Cruise passengers spent more than ever in Australia last year

Cruise figures are out for the 2023-24 financial year – so how are things going? Well, it’s fresh winds and fair sailing, according to the Australian Cruise Association (ACA), whose members include cruise ports, shipping agents, government agencies, tourism bodies and tour operators.

Cruise ships made 1650 visits to 49 Australian ports in every state and the Northern Territory, and Australia recorded 4.2 million passenger visit days, up a whopping 26.9 per cent from the previous financial year.

Cruise passengers contributed $8.43 billion to the Australian economy in 2023-24.

Passengers spent more, contributing $8.43 billion to the economy, which is a 49.7 per cent increase, and the highest figure ever recorded, according to a joint study prepared for the ACA and Cruise Lines International Association (CLIA), which represents most of the world’s major cruise lines.

That was helped by a 35 per cent boost in turnaround passenger visitor days, which is significant because turnaround passengers – those who either start or finish their cruise in an Australian port – spend the most money, particularly on hotels, dining and transport.

The total spend is also partly directed towards local businesses, from travel agents to shipping agents and transport operators, to farmers who supply the fresh produce for ships’ restaurants. An estimated 26,370 full-time equivalent jobs in Australia are supported by the cruise industry.

NSW and Queensland benefited most from the largesse, with Victoria a distant third. All recorded a significant increase in cruise-related economic activity. Victoria took the crown, with its economic impact from cruising up 67.8 per cent.

And it isn’t just passengers who are spending more. Direct crew expenditure, although relatively modest at $60.4 million, also increased by 16 per cent.

All is not rosy, however, with the cruise industry warning about Australia’s high costs, regulatory complexities and lack of maintenance facilities. Docking space is squeezed, particularly in Sydney. A NSW government advisory panel is looking into options for new or expanded cruise terminals.

Port fees, particularly in Sydney and Melbourne, are among the highest in the world, and have prompted some large ships to redeploy to the more profitable Caribbean this season. The number of cruise ships home-porting here has fallen. P&O Australia has been folded into parent company Carnival Cruises.

There are also factors that Australia can’t control, such as the tyranny of distance for ships getting to our waters and then cruising between our ports, which means high fuel costs.

Cruise capacity in Australia is still expected to rise this 2024-25 summer season, and next, albeit at a slower rate and with slightly fewer ships, namely 62, down from 70 last summer.

Queensland is set to welcome about 500 cruise ship calls this summer; NSW 312 (including 23 maiden arrivals); Victoria 118; and Western Australia and Tasmania 140 each. Next is the Northern Territory at 127, and South Australia at 119. Fifteen cruise ship calls are expected at Norfolk Island.