Cruise ships are coming to Tasmania’s ports – whether we are ready or not

The cruise industry has bullish plans for Tasmania and reckons we should embrace its return, but it should be on our own terms, writes LUKE MARTIN.

THIS is a sensitive time to talk about the cruise industry, in the wake of the tragedies of the Ruby Princess and New Zealand’s White Island.

Cruising is a big part of the global travel sector that is hurting as much as anyone from COVID. Along with the lives tragically lost and disruption caused, tens of thousands in the sector have lost their livelihoods, including many in poorer countries where cruising is a rare source of income and economic activity.

In Tasmania, conversations about cruising have been going on for some time, well before the COVID black swan sailed up the Derwent.

Right now, I do not think anyone can be 100 per cent certain when restrictions on cruising in Australia will be lifted, let alone when they will ease on cruise ships returning to Tasmania. But we can be certain cruising will return sooner rather than later.

Limited sailings have begun in Europe, and major cruise liners have set their sights on a recommencement in 2021 in Australian domestic markets.

A scan of booking sites — and TasPorts’ schedule for 2021 and 2022 — shows the companies are bullish about their medium-term prospects and Tasmania as a destination.

Globally, cruising has been the fastest growing form of travel over the decade — and remains hugely popular with a growing market of loyal, repeat customers.

P&O has reported a surge of bookings for new and refurbished ships it intends to have in Australia next year.

The Ovation Of The Seas, left, and the MS Noordam docked in Hobart in 2018.

Cruising may have been disrupted, and it might return a little differently for a while, but reports of its demise are greatly exaggerated.

We have a rare opportunity as a destination to pause and think carefully about the future of cruising in Tasmania — and shape our aspirations for this market as part of the fabric of our diversified visitor economy. We must do this now because over the past few years we have experienced exponential growth in cruising.

Between 2012 and 2015, the number of cruise ship port calls in Tasmania averaged 60 visits a year. In just four years this number grew to 135 visits scheduled in 2019-20.

This caused tension in our community and in the tourism industry. For some tour operators, cruise visits have become a pillar of their business model and no doubt cannot wait to get them back.

For others — including some key attraction operators who have, as visitor numbers have grown, begun to question the value of cruise visits at already busy times of the year — it is compromising their capacity to deliver great experiences.

There are retailers in Hobart who see cruising as crucial to the CBD, while others question the scale of activity on the waterfront, with the scheduling of ships, for example, on Saturdays in January when the city is busy.

There are those who reference research showing a clear rate of repeat visitation to the state from cruise visits. Arriving by the Derwent is a spectacular taster of Tasmania for visitors that triggers later repeat visitation.

No one can be 100 per cent certain when restrictions on cruising in Australia will be lifted, but we can be certain cruising will return sooner rather than later. Picture: Stuart Gibson

We have respected tourism thinkers who fear cruise ships diminish our brand, and we would be better off without them. We all recognise there are substantial economic and business models built around cruising — the viability of the Port of Hobart and its infrastructure. The aspiration for the economic stimulus created by visits in Burnie.

These are all legitimate and important perspectives.

The rapid growth in cruising crept up on us and as an industry we have been playing catch-up in defining a strategic outlook for the sector that can provide confidence that growth is being planned for, managed sustainably, and on Tasmania’s terms.

In Tassie tourism, we take pride as an industry in being proactive, highly strategic and clear about where we are headed and what needs doing.

To be fair, there have been some positive movements over the past couple of years too.

Tourism Tasmania’s cruise blueprint clearly scopes the anchorage opportunities statewide and the different scale of ships relative to different ports across the state.

The industry took a firm position in leading the state government to restrict cruise ships entering Wineglass Bay.

Cruising may have been disrupted, and it might return a little differently for a while, but reports of its demise are greatly exaggerated. Picture: SAM ROSEWARNE

Visitor Economy Strategy director Anne Greentree is working on bringing together clear independent analysis of the cruise market in Tasmania over the next decade.

Her project will conduct a brand review to answer questions about how cruising is perceived by the market.

Are certain scale ships more consistent with our brand as a destination? Are there risks to our brand?

Another part of the project will be an economic, social and environmental impact study on cruising to Tasmania.

We already have robust numbers on the value of ship visits. This needs unpacking to understand the value of visits to different sectors. What is the economic contribution of a premium, Lux or expedition ship with 300 passengers overnighting in Hobart or porting in Tasmania for a couple of months, relative to the injection of demand from a large or Mega ship day visiting a couple of times in summer? How do Tasmanians feel about cruise ships?

The third part of the project will identify unrealised opportunities that each cruise segment could offer Tasmania.

This could include specialty produce provisioning and pre- and post-cruise holidays, home porting and exclusive partnering with experiential tour operators.

I hope we see this as an opportunity to position Tasmania as a cruising destination fundamentally different to other parts of Australia and the world.

Luke Martin is chief executive of the Tourism Industry Council Tasmania.