Cruise boom buoys Japan's post-pandemic tourism

Japan Today

5 days ago

By Keiichiro Otsuka
When the Diamond Princess was quarantined off Yokohama in the early stages of the COVID-19 pandemic in 2020, Japan's cruise industry ground to a halt, its future clouded by fear and uncertainty.
Today, that industry is roaring back. Demand for maritime journeys with swimming pools among a host of luxury amenities and entertainment has surged due to pent-up wanderlust and a wave of new investments.
Japanese ports are seeing record domestic passenger numbers, signaling not just a revival in leisure travel, but a broader boost to local economies that rely on tourism.
Japan, an archipelago of over 14,000 islands and one of the largest economies in the world, has a relatively small cruise industry and modest vessels compared to the U.S., home of giants like Carnival Cruise Line.
According to the Ministry of Land, Infrastructure, Transport and Tourism, however, the Japanese cruise market grew significantly in 2024, increasing by 14.2 percent year-on-year to 224,100 passengers.
The number of international visitors entering Japan by cruise ship quadrupled to 1.4 million, nearly 60 percent of the record set in 2017.
Kentaro Matsuura, president of cruise travel agency Yutaka Club (Tokyo), estimates domestic passengers will exceed 250,000 in 2025 and may approach the 2019 record high of 356,600 next year.
With their core cargo business hit hard by U.S. President Donald Trump's import tariffs, Japanese shipping giants are developing cruise ships into thriving businesses that can produce stable income streams.
Due to tariffs, shipping companies NYK Line and Mitsui O.S.K Lines Ltd (MOL) forecast 47.7 percent and 60.0 percent year-on-year declines in net profits, respectively, in their consolidated financial accounts for fiscal 2025.
NYK Cruises will launch the Asuka III on July 20, expanding its fleet to two ships, while Mitsui Ocean Cruises will add a third ship in the latter half of next year.
On the evening of May 5, the Mitsui Ocean Fuji, which MOL began operating in December 2024, passed under Yokohama Bay Bridge. Nearby, in the Port of Yokohama, Mitsui's Nippon Maru was awaiting departure. Also docked was the Cunard luxury liner Queen Elizabeth.
"I look forward to seeing the Asuka III," said a man viewing the ships.
At 52,265 gross tons and 230 meters long, the Yokohama-based Asuka III will be the largest passenger ship in the Japanese fleet. It will be decorated with frescoes by Japanese painter Hiroshi Senju, giving it the feel of a floating art gallery, and all 381 cabins will have private seaside balconies.
Her maiden voyage from July 20 to 26 will be from Yokohama to Hakodate and Otaru in Hokkaido. The costs per passenger will be between 984,000 yen and around 4.80 million yen.
In February, NYK Line and its subsidiary Yusen Cruises reached a basic agreement on a business alliance in which Oriental Land, which operates Tokyo Disney Resort, will take over the operation and management of cruise ships scheduled to enter service in fiscal 2028.
The main departure and arrival port will be Tokyo Bay, and shows featuring Mickey Mouse and other Disney characters will be held on board. A second vessel is also being considered for service.
To keep up with its rival, Mitsui O.S.K. Lines in March announced that it had also bought an additional sister ship (32,477 gross tons) from the U.S.-based Seabourn Cruise Line, the seller of the Mitsui Ocean Fuji hull, to begin operations in the latter half of next year.
"Mitsui Ocean Fuji has received a very positive response from customers due to the fact that they can enjoy the expansive ocean views from their cabin verandas," said MOL President Tsunemichi Mukai, adding that the addition of a sister ship will only strengthen the company's ability to attract customers.
The company plans to build two passenger ships at a European shipyard and launch them in the near future.
© KYODO