Rising costs and an increasingly complex regulatory environment are threatening Australia’s competitiveness as a cruise destination.
That was the warning from Joel Katz (above), CLIA Australasia Executive Director, at the opening of the major Cruise360 Australasia 2026 conference in Sydney, taking place under the theme “Future Ready. Client Ready. Cruise Ready.”
Mr Katz told more than 800 delegates that while global cruising continues to enjoy strong growth, Australasia is facing its own set of challenges, with cruise ships being lost to other destinations.
“We need to put Australia back on course. We need to restore Australia’s competitiveness as a cruise destination,” Mr Katz said.
“We’ve all worked hard to make this one of the most important cruise markets in the world and we deserve to have that work backed.
“We need stable, practical and competitive policy settings, so that Australia can continue to attract cruise ships and deliver billions of dollars’ worth of benefits to communities around the country.”
His comments came as CLIA revealed that global cruise passenger numbers reached a record 37.2 million last year, with the organisation forecasting another record of around 38 million passengers this year.
By the end of the decade, CLIA expects the global cruise market to reach around 42 million guests.
“That’s a strong trajectory of consistent, sustainable growth,” Mr Katz told delegates.
“We have huge opportunities ahead of us as a cruise community.”
At the same time, he pointed to an unprecedented pipeline of new ships and cruising concepts, with 89 new cruise ships scheduled to enter service between now and 2039, representing a combined value of almost $US100 billion.
“That’s why we’re confident about cruise and that’s why we’re focused on ensuring our travel advisor community is future-ready,” Mr Katz added.
But he warned that Australia needed to ensure it remained part of that growth story.
“Despite continuing strong demand, Australia and New Zealand have lost cruise ships to other parts of the world and this impacts local businesses and local communities,” he said.
“Our industry’s warnings about a complex and uncertain regulatory environment, and rising costs, have been proven right. Our region has been losing competitiveness and we need to turn that around.”
Mr Katz said CLIA was working with governments to address the challenges and come up with a coordinated national approach.
As part of that push, CLIA last month launched the Australian Paddock to Port Alliance, bringing together stakeholders from across the cruise economy to highlight the wider economic contribution made by cruise.
The alliance includes Australian farmers, food suppliers, tourism operators, travel agents, ports, destinations and other cruise industry stakeholders.
“The cruise economy extends well beyond the port and is a vital economic contributor,” he said.
“All of us here are an essential part of that cruise economy and deserve more certainty.
“We want you to walk out of this conference with fresh inspiration and new ideas to fuel your success – so that you can hit the ground running on Monday.”
# Cruise Lines International Association (CLIA) has reached a record level of membership in Australasia, numbering almost 7,000 travel advisors across Australia and New Zealand.
“You remain the most important part of our industry’s distribution chain, and the level of investment that cruise lines place in CLIA events is a direct reflection of that importance,” said Peter Little, CLIA’s Chairman in Australasia and Carnival Senior Vice President and Country Manager.
CLIA’s expanded membership provided additional weight to the industry’s advocacy initiatives, Mr Little said, with cruise lines receiving backing from many thousands of Australians and New Zealanders who made up the region’s cruise economy.
“At a time when cruise passenger numbers are breaking records at the global level – and when the market in this region is showing fantastic levels of demand – we deserve to share in that success in ways that reflect the hard work and dedication we put in.”
