He said the operators face several major challenges, including a dual system of service evaluation, unfettered price competition, rising costs and rigid itineraries.

The dual-evaluation system - under which the tourism authorities assess cruisers that carry foreign tourists, while the Ministry of Transport checks those used by domestic travelers - has attracted the most criticism on the grounds that it is misleading.

"By the ministry's standards, the Eastern Star is a luxury ship. The dual standards confuse travelers when they choose cruises," Wang said.

The Eastern Star was built in 1994 as a standard passenger liner, but was refitted in 1997 to meet the rising demand for cruises on the Yangtze. The travel agency described the vessel as a "luxury liner" in its publicity material, but several industry insiders said the claim was untrue.

"The Eastern Star was not a luxury vessel at all," said Zhou Zhuo, general manager of Victoria Cruises, a high-end cruise company. "The quality of service, and the standards of facilities and management cannot be compared to the new five-star ships."

Wang suggested that the dual-evaluation system should be unified and that a national standard for cruise vessels should be formulated.