Australia risks losing cruise ships, visitors and billions of dollars in economic activity unless rising costs and regulatory uncertainty are addressed, a new national industry alliance has warned.
The Australian Paddock to Port Alliance was launched in Sydney today, bringing together farmers, food suppliers, tourism operators, travel agents, ports and cruise industry leaders to demonstrate how widely the benefits of cruising extend through the Australian economy.
Its launch coincides with the release of the Australia’s Paddock to Port Economic Impact Report, which found cruising generates more than $7.3 billion in annual economic activity and supports over 22,000 Australian jobs.
Cruise lines spend approximately $1.5 billion in Australia each year on supplies, services and port operations, while passengers contribute a further $1.8 billion through accommodation, dining, shore excursions, retail and transport.
Despite strong consumer demand and record numbers of Australians taking cruise holidays, Cruise Lines International Association Executive Director Joel Katz said the sector’s economic contribution had fallen by almost $1 billion.
“Cruise lines have been warning that Australia is becoming uncompetitive as a destination and risks losing cruise tourism to other countries, due to regulatory uncertainties and rising costs,” Katz said.
“This is despite the fact that demand is very strong and Aussies are cruising in record numbers.”
Katz said cruise was more than the ships visible in Australian ports, describing it as an economic ecosystem supporting businesses, jobs and communities across the country.
“Every cruise that comes to Australia creates activity before, during and after the voyage, from the food loaded on board, to the hotels passengers stay in, the tours they book, the transport they use and the local businesses they support,” he said.
“We are asking for stable, practical and competitive settings so Australia can continue to attract cruise ships, passengers and investment.”
The alliance was launched at Select Fresh Providores in the Sydney suburb of St Peters, highlighting the role Australian food producers and suppliers play in provisioning cruise ships.
Select Fresh Providores Group Director of Sales and Cruise Supply Steve Biviano said cruise ship visits translated directly into orders and employment for suppliers.
On an average 10 day cruise, a ship can consume approximately 3,500 kilograms of watermelon, 1,400 kilograms of tomatoes, 4,000 litres of milk, 4,000 dozen eggs, 3,200 kilograms of chicken and 2,000 kilograms of beef.
National Farmers’ Federation Chief Executive Officer Michael Guerin said this demand reached well beyond Australia’s ports.
“Cruise may start at the port, but the economic activity reaches back to paddocks, processing facilities, transport networks and regional businesses,” Guerin said.
Passenger spending also extends across the visitor economy, including almost $400 million on food and beverages ashore, approximately $250 million on shore excursions and around $210 million each on retail purchases and transport.
Tourism and Transport Forum Chief Executive Officer Margy Osmond said the future of cruising was a whole of economy concern.
“The numbers are significant, but the real story is the breadth of businesses and jobs connected to every ship visit, the people whose livelihoods depend on a strong cruise economy,” Osmond said.
“Australia is competing globally for ships, itineraries and visitors. Stable, practical and competitive settings are essential if we want to keep the economic benefits of cruise in Australia.”
The Australian Paddock to Port Alliance will advocate for policies that keep Australia competitive as a cruise destination while drawing attention to the suppliers, agents, tourism businesses and regional communities benefiting from every ship visit.
