Cruising for disaster: High costs have cruise liners bypassing New Zealand

Cruise leaders say last season injected more than $1.3 billion into the economy, but they are concerned rising costs now have cruise lines looking elsewhere.

An industry-commissioned report, released on Friday, aimed to provide the first comprehensive picture of New Zealand's cruise economy.

The report showed passengers, crew and cruise lines directly spent $637 million last financial year, with indirect or induced spend of close to $730 million.

But it was not all smooth sailing, with the industry warning millions of dollars could be in jeopardy as it grapples with high costs and regulations.

Close to 10,000 New Zealand jobs were supported by cruise tourism, providing $425 million dollars in wages.

Cruise Lines International Association co-commissioned the report. Australasia managing director Joel Katz said it painted an exciting picture of the past, but the future looked more bleak.

"We're seeing a 20 percent decline in the coming season. We've seen an even larger decline in the season after that, and that translates into hundreds of millions of dollars and thousands of jobs that are potentially lost because those ships aren't able to come."

He wanted to see the report to become a regular feature.

"We know that there are challenges in the cruise market here in New Zealand, and I think it's important that we're able to quantify the opportunity and the costs of not getting the settings right."

It was a record cruise season last year, with more than 1000 ship visits and 1.5 million passenger visit days.

New Zealand Cruise Association chief executive Jacqui Lloyd said cruise liners were telling her Aotearoa was now the most expensive region for them to visit, and they were looking elsewhere.

A lot of it boiled down to rising costs and uncertainty over regulations. Cruises were facing an extra $3.2 million of unbudgeted costs this season after a recent border levy hike, she said.

"What we're seeing is those increases made within the booking window of a cruise trip, so in that case, the cruise lines have to incorporate those additional costs. They can't pass those on to a passenger that has already purchased their tickets, and that's increasing the cost into New Zealand."

More than $600 million was injected into Auckland last financial year, supporting 4184 jobs.

'High repeat visitation'

Tātaki Auckland Unlimited destination director Annie Dundas said cruises were massive for the city.

"It provides people with an opportunity to maybe get a taste of a city and then we know, anecdotally mainly, that there's a high repeat visitation off the back of people coming on a cruise holiday."

There was a lot of work going on behind the scenes with cruise lines to ensure they were adapting to meet climate goals and be more sustainable, she said, and tt was frightening to see the drop off in visitors in the upcoming seasons.

"The trickle-down effect of a passenger landing in Auckland goes right the way through from staff in hotels, who are obviously looking after cruise passengers who are maybe staying the night before they pick up a new cruise or finish one, right through to the waitstaff through to the accountant who is doing the books."

Dundas wanted to see more collaboration between the government and other stakeholders so the cruise liners knew New Zealand was open for business.

ID New Zealand cruise executive director Debbie Summers said many people relied on the industry's success. The global demand for cruises was booming, but New Zealand had become complacent and expensive, she said.

Restaurant Association chief executive Marisa Bidois said cruise ships offered a huge boost to local communities and helped to drive their economies.

"On average, each cruiser spends around $283 a day exploring, shopping, dining and exploring the sites at each stop. That means good business not only for tour operators and hotels but also for the small retailers, local farmers, and food producers who make our regions unique.

"This is an especially big boost for our hospitality businesses, from cafes and fine dining spots to food trucks and local food markets, many of which see an uptick in trade when a ship is in port."

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