The economic value of Australia’s cruise tourism industry swelled to $8.43 billion in 2023-24, an increase of almost 50 per cent (49.7%) on the previous year. However, industry experts warn that complex regulations and high costs may decrease Australia’s competitiveness and attractiveness for cruise lines.
The Cruise Lines Industry Association (CLIA) and Australian Cruise Association (ACA) economic impact assessment also found cruise tourism supported more than 26,000 full-time equivalent jobs nationally, up 44.7 per cent on 2022-23.
The Value of Cruise Tourism economic impact assessment for 2023-24 also showed total direct passenger expenditure of A$1.94 billion (up 29.6%) and direct crew expenditure of A$60.4 million (up 16.0%).
The hotel and accommodation sector benefited the most, receiving $593.1 million (30.6%) of passenger spending. Other beneficiaries included food & beverage (20.2%), shore excursions (11.6%), transport (14.7%), retail shopping (10.9%) and entertainment (3.9%).
NSW cruise tourism swells
The NSW cruise industry alone has a record-breaking $4.41 billion 2023-24 season, up 60.4 per cent on the previous financial year.
NSW expects more growth for the upcoming summer cruise season with 1.2 million passengers and crew from 312 ships set to sail into Sydney, Eden and Newcastle ports.
It comes as the NSW Government established a Cruise Industry Panel to plan a third permanent cruise terminal and ensure the cruise industry remains buoyant.
Queensland is the country’s second-largest cruise economy with a total economic output of $2.41 billion (up 43.1%), which supported 7,733 full-time equivalent jobs.
Cruise tourism’s economic impact
Managing Director in Australasia Joel Katz said cruise tourism is booming but warned future prosperity was hampered by high costs and regulatory complexities in Australia.
“Cruise tourism is thriving and passengers have been spending more when they step on shore, creating a record benefit for communities around the Australian coast,” he said.
“The value to the local economy is enormous, but the deployment of ships to this region is at risk of decline while Australia remains one of the world’s most expensive destinations for cruise lines.
“Rising fees and charges have combined with a complex regulatory environment, which reduces Australia’s competitiveness.”
ACA CEO Jill Abel said cruise ships visited 49 ports and destinations around Australia during 2023-24, bringing increased visitor spending to every coastal state and territory.
“Cruise ships made 1,650 visits to communities around the Australian coast in 2023-34, an increase of 5.1 per cent on the year before. These destinations recorded almost 4.3 million passenger visit days over the financial year, an increase of 26.9 per cent,” she said.
Read the full report here.
