Costa sets sights on Asia

Europe’s largest cruise operator Costa Cruises is on the brink of expanding into South-east Asia with a ship based in Hong Kong selling to Asian and international markets.



Current plans are for the company’s 28,430-grt Costa Allegra to sail from Savona, Italy, to Hong Kong and then operate two 15-day voyages back-to-back to Mumbai during May and June.



Costa was expected to confirm details of its Asia expansion following Chinese New Year celebrations. This would include the official opening of a Hong Kong office where it has already employed 10 local staff.



It will then decide whether Costa Allegra returns to Europe for the northern hemisphere summer season or remain in Asia as a forerunner to a possible major development catering for both the local international market.



Costa’s director of sales Pacific Asia Operations, Dario Rustico outlined details but said final decisions were on hold until after Chinese New Year. But he repeatedly referred to the “tremendous potential” offered by the Asian market.



Costa is currently in the middle of a US$5 billion expansion programme including the construction of three 112,000-grt vessels. In the past five years, it has dramatically increased passenger growth to 750,000 a year within Europe and North America as well as opening up new markets in Eastern Europe and was now market leader in

Brazil and Argentina for European cruises, according to Rustico.







Since it started promoting to the Australian industry in 2001, it had increased local sales from “a couple of hundred then to a couple of thousand this year”.



Priority now was to increase visibility in the Asian and Australasian regions with a series of presentations to wholesalers and retailers.



“Wholesalers and travel agents are our first target and we are trying to be included in the programmes of all wholesalers,” he said.



Costa was also evaluating possible industry incentives and “we will come up with something in the next few months,” he said. He saw the Costa brand and its present 10 ships as providing a “mix of the quality and elegance of Princess” (a sister Carnival Corporation company) and also the atmosphere of Italian cruising.



“We are the synthesis of the best qualities of several companies within the (Carnival) corporation,” he said.



He saw no connection between Costa’s proposed development in Asia and P&O Cruises withdrawal of Pacific Sky from Singapore following the sale of the ship to Spanish tour operator, Pullmantur.



Costa Allegra’s Asian deployment however retains the Carnival presence in Asia, competing with Star Cruises and in line with the US-based corporation’s strategy of global expansion and constant look out for new markets.



He pointed to Star’s repositioning of Superstar Libra this year from Mumbai to Malta (“our territory”) but added it was ”very normal to think they will come to Europe and we will come to Asia”.



He maintained both Europe and Asia still had “tremendous growth potential” for cruising and “within the next three to five years all major cruise companies will be present in Asia”.



Costa, which spans a history of passenger shipping of more than 150 years, has undergone extraordinary growth since it was acquired by Carnival 10 years ago and specifically since 2001 with the construction of the three 112,000-grt ships with berths for 3000 passengers.



Costa Concordia enters service in July followed by Costa Serena in May, 2007 and as yet an unnamed third vessel in 2009 bringing the fleet to 13 ships and a total 23,500 berths.



Biggest “wow factor” for the US$716 million Costa Concordia is a 1900sqm spa sanctuary with 67 Oriental themed cabins and suites with direct access to the spa. For the adrenaline seekers, there is a Formula One driving simulator complete with G-forces and vibrations.



The ship is currently being sold on the Australian market with costs from A$1,240 for a seven-night cruise including Spain, Majorca, Tunisia, Malta or Sicily.