01/08/09, 03:21:00 UTC

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Star Cruises set to ride economic boom, Games

thestandard.com.hk

Star Cruises - the Asia-Pacific region's leading cruise operator and the world's third-largest - is poised to go big in the Greater China region in expectation of a surge in cruise travel, fueled by a robust economy and the immense market potential arising from next year's Beijing Olympics.

David Chua Ming-huat, president of Star Cruises, which is run by Malaysia's Genting Group, said yesterday the company will concentrate on its Asian operations, using funds derived from the recent sale of a 50-percent stake in its North American arm, Norwegian Cruise Line, to United States-based investment firm Apollo Management, for US$1 billion (HK$7.8 billion).

He highlighted the "rosy prospects" of the cruise industry in the Greater China region created by imminent direct links - mail, trade and air and shipping services - between the mainland and Taiwan, saying he was optimistic there would be an increase in the number of cruise passengers across the strait.

As part of its marketing campaign, Star Cruises, which has moved the center of its management from Malaysia and Singapore to Hong Kong in recent years, will put one of its ships into service - sailing from Taiwan to Xiamen - in November.

Chua told The Standard the company has signed a cooperation agreement with a business partner, which he declined to name, to develop concepts brought about by next year's Olympics Games. Details of the project have yet to be announced.

In the longer run, the company plans to bring two ships from its NCL fleet - Norwegian Dream and Norwegian Majesty - to Asia some time between next year and 2012 to meet growing passenger demand in the region.

Chua described Star Cruises' expansion in the Greater China region as a strategic move taken in view of Hong Kong's strength as an international financial center.

But he refused to say whether the company would bid for the franchise to build and run the proposed cruise terminal at Kai Tak.

Star Cruises had, in 2005, submitted an expression of interest in joining hands with Nan Fung Development and VXL Capital to build the SAR's second cruise terminal, but the consortium said then it did not like the government's choice of the site of the old airport at Kai Tak.

Since the Tourism Commission announced the requirements set for future terminal operators earlier this month, Star Cruises has side-stepped the question of whether it would participate in the open tender.

"We're a cruise company, not a pier operator," Chua stressed.

"For a cruise company, ships are more important than terminals. What's the use of a cruise terminal if it's visited only once in three months?

"However, being a cruise company does not mean we'll not invest in the terminal. As a listed company, we'll make an announcement at the appropriate time."

Chua refused to speculate whether fresh capital from the Apollo deal would put it in a stronger position in bidding for the terminal's operating rights.

 Printable Version  | published Aug 19, 2007