Key Facts
Client: ShanHaiShu Group
Land Area: 80 ha.
Total Development: > 16.4 mil. sqft (incl. a 800 thousand sqft cruise terminal)
The Vision: ShanHaiShu Group envisioned a large-scale cruise home port mixed-use development in Xiamen that could serve as both a strategic maritime gateway and a regional tourism, leisure, and lifestyle destination. Rather than functioning merely as a transport-oriented port facility, the project was intended to become an integrated urban destination combining cruise operations, hospitality, entertainment, culture, commercial activity, and real estate development. In addition to residential, hotel, and office uses, the proposed program also included a cruise terminal, indoor theme park, performing arts center, and a range of leisure and entertainment venues. The core objective was to create a commercially viable destination anchored by cruise traffic, while also supporting Xiamen’s broader positioning as an international coastal tourism city.
Development Complexity: As a home port development, the project involved a higher level of planning complexity than a conventional mixed-use scheme. A cruise home port requires not only passenger-handling capacity, terminal operations, and strong transport connectivity, but also a broader ecosystem of supporting uses that can capture visitor spending before and after cruise journeys. Each proposed component carried different demand drivers, investment requirements, operating models, and risk profiles. The key challenge was therefore to determine the appropriate scale, positioning, and development sequence for each use, while ensuring that the cruise terminal, hotels, entertainment facilities, commercial spaces, and real estate components could reinforce one another as part of an integrated destination.
Market Study and Demand Modeling: Yun and the project team conducted a comprehensive market study covering all proposed development segments, including cruise tourism, hospitality, residential, office, entertainment, performing arts, retail, and leisure uses. The analysis examined cruise passenger potential, tourism trends, hotel market fundamentals, residential absorption, office demand, entertainment spending, and broader leisure consumption patterns in Xiamen and the surrounding region. Demand modeling was used to test the market capacity of each proposed component, helping identify which uses could generate sustainable footfall, which required phased implementation, and which needed to be carefully positioned to avoid overdevelopment risk. This market-backward approach ensured that the development plan was grounded in realistic demand assumptions rather than purely aspirational master planning.
Financial Feasibility and Destination Planning: To support investment decision-making, Yun prepared financial feasibility analyses covering the proposed asset mix and major development components. The study assessed revenue potential, cost implications, phasing logic, market absorption, operating assumptions, and risk-adjusted returns. Particular attention was given to the interaction among different uses: the cruise terminal was expected to serve as a key traffic generator, hotels and entertainment venues could extend visitor stay and spending, while residential and office components could provide a more stable long-term value base. By linking destination-oriented uses with income-generating real estate components, the plan created a balanced development strategy that supported both commercial feasibility and long-term placemaking.
Outcome: The final development plan provided ShanHaiShu Group with a comprehensive roadmap for advancing the Xiamen cruise home port project. By combining market research, demand modeling, feasibility testing, and integrated land-use planning, the study helped clarify the appropriate development mix, commercial positioning, and phasing strategy. More importantly, it established a practical framework for transforming a cruise home port into a broader tourism and lifestyle destination, supporting both real estate value creation and Xiamen’s long-term ambitions as a coastal gateway city.
Yun Ho was responsible for the real estate economics portions of the project while working at AECOM as a real estate and investment strategist for commercial and hospitality projects.