hyundai regarding a cruise joint venture, and Star was busy buying up high-quality secondhand cruise ships and introducing cruising throughout the region. All this changed as the Asian financial crisis, which began in 1997, caused a shakeout in the market. In 1997, Royal Caribbean sold *Sun Viking* to Star Cruises and left the market. Carnival's brief joint venture with Hyundai also ended that year before a ship could be put in operation. By 1998, *Nautican* had moved to one-night gaming cruises, and Renaissance had ceased Singapore operations. However, Metro Holdings Ltd. Sun Cruises started up with 1963-built *Sun Vista*, Celebrity Cruises' ex-*Meridian*, and *Sun Viva* 1, a former Renaissance cruise yacht. Another former Renaissance cruise yacht, *Sun Viva* 2, was added the following year. Unfortunately, *Sun Vista* was lost to an engine room fire that May. Sun Cruises ceased operations in 2000. New Century Cruise Line added converted ferry, *Amusement World*, in 1998. They would cease operations by 2001. In 1998 two Malaysian-owned lines were in operation. The following year Berjaya Holiday Cruise would withdraw their 1962-built *Coral Princess* to concentrate on their core resort business. Empress Cruise Lines would continue to operate *The Empress* for 4 more years before leaving the market in 2004. In 1998, Star Cruises' fleet consisted of *Star Aquarius*, *MegaStar Aries*, *MegaStar Taurus*, *SuperStar Gemini* in Singapore, *Star Pisces* in Hong Kong, and *SuperStar Capricorn* deployed to New York and Australia. Later that year, Star introduced the brand-new *SuperStar Leo*. Designed by Tillberg Design, *Leo* raised the bar for the Asian market as the first newbuild, aside from the Japanese market, on a par with the industry's state-of-the-art ships. In 1999 *Leo* was joined by *SuperStar Virgo* who took over the Singapore cruises as *Leo* joined *Pisces* in Hong Kong.

The year 1999 also saw the start-up of Hyundai Cruises. Operating three ships, 1973-built *Kumgang* ex-*Capricorn*, 1972-built *Pongnae* ex-*Sagittarius*, and 1972-built *Pungnar-Ho* ex-*Island Princess* on short cruises to North Korea, the company lasted 3 years until 2001 before withdrawing as a result of changes in the political situation. As 1999 progressed Star sold *Capricorn* and *Sagittarius* to Hyundai, while *Aries* and *Taurus* were assigned to the charter market. In 2000, Star acquired the 1980 built *SuperStar Taurus* ex-*Leeward* and 1982-built *SuperStar Aries* ex-*Europa*. The industry was anticipating the arrival of Star's Libra class newbuilds. The first was due in 2001 and the second in 2002. Late in 1999 Star acquired Norwegian Cruise Line and the Libra class ships debuted as NCL's *Norwegian Star* and *Norwegian Dawn*

*Princess* was unscathed, the company went out of business in 2005.

*DOI: http://dx.doi.org/10.5772/intechopen.88157*

financial crisis and left the industry.

another victim of the financial crisis.

#### *Globalization of the Cruise Industry: A Tale of Ships Part II - Asia Post 1994 DOI: http://dx.doi.org/10.5772/intechopen.88157*

*Education, Human Rights and Peace in Sustainable Development*

**6. Asia: post 1995—blossoms and an early winter**

*Asia/Pacific cruise berths by region 1990–1995.*

In 1996, the principal indigenous Asia fleet consisted of 26 ships with 16,204 berths. The Japan-based fleet included seven ships in four lines. Two of these were built in the early to mid-1970s, the rest between 1989 and 1991. These ships were Japan Cruise Line's 1975-built *New Utopia* and 1990-built *Orient Venus*, Mitsui OSK's 1972-built *Shin Sakura Maru* and 1989-built *Nippon Maru*, NYK Cruises' 1991 built *Asuka*, and Showa Lines' 1989-built *Oceanic Grace*. K-Line's 1974-built *Song of Flower* is not included since she was marketed and deployed worldwide. In 1997 she was transferred to Radisson Seven Seas Cruises. The fleet stayed stable until 1998. That year Showa sold *Oceanic Grace* to P&O Spice Island Cruises and left the cruise business, and *New Utopia* was retired. Meanwhile, Japan Cruise Line's *Pacific Venus* entered service. In September of the following year, *Shin Sakura Maru* left service leaving the fleet at five ships over three lines with 3056 berths. The fleet remained unchanged until 2002 when *Orient Venus* was withdrawn along with *Fuji Maru*. The fleet stabilized at three ships, three lines, and 1904 berths until 2006. That year *Asuka* was sold and *Asuka II*, NYK's subsidiary Crystal Cruises' 1990-built *Crystal Harmony*, replaced her. This raised the number of berths to 2280. As of mid-2013 the Japan-based and -oriented fleet remained at three lines with three ships and 2280 berths. In a March 2012 press release, Princess Cruises announced the deployment of the 1995-built *Sun Princess* to Japan from April to July 2013. The deployment and itineraries were specifically targeted at the local market. This marked the largest deployment by a Western brand since the *Queen Elizabeth* 2 operated out of Japan in

the late 1980s. This will be discussed further under the pan-Pacific category. In 1996, Windstar Cruises' 1987-built *Wind Song* and Club Mediterranee's 1992-built *Club Med II* sail-assisted cruise yachts operated out of Papeete, Tahiti. In 1998 these were redeployed and the luxury cruise ship 1998-built *Paul Gauguin* took up residence. *Paul Gauguin* was designed and built for Tahiti service and was still there in 2017. The passenger cargo ship *Aranu* began service between Tahiti and the Marquesas in 2000. *Aranu* is not included in the statistics since her primary purpose is transportation. In 2013 Windstar's 1988-built *Wind Spirit* resumed their

**248**

**Figure 9.**

Tahiti service.

Indonesia saw a number of cruise ventures in the late 1990s. P&O Spice Island Cruises operated the 1962-built former Mediterranean cruise liner *Illiria* as *Bali Sea Dancer* from 1995 to 1997. In 1998 she was replaced by the *Oceanic Grace* operating as *Oceanic Odyssey*. In 1999 P&O Spice Island Cruises fell victim to the Asian financial crisis and was shut down. There was another start-up attempt out of Jarkarta in 1996 and 1997. Klub Awani started short cruises with the 1966-built *Awani Dream I*, the former *World Renaissance*. She was joined a year later by the former 1976-built *Cunard Countess* as *Awani Dream II*. In 1998 Klub Awani succumbed to the Asian financial crisis and left the industry.

There was a brief attempt at cruising out of the Philippines by Mabuhay Holiday Cruises. They operated the converted 1983-built Japanese ferry, *Fuji Sunshine*, as *Mabuhay Sunshine* on short cruises out of Manila. Operations ceased after 1 year, another victim of the financial crisis.

Siam Cruise Company operated the converted Stockholm-Helsinki ferry, 1962 built *Svea Jarl*, as *Andaman Princess* out of Pattaya, Thailand, since the early 1980s. The December 2004 Indian Ocean Earthquake and Tsunami was disastrous for the company as many of its ports were severely impacted. Even though *Andaman Princess* was unscathed, the company went out of business in 2005.

The atmosphere in Asia 1996–1998 was one of optimism and expansion. Royal Caribbean operated *Sun Viking* out of Singapore for North American cruisers. Carnival was in discussions with Hyundai regarding a cruise joint venture, and Star was busy buying up high-quality secondhand cruise ships and introducing cruising throughout the region. All this changed as the Asian financial crisis, which began in 1997, caused a shakeout in the market. In 1997, Royal Caribbean sold *Sun Viking* to Star Cruises and left the market. Carnival's brief joint venture with Hyundai also ended that year before a ship could be put in operation. By 1998, *Nautican* had moved to one-night gaming cruises, and Renaissance had ceased Singapore operations. However, Metro Holdings Ltd. Sun Cruises started up with 1963-built *Sun Vista*, Celebrity Cruises' ex-*Meridian*, and *Sun Viva* 1, a former Renaissance cruise yacht. Another former Renaissance cruise yacht, *Sun Viva* 2, was added the following year. Unfortunately, *Sun Vista* was lost to an engine room fire that May. Sun Cruises ceased operations in 2000. New Century Cruise Line added converted ferry, *Amusement World*, in 1998. They would cease operations by 2001. In 1998 two Malaysian-owned lines were in operation. The following year Berjaya Holiday Cruise would withdraw their 1962-built *Coral Princess* to concentrate on their core resort business. Empress Cruise Lines would continue to operate *The Empress* for 4 more years before leaving the market in 2004. In 1998, Star Cruises' fleet consisted of *Star Aquarius*, *MegaStar Aries*, *MegaStar Taurus*, *SuperStar Gemini* in Singapore, *Star Pisces* in Hong Kong, and *SuperStar Capricorn* deployed to New York and Australia. Later that year, Star introduced the brand-new *SuperStar Leo*. Designed by Tillberg Design, *Leo* raised the bar for the Asian market as the first newbuild, aside from the Japanese market, on a par with the industry's state-of-the-art ships. In 1999 *Leo* was joined by *SuperStar Virgo* who took over the Singapore cruises as *Leo* joined *Pisces* in Hong Kong.

The year 1999 also saw the start-up of Hyundai Cruises. Operating three ships, 1973-built *Kumgang* ex-*Capricorn*, 1972-built *Pongnae* ex-*Sagittarius*, and 1972-built *Pungnar-Ho* ex-*Island Princess* on short cruises to North Korea, the company lasted 3 years until 2001 before withdrawing as a result of changes in the political situation. As 1999 progressed Star sold *Capricorn* and *Sagittarius* to Hyundai, while *Aries* and *Taurus* were assigned to the charter market. In 2000, Star acquired the 1980 built *SuperStar Taurus* ex-*Leeward* and 1982-built *SuperStar Aries* ex-*Europa*. The industry was anticipating the arrival of Star's Libra class newbuilds. The first was due in 2001 and the second in 2002. Late in 1999 Star acquired Norwegian Cruise Line and the Libra class ships debuted as NCL's *Norwegian Star* and *Norwegian Dawn* in 2001 and 2002, respectively. In 2001, Star sold *SuperStar Taurus* and *SuperStar Aries*. By 2002 Star's Asian fleet had settled into its basic configuration for the next 5 years as the company's attention was focused on growing its NCL fleet. *Virgo* and *Gemini* were in Singapore, and *Pisces* and *Leo* were in Hong Kong. *Gemini*'s size also made her an excellent market opener as Star tried various new markets around Asia. In 2003, the SARS epidemic struck Hong Kong and effectively shut down the tourism industry throughout Asia for the next several months. *Leo* was sent to Australia in early spring to ride out the downturn. Her southbound transit was used to thoroughly disinfect the ship and effectively quarantine the crew.

### **7. The Australian market: a long growing season**

The development of the Australia/New Zealand/South Pacific cruise market goes back a long time. P&O Cruises and Sitmar Cruises had been sailing out of Sydney since the 1970s. In the 1980s, P&O Cruises operated the 1959-built *Oriana* and the smaller 1966-built *Sea Princess* out of Sydney. Sitmar competed with the 1957-built converted troopship *Fairstar*. In 1986 *Oriana* was retired, leaving *Sea Princess* to maintain the P&O presence. In 1988, Princess Cruises purchased Sitmar Cruises. *Fairstar* continued to sail under the P&O banner; however, the name was not changed in deference to *Fairstar*'s many years of Australian service and reputation as "The Fun Ship." The following year, *Sea Princess* returned to Princess Cruises. In 1998 Australia relaxed its cabotage regulations, and Cruising Down Under, a port cooperative marketing association, was more than 2 years into its concerted effort to attract more cruise lines to the region. Given Australia's long coastline, this relaxation allowed non-Australian cruise lines to offer shorter cruises calling at Australian ports. That same year *Fairstar* was replaced by the 1956-built *Fair Princess*, Sitmar's former *Fairsea*. In the mid-1990s P&O Cruises had occasional competition for the lower end of the market from CTC Cruise Lines' 1976-built *Karellya* with seasonal augmentation from their 1972-built *Southern Cross*, ex-*Spirit of London*. Star Cruises based their 1973-built *Norwegian Capricorn*, ex-*Royal Viking Sea*, in the region in 1999 and 2000. In 2000, the 1984-built *Pacific Sky*, ex-*Fair Sky,* replaced *Fair Princess*. In 2003, she was joined by the 1998-built *Pacific Princess*, ex-*R Three*, which brought year-round big ship total berths to 1888. Adding the 1986-built *Pacific Sun*, ex-*Jubilee*, increased this to 3274 in 2004. Two years later the three ships were joined by 1982-built *Pacific Star*, ex-*Tropicale*, bringing the total to 4396 berths. This number dropped to 4098 in 2007 as *Pacific Sky* and *Pacific Princess* withdrew and the 1991-built *Pacific Dawn*, ex-*Regal Princess*, was added. In 2008 *Pacific Star* left Australia bringing the total down to 3076 berths. In 2010, the two ships were joined by the 1990-built *Pacific Jewel*, ex-*Ocean Village* 2, raising the total to 4666 berths. The following year they were joined by the 1989-built *Pacific Pearl* for a total of 6136 berths. The addition of the 2001-built *Carnival Spirit* in 2012 added a new brand and brought the total to 8236 year-round berths. In 2013 *Pacific Sun* was sold which brought the total down to 6750. Between 2002 and 2013, P&O Cruises went from one ship with 1200 berths to three ships with 4650 berths plus one state-of-the-art ship with 2100 berths from sister-brand, Carnival Cruise Line. Since 1998, Captain Cook Cruises has operated small, 1800–3100 grt, 120–175 passenger cruise ships along the Great Barrier Reef and out of Fiji. Captain Cook also operates two river boats on the Murray River but the river numbers are not included in the statistics. Orion Expedition Cruises sailed the 2003-built *Orion* from 2005 through 2013 on expedition cruises out of Australia. From 2011 to 2012, they chartered the former 1991-built *Renaissance Four* as *Orion II*. These numbers are included in the statistics. In 2013 Orion Expedition Cruises was acquired by

**251**

*Globalization of the Cruise Industry: A Tale of Ships Part II - Asia Post 1994*

**8. The Asian market post-2005: rejuvenation and growth**

*Libra*, *Aquarius*, and *Gemini* were deployed throughout Asia in 2013.

As previously mentioned Costa upped the ante by increasing their ship numbers and size 2010 through 2013. Having seasonally deployed the 1995-built *Legend of the Seas* in Asia since 2008, Royal Caribbean International (RCI) assigned her to Asia

*the Seas* in 2012. This was a bold move and a strong statement of RCI's confidence in the Asian market as she was the largest ship in Asia. In 2013, *Legend of the Seas* was replaced by *Voyager*'s larger near-sister the 2004-built *Mariner of the Seas*. RCI deployed their ships out of Shanghai spring through fall and out of Hong Kong and Singapore in the winter. However, they advertised that worldwide RCI's primary target market was the local Asian population. With these two ships, RCI had the newest and largest ships in the Asian market, a generation ahead of the competition. Historically, this has been a winning combination in passenger shipping. Star's response was refurbishment and opening new homeports and markets by deploying their ships throughout Asia. They homeported a ship in Kota Kinabalu, Malaysia, and Xiamen, China, and made maiden calls in Yangon, Myanmar. Indigenous cruise lines also started in China and Korea in 2012, though they would be gone in several years. China Cruise started operations out of Hong Kong with the 1992-built ex-*Radisson* 

place in cruise ship history. HNA Tourism brought the 1986-built ex-*Jubilee* and is operating her as *Henna* out of Hainan Island. In Korea, Harmony Cruise started operations with the 1990-built ex-*Costa Marina* as *Harmony Princess*. In 2013, Oriental Dragon entered the cruise field with the 1982-built ex-*Sun Viking* as *Oriental Dragon*. After 2008, a new category of Asian Market ships has been developed, ships that seasonally migrated throughout the Pacific. Spending the northern winter in Australia or Asia and the summer in Alaska, US West Coast, or Northern Asia, these ships can be called pan-Pacific ships. They include some of the lines' most modern and cutting-edge ships. Examples are: Princess Cruises' 1995-built *Sun Princess*, 2004-built *Diamond Princess* and *Sapphire Princess* rotating between Australia

<sup>1</sup> Post-Panamax: A ship too large to fit through the Panama Canal, generally a ship exceeding 100,000 grt.

1999-built *Voyager of the Seas* joined *Legend of* 

cruise ship, *China Star* holds a special

Lindblad Expeditions National Geographic, and *Orion* was renamed *National* 

In 2004 *Leo* returned to Hong Kong for a short period of time before being transferred to NCL as *Norwegian Legend*. Star's fleet remained steady until 2006 when NCL's 1988-built *Norwegian Sea* arrived in Asia as *SuperStar Libra*. At the same time, Costa Crociere positioned the mid-sized 1992-built *Costa Allegra* in Shanghai and Hong Kong on a year-round basis. Their target market was Mainland China. This was in contrast to *Sun Viking* who targeted Royal Caribbean's traditional customers. In 2007 Star introduced NCL's 1993-built *Norwegian Wind* as *SuperStar Aquarius* on short multi-night cruises out of Hong Kong. *Pisces* was primarily used in one-night cruises to nowhere. *Libra* was used to test new markets in Asia and the Mediterranean. The next change was the lay-up of *Gemini* in 2009. *Costa Allegra* operated through 2010; however, after her first season she was also marketed in Europe. In 2011 she was replaced by the larger 1992-built *Costa Classica*. *Classica* remained in Asia through 2012. That year she was joined by the still larger 1996-built *Costa Victoria*. In 2013 *Classica* returned to Europe and was replaced by the 2000-built *Costa Atlantica*. In 2012 Star added NCL's 1992-built *Norwegian Dream* as *SuperStar Gemini*.

*DOI: http://dx.doi.org/10.5772/intechopen.88157*

year-round in 2010. Post-Panamax1

*Diamond* as *China Star*. As the first SWATH2

<sup>2</sup> SWATH: Small water plane area twin hull.

*Geographic Orion*.

*Globalization of the Cruise Industry: A Tale of Ships Part II - Asia Post 1994 DOI: http://dx.doi.org/10.5772/intechopen.88157*

*Education, Human Rights and Peace in Sustainable Development*

in 2001 and 2002, respectively. In 2001, Star sold *SuperStar Taurus* and *SuperStar Aries*. By 2002 Star's Asian fleet had settled into its basic configuration for the next 5 years as the company's attention was focused on growing its NCL fleet. *Virgo* and *Gemini* were in Singapore, and *Pisces* and *Leo* were in Hong Kong. *Gemini*'s size also made her an excellent market opener as Star tried various new markets around Asia. In 2003, the SARS epidemic struck Hong Kong and effectively shut down the tourism industry throughout Asia for the next several months. *Leo* was sent to Australia in early spring to ride out the downturn. Her southbound transit was used

The development of the Australia/New Zealand/South Pacific cruise market goes back a long time. P&O Cruises and Sitmar Cruises had been sailing out of Sydney since the 1970s. In the 1980s, P&O Cruises operated the 1959-built *Oriana* and the smaller 1966-built *Sea Princess* out of Sydney. Sitmar competed with the 1957-built converted troopship *Fairstar*. In 1986 *Oriana* was retired, leaving *Sea Princess* to maintain the P&O presence. In 1988, Princess Cruises purchased Sitmar Cruises. *Fairstar* continued to sail under the P&O banner; however, the name was not changed in deference to *Fairstar*'s many years of Australian service and reputation as "The Fun Ship." The following year, *Sea Princess* returned to Princess Cruises. In 1998 Australia relaxed its cabotage regulations, and Cruising Down Under, a port cooperative marketing association, was more than 2 years into its concerted effort to attract more cruise lines to the region. Given Australia's long coastline, this relaxation allowed non-Australian cruise lines to offer shorter cruises calling at Australian ports. That same year *Fairstar* was replaced by the 1956-built *Fair Princess*, Sitmar's former *Fairsea*. In the mid-1990s P&O Cruises had occasional competition for the lower end of the market from CTC Cruise Lines' 1976-built *Karellya* with seasonal augmentation from their 1972-built *Southern Cross*, ex-*Spirit of London*. Star Cruises based their 1973-built *Norwegian Capricorn*, ex-*Royal Viking Sea*, in the region in 1999 and 2000. In 2000, the 1984-built *Pacific Sky*, ex-*Fair Sky,* replaced *Fair Princess*. In 2003, she was joined by the 1998-built *Pacific Princess*, ex-*R Three*, which brought year-round big ship total berths to 1888. Adding the 1986-built *Pacific Sun*, ex-*Jubilee*, increased this to 3274 in 2004. Two years later the three ships were joined by 1982-built *Pacific Star*, ex-*Tropicale*, bringing the total to 4396 berths. This number dropped to 4098 in 2007 as *Pacific Sky* and *Pacific Princess* withdrew and the 1991-built *Pacific Dawn*, ex-*Regal Princess*, was added. In 2008 *Pacific Star* left Australia bringing the total down to 3076 berths. In 2010, the two ships were joined by the 1990-built *Pacific Jewel*, ex-*Ocean Village* 2, raising the total to 4666 berths. The following year they were joined by the 1989-built *Pacific Pearl* for a total of 6136 berths. The addition of the 2001-built *Carnival Spirit* in 2012 added a new brand and brought the total to 8236 year-round berths. In 2013 *Pacific Sun* was sold which brought the total down to 6750. Between 2002 and 2013, P&O Cruises went from one ship with 1200 berths to three ships with 4650 berths plus one state-of-the-art ship with 2100 berths from sister-brand, Carnival Cruise Line. Since 1998, Captain Cook Cruises has operated small, 1800–3100 grt, 120–175 passenger cruise ships along the Great Barrier Reef and out of Fiji. Captain Cook also operates two river boats on the Murray River but the river numbers are not included in the statistics. Orion Expedition Cruises sailed the 2003-built *Orion* from 2005 through 2013 on expedition cruises out of Australia. From 2011 to 2012, they chartered the former 1991-built *Renaissance Four* as *Orion II*. These numbers are included in the statistics. In 2013 Orion Expedition Cruises was acquired by

to thoroughly disinfect the ship and effectively quarantine the crew.

**7. The Australian market: a long growing season**

**250**

Lindblad Expeditions National Geographic, and *Orion* was renamed *National Geographic Orion*.
