Since the revival of cross-border tourism earlier this year, cruise tourism has seen a hefty bump and this growth is set to continue, says a report by Future Market Insights, adding that technologically-advanced ships and numerous onboard activities hold the key to growth.

Though international tourism has grown across board and through various segments, one of the fastest growing segments since the beginning of 2022 has been cruise tourism, which had been in the dock for well over two years due to the Covid-19 pandemic.

A report says that the growth is not just a case of ‘revenge’ travel or due to pent-up demand, but instead it is here to stay. The report by Future Market Insights, a data analysis and aggregator firm, says that the global cruise tourism market is set to rise to USD 17.4 billion by 2032, up from USD 5.3 billion in 2022, growing at a healthy CAGR of 11.97 pc over the coming decade.

Beyond ocean cruises, the river cruise market has also seen a rapid growth, says FMI. The river cruise sector is growing by about 16 pc annually and is impressive with both the number of passengers and yields, especially on the market in Germany, the unquestioned river vacation travel market’s leader. River cruise ticket sales are growing faster compared to ocean-going ship vacations, says FMI. Passenger capacity on the main European rivers is also increasing, and while new operators emerge, the old ones renovate regularly or expand their fleets by building larger, new-generation boats.

According to the report, the launch of novel, inventive ships with technological advancements and numerous onboard activities for the travellers to enjoy is one of the primary factors driving the demand for cruise tourism. Cruise tourism lets tourists experience a multi-centre holiday, wherein the tourists spend quality time at several destinations during their entire trip, says the report.

The rise in the disposable earnings of people coupled with the expansion of the onboard facilities and services will grow the market for cruise tourism over the next 10 years.

Market dynamics

With the rising demand, orders for new cruise liners have also registered a strong growth says FMI. The report says that a total of 42 ocean and river cruise ships are currently under construction or on order for deliveries up to the year 2028. As many as 20 of these ships are large carriers with capacities of over 1,000 passengers each. Not content with this, some cruise operators have placed orders for mega boats that can carry about 4000 passengers each. FMI says that these are in addition to the 167 new cruise ships already delivered in the recent past.

In March 2019, Italian shipbuilding giant Fincantieri launched the construction of Costa Venezia, a massive new cruise ship with a capacity of over 5,200 guests. With 135,500 tonnes of displacement and measuring 323 meters in length, the Costa Venezia will be the largest ever ship introduced by Costa to the Chinese market. The Costa Venezia is part of an expansion plan that includes a total of seven ships being delivered to the Costa Group by 2023, for a total investment of over Eur 6 billion.

On the downside, however, excessive fees, higher operation fees, and costs and challenges of meeting new environmental standards that are increasingly coming in place due to concerns over maritime pollution are some of the factors that could exert a negative pressure on the cruise industry.