China’s Cruise Ambitions Hit Rough Waters: What’s Next for the Market?
China’s efforts to cultivate a domestic luxury cruise industry are facing significant headwinds, as evidenced by China Merchants Group’s recent decision to sell the Viking Sun, rebranded as Zhao Shang Yi Dun. This move, along with the struggles of other Chinese cruise ventures, signals a complex landscape for the industry’s future in the region.
The Rise and Fall of China Merchants Viking Cruises
In 2021, China Merchants, a major industrial conglomerate, partnered with Viking Ocean Cruises, acquiring the 930-passenger Viking Sun for nearly $400 million. The aim was to create a high-end cruise experience tailored to the Chinese market. Still, the timing proved challenging. China’s strict COVID-19 lockdowns severely restricted travel, limiting the ship to domestic coastal voyages.
Despite attempts to reposition the vessel with longer itineraries to Japan and South Korea, and even marketing to the international market, the Yi Dun consistently sailed below capacity, resulting in financial losses. Viking had planned to move the ship to Europe for 2026, but China Merchants has now put it up for sale, with a minimum asking price of around $420 million. A key condition of the sale is the removal of all China Merchants branding and the potential need for the buyer to renegotiate licensing agreements with Viking for branding and operating systems.
A Wave of Setbacks for Domestic Cruise Lines
China Merchants isn’t alone in its struggles. Ferry operator Bohai is as well selling its cruise ship, the Chinese Taishan, for $23 million after failing to resume service post-pandemic. Blue Dream Cruises, another independent firm, declared bankruptcy, citing geopolitical tensions impacting itineraries. Even a former British cruise ship, Piano Land, is being relocated to Spain due to age restrictions imposed by the Chinese Ministry of Transport.
Did you know? China’s Ministry of Transport prohibits ships over 30 years old from operating in mainland China.
What’s Working? The Appeal of Mega-Ships and Shorter Cruises
While domestic luxury cruises are faltering, the Chinese cruise market continues to grow with passenger numbers up nearly 28 percent in the first 11 months of 2025. The success lies with different approaches. MSC Cruises and Royal Caribbean International have found success with large-scale mega-ships offering extensive entertainment options, catering to a preference for family-friendly experiences and shorter trips focused on destinations.
These larger operators have been able to tap into the Chinese consumer’s preference for shorter, destination-focused cruises. However, building a strong marketing base remains a challenge for all cruise lines operating in China.
The Future of Cruising in China: Domestic Production and International Competition
Despite the recent setbacks, there are signs of optimism. China’s Adora Cruises recently launched its second domestically built cruise ship, with plans for two more, demonstrating a commitment to developing a self-sufficient cruise industry. This aligns with a broader national strategy to boost domestic manufacturing and reduce reliance on foreign suppliers.
However, international lines are also vying for a share of the market. While many didn’t reposition ships to China after the pandemic, the growing passenger numbers are attracting renewed interest. The key will be adapting to the specific preferences of Chinese travelers and navigating the evolving regulatory landscape.
FAQ
Q: Why are Chinese cruise lines struggling?
A: Factors include the impact of the COVID-19 pandemic, geopolitical tensions affecting itineraries, and a preference among Chinese consumers for shorter, family-friendly cruises.
Q: What types of cruises are proving successful in China?
A: Mega-ships with extensive entertainment options and shorter itineraries focused on destinations are attracting the most passengers.
Q: Is China building its own cruise ships?
A: Yes, Adora Cruises has launched two domestically built ships and has ordered two more, with an option for a third.
Q: What is the significance of the age restriction for cruise ships in China?
A: The Chinese Ministry of Transport prohibits ships over 30 years old from operating in mainland China, impacting the viability of older vessels.
Pro Tip: Cruise lines looking to succeed in China should prioritize understanding the unique preferences of Chinese travelers and adapting their offerings accordingly.
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