New Alliance Warns Rising Costs Threaten Australia’s Cruise Sector
The report says cruise lines spend about one point five billion Australian dollars locally each year, while passengers add about one point eight billion.
Australian agricultural, tourism, travel, port and cruise interests have launched the Australian Paddock to Port Alliance, a national campaign warning that rising costs and regulatory uncertainty could push international cruise ships away from Australia. The campaign is built around Australia’s Paddock to Port Economic Impact Report, which puts cruise-related activity at more than A$7.3 billion a year. The report also counts more than 22,000 Australian jobs.
Cruise lines spend about A$1.5 billion in Australia each year, while passenger spending contributes about A$1.8 billion across accommodation, tours, retail, transport, dining and other visitor activity.
Cruise spending linked to suppliers and shore businesses
The report breaks out passenger spending across several onshore categories, including almost A$400 million on food and beverages, about A$250 million on shore excursions, roughly A$210 million on retail and about A$210 million on transportation.
The alliance said its campaign will focus on the businesses connected to each ship visit, including produce suppliers, logistics providers, hotels, tour operators, retailers, transport companies and regional communities.
CLIA and farmers press for competitive settings
“Cruise lines have been warning that Australia is becoming uncompetitive as a destination and risks losing cruise tourism to other countries,” Joel Katz, executive director of Cruise Lines International Association Australasia, said.
Katz said the industry is seeking “stable, practical and competitive settings” so Australia can continue attracting ships, passengers and investment.
Michael Guerin, CEO of the National Farmers’ Federation, said Australian ship provisioning generates demand for fresh produce, meat, dairy, seafood, wine and other domestic goods.
“Cruise may start at the port, but the economic activity reaches back to paddocks, processing facilities, transport networks and regional businesses,” Guerin said.
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