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.

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.

Despite the impressive contributions of cruise tourism, the industry warns that these gains could be jeopardized by rising costs and regulatory uncertainties. Cruise Lines International Association (CLIA) co-commissioned the report to offer a comprehensive overview of the cruise sector̢۪s economic role in New Zealand. However, Joel Katz, Managing Director of CLIA Australasia, expressed concerns about the future outlook, noting a predicted decline in cruise visits and the subsequent impact on local businesses and jobs.

Last season was a record-breaking one for New Zealand̢۪s cruise industry, with over 1,000 ship visits and 1.5 million passenger visit days. According to Jacqui Lloyd, CEO of the New Zealand Cruise Association, cruise liners consider New Zealand an attractive destination due to its unique cultural experiences and scenic landscapes. However, Lloyd pointed out that the rising costs of visiting New Zealand, combined with regulatory challenges, are deterring cruise lines from returning.

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.

The report, which was co-commissioned by CLIA and other industry stakeholders, is intended to be an annual publication that will track the economic impact of the cruise industry and highlight any emerging challenges. Katz emphasized the importance of continuing to quantify the cruise sector̢۪s contributions and the potential costs of not addressing the rising expenses and regulatory issues.

As New Zealand navigates the complexities of rising costs and regulatory pressures, the future of its cruise industry will likely depend on strategic adjustments that balance economic gains with operational feasibility. Collaboration between the government, industry stakeholders, and local businesses will be essential to maintain New Zealand̢۪s status as a desirable cruise destination.

With cruise tourism contributing significantly to the country̢۪s economy and supporting thousands of jobs, New Zealand faces a critical juncture in ensuring that this industry remains viable in the face of rising costs and competitive pressures. By addressing these challenges head-on, New Zealand can continue to benefit from the substantial economic impact of cruise tourism while promoting sustainable growth for years to come.