everybody it's Bruce here with traveling with Bruce I've got a story today about
entering the Chinese cruise market this is a difficult thing to pull off a
number of cruise lines have tried it they want to get into the largest
potential cruise market in the world China has of course the city Hong Kong
this city here Shanghai there are possibly as many as 30 million cruise
passengers a year available to go after over the next 15 years out of China the
entire cruise business in the world is 27 to 30 million right now so China
itself could be half of it just according to these numbers problem is
cruise lines like our friends here at norwegian with the norwegian jade cruise
ship they've tried to go in here this was a 1 billion dollar cruise ship that
this ship is not even two years old it was designed just for the chinese market
all the language on board all of the amenities onboard everything perfectly
suited for China's market bust didn't work out here's another one where El
Caribbean came in with a quantum of the Seas what a ship this is also a billion
dollar bet into the China market again they have they set it all up just
perfect for the Chinese market and it didn't work they've since decided to
pull her out as well so both of these two mega liners are out Carnival on the
other hand they figured it out if you can't beat them join them rather than
bring in their own ships under their own brand why don't we just form a joint
venture and we'll work it that way so they've done that they've teamed up with
a company called China State shipbuilding Corp and have created a
joint venture company and the first order of business that the new ship
company needs you're gonna offer cruises and shine it unique cruise ships yet the
Cardinal just happens to have some good old cruise ships from the coastal line
that are quickly approaching 20 years of age that need a spruce up and rather
than spruce up these old birds here and keep them into Mediterranean carnivals
deciding now why do we sell these two ships off to our new joint venture
partner agreement here in China will refurbish these two
ships perhaps 100 million piece we'll get them all nice and spruced up just
for the Chinese market we'll make it all Chinese language and all Chinese cuisine
and entertainment you name it and the start at the end of 2019 the cost to
Atlantica and then in 2020 the cost of Mediterranea will transfer over to the
Chinese joint venture company that Carnival and the Chinese cruise builder
cruise ship builder have smart move for Carnival they offload to old ships to
make room for two brand new ships because Costa has new ships on order the
meantime the Chinese cruise company starts business by the end of 2019 into
20 and they turned around and immediately not signed a second
agreement with Carnival and that deal is that the Chinese cruise belt of the
cruise ship / China state shipbuilding Corp will produce two brand-new cruise
ships for this joint venture cruise company and they have an option through
four more so in effect six brand-new cruise ships
will be built at this site here massive massive ship building site starting in
2019 coming up and these will be delivered starting in 2020 21 22 23 and
so on don't be surprised if additional contracts get signed behind it this
gives Carnival and the new of the new player a nice chunk of the business
these other North American lines are pulling out China and the carnival Kirk
are pulling in and they lot dominate the business should be interesting to watch
we'll keep an eye on it this is Bruce with traveling of Bruce I hope you
enjoyed this video and join me Monday to Friday five o'clock Eastern and
Saturdays at two Eastern for live cruise ship updates we talk cruise ship six
days a week I'd love to have you join me subscribe today we'll talk to you soon
bye now