A cruise ship at Auckland's Queens Wharf in August 2022. Photo: RNZ / Samuel Rillstone
A tourism operator says a drop in cruise passengers could have a significant impact on his bottom line this summer.
The New Zealand Cruise Association predicts a 20 percent decrease in visitor numbers over the incoming cruise season, driven by increases to port costs and the international visitors levy.
Gavin Oliver, the managing director of Waiheke Island-based EcoZip Adventures, said it was a big concern.
"We've got some of the worst economic conditions the country's seen in a while, certainly from the perspective of business owners. It has been very tough out there," he said.
"We're only at about 80 percent of pre-Covid arrivals at the moment, so the tourism sector is recovering more slowly than I think everybody originally forecast, so anything that sees a decrease like these cruise numbers ... It has an economic impact."
Oliver estimated cruise passengers formed roughly 11 percent of his customer base, meaning a 20 percent decrease would translate to a roughly 2 or 3 percent dip in revenue.
He acknowledged it did not sound like much, but said it made a huge difference.
"[It's notable] particularly in a market which is already very tough. If you're in a buoyant market a 2 or 3 percent reduction is not enormous," he said,
"But when you're coming off the back of borders being closed ... Most tourism businesses are still trying to rebuild their balance sheets, they're still trying to recover ... So a 2 or 3 percent decrease on the bottom line is massive."
And those losses would flow into other parts of the economy, he said.
"If a tourism business is down, so are the people that supply that business. Whether they service their vehicles, print their brochures or provide the lunches their clients eat."
Oliver feared New Zealand was becoming too expensive to visit.
"The cost of people crossing the border into New Zealand is going up, increases in port charges, there's compliance costs that cruise ships have to deal with," he said.
"All these things impact how attractive New Zealand is as a destination."
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