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The full value of cruise tourism in New Zealand has been detailed for the first time in a new economic analysis, showing a total windfall of NZ$1.37 billion for communities around the country during the 2023-24 financial year.

An economic impact assessment jointly commissioned by Cruise Lines International Association (CLIA) and the New Zealand Cruise Association (NZCA) provides the first detailed analysis of cruise tourism in Aotearoa, quantifying its full economic impact alongside the employment it supports.

Announced today, the assessment shows NZ$1.37 billion in total economic output generated by cruise tourism in New Zealand during 2023-24. This included direct expenditure by passengers, crew and cruise lines worth NZ$637.8 million, as well as indirect/induced expenditure of NZ$729.2 million.

It shows that cruise tourism supported a total employment of 9,729 New Zealand jobs last financial year and provided NZ$425.9 million in wages to New Zealand workers.

CLIA Managing Director in Australasia Joel Katz said the assessment provided the first comprehensive picture of New Zealand’s cruise economy, expanding on the data produced in past years by StatsNZ. While past assessments have shown only direct expenditure by passengers, crew and cruise lines, this latest analysis also calculates the indirect and induced benefits that flow through the New Zealand economy, as well as the employment created.

“Cruise tourism provides enormous economic benefits, not just in the major cities but also dispersed among regional ports and destinations around New Zealand,” Mr Katz said. “For the first time, we can now see the full value of New Zealand’s cruise economy, including the employment it creates around the country.”

NZCA Chief Executive Officer Jacqui Lloyd said cruise ships had delivered NZ$439.5 million in passenger spending to virtually every region of New Zealand in 2023-24.

“A cruise passenger spends an average NZ$283 every day on shore in New Zealand, but that’s only one piece of the picture,” Ms Lloyd said. “We also benefit from the spending of crew members and the spending of cruise lines to support their operations and provision their ships.”

“Cruise tourism supports a huge variety of local Kiwi businesses like tour operators, travel agents, hotels and restaurants, retailers, transport providers and port operators,” Ms Lloyd said. “Cruising is also supported by an extensive supply chain, creating benefits for New Zealand farmers and food producers, winemakers, providores and maritime service providers.”

Although the value of cruise tourism is high, the cruise industry has warned that rising costs and regulatory complexities are hampering the industry in New Zealand, leading to a fall in local cruise ship deployment.

“While cruise tourism is thriving in the rest of the world, New Zealand is going backwards and local communities are facing a 20% reduction in visitor numbers over the coming season,” Ms Lloyd said. “New Zealand has become one of the world’s most expensive destinations for cruise operations, and this is already costing Kiwi businesses millions of dollars as ships head elsewhere.”

The Value of Cruise Tourism economic impact assessment for New Zealand was prepared by AEC Group on behalf of CLIA and the NZCA. Its key findings for 2023-24 show:

  • A total economic output of NZ$1.37 billion nationally, including direct* output of NZ$637.8 million and indirect/induced* output of NZ$729.2 million.
  • Total employment of 9,729 people nationally, with total wages of NZ$425.9 million generated for New Zealand workers.
  • A total of 21 New Zealand ports and destinations visited, welcoming 1,011 ship visits and 1.55 million passenger visit days.
  • Total direct passenger expenditure of NZ$439.5 million and direct crew expenditure of NZ$23.5 million.
  • An average passenger spend per day on shore of NZ$283 per person. Average crew spend per day on shore NZ$73.9 per person.

The largest beneficiary of direct passenger expenditure was the retail shopping sector which received NZ$123.5 million, or 28.1% of passenger spending. Other beneficiaries included the food and beverage sector (NZ$109.6 million, 24.9%), shore excursion product (NZ$76.7 million, 17.4%), hotels and accommodation (NZ$57.6 million, 13.1%), transport providers (NZ$34.5 million, 7.9%), and entertainment (NZ$30.1 million, 6.9%).

  • Direct cruise line expenditure totalled NZ$317.6 million, including NZ$146.2 million paid to ports and government as fees and charges (46.0% of cruise line spending).
  • The North Island received the largest portion of cruise tourism, with a total economic output of NZ$981.9 million and total employment of 6,886 jobs. 
  • The South Island had a total economic output of NZ$385.0 million, supporting 2,843 jobs.

The top regions for cruise tourism were:

  1. Auckland (inc Great Barrier Is, Tiritiri Matangi Is, Waiheke), NZ$604.7 million, 4,184 jobs;
  2. Otago (Dunedin), NZ$156.0 million, 1,155 jobs;
  3. Canterbury (inc Akaroa, Christchurch, Kaikoura, Timaru), NZ$135.2 million, 990 jobs;
  4. Bay of Plenty (inc Tauranga, Whakatane, Rotorua), NZ$111.8 million, 784 jobs; and
  5. Wellington (inc Kapiti Island), NZ$100.1 million, 758 jobs.