Wedoany.com Report-Nov. 29, China Tourism Group is leading a major consolidation of the country's cruise sector through the newly established Huaxia company, a subsidiary jointly owned by China Tourism Group and China COSCO Shipping Group. The initiative aims to strengthen management efficiency and accelerate growth in the domestic cruise market.

Adora Magic City entered service in 2024 as China's first, large domestically-built cruise ship

On 21 November 2025, a signing ceremony officially launched Huaxia and its operating division, Star Cruises. China Tourism Group holds a 35% stake in the new entity, while COSCO Shipping and China Merchants Group each hold nearly 18%. The consolidated platform will manage five cruise ships previously operated by separate state-owned enterprises, including those from COSCO, China Merchants Group, and China State Shipbuilding Corporation.

The fleet under unified management comprises Adora Magic City (China's first large domestically built cruise ship, delivered in 2024), Adora Mediterranea, Piano Land, Nanhai Dream, and the upcoming Adora Flora City, scheduled for delivery in late 2026. Together, these vessels provide approximately 16,000 berths, positioning the new operator as Asia's largest cruise company by passenger capacity.

Individual brands, including Adora Cruises (originally a joint venture with Carnival Corporation, now majority-owned by China State Shipbuilding Corporation), will continue normal operations under the coordinated structure. The move is designed to streamline overhead costs, improve resource allocation, and enhance overall competitiveness.

Despite steady recovery progress, China's cruise industry continues to face challenges such as relatively low ticket pricing and gradual return of consumer demand following the pandemic. Domestic services resumed in 2023, while international cruise lines have been progressively re-entering Chinese ports.

Tourism authorities highlight the sector's strong economic multiplier effect, estimating that each cruise passenger spend generates 10 to 14 times additional activity in supporting industries such as provisioning, logistics, and shore services. In the first nine months of 2025, cruise passenger volume at Chinese ports rose 28% year-on-year, exceeding 2 million travellers.

The consolidation forms part of broader efforts to build a more integrated and efficient cruise ecosystem. Alongside state-backed operations, China's emerging private cruise segment is also expanding, with one domestic brand recently acquiring a former Costa Cruises vessel currently en route for delivery.

With the second large Chinese-built cruise ship, Adora Flora City, advancing toward completion, the unified management structure is expected to support continued fleet growth and improved operational performance in the coming years.