Luxury cruise liners chase horizons across Asian seas

HONG KONG (Reuters Life!) - Beneath the giant shadow of a towering cruise liner, a mix of elderly European and American tourists stand admiring Hong Kong's iconic harbor.

About to embark on their dream cruise, the group are pioneering what analysts predict will become a hot new travel trend: seeing Asia from the water, with spas, luxury shops, casinos and swimming pools by your side.

"We're spoilt," laughed Donna Dana, an American who flew in from Connecticut with her husband for a 12-day, pan-Asian cruise aboard Royal Caribbean's "Rhapsody of the Seas."

With draws like southern Thailand's idyllic oceans, emerald limestone peaks studding Vietnam's Halong Bay, and famed port cities like Hong Kong, Singapore, Shanghai and Hanoi, the industry is predicting a boom in Asian cruising, as tourists look beyond global hotspots like the Caribbean and Mediterranean.

"We find (Asia) interesting and we've done the Caribbean ... I think Asian cruises are extremely hot, there were actually quite a few we looked at that were already sold out," Dana added.

The World Cruise Shipping Industry estimates the number of cruise passengers in Asia will jump 40 percent from 1.07 million in 2005 to 1.5 million in 2010, fuelled in part by Asia's growing affluence and improved flight options to regional port cities.

Given the rosy outlook, mega-vessels like "Rhapsody of the Seas" -- 279 meters long with beds for 2,400 people -- have increasingly plied Asian waters, using places like Singapore and Hong Kong as seasonal homeports.

"We are very pleased with our results, all our sailings out of Singapore are completely sold out, our long cruises out of Hong Kong have sold pretty well," said Rama Rebbapragada, the Asia-Pacific Managing Director for Royal Caribbean Cruises, the world's second largest cruise operator, which owns the Rhapsody.

ASIAN ROYAL TREATMENT

Rebbapragada expects double-digit growth in Asia for the next three years -- quite a turnaround for a region long ranked as a minnow in the North American-dominated global cruising market.

In 2009 his company will bring in a second cruise liner to service China, where six of eight sailings from Shanghai have already been chartered out to Chinese corporate clients.

"We've seen healthy growth in the China market for our cruises now," he said.

"The sheer size of the India and China markets means these are the two markets any supply is going to focus on."

Another major player, Genoa-based cruise operator Costa Crociere already has one seasonally-based vessel posted in Asia, and plans to post a second in the region in 2009.

Star Cruises, Asia's leading cruise operator, run by Malaysia's Genting Group, also plans to boost its Asian fleet.

While cruising "remains a novelty" for most Asians, there have been signs of change as affluent Asians pursue western lifestyle trends and the concept of "relaxed luxury" which cruises embody, said Hong Kong's Commissioner for Tourism Au King-chi.

"For the average Asian, I think it could be a way to get away from the hustle and bustle of routine everyday life, even I suppose short trips to Taiwan or Vietnam," said John Yam, a Hong Kong born physician who's been on 16 cruises.

"For myself I like the royal treatment and not having to pack and unpack every night," Yam added, his wife by his side.

REGIONAL COMPETITION

With more ships on the horizon, port cities across Asia are upgrading their cruise infrastructure to tap the burgeoning market potential.

Hong Kong, already a major Asian tourist destination with over 28 million tourists last year, plans to build a new cruise terminal in 2012 in a bid to become a regional cruise hub.

The terminal is expected to generate economic benefits of up to $282 million per annum by 2020, and will be large enough to accommodate the world's largest cruise liner, Project Genesis, which will be finished in late 2009.

But some passengers said Hong Kong was already losing out to regional competitors like Singapore which has a specialized cruise centre opposite Sentosa island, and Shanghai which will soon inaugurate a brand-new cruise terminal on the north bund.

"Hong Kong is a spot for people to visit other attractions in the region, but they need to improve on their port facilities," said Yam, the veteran cruise aficionado.

(Reporting by James Pomfret; Editing by Gillian Murdoch)