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Press Release for Media Briefing of the Shanghai Municipal Government on August 18, 2023

2023.08.18

On
the morning of today (August 18), the Information Office of Shanghai
Municipality held a press briefing. Zhu Min, director of the Shanghai Municipal
Commission of Commerce, introduced the details of the Action Plan for Shanghai
to Promote the High-quality Development of the International Cruise Economy
(2023-2025) (hereinafter referred to as Action Plan). Zhang Jie, deputy
director of the Shanghai Municipal Commission of Commerce, Liu Ping, deputy
director of the Shanghai Municipal Commission of Economy and Informatization,
Jiang Hongfei, deputy director of the Shanghai Municipal Transportation
Commission, Zhang Qi, deputy director of the Shanghai Municipal Administration
of Culture and Tourism, Chen Shuai, deputy chief of Hongkou District, and Xue
Sasa, deputy chief of Baoshan District attended the press briefing and answered
questions from reporters.

1.    
The overall considerations for the preparation
of the Action Plan

Advancing
the high-quality evolution of the global cruise economy stands as a pivotal
strategy for Shanghai, signifying its commitment to deepening reform and
opening-up, and bolstering both its vitality and core competitiveness. This
strategic endeavor also mirrors Shanghai’s proactive drive to expedite the
construction of a socialist modern metropolis with global influence, aligning
with the aspirations set forth in the 20th National Congress of the Communist
Party of China and the series of seminal speeches by General Secretary Xi
Jinping during his visit to the city. This Action Plan is a product of meticulous
consideration, woven through the prism of high-level reform and open-door
initiatives. The plan deftly seizes the opportune moment, coinciding with the
global cruise economy’s revitalization, and spurs policy and systemic
innovations within the international cruise industry. Comprehensive in scope,
the Action Plan leverages Shanghai’s inherent advantages, such as its strategic
location and resource wealth, to traverse the entire cruise industry value
chain. By delineating pivotal objectives and corresponding strategies, the
Action Plan strives to cultivate new competitive strengths for Shanghai’s
international cruise economy. The Action Plan’s formulation underscores a
holistic approach, spotlighting strategic focal points. For instance, it
prioritizes reinforcing the bedrock for international cruise ship development
by nurturing globally competitive headquarters enterprises and enhancing
autonomous cruise ship manufacturing capacity. Simultaneously, it concentrates
on refining the nurturing ambiance for cruise industry development,
persistently enhancing port infrastructure and functions, fortifying policy
frameworks, and augmenting the end-to-end competitiveness of Shanghai’s
international cruise industry. Throughout this process, a solution-oriented, demand-driven,
and outcome-focused methodology has prevailed. Extensive consultations were
undertaken, involving diverse perspectives, and enhanced by the unified efforts
of various departments and districts. Consequently, the Action Plan for Shanghai
to Promote the High-quality Development of the International Cruise Economy
(2023-2025) has been formed and unveiled publicly.

2.    
The main contents of the Action Plan

The
Action Plan contains two parts, namely work goals and work measures.

Part
I: work goals

The
overarching aim of this endeavor is encapsulated in the vision of “one port,
one destination, one center.” By 2035, Shanghai aspires to evolve into a
globally distinguished cruise hub port, a destination renowned for its
international cruise tourism allure, and a pivotal Asia-Pacific cruise economic
center with the capacity for global resource allocation. This aspirational
trajectory is underpinned by six discrete yet interconnected goals:
establishing a “hub port,” cultivating a “headquarters port,” nurturing a
“manufacturing port,” augmenting autonomous cruise operation capabilities,
erecting an Asia-Pacific hub for cruise vessel supplies, and dramatically
magnifying the scale of the cruise economy. Together, these goals forge the
blueprint of Shanghai’s distinctive cruise economy model: an intricate
interplay of the “hub port,” “headquarters port,” and “manufacturing port.”
This synergy has manifested in the consolidation of Shanghai’s position as the
preeminent comprehensive hub port for cruise ships within the Asia-Pacific
region. The gravitational pull exerted by the headquarters-style cruise economy
is gaining prominence, and the foundations of the cruise ship manufacturing and
support industry network have taken root.

Part
II: work measures

Aligned
with the targeted objectives, the Action Plan is strategically organized around
five key dimensions: amplifying the cruise headquarters economy, reinforcing
the cruise manufacturing framework, enhancing port hub efficacy, refining
cruise support services, and optimizing the broader cruise industry ecosystem.
This comprehensive approach is underscored by the proposal of 20 distinct
operational measures:

Firstly,
a concerted effort is directed towards the expansion of the cruise headquarters
economy. This undertaking involves the cultivation and aggregation of Chinese
and foreign cruise company headquarters, encompassing two measures. Initial
focus lies in fostering the development of local cruise company headquarters.
This entails elevating local cruise brand standards, catalyzing the
professional reformation of cruise manufacturing enterprises, and fostering the
emergence of globally influential and competitive Chinese cruise enterprises.
In parallel, efforts extend to the attraction of foreign-funded cruise company
headquarters. The strategic goal is to draw regional hubs of global cruise
corporations, headquarters-type entities, and multinational corporate business
units, forming a nexus in Shanghai that resonates as a multinational corporate
hub and forms the agglomeration effect of international cruise headquarters.

Secondly,
paramount attention centers on the reinforcement of the cruise ship
manufacturing system, characterized by three integral measures. Primarily, the
establishment of an autonomous R&D and design framework for cruise vessels
takes precedence. This initiative aims to conceive cruise products fortified by
indigenous intellectual property, with the aspiration of establishing a
national-level cruise enterprise technology center and R&D platform within
Shanghai. Additionally, the fostering of comprehensive general contracting
competence for cruise ship construction projects emerges as a vital objective.
Accompanying this is the creation of a world-renowned cruise ship design and
manufacturing assembly hub, accompanied by a robust supply chain, standardized
operational practices, and rigorous testing and certification systems. Lastly,
the integration of ship repair resources across the Yangtze River Delta
amplifies the scope of cruise ship renovation and repair endeavors.

Thirdly,
a pivotal emphasis revolves around the fulfillment of the port hub’s role, with
a spotlight on elevating the caliber of port services. This pursuit is
underpinned by the proposition of six measures. Foremost, a harmonized spatial
arrangement within the industry takes center stage, birthing an industrial
nexus where the international cruise economy of Shanghai thrives through
synergistic strengths across Baoshan, Hongkou, and Pudong. The second directive
seeks to enrich the spectrum of cruise line offerings, attracting diverse
classifications, grades and themes of cruise ships globally. Through this, a
tapestry of distinct lines is woven, culminating in a manifold international
cruise line system. Enhancing the allure of cruise destinations constitutes the
third endeavor, advocating the seamless fusion of tourism across the Yangtze
River Delta. A harmonized synthesis between cruise tourism, urban tourism, and
regional tourism ensues, fostering a comprehensive growth trajectory. Equally
vital is the fourth measure, augmenting the stature of cruise visits to the
local port. This is achieved through bolstered provisions of premium cruise
experiences, catalyzing inbound cruise tourism consumption, and further burnishing
the renown of Shanghai’s cruise hub port. The fifth measure revolves around
optimizing cruise port functions. This encompasses the continual facilitation
of customs clearance processes, the modernization of inspection support
infrastructure, and the amplification of trade functions. Lastly, the sixth
measure underscores a deepened commitment to the “single window” initiative,
nurturing a digital cornerstone for the cruise economy. This aims to
crystallize a comprehensive cruise port customs clearance model, embracing all
procedural facets and constituent elements.

Fourthly,
a concerted effort is placed on the enhancement of cruise support services,
centered on refining the business milieu of the cruise economy. This endeavor
unfolds through the proposal of four measures. Primary among them is the
establishment of an Asia-Pacific cruise service trade hub, optimizing facets
such as ship management and supply, education and training, testing and
certification, and trading services. The second measure revolves around the
establishment of an Asia-Pacific cruise material supply center. This entails
the formulation of product standards and service protocols for cruise material
provisioning, underpinning an elevated comprehensive service level. As the
third measure, the cultivation of an Asia-Pacific cruise consumption nexus is
pursued. This ambition manifests through the construction of innovative
landmarks and complexes within cruise culture and tourism. This expansion
augments the connotations of cruise consumption, harnesses the essence of the
cruise consumption brands, and effectuates the augmentation and expansion of
cruise-oriented consumption experiences. The fourth measure is the inception of
an Asia-Pacific cruise crew service hub. This initiative coalesces around the
creation of a holistic service ecosystem for cruise crew, encompassing an
online service platform and an offline training center under overarching
service infrastructure.

Fifthly,
a strategic focus emerges on optimizing the cruise industry’s ecosystem,
anchored in the consolidation of a policy support foundation. This vision is
crystallized through the proposition of five measures. The first measure is the
reinforcement of the financial service infrastructure. This involves
stimulating investment and financing channels, amplifying the repertoire of
financial and insurance offerings for cruise ship construction, and affording
support for the IPOs of cruise ship enterprises. As the second measure, a
comprehensive cruise talent pipeline is concurrently fostered, encompassing
intensive local talent training, the establishment of a talent reservoir across
the cruise industry spectrum, and robust integration of cruise education and
production. The third measure revolves around a statistical monitoring
framework for cruise data, fortified through international collaboration and a
comprehensive statistical survey and monitoring system. As the fourth measure,
the advancement of a dynamic policy support system follows suit, culminating in
a set of locally tailored regulations to bolster cruise ship development. The fifth
measure centers on the cultivation of an internationally influential
cooperative and exchange platform. This materializes through the establishment
of the International Cruise Economy Shanghai Summit, championing a burgeoning
global cruise exchange arena and amplifying Shanghai Cruise’s international
brand resonance.

3. A new journey for the cruise industry to creating new
highlights for Shanghai’s economy

Ever
since Shanghai pioneered cruise homeport operations in China, it has
consistently secured the leading position, boasting a market share exceeding
50% within the nation. Singularly, Shanghai has encompassed the entire spectrum
of cruise research and development, operational expertise, and port services,
earning it the accolade of being a national model. Prior to 2019, Shanghai’s
international cruise economy had maintained a trajectory of robust and measured
growth. International cruise passengers surged from 26,000 in 2006 to 3.78
million in 2019, contributing a substantial 5.6% to the global cruise market. A
landmark achievement was Shanghai International Cruise Port’s ascendancy as
Asia’s premier cruise home port in 2014, followed by its ranking as the world’s
fourth-largest cruise home port in 2016. As of the close of 2019, the port had
received over 3,000 cruise ships and approximately 15.3 million tourists,
propelling the aggregate scale of the cruise economy to 26 billion yuan. Since
the Ministry of Transport introduced the Plan for the Orderly Resumption of
International Cruise Shipping Pilots in March, Shanghai has actively spurred
the recommencement of international cruise pilots. Since the pilot programs’
resumption, the cruise economy has exhibited a promising resurgence,
underscored by expedited recovery and heightened resilience. Notably,
operations like Blue Dream Star and China Merchants Eaton Cruise have
successfully carried out 21 voyages, welcoming a total of 26,000 tourists. The
trial voyage of China’s first large domestic cruise ship, Adora Magic City, has
wrapped up successfully and its maiden voyage is expected to take place in
2024. The design, manufacturing and operation of this cruise ship marks a
milestone, denoting the establishment of a comprehensive industry chain
development model within the Chinese cruise sector. In a testament to the
city’s allure, Royal Caribbean Cruises and MSC Cruises have both announced
their return to Shanghai for home port operations in 2024, reporting robust
sales prospects. Hurtigruten Expeditions has also established an office in
Shanghai. Capitalizing on their unique strengths, various districts have
introduced complementary policies. Baoshan District government unveiled Baoshan
Implementation Plan for Promoting the High-Quality Development of the
International Cruise Economy (2023-2025), with efforts to build “one district,
one port and two highlands,” namely Shanghai International Cruise Tourism
Resort, the largest cruise home port in Asia, a highland for cruise industry
agglomeration, and a highland for China’s cruise ecosystem innovation. Hongkou
District government directed its efforts towards cultivating a high-end cruise
hub port, a cruise headquarters hub, an elevated cruise service environment,
and an international consumption hub through the Three-Year Action Plan for the
High-Quality Development of the Cruise Economy in Hongkou District (2023-2025).
The Pudong New Area unveiled a comprehensive strategy encapsulated in the
Cruise Industry Development Plan in Waigaoqiao Area, targeting the creation of
a cruise ship manufacturing base, cruise trade service area, cruise business
service area, and cruise R&D service area. These combined endeavors have
already begun demonstrating their cumulative impact. Since the pilot program’s
recommencement, the cruise industry has generated over 300 million yuan in
ticket sales revenue and around 100 million yuan in on-ship supply consumption.
This ripple effect has subsequently propelled approximately 3.5 million yuan of
consumption at cruise port duty-free shops, yielding over 4,000 new job
opportunities, and projections estimate the creation of about 20,000 new jobs
by 2024.