Cruise ships are bypassing New Zealand due to high costs, putting thousands of jobs at risk

But it hasn’t all been smooth sailing, with industry officials warning that millions of dollars could be at risk as it faces high costs and regulation.

Around 10,000 jobs in New Zealand were created by cruise tourism, supporting wages of $425 million.

The Cruise Lines International Association prepared a report. Australasia managing director Joel Katz said the company painted a fascinating picture of the past, but the future looked bleaker.

“We are seeing a 20% decline in the upcoming season. “After that, we see an even bigger downturn in the season, and that means hundreds of millions of dollars and thousands of jobs that could potentially be lost because these ships can’t come.”

He wanted this report to become a regular feature.

“We know there are challenges in the cruise market here in New Zealand and I think it’s important that we can quantify the opportunities and costs associated with getting things wrong.”

Last year saw a record cruise season, with more than 1,000 ship calls and 1.5 million passenger days.

New Zealand Cruise Association chief executive Jacqui Lloyd said cruise lines told her Aotearoa was now their most expensive region to visit and they were looking elsewhere.

Much of this came down to rising costs and uncertainty about regulations. Cruises are facing an additional $3.2 million in unbudgeted costs this season following a recent increase in border fees, she said.

“We see that the increase occurs during the booking period of a cruise trip, so in this case, cruise lines need to account for these additional costs. “They can’t pass them on to a passenger who has already bought tickets, and that increases the cost of tickets to New Zealand.”

More than $600 million was invested in Auckland last financial year, creating 4,184 jobs.

“High attendance”

Tātaki Auckland Unlimited director of operations Annie Dundas said cruises were very important to the city.

“It gives people a chance to maybe get a taste of the city, and then we know, mostly anecdotally, that people who come on cruise vacations often revisit it.”

She said there was a lot of work going on behind the scenes at cruise lines to ensure they were adapting to meet climate goals and becoming more resilient, and it was scary to see visitor numbers drop in coming seasons.

“The trickle-down effect of passengers landing in Auckland extends from hotel staff, who are apparently looking after cruise passengers who may be staying overnight before going on or ending a new cruise, to waiters, through to the accountant who keeps the books. accounting”.

Dundas wanted to see more cooperation between the government and other stakeholders to ensure cruise ships knew New Zealand was open for business.

Cruise line ID New Zealand chief executive Debbie Summers said many people were relying on the industry’s success. Global demand for cruises was growing rapidly, but New Zealand had become complacent and expensive, she said.

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

“On average, each cruiser spends about $283 per day exploring, shopping, dining and sightseeing at each stop. This 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 a particularly big boost to our hospitality businesses, from cafes and fine dining restaurants to food trucks and local food markets, many of which have seen an increase in trade when the ship is in port.”

– RNZ