Taiwan Today

Taiwan’s ascendant cruise sector is expected to become a key driver of tourism revenue in years to come.

As a scenic island nation at the crossroads of East Asia, Taiwan is well placed to tap the rapidly swelling ranks of Asian cruise passengers. Cruise capacity in Asia rose 51 percent in 2015 and was forecast to reach 3.2 million last year, according to the 2016 Asia Cruise Trends study by U.S.-based industry group Cruise Lines International Association (CLIA).

By developing Taiwan into a leading cruise travel destination, the government aims to strengthen the tourism sector and raise the nation’s global profile. Last year, the country welcomed a record 10.69 million visitors, up 2.4 percent over 2015. Driving that increase were arrivals from Japan, South Korea and Southeast Asia—markets that will prove crucial to growing Taiwan’s cruise industry.

The government’s interest in cruise travel stems from its ability to create widespread economic opportunity. Cruise tourism not only delivers visitor spending, but generates business in terms of port operations, vessel maintenance and crew services, said Joseph Cheng (鄭知鴻), section chief of the International Affairs Division at the Tourism Bureau under the Ministry of Transportation and Communications (MOTC).

In the 2016 Asia Cruise Trends study, the CLIA highlighted the growth of Taiwan’s cruise travel sector, noting that in 2015 the country ranked as Asia’s No. 2 source of passengers ahead of Singapore, Japan and Hong Kong, and behind only mainland China. In addition, the Port of Keelung in northern Taiwan ranked fifth across the continent in total number of calls.

Rapid Growth

One of the key factors in the rapid expansion of Taiwan’s cruise travel market is geography. “Location, location, location,” Cheng said. “Taiwan is ideally positioned between Northeast and Southeast Asia, which means it fits into a wide array of cruise itineraries.”

Robust government support and aggressive marketing by some of the world’s pre-eminent cruise ship operators, including Costa Cruises, Princess Cruises and Star Cruises, are also propelling the sector’s growth. These efforts have helped change the public’s perception of travel by sea for the better, said Alex Cheng (鄭光仁‬), assistant manager of Princess Cruises and Cunard Line in the Taiwan branch of Carnival PLC, the world’s largest leisure company and operator of 10 cruise line brands globally.

“In the past, Taiwanese thought sea travel unsafe and with good reason,” he said. “The boats that were used here were not up to the safety standards of a modern cruise liner and the surrounding ocean has very strong currents, especially on the east coast.”

At the same time, for security reasons, maritime activity was restricted along Taiwan’s coastline until the late 1980s. As a result, most Taiwanese had scant opportunity to engage in seafaring leisure activities.

With the growth of cruise travel, Taiwanese are now discovering the perks of vacationing at sea. Cheng said the typical three-day/four-night or five-day/six-night cruise suits modern lifestyles particularly well. “People in Taiwan work hard; they don’t take many days off. A cruise allows them to enjoy a nice vacation in a short amount of time.”

Chin Mei-hua (秦美華), a Taipei City-based civil servant, went on a three-day/four-night cruise in April with her husband, children, mother and aunt. Operated by Italian line Costa Cruises under the Carnival organization, the cruise departed from the Port of Keelung and docked for roughly one day in Japan’s Okinawa prefecture before returning to Taiwan.

“A cruise is ideal if you’re traveling with older relatives, which is something many Taiwanese do,” she said. “The pace is very relaxed. If they feel tired, they can easily rest in their cabin.”

Tale of Two Ports

Industry observers predict that the Taiwan cruise sector will grow expeditiously this year. State-run Taiwan International Ports Corp. forecasts that about 600 cruise ships will sail in and out of Taiwan in 2017, up 30 percent from a year earlier.

Star Cruises, whose Taiwan homeport is Keelung, similarly predicts steady growth in passenger numbers, including from northern Taiwan. In 2016, the company converted its regular Keelung to Okinawa route, previously running between April and October, into a year-round service. Princess and Costa cruise lines are also launching permanent homeport operations in Keelung this year.

In March, President Tsai Ing-wen (蔡英文) announced that the government will invest more than NT$8 billion (US$264.9 million) in building a tram connecting Keelung to Taipei’s Nangang District. One of the goals of the project, set for completion in 2022, is to elevate Keelung’s chances of serving as a homeport for international cruise ships.

Activity has been less brisk at the Port of Kaohsiung in southern Taiwan. Passenger numbers fell from 133,743 in 2014 to 128,608 in 2015. Last year, they plunged to just 42,998.

The situation will improve this year, with more international cruise lines set to pass through the port in Taiwan’s second largest city. Star Cruises has launched a regular March-May cruise schedule from Kaohsiung to Hong Kong, Manila and Laoag in the Philippines. Princess Cruises will operate regular tours from Kaohsiung to Hong Kong and Ha Long Bay in Vietnam and to Okinawa Island and the Miyako Islands in Japan from October to November. Also in October and November, Princess Cruises will offer a new Kaohsiung-Hong Kong-Ha Long Bay route. Overall, total cruise calls to the Port of Kaohsiung are expected to increase to 88 this year from 24 in 2016.

One reason for the jump in traffic is effective marketing. In August 2016, the MOTC released a video promoting cruise travel on the Kaohsiung metro system as well as Taiwan’s railways and cable television stations. The video was also broadcast at the ports of Naha and Kobe in Japan as well as on Princess Cruises vessels and other Taiwan-bound ocean liners.

“Kaohsiung has worked hard in recent years to build up its cruise industry,” the Tourism Bureau’s Cheng said. Crucial to the city’s development as an international cruise destination will be the construction of a new port terminal, slated for completion in 2019, he observed.

The terminal, which will have 19 wharves, “will allow passengers to embark and disembark smoothly, reducing wait times,” Cheng said. “For a short port call, this is especially important.”

Navigating New Waters

The government has set a goal of boosting cruise passenger numbers to more than 1 million in 2017, an annual increase of roughly one-third, while raising industry production value by 25 percent year on year to NT$5 billion (US$165.6 million).

Arrival numbers during the first quarter were promising. According to the Tourism Bureau, more than 19,500 international cruise passengers visited Taiwan in the January-March period, an annual increase of 106 percent.

The Philippines was the fastest-growing market, with visitor numbers increasing to 4,762 from just 85 in 2016. In contrast, the mainland Chinese market is flagging. In the first quarter, just 432 mainland Chinese cruise ship passengers visited Taiwan, a decline from 3,403 during the same period a year ago.

There is some ongoing cooperation between the two sides in cruise travel such as the Asia Cruise Cooperation, an alliance between Taiwan, Hong Kong, the Philippines, the mainland Chinese province of Hainan and the mainland Chinese city of Xiamen. This body aims to boost the overall Asia cruise market as well as encourage international cruise lines to visit the five destinations as part of their itineraries.

For the most part, industry observers remain bullish on the potential of Taiwan’s cruise industry. “This is a totally new way for people here to travel. It’s relaxing, economical and time efficient,” Carnival’s Cheng said, adding there’s considerable room for industry expansion given the market’s fledgling state.

Kay Yeh (葉玟君), a server in a Taipei restaurant, is among the growing ranks of Taiwanese choosing cruise vacations. She went on her second voyage last September with two friends, sailing with Star Cruises from the Port of Keelung and making a brief stop in Ishigaki, one of Okinawa’s islands.

Traveling to Japan by sea seemed appealing, Yeh said, and overall she and her friends had a good time. After choosing fairly economical options for her first two cruises, she is now eager to try a premium package. “Next time, I’d be willing to pick something more luxurious.” 

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Matthew Fulco is a freelance journalist based in Taipei City.

Copyright © 2017 by Matthew Fulco