BUTTERWORTH: Penang Port Sdn Bhd, a member of MMC Group, plans to enhance the Swettenham Pier Cruise Terminal into a major cruise hub in Southeast Asia after spending over RM100 million to upgrade it.
Penang now ranks second in the region's cruise market behind Singapore, and Penang Port chief executive officer Datuk Sasedharan Vasudevan said it aims to close the gap by enhancing its home porting capabilities.
"This allows cruise ships to start and end their cruises in Penang, thus stimulating the local economy as passengers spend time in the area before and after their trip. Cruise ships can also get supplies from nearby businesses, thus boosting local economic activity," he said at a media briefing here yesterday.
Sasedharan said the port needs a holistic home porting ecosystem, which includes seamless coordination between the airport, port and authorities like customs and immigration.
He added that Penang Port is working closely with the Malaysia Cruise Council to promote the state as an international cruise destination.
Penang Port handled 1.2 million cruise passengers last year and expects similar growth in the coming years.
"Each cruise ship arrival brings between 4,000 and 6,000 passengers, who spend on local services such as food, transportation, and accommodation. However, the ongoing crisis in the Red Sea has caused several cancellations of international cruises, which have affected this year's numbers," he added.
Nonetheless, Sasedharan said Penang Port remains optimistic about the long-term prospects for its cruise operations.
"Penang is well positioned to capture a larger share of the regional cruise market. Our investment in modernising the cruise terminal and expanding home porting capabilities gives us a competitive edge," he said.
While Chinese tourists once dominated the market, he noted that recent growth had come from India, Indonesia and Western countries.
"We have seen a 20-30 per cent increase from the Indian market, and Indonesia is showing strong numbers as well. This shift has helped offset the declining Chinese tourists post-pandemic," he added.