Cruise Visits Plummet, Impacting One State Significantly
The cruise industry in Australia is experiencing a notable downturn. New statistics reveal a significant decrease in overall cruise visits, which heavily impacts various sectors of the economy. The Australian Cruise Association (ACA) released figures indicating a total economic output of $7.32 billion during the 2024-25 season, generating support for approximately 22,720 jobs.
Economic Impact of Declining Cruise Visits
The economic contributions account for all spending related to cruise experiences, not limited to cruise tickets alone. A considerable portion of this spending goes towards hotels and accommodations, which capture nearly one-third of all passenger expenditures. Meanwhile, transport services account for just beneath 12 percent.
State by State Performance
New South Wales emerged as the primary beneficiary from cruising activities, followed by Queensland. Queensland attracted more ship visit days, even though it recorded a decline of 15.7 percent in tourism from the cruise industry. Victoria saw an alarming reduction of 33.3 percent in cruise economic output, reflecting a severe downturn.
All states noted a decline in cruise contributions, with New South Wales registering a 10.7 percent decrease. Interestingly, the Northern Territory bucked the trend with an increase in cruise-related activity.
Comparative Statistics
- Recap of the past season’s performance:
- Total economic output dropped by 13.2 percent compared to the previous peak year.
- Number of cruise ships visiting Australia fell from 75 to 68.
- Cruise passenger capacity decreased by 8,174 compared to the last season.
- Port days fell to 1,700, also a decline from previous years.
Despite the dip in visits, a record number of 56 Australian ports welcomed cruise ships. Passengers continue to spend actively during their trips, averaging $440 daily. This figure rises to $504 in ports where cruises commence and peaks at $650 for international travelers.
Profile of Australian Cruisers
In terms of demographics, 81.5 percent of Australians prefer cruising locally within Australia, New Zealand, and the South Pacific. This inclination signifies a shift towards more economical cruise options as over 10 percent of cruisers opted for completely domestic itineraries.
The consumer demographic is evolving too, with 32 percent of Australian cruisers now under the age of 40, and the average age being 48.4 years.
Challenges Facing the Industry
Despite the continued interest in cruising, the ACA attributes the reduced number of ships visiting Australia to rising operational costs, regulatory challenges, and intensified competition from more lucrative destinations. This trend raises concerns for the future of the cruise sector in Australia.
