Businesses impacted by Covid cruising ban ask for $10b support package

A submission has been lodged to the federal government to cover the estimated $10 billion in losses suffered by tourism operators and industry suppliers since cruise operations were halted in 2020.

The cruising industry has issued an urgent plea to the federal government for financial help for local businesses devastated by the almost two-year suspension of tourism operations as it prepares for a return of operations.

With thousands of bookings being cancelled every month, the Cruise Lines International Association (CLIA) Australasia has lodged a pre-Budget submission to cover the estimated $10 billion in losses suffered by Australian travel agents, tourism operators, industry suppliers and other local businesses since cruise operations were halted at the start of the pandemic.

Cruise lines themselves are not seeking financial help.

International cruises have been banned from Australian shores for almost two years. Picture: Tim McIntyre

Warning that its larger passenger ships would not be able to return to Australian shores until later this year even if the ban was to be lifted, the Association says economic assistance was vital in ensuring travel businesses can recover.

The federal government is to decide on February 17 as to whether to continue the ban on foreign flagged cruise ships introduced at the start of the pandemic.

Association managing director Joel Katz said even if the ban was to be overturned, it would only be after June that large ships would begin returning to Australian shores given the need to also obtain the relevant State and Territory health approvals along with time it took for vessels to arrive here.

The industry is seeking a return of domestic cruising with only Australian passengers, with international cruising to occur as borders re-open, Mr Katz said.

Despite more than seven million people having taken a cruise since June 2020, Australia remained as the only major cruise market in the world without an agreed plan to resume, Mr Katz said.

He said more than 18,000 Australians relied on cruise tourism for their livelihoods and were increasingly angry at a lack of action to revive the industry

“We are so far behind we wouldn’t see ships in Australia until after June even if the ban is lifted,” he said.

“All the larger cruise lines have cancelled until the end of May. We would still need agreements from the State and Territory governments and then it takes cruise-lines another 90-100 days to get mobilised to get to Australia so we are definitely looking at the second half of the year.

“The Ghan is taking 300 plus passengers from Adelaide to Darwin but those same passengers can’t board a ship. Businesses such as those in The Rocks and the CBD rely on cruise passengers. All we are asking for a return of domestic cruising.”

P&O chef Luke Mangan is also urging the government to give cruise suppliers a heads-up.

The submissions calls for financial assistance for local businesses that the industry deems will be essential in the revival of the cruise and tourism sector, along with the removal of Australia’s Passenger Movement Charge to help stimulate international tourism once borders fully open.

Cruise tourism ordinarily supports thousands of businesses throughout Australia, including travel agents, tourism operators, hotels and restaurants, transport workers, farmers and food suppliers, beverage providers, entertainers, and technical support providers.

The industry globally has committed to extensive new health measures in response to the pandemic, including testing and vaccination requirements before boarding.

The cruise industry has pleaded for the federal government to deliver a road map for the sector’s recovery, with a ban on cruising scheduled to end later this month.

The ban was extended by two months in December, forcing the cancellation of cruises already booked to set sail this year.

Cruise line companies have been left to speculate whether trips departing Australia will be allowed to restart from February 17, while panicked suppliers are unsure whether to scale up production.

Duane Roy, owner and winemaker at Glandore Estate Wines, which supplies wine to P&O, said the deal with the cruise company made up 15-20 per cent of the business’s turnover.

“From my understanding, until recently the government hadn’t even been in talks with the industry to start a pathway of how we can return,” Mr Roy said.

Hunter Valley winemaker Duane Roy is a supplier for cruise company P&O. Picture: Peter Lorimer

“It’s incredibly frustrating because we can’t just click our fingers and make wine, it’s a year-long process, and at up to 20 per cent of our turnover … that’s a lot to ramp up.

“It’s not just that cruising has been shut down in my opinion for far too long, but also that there’s no clear guidance on a return date.”

Mr Roy said he was “hedging his bets” by increasing production with the hope cruises will return sometime this year.

He joined celebrity chef Luke Mangan, who has restaurants on P&O ships, in calling for a future date when cruises will restart.

“If they give us the green light on February 17, it’s going to take us at least three months to get the cruise ships back into the country and get them all geared up to go,” Mr Mangan said.

“What we’re asking for is a pathway and some notice instead of just saying: ‘OK, you can go now’.”

Cruising is a $5.2 billion industry in Australia, with 1240 ships visiting 47 ports across the country annually pre-pandemic.

Business Sydney executive director Paul Nicolaou said NSW received the lion’s share of passenger expenditure and restaurants, retailers and travel agents were among businesses hurting under the near two-year ban.

Up to 20 per cent of Mr Roy’s business comes from cruising. Picture: Peter Lorimer

“Sydney needs the cruise industry to restart as soon as possible,” Mr Nicolaou said.

“Cruising is safely and successfully happening in countries right around the world and governments need to work on a road map to reactivate this important tourism industry immediately.

“The flow-on from cruising in terms of employment and economic activity is too great to allow state and federal governments to continue denying the opportunity to safely restart this hugely popular industry.”

Entertainer on Royal Caribbean cruises James Bustar lost 85 per cent of his income to the cruising ban and said it cost him his identity too.

In August he relocated to Singapore, where cruising has safely resumed.

“Cruise lines have so many safety protocols in place that I actually feel safer being on one than I did being at home,” Mr Bustar said.

“Overseas countries have proven it‘s possible to have a cruise industry working and back again.

“The thing the government doesn’t seem to realise is the cruise industry affects so many other industries.

“By shutting down the cruise industry you are in turn closing down other businesses who rely on cruise ships being in action.”

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Originally published as Businesses impacted by Covid cruising ban ask for $10b support package