AUSTRALIA is beginning to experience the fallout of the difficult operating environment facing the cruise industry, Cruise Lines International Association (CLIA) Managing Director Joel Katz has warned.
Opening this year’s Cruise360 conference today, the cruise executive said recent losses for the Australian cruise sector had long been feared and cautioned by local stakeholders.
“We have been warning for a number of years that this is an expensive operating region, with complex regulatory requirements,” Katz explained.
“It is no surprise that we are now seeing the consequences, with some areas experiencing reduced visitation compared to previous years.
“This highlights what our industry has been saying for some time: that we need action to improve the operating environment, and we need to address rising costs that deter ships from our shores, ensuring that Australasia remains an attractive and competitive destination for cruise tourism.”
Australia has lost three high-profile international cruise lines in the past 18 months: Disney Cruise Line (CW 11 Aug), Virgin Voyages (CW 27 Feb 2024), and Cunard Line (CW 06 Nov 2023).
This is in addition to the sunsetting of the P&O Cruises Australia brand earlier this year, which was folded into its sister marque brand Carnival Cruise Line (CW 31 Mar).
However it was certainly not all inauspicious news from Katz, who also remarked on the cruise sector’s extraordinary opportunity Down Under.
“Since we met at last year’s Cruise360, we’ve been pleased to announce that the number of Australians cruising grew decisively last year to more than 1.3 million, an increase of almost 6% – that’s one of our best-ever years in this region,” Katz said.
“Opportunities in this market remain very strong. The intention to cruise is high.
“Repeat cruising continues at very high rates, and increasing numbers of guests are looking to fly-cruise options in other parts of the world.”
CLIA is today hosting around 850 delegates at its 10th Cruise360 conference in Brisbane, bringing together cruise lines, agents, and industry stakeholders to discuss the latest trends.
More than 30 speakers and panellists will take part in this year’s conference, with Cruise Weekly Editorial Director Damian Francis to moderate two sessions during the conference. MS