Friday, 22 Nov 2024

New Zealand Cruise Tourism Industry Spent 637 Million USD to Create Jobs

New Zealand̢۪s cruise tourism industry, which injected more than $1.3 billion into the economy last season, is facing a challenging future due to rising costs and regulatory pressures that may prompt cruise lines to seek alternative destinations. An industry-commissioned report, released on Friday, provided the first in-depth look at the economic impact of cruise tourism on New Zealand, revealing both the significant contributions and potential risks to the sector.


New Zealand Cruise Tourism Industry Spent 637 Million USD to Create Jobs
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The report shows that passengers, crew, and cruise lines directly spent $637 million during the last financial year, while indirect and induced spending brought the total economic impact to nearly $1.3 billion. This influx of revenue supported close to 10,000 jobs across the country, providing $425 million in wages, and benefitting a wide range of industries from hospitality and retail to transportation and local tourism.

One of the biggest factors driving costs higher is a recent hike in the border levy, which has added $3.2 million in unbudgeted expenses for cruise lines this season. This increase was implemented within the booking window of a cruise trip, meaning that cruise lines must absorb the added costs without being able to pass them on to passengers who have already purchased tickets.

The Restaurant Association of New Zealand has also noted the significant benefits cruise ships bring to local communities. According to CEO Marisa Bidois, cruise passengers contribute substantially to the local economy, with each visitor spending an average of $283 per day on activities, shopping, dining, and exploring attractions.

As New Zealand faces rising costs and regulatory challenges, industry leaders are calling for greater collaboration between the government and the cruise sector to ensure the long-term sustainability and competitiveness of the industry. Debbie Summers, Executive Director of ID New Zealand Cruise, expressed concerns that global demand for cruises is booming, but New Zealand may lose out if it becomes too expensive or challenging for cruise lines to visit.

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