Dubai's cruise industry poised for growth

Dubai's cruise industry has seen a rapid rise since it was launched three years ago by Italy's Costa Crociere.

Following a 65% jump in cruise traffic in 2008, Dubai drew around 260,000 cruise visitors in 2009 for a year-on-year increase of 37%, according to the emirate's Department of Tourism and Commerce Marketing (DTCM). Passenger arrivals this year will reach 325,000, DTCM predicts, with the figure projected to climb to 575,000 by 2015.

Dubai's growing cruise industry will get a major boost in February with the opening of a new 3,450-sqm terminal in Port Rashid, which will have the capacity to handle four ships at one time, says Hamad bin Mejren, DTCM Executive Director for Business Tourism.

He notes that the cruise industry offers many added benefits to Dubai's economy, as cruise tourists tend to be 'big spenders' when they are exploring a city and visiting shops.

Dubai's cruise sector will get an added boost this year with the arrival of new ships from major global cruise lines. On February 23, the latest ship in Costa's fleet, Costa Deliziosa, will be inaugurated in Dubai, marking the first time an Arabian city has hosted a cruise ship christening.

This winter season, Costa's Deliziosa and Luminosa cruise ships will offer seven-day excursions from Dubai with stops across the Gulf. In addition, the Costa Europa will be offering 18-day cruises between Savona, Italy and Dubai that will offer a unique itinerary across the Mediterranean, the Suez Canal and the Red Sea. Costa said it expects a 40% rise in passengers cruising to Dubai on its fleet this year, with an estimated economic impact of 14 million Euros for the city.

Royal Caribbean to set sail

Royal Caribbean will provide a further shot in the arm for Dubai's cruise industry when it enters the Middle East market for the first time from January 18. It will deploy its Brilliance of the Seas - which has a capacity of up to 2,500 passengers - from Dubai for seven night cruises that will stop in Muscat, Fujairah, Abu Dhabi, and Bahrain, before returning to the emirate.

The company believes the time is right to enter the region because awareness about cruising has been growing yet the market remains largely in its infancy in the Gulf, said Helen Beck, Regional Sales Director, International Representatives, EMEA.

The company is also heartened by the fact that the cruise sector has been one of the few areas of growth in the travel industry - or any industry - during the global downturn, she claims. 'The industry's success is based on a combination of factors which have been building up over the past decade with the message getting out that this is not a holiday option restricted to just a few segments of the market, but actually cruising is for everybody,' she told AMEinfo.com.

The key has been changing people's perceptions about cruises by offering more exciting activities on board, such as rock climbing walls and ice skating. Given the high cost to stay in hotels in the region, cruising offers relatively good value as state rooms start as low as $90 per person per day, including meals and entertainment, she says.

So far, Royal Caribbean is pleased with sales ahead of its maiden voyage in the Gulf, as its ship is fully booked through the month of February. The largest market by far has been from the UK, with sales from the US better than expected.

Capturing the local market

The company knows that it will be a challenge to attract locals, as they tend to take their holiday breaks during the peak summer months. 'But we are working to change a whole mindset. This is a long-term plan, something you can't change overnight,' she said.

If sales go well, expect to see more Royal Caribbean ships in the Gulf. 'I think it's on the cards. I would expect there to be additional ships from our fleets here in the next two to three years,' Beck said. 'There needs to be a buy in from the region's ports. You need to have that whole infrastructure from the port.'

'One of the things we are working on with DTCM is the process for visas. With the itinerary we have, passengers enter the UAE three times, so if you are one of those nationalities who are required to get a visa, that means you need to have three single visas, even though you the same person who was there two days ago,' she noted.

Beck says there is an 'absolute understanding' in the government that there needs to be a cruise visa developed, 'but this is a federal decision, and sometimes the wheels turn slowly. But we are gratified that there is an understanding that it is needed'.