AUSTRALIAN cruise tourism has surged to a record $8.43 billion economic value during 2023-2024, according to an economic impact assessment jointly commissioned by Cruise Lines International Association (CLIA) and the Australian Cruise Association (ACA).
The record figure is a 49.7% spike over the previous year, driven by significant increases in passenger spending and cruise line outlays.
Highlights of the The Value of Cruise Tourism economic impact assessment saw cruisers record a total of 4.26 million passenger visit days.
This includes a significant increase to 3 million (35%) in turnaround passengers – the highest-spending visitors.
Cruisers spent an average of $455 per day on shore, up 2%.
The largest beneficiary of direct passenger expenditure was the hotel and accommodation sector, which received $593.1 million, or 30.6% of passenger spending, while shore excursions ($224.9 million, 11.6%) also saw large value from the cruise sector.
New South Wales (pictured) recorded the biggest benefit from cruising with a total economic impact of $4.41b (up 60.4%).
NSW was followed by Queensland, which saw a total economic output of $2.41 billion (up 43.1%).
Victoria recorded a total economic impact of $636.9 million (up 67.8%), followed by Western Australia ($384.9 million, up 15.4%), South Australia ($227.1 million, up 5.4%), Tasmania ($176.0 million, up 22.1%) and the NT ($181.4 million, up 42.5%).
CLIA Managing Director Joel Katz said cruise tourism has been booming as travellers embrace holidays at sea.
However, he warned future prosperity is being 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 number of Australians who benefit from cruise tourism is huge, from the travel agents who manage the passengers’ bookings through to the farmers who provide the local produce served on board.”
“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,” Katz added.
Direct cruise line expenditure was up 35.9% in 2023-24, totalling $1.59 billion, including $350.7 million paid to ports and governments (up 54.5%).
ACA Chief Executive Officer Jill Abel said cruise ships visited 49 ports and destinations around Australia during 2023-24, bringing increases in 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% on the year before,” she said.
“Together these destinations recorded almost 4.3 million passenger visit days over the financial year, an increase of 26.9%,” Abel added.
“The result is an enormous windfall for businesses like tourism operators, hotels and restaurants, retailers, transport providers and port operators…in addition, passengers often return to destinations they initially discovered on a cruise, which creates added benefits for communities in the longer term,” she said. MS
