Australia has been warned it risks missing out on the benefits of the global cruise boom unless steps are taken to avoid the local industry “flat lining”.
Charles “Bud” Darr, CLIA Global President and CEO (pictured above), issued the caution during a meeting held in Sydney to celebrate the start of the summer cruise season.
His comments came as figures were released showing cruise tourism generated $7.32 billion in 2024-25 to the Australian economy, supported 22,720 jobs and contributed $2.36 billion in wages.
Passengers spent $1.82 billion in Australian destinations while cruise lines spent a further $1.5 billion on goods, services and infrastructure.
Mr Darr said there were currently 86 ships on order worldwide, representing $US96 billion in capital commitment extending out to 2036.
“So what does that mean for Australia? You know, I come here today with mixed feelings,” added Mr Darr.
“I’m happy to be here and speak with you and I’m happy to talk about the cruise industry.
“But what concerns me is that while the rest of the cruise industry is growing…that is not being mirrored in Australia.
“The question that needs to be asked by those in a position to control it is: Are we getting our share of the growth, not maintaining the status quo, because if you’re maintaining the status quo it’s a flat line.
“And if you’re flat, you’re really losing pace with the rest of the industry and we want Australia to share in that growth.”
Mr Darr said demand in Australia was “extraordinary”, with 1.4 million people cruising out of a population of 27 million. However, he added that supply was being constrained by both geographical constraints and infrastructure issues.
“But the thing that can be controlled is the regulatory environment and the cost environment. Costs are extremely high here for operating a cruise.
“We really need to have a stable regulatory environment and I think those are some things we really need to look out for and try and manage going forward.
“But Australia has so much going for it. I really think the potential here is enormous and it’s yet to be fully unlocked. I’d really like to see Australia get their share of the growth and their share of the 1.8 million jobs worldwide that our industry creates.”
Joel Katz, Executive Director, CLIA Australasia, said there was plenty to celebrate as the summer cruise season commences.
“More Australians are cruising than ever before. Over the coming months, we’ll see some incredible ships arriving in our waters to join the ships that are based here year round.
“But we can’t take that success for granted. Other countries are increasingly recognising the economic benefits that cruise can deliver and are competing for ships, for visitors and for investment.
“That means that our state and territory governments need to work together with our federal counterparts to ensure that Australia has sensible, practical and predictable policies and regulations that keep us competitive and ensure that these incredible ships keep returning to Australia, supporting Australian destinations, supporting Australian communities and supporting Australian jobs.”
