US-based luxury cruise operator Viking Cruises is now banking on the continued growth of Chinese tourism for its own future growth. A company official announced on Tuesday that Viking Cruises is looking into tapping the rising demand for luxury river cruises from a growing number of Chinese travelers.
According to the firm's executive vice president, Jeff Dash, the operator's main goal will be to increase its market share in China and to have Chinese tourists account for 7 to 8 percent of its global cruising business by 2020.
To achieve this goal, the operators revealed that it is already in talks to establish a joint venture company in China together with China Merchants Industrial Zone Holdings Co Ltd, which is a unit of state-owned firm China Merchants Group. Dash stated that the two companies do share the same vision of bringing high-end global cruises to the Chinese market.
The executive stated that they are working as fast as they can to build the greatest Chinese cruise line possible to cater to the growing number of tourists in the country.
Apart from forming the joint venture, both Viking Cruises and China Merchants have entered into other partnerships that will encompass various cooperative efforts. This will include cooperation in product development, marketing, and ticket sales.
China Merchants will reportedly also be tapping into its shipbuilding subsidiaries to support the new joint venture in building new ocean cruise liners that will be built specifically for the Chinese market. That part of the partnership has reportedly already been signed by both parties.
Prior to cementing the partnership, Dash mentioned that they had already conducted a complete marketing study for different locations in China. The company believes that there are "tremendous opportunities" for both Viking Cruises and China Merchants in building cruises around the Yangtze River. The company plans to create several luxury cruises along China's inland waterways, including the Yangtze.
The partnership between both companies comes at an opportune time as China looks into bolstering its various industrial chains, including its cruise sector. The latest development in the government's efforts in the particular sector included the approval by the Ministry of Culture and Tourism to set up the country's first cruise tourism development demonstration zone in Shanghai.
China's cruise industry is one of its fastest-growing industries, with an annual growth rate of around 30 percent. The industry is expected to have an annual cruise market of around 14 million passengers by 2035, bringing in billions of dollars in revenue.
