Travel industry thinks tourists are ready to cruise again

The industry is pushing for a return to local sailings given it has lost $500m since sailings stopped in March.

At the start or end of a cruise international visitors spent an average $549 each per day, compared to domestic travellers’ $436 each per day. Picture: Paul Kane/Getty Images

With Flight Centre declaring its 2022-2023 cruise bookings have returned to normal, and Helloworld so confident of the sector it recently purchased a cruise wholesaler, the industry is pushing for a return to local sailings given it has lost $500m since sailings stopped in March.

NSW, followed by Queensland, has been the hardest hit state, with freshly commissioned AEC research revealing regional economies and hoteliers have lost nearly $2bn since sailings were canned due to the pandemic.

“By the end of December this will have risen to a massive $2bn loss, given the ongoing pause in operations during the traditional summer peak cruise season, with another $3bn at risk across the economy if the cruise suspension continues into 2021,” said Cruise Lines International Association (CLIA) managing director, Joel Katz.

 

But it is not only cruise lines which have been affected with thousands of small businesses and regional communities including fresh food suppliers, hotel owners, bus companies, Australian entertainers, tour operators and baggage handlers also affected.

Australian Cruise Association’s chief executive Jill Abel highlighted the impact of lost visitation from the more than 1000 cruise ship visits made to Australian ports each year.

“More than 2.9 million passenger visit days were recorded to 42 different ports around Australia in 2019-20, bringing economic benefit to some of the furthest regions of the country,” Ms Abel said. “Passenger spending in destinations around Australia alone totals more than $1.1bn, while cruise lines spend more than $1.0bn in Australia over a year.

She said thousands of local businesses are supported by the cruise industry spending in regional destinations, with many under threat while operations are suspended.

As such the cruise industry is calling for a carefully controlled resumption of domestic cruise operations offering local cruises for local only while international borders remain closed.

According to the economic modelling, commissioned by CLIA and the Australian Cruise Association, NSW will lose the greatest share of economic benefit from cruising, having received $2.9bn in direct and indirect economic output in 2019-20, and 9,389 jobs.

Queensland earns around $832m in direct and indirect economic output from the cruise industry, and 2658 jobs.

Victoria earns around $381m a year and 1,108 jobs, followed by Western Australia with $262m. South Australia earns $122m, Tasmania $104m and the Northern Territory $84m.

Hoteliers will be among the largest losers from the ongoing suspension of cruise tourism, having received $367m from passenger spending, followed by the food and beverage sector which accounted for almost $227m of passenger spend in 2019-2020.

At the start or end of a cruise international visitors spent an average $549 each per day, compared to domestic travellers’ $436 each per day. While in a transit port, international visitors spent an average of $237 each per day on shore, while domestic travellers spent $171 each per day.