Bellissima Sets Sail to Asia Ahead of MSC’s Return to Japan

Bellissima Sets Sail to Asia Ahead of MSC’s Return to Japan

To view images of the MSC Virtuosa visit Spacejunkie2 (Flickr)

The MSC Bellissima is currently sailing to Asia. Following a program in the Mediterranean, the vessel is set to mark MSC Cruises’ return to Japan later this month.

After leaving Genoa on March 27, the Meraviglia-Class is currently on its way to Singapore, where it is set to arrive on April 16.

From Southeast Asia, the Bellissima is set to arrive in Yokohama to kick off a series of local cruises in Japan on April 29.

Sailing roundtrip from the port, the vessel is set to offer charter cruises in the country, in addition to different departures under MSC’s flag.

Also opened for bookings from international markets, the itineraries being offered by the European cruise line include an eight-night voyage sailing on June 12.

Sailing to Japan and South Korea, the cruise features visits to Hiroshima, Kagoshima, Jeju Island and Kobe – where the Bellissima is set to spend one night docked.

Other destinations being visited by the vessel during its Japan program include Naha, Fukuoka, Kanazawa, Hakodate, Kumamoto and more.

The Bellissima is also set to sail to Taiwan, as well as to more destinations in South Korea, with planned visits to Keelung, Busan and other ports.

At 167,600 tons, the 4,500-guest vessel is also set to become one of the largest ships to sail in the Asian market.

The MSC Bellissima was built at the Chantiers de l’Atlantique shipyard in France and originally entered service in 2019.

Part of MSC Cruises’ five-ship Meraviglia Class, the vessel offers several different amenities, including the Galleria Bellissima, a 96-meter-long central promenade that features an 80-meter LED dome, in addition to the largest shopping area in the fleet, and a dedicated waterpark.

Previously scheduled to sail in China, the Bellissima also offers 12 international dining venues, as well as 20 different bars.

Chinese Tourism Starting to Climb Back?

Chinese Tourism Starting to Climb Back?

Chinese tourism is starting to climb back, according to COTRI (China Outbound Tourism Research Institute).

COTRI said in a prepared statement that the speed of the recovery process is impressive with reports from many cities indicating that it takes only about a week to get a new passport and that travel restrictions are also falling by the wayside quickly.

The clash between South Korea and China over discriminatory treatment seems to be over. South Koreans can now get visas for China again and the South Korean government has ended special treatment for the Chinese, COTRI said.

European Union countries have reportedly also agreed to phase out COVID-19 restrictions on travellers from China and will also stop random testing of travellers from China by the middle of March.

Chinese companies have also started investing in outbound tourism infrastructure again with the Shanghai retailer Yuyuan Tourist Mart announcing plans to invest about US$120 million in a Japanese ski resort project on Hokkaido.

Airlines are bringing back a multitude of routes to and from China and ticket prices are in most cases back to pre-pandemic levels, according to COTRI.

Business, studies and family reunions are major reasons for the first outbound travellers, the research institute said, but the first leisure tourists have already been sighted not only in the neighbouring countries but also in Sydney, Paris and Milan.

It was less than two months ago that Chinese citizens could again apply for passports and just two weeks ago that Chinese tour operators were officially allowed to sell outbound trips for what is called “group travel” to 20 destinations, even though most customers are said just to buy air tickets and hotel reservations.

Contributing to the interest in travel, COTRI said, are all the marriages that have been put on hold during COVID, expecting to result in a wave of honeymoon trips.

The year 2022 ended with a total number of outbound trips below nine million, about 5 per cent of the 2019 level. Five million of these trips went no further than Macau. Hong Kong welcomed 375,000 mainlanders, five times the number of 2021, but still less than 1 per cent of the 2019 arrivals.

Assuming no further disruptions or an attack on Taiwan, COTRI said, Chinese travellers could make the steep climb back to the top of all international tourism source markets during the current year.

COTRI is a research organization for the China outbound tourism market-based in Hamburg, Germany.

Diamond Princess Set for Japan Reposition

Diamond Princess Set for Japan Reposition

After resuming service on the West Coast in November, the Diamond Princess is setting sail to Japan on Sunday.

Scheduled for a complete program in the Asian country, the Princess Cruises’ vessel is departing on a repositioning voyage to Yokohama – a port near Tokyo.

The 25-night Pacific Crossing itinerary sails from the West Coast and includes visits to ports in Hawaii, the Pacific and Asia.

Starting on March 15, the Diamond Princess is set to offer a series of five- to 19-day cruises to Japan, South Korea and Taiwan.

In addition to Yokohama, the program also includes departures from Kobe and features a total of 38 destinations in three countries, as well as 43 unique itineraries and 57 departures.

Ports of call include Sakata, Naha, Nagasaki, Otaru, Hakodate, Nagasaki, Ishigaki, Cheju, Busan, Keelung and more.

Upon completing its program in Japan, the Diamond Princess is set to reposition to Southeast Asia for a winter season visiting Thailand, Vietnam, Singapore, Malaysia and others.

Built-in Japan by Mitsubishi Heavy Industries in Nagasaki, the Diamond Princess originally entered service in March 2004.

According to Princess, the 113,000-ton vessel was designed to cruise to Japanese ports and offers the Princess MedallionClass experience, which allows guests to personalize their cruises with a “touchless and effortless” service.

Extensively refurbished over the years, the Diamond Princess underwent a major renovation in 2019. At the time, the 2,600-guest ship received new features, such as Japanese bidets in suites and public restrooms.

The ship’s Movies Under The Stars screen was also updated, receiving new surround sound digital audio, while the main pool deck LED lighting received enhancements for a more vibrant and colourful entertainment experience.

Further general refurbishments include upgraded digital audio systems for the Princess Theater, Explorers Lounge and Club Fusion, as well as new furnishings in the Horizon Court buffet area, and more.

Total Enters Giant Korean Floating Wind Projects in Green Push

By Francois de Beaupuy (Bloomberg) — Total SE will team up with Macquarie Group’s green bank to develop more than 2 gigawatts of floating wind farms off South Korea, the latest push by the French oil and gas giant to diversify into clean energy.

Total and European peers such as Royal Dutch Shell Plc and BP Plc have vowed to reduce their exposure to fossil fuels and trim emissions as governments, consumers and investors demand increased efforts to tackle global warming. Floating wind parks at the scale planned by Total — dwarfing current sites — will be key to bringing down the cost of the emerging technology.

The French major and Macquarie’s Green Investment Group will develop five floating wind farms off the eastern and southern coasts of South Korea, Total said in a statement on Tuesday. They plan to start building the first 500-megawatt project by the end of 2023. That compares with the 30 megawatts of capacity at Equinor ASA’s Hywind site off Scotland, the biggest operating floating wind project so far.

The plan is “in line with Total’s strategy to profitably develop renewable energy worldwide and contribute to our net-zero ambition,” Chief Executive Officer Patrick Pouyanne said in the statement. “Thanks to its extensive experience in offshore projects, in cooperation with many Korean shipyards, Total is particularly well-positioned to contribute to the successful development of this new technology.”

Developers have recently started to test large floating wind turbines, aiming to install them in areas that lack shallow waters, where traditional offshore turbines can be anchored to the seabed. Total itself took a majority stake in a floating wind project off Wales this year, reflecting its commitment to invest in the technology while tapping its experience developing oil and gas offshore.

The total has also stepped up spending on renewable energy more broadly, with investments this year in large solar developments in India and Qatar, a giant wind farm in the North Sea, and growth in clean power in Spain and France. The company aims to have stakes in at least 25 gigawatts of renewable generation capacity in 2025, up from more than 5 gigawatts currently.

Total didn’t discuss funding of the Korean wind farms in its statement.

Norwegian's Del Rio sees room for expansion

Norwegian Cruise Line entered the Chinese market last year with the Norwegian Joy.

Norwegian Cruise Line Holdings CEO Frank Del Rio told analysts that his ships were "in the right place at the right time" in 2017 but admitted that there were plenty of spots on the map he'd like to cover with new ships.

"We have so many markets that are unserved by us or grossly underpenetrated by us," Del Rio said in a question-and-answer session with analysts to discuss fourth quarter and 2017 earnings in February.

"We don't have a presence in the Mid-Atlantic states," he said. "We're not in Baltimore. We're not in Charleston. We don't have a presence at all in the world's second-largest port, which is Fort Lauderdale."

And the list kept growing.

"We don't have a presence in the Gulf states of Texas or Alabama," he said. "We don't have a year-round presence in Tampa or New Orleans or Los Angeles. We only have three ships in Alaska, which is a very high-yielding market. Some of our competitors have up to eight vessels."

Del Rio said that given the fleet size and the company's intention to build only one new ship a year for its Norwegian Cruise Line brand, it could be a couple of years before he would consider adding a second ship in China, because, although profitable, it was not a banner year in China in 2017.

"I don't think China is hitting on all cylinders as it can," he said, referencing the continued tensions with South Korea and the resulting uniformity of short cruise itineraries, which only visit Japan.

Del Rio said that the Wave season for 2018 started strong and the company's outlook is bullish, driven by a strong economy and consumer demand.

"Our overall booked position during the first seven weeks of 2018 further improved compared to the same time last year," he said.

In addition to Norwegian Cruise Line, NCLH owns Oceania Cruises and Regent Seven Seas Cruises. The three lines operate a combined fleet of 25 ships with some 50,400 berths, offering itineraries to more than 450 destinations.

On average, guests of NCLH brands are booking five weeks earlier than they did at the end of 2016, Del Rio said.

NCLH net income rose 23% last year, to $780 million, as European pricing and bookings recovered faster than expected and the booking curve extended to a near-optimal length.

Revenue rose 10.7%, to $5.4 billion.

Costa Serena to Sail Two Cruises from South Korea

Costa Serena

The Costa Serena will deploy to South Korea for a pair of week-long sailings next May as the ship has been chartered by Lotte Tour.

The first voyage sails for seven days and six nights, from Incheon to Busan, according to a spokesperson. Calls include Ishigaki, Taipei, and Keelung.

Second cruise sails eight days and seven nights, round-trip from Busan, with calls in Sokcho, Vladivostok, Tomakomai, and Hakodate.

China's ban leaves cruise lines scrambling

Majestic Princess

Cruise lines have started to tear up their northern China itineraries following an order from the Chinese government to the country's travel agencies to stop selling itineraries that include South Korea.

The Chinese directive follows the announcement late last month by the South Korean and U.S. governments that components for a new U.S.-developed anti-missile system were to arrive in South Korea last week for installation.

Known as the Terminal High Altitude Area Defense system, it is designed to intercept missiles up to 125 miles away as a means of protecting South Korea from missile strikes by North Korea, which has undertaken a series of long-range missile tests in recent months and tested a nuclear weapon as recently as last September.

The Chinese and Russian governments have objected to the installation of the missile-defense system because it employs powerful radar technology that the two countries assert can see into their territories.

Genting Dream

Japan and South Korea are the main cruise destinations reachable from northern China on the four- and five-day itineraries preferred by most Chinese. With Korea suddenly off limits, cruises operated for Chinese passengers out of ports such as Tianjin and Shanghai will now focus primarily on visiting Japan, experts said.

In a statement, Costa Cruises said it would "remove calls to South Korean ports for our upcoming cruises homeported out of China, replacing them with cruising at sea or calls to destinations in Japan."

Royal Caribbean International also said it will curtail visits to South Korean ports due to "recent developments regarding the situation in South Korea."

Delivery of the parts for the missile-defense system came as North Korea tested four missiles launched in the direction of Japan that fell into the sea.

Dwain Wall, an executive at CruisingStore.com and a consultant familiar with the Chinese market, said there is no question that the Chinese government has the authority to order Chinese travel companies to stop selling cruises to Korea.

"There is a very tight licensing and regulatory control over travel agencies" in China, Wall said. "It does impact cruise, but it's low season, thank God, and [the cruise lines have] been sort of able to regroup and change the ports to Japanese ports."

If China's ban persists into the busier summer months it could both overwhelm the port capacity in Japan and reduce demand for cruises in China because of the lack of destination variety.

Richard Fain, chairman of Royal Caribbean Cruises Ltd., said he could not predict how long the chill in China-Korea relations might last.

Stock analysts blamed news of the Korea tiff for a pull-back in cruise shares last week but said that it was excessive.

As a share of cruise lines' global capacity, the analysts said China accounts for 9% of RCCL's, 6% of Carnival Corp.'s and 4% to 5% of Norwegian Cruise Line Holdings'. Further, they pointed out, not all of that capacity is sailing from north China.

Norwegian has no plans to reduce China service, Del Rio says

Norwegian Joy

It's full speed ahead in China for Norwegian Cruise Line.

Despite recent announcements by other lines that ships once scheduled for year-round service in China would move to Australia for part of the year, Norwegian Cruise Line Holdings chairman Frank Del Rio said his company has no plans to follow suit.

"I'm glad to see that the others are leaving," Del Rio said. "That leaves us perhaps the last man standing, and that'd be great. I'll take all the demand."

Del Rio's comments came during a conference call with analysts to discuss first-quarter financial results. 

Cruise selling in China has been disrupted since March by the Chinese government's move to halt travel to South Korea, a protest of a decision by the South Korean government to install a U.S.-made missile defense system.

"The disruption caused travel agents to be distracted from focusing on contracting charters further out into the year, then trying to book, in some cases rebook, [and] find new customers [for those] who no longer wanted to go on sailings that didn't include Korea," Del Rio said. "But it's also had a bit of a chilling effect on overall demand."

He added that sales for new cruises had started to pick up in the past two weeks. "The South Korea situation, we believe, is a temporary bump in the road, and time will tell," he said.

Norwegian Cruise Line is scheduled to start sailing the 3,883-passenger Norwegian Joy, its first ship custom-designed for the Chinese market, from Shanghai in late June. 

Princess Cruises recently said that its Majestic Princess, also custom-built for the Chinese market, will be deployed to Australia for six months in 2018-19. The move follows the redeployment of the Sapphire Princess from China to Europe in the latter half of 2018.

Because Norwegian is new to the Chinese source market, Del Rio said he's being cautious about predicting the impact of the Norwegian Joy on the company's performance in the second half.

"So in many ways, all the good things that I have to say about how our business is operating on the other 24 ships is being somewhat tempered by the potential that could arise in China," Del Rio said.

A strong Wave

Del Rio said on the call that this year's Wave was "the best Wave season that we and likely the industry has experienced in quite some time." As a result, NCLH brands have fewer cabins to sell for the rest of 2017, and it expects higher prices on those bookings than last year. 

NCLH, which also includes Oceania Cruises and Regent Seven Seas Cruises, posted Q1 net income of $61.9 million, compared with $73.2 million a year earlier. Revenue rose 6.8%, to a record $1.15 billion.

Del Rio attributed the net-income decline to higher-than-expected maintenance and repair costs, particularly for the Norwegian Star, which broke down in Australia for five days in February. 

Outside of that, CFO Wendy Beck said the results were driven by "strong close-in demand in the Caribbean, coupled with strength in onboard revenue." Cuba itineraries are now available on all three brands, and "the performance of that itinerary is just astonishing," Del Rio said. NCLH is also doing better than it planned in Europe this year, which Del Rio attributed to a combination of less inventory to sell than at the same time last year and positive market conditions. "That is resulting in very, very strong sales in Europe at significantly higher prices than the same time last year," he said.

STX Finland shipyard to be sold

By Jerry Limone

German shipbuilder Meyer Werft and the Finnish government have agreed to acquire STX Finland from South Korea-based STX Corp.

Meyer Werft will buy a 70% stake, the Finnish government 30%. The acquisition is subject to clearance by antitrust authorities and banks.

STX Finland has a shipyard in Turku; a shipyard in Rauma was sold to the Finnish town earlier this year. The plan is to rename the company Meyer Turku Shipyard.

The Turku yard built the Mein Schiff 3, a TUI Cruises ship that entered service in June. STX Finland is currently constructing the Mein Schiff 4, and TUI Cruises this week reached a deal for two more ships of the same class to be constructed at the Turku yard.

STX also has built many ships for the North American market, including Royal Caribbean's Oasis and Allure of the Seas.

Meyer Werft’s Papenburg yard built Celebrity’s Solstice-class and Norwegian Cruise Line’s Breakaway-class ships. The yard is constructing Norwegian’s Breakaway Plus and Royal Caribbean’s Quantum-class vessels.

Voyager of the Seas to spend next summer in Hong Kong

By Tom Stieghorst

Royal Caribbean International will homeport Voyager of the Seas in Hong Kong for the summer of 2015.

The 3,138-passenger ship will sail 22 cruises of three to 10 days between the end of June and October.

Destinations include Vietnam, Thailand, Singapore, Japan, South Korea, Taiwan and ports in China.

“Hong Kong has immense potential as a homeport for Chinese vacationers to board a Royal Caribbean cruise,” said Zinan Liu, RCCL's regional vice president of Asia and managing director of China.

He added that Voyager will get an extensive revitalization before it arrives in Hong Kong next summer.

To support the ship’s operations, RCCL has opened a fully staffed Hong Kong office, augmenting the Asia offices it now maintains in Beijing and Shanghai.

Voyager’s move to Hong Kong will coincide with the arrival of Quantum of the Seas to do year-round cruises from Shanghai.

Royal Caribbean is a partner in the company that operates the Kai Tak Cruise Terminal in Hong Kong, which opened last year.