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Cruise ship company expands into NZ

The world’s second largest cruise company, Royal Caribbean Cruises, is expanding into the New Zealand market by opening an Auckland-based office.

The move is part of a wider push to regionalise its operations.

Royal Caribbean Australia general manager Gavin Smith said the company had identified 12 markets in the global industry where it could capitalise on the growth of the cruising market by having wholly owned businesses, including Europe, Asia, Australia and New Zealand.

The move was trade-related rather than a commercial decision, he said.

“We hope to become a more accessible brand and bring it to the doorstep of consumers. We want to have more relevance to more people.”

He said almost 40,000 New Zealanders went on a cruise in 2008, compared to 30,215 in 2007. “More New Zealanders are cruising than ever before and a lot of it is driven by the presence of ships here.”

“We believe the New Zealand market is ready for greater choices in cruising and our expansion will raise the bar in terms of what New Zealanders can expect from their cruise holidays.”

Royal Caribbean (NYSE:RCL), which brought about 10,000 international visitors to New Zealand this year, will double the number of sailings by the end of next year, bringing in an expected 25,000 international visitors.

From October to April 2011, the Radiance of the Seas (at 293 metres) will join Rhapsody of the Seas to bring a mostly North American/European and Asian visitor market.

An overwhelming number of ships were now coming to this part of the world, as companies recognised the value in counter-seasonal operations (to Northern Hemisphere winters).

“Australia and New Zealand are in a wonderful position to take advantage of that growth.”

While the company welcomed investment in cruise ship infrastructure, Mr Smith said it was a problem globally. “Throughout the world, ports struggle to cater for the demand of the cruise industry.”

As long as there was a roof for passengers when they offloaded and the opportunity to pull in to the middle of the city, cruise ships would keep coming, he said.

Royal Caribbean operates 38 ships globally under the Royal Caribbean International, Celebrity Cruises and Azamara club Cruises companies and has four additional ships under construction.

Rhapsody of the Seas

 

More by Andrea Deuchrass

Comments and questions
4

I see this as a sign of global economic increase! Royal Caribbean is smart to tap into 12 new markets. I wonder how long it will be before their competitors follow suit. Isn't the golden rule of business to have foresight?

i can not wait to extend to New Zealand. this way is one step ahead of competition. i win last year a Caribbean Cruises tour and i am please of their services. and if the prices are the same, than i can tell for sure that a average man can afford to take a holiday on a ship.

I love to travel and am in a position in live where I can afford to take my grandkids on many trips with me. I am always cautious and get good Travel Medical Insurance because I'd hate to not be able to get them treated if something happened when they are with me. Out next trip is a cruise to Australia and Japan.

I was looking for European Cruises and found this.. it surprised me to see this idea having occurred in the middle of the economic crisis, was Australia hit less than other parts of the world? Anyway, European visitor market is among their targets.. who knows, maybe I myself will try their offer:)

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