By Lim Wei Chean

THE cruise industry is one tourism sector remaining buoyant during the current economic storm.

Although tourist arrivals to Singapore have been drifting for 12 straight months, the tide is turning in favour of cruise vacations.

For the first five months of this year, the Singapore Cruise Centre at HarbourFront saw 459,000 passengers go through its gates - a 21 per cent increase from the same period last year, which registered 380,000 passengers.

The proportion of locals to foreigners is approximately half. But the number of foreigners increased marginally by 1 percentage point this year.

These numbers contrast starkly with the Singapore Tourism Board's figures for monthly arrivals that noted a 14 per cent drop year-on-year in the number of foreign visitors in the first five months of this year.

Cruise Centre president Cheong Teow Cheng said: 'We had not seen a drop in the passenger throughput because typically cruise packages are booked at least about one year in advance, especially for the round-the-world trips.'

Star Cruises and Royal Caribbean Cruises (RCC) declined to give figures but said bookings for cruise packages remained afloat and even saw increases this year despite the recession and the global H1N1 pandemic.

A Star Cruises spokesman said its packages are most popular with tourists from India, Australia and Malaysia. And the rate of overseas bookings remains constant.

One draw, she said, is the all-inclusive concept of cruising - travellers do not have to worry about 'hidden costs' since accommodation, food and entertainment are all part of the package.

Another draw, added Mr Cheong, is that cruise companies have been slashing prices and offering deals - such as one-for-one travel - to attract more customers. Housewife Irene Lim, 58, opted for a cruise holiday instead of flying overseas because 'the price is good' and she can 'save the hassle of moving about'. She is now on the lookout for a good deal for an end-of-the-year trip with her family.

Despite the global economic situation, Italian cruise company Costa Cruises and RCC are widening their berths in Asia.

Costa is bringing in the bigger Costa Romantica, which can take 1,697 guests, to replace the Costa Allegra, with capacity for only 1,000, next April.

RCC plans to base its Legend of the Seas permanently in Asia for year-round sailing instead of just coming here on short spurts.

This year, a record 10 ships, many on round-the-world tours, are making their maiden calls at the award-winning HarbourFront terminal, said Mr Cheong.

STB's cruise director Chew Tiong Heng said Singapore will benefit from having more ships calling here. A variety of industries - from tourism to hospitality and ship maintenance and servicing - will reap the economic spin-offs.

Singapore aims to be a cruise hub for the region, which is why it is building a second cruise terminal in Marina South. The completion date has been pushed back a year, to the end of 2011.

However, it will not be entirely smooth sailing for the sector as the real impact of the world recession is likely to be felt nearer the end of the year, said Mr Cheong.

Mr Chew said the Asian market accounts for only 5 per cent of the world cruise market. So it has plenty of room to grow.

weichean@sph.com.sg

For more The Straits Times stories, click here.