Resorts World sees quick recovery for Hong Kong’s passenger cruise market as it eyes local, mainland tourists

Resorts World launched the maiden voyage of the 13-deck Resorts World One from its home port of Kai Tak Cruise Terminal in Hong Kong on Friday
The return of mainland Chinese tourists to Hong Kong is boosting recovery hopes across many sectors, including retail, property and aviation

Coronavirus Hong Kong

Cheryl Arcibal

Published: 3:58pm, 12 Mar 2023

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Resorts World Cruises, the new company set up by Malaysian billionaire Lim Kok Thay, believes the cruise passenger business in Hong Kong has a better chance of a quick recovery than its business hub rival Singapore.

Resorts World launched the maiden voyage of the 13-deck Resorts World One from its home port of Kai Tak Cruise Terminal in Hong Kong on Friday, following a glitzy event earlier in the day attended by the company’s top executives, local tourism officials and other partners.

“In terms of infrastructure, both Hong Kong and Singapore are equally good,” said Michael Goh, president of the Singapore-based cruise operator. “Hong Kong has a good international flight connection, and is a very popular destination for international travellers.”

The launch of Resorts World’s three sailings a week from Hong Kong comes after the city and mainland China abandoned Covid-19 related restrictions, finally allowing unrestricted travel in both jurisdictions.

The return of mainland Chinese tourists to Hong Kong is boosting recovery hopes across many sectors, including retail, property and aviation.

The significance of mainland Chinese to Hong Kong-based companies or those operating in the city cannot be overstated. For example, Hong Kong used to be Dubai-based airline Emirates largest market in the “Far East”, partly because tourists from the mainland flew out of the city.

Hong Kong held the crown for the most visited place in the world for a decade until 2018, according to market research group Euromonitor International.

The Resorts World One inaugural sailing ceremony at Kai Tak Cruise Terminal, March 10, 2023. Photo: SCMP / K. Y. Cheng

Starting in 2019, however, with the city hit by anti-government protests, and the subsequent outbreak of the coronavirus pandemic, visitor numbers have fallen, to 604,564 last year from a record 65.15 million in 2018. The growth up to that point – an increase of 11.4 per cent from 2017 – came mainly on the back of 51 million mainlanders visiting the city, a rise of 14.8 per cent on the previous year. Retail sales that year rose 8.8 per cent to HK$485.2 billion (US$61.8 billion), according to government data.

In April, Resorts World One will start offering destination cruises as itinerary options for passengers. The ship has 326 balcony cabins and 40 suite cabins that can accommodate some 1,800 passengers.

Lim owned a majority of Genting Hong Kong, which was ordered to be liquidated by a court in Bermuda in October following a winding-up petition it filed in January last year, after the bankruptcy of its shipyard in northeastern Germany triggered US$2.78 billion of debt repayment demands from creditors.

But Goh is banking on lessons learned during the pandemic, such as the importance of precaution management for customers, as one strategy to improve business.

The Asia-Pacific cruise market, however, is only likely to recover to 75 per cent of its pre-pandemic levels by 2027, according to Euromonitor International.

“China historically contributes to nearly 80 per cent of the Asia-Pacific cruise market but the recent border reopening in China did not translate into an immediate V-shape rebound in outbound travelling among Chinese tourists,” said Prudence Lai, senior analyst at the research firm.

Ling Sit (left), assistant vice president of sales for Resorts World, and Michael Goh, president of Resorts World Cruises, at the inaugural sailing ceremony on March 10. Photo: SCMP / Cheryl Arcibal

Still, Lai said a cruise package offers “good value for money as it includes entertainment, food and dining experience as well as hassle-free transportation to multiple destinations.”

Hong Kong’s Kai Tak Cruise Terminal recently reopened after three years of being idle, and received its first international cruise ship in January. Local interest in booking cruises spiked after the terminal reopened.

The terminal is expected to receive 150 port calls from at least 16 cruise lines this year, as well as offering weekly itineraries to Kaohsiung, Taiwan from Hong Kong. “The accelerated recovery in cruise services showcased the interest among travellers to travel through cruise,” Lai added.