China has great potential in the world of cruising, according to experts in the field. Carnival Corp. CEO Arnold Donald thinks it could be the largest cruise market in the world in the near future.

Between 2012 and 2016, the number of Chinese passengers spiked from 216,700 to 2.1 million, according to Cruise Lines International Association. This is no small feat. Most of these passengers cruised from the region.

Carnival Corp. joined forces with China State Shipbuilding Corp., to build new ships to sail in China in 2023 in response to the growing market.

The key to successful ventures by major cruise lines in China is understanding the differences in the Chinese market. Where in most markets, passengers stick to a brand or type of cruise, such as entertainment cruises like those in Carnival Cruise Line or luxury lines like Regent Seven Seas, Chinese markets don’t display the same kind of loyalty.

Chinese passengers tend toward the newest and biggest, and place a lot more emphasis on travel agent recommendations. This causes a lot of lines to replace fairly new ships more frequently to remain relevant in the market. Royal Caribbean is replacing a ship next year with updates including private karaoke studios and more Chinese cuisine.

Another factor that bars cruise industry growth in China is travel limitations. Long cruises aren’t the norm in China, but some of the best short-trip port options are off limits, including South Korea. There are also restrictions on foreign-flagged ships going from port to port within the country, limiting the growth of more diversified itineraries.

The market is projected to take a dip in 2018, but with 6 per cent of the industry’s capacity being deployed in China, officials like Carnival Corp.’s Arnold Donald may be correct about potential growth in the future.