ABSTRACT
In 1997 the North American cruise line industry grew by 8.5 percent to account for 5.05 million passengers and occupancy of 91 percent (Cruise Lines International Association, 1998). The United States is still the world's largest cruise market with an 85 percent passenger share, followed by Europe with 13 percent, and Australia and Japan with 1 percent share respectively (Cruise Industry News, 1996). Despite its infancy, the cruise line industry in Southeast Asia is rapidly emerging as one of the fastest growing international cruise markets in the world. It is not only becoming a major cruise destination but also generating a new market of cruise vacationers. From 1994 to 1998, the cruise industry in Southeast Asia has grown at an average annual rate of over 60 percent, compared to 4 percent for the North American cruise industry (PSA, 1998; CLIA, 1998). The attraction and popularity of cruising has increased among Asians, fueled by the region's historically strong economic growth, increasing leisure time, and rise in disposable income. The region has witnessed a dramatic growth in fleet capacity, entry of new cruise lines, expansion of port facilities, and
increase in cruise passengers. In spite of the challenges posed by current economic crises, there are still excellent prospects for future growth. The success of the cruise line industry in Southeast Asia will, however, depend upon the commitment shown by the public and private sectors to sustain the high rate of growth, and to promote the concept of cruising. It will require a strategy of cooperation through public-private partnerships and joint ventures among the regional countries to attract investments and to market the cruise product. In this regard, it is the purpose of this chapter to present an overview of the growth and development of the cruise line industry in Southeast Asia, to discuss the trends and challenges, and to highlight the potential marketing opportunities in the cruise sector.
