1 Nov 2024

Cruise tourism brought $1.37 billion into NZ economy last financial year, report finds

8:59 am on 1 November 2024
A view of the commercial cruise ship Island Princess operating in Southeast Alaska, Pacific Ocean, United States of America, North America (Photo by Michael Nolan / Robert Harding RF / robertharding via AFP)

Photo: MICHAEL NOLAN

Cruise tourism injected $1.37 billion into New Zealand economy last financial year, according to a new report.

Two industry bodies commissioned the report with aims to provide the first comprehensive picture of the country's cruise economy.

The findings, released on Friday morning, showed direct spending by passengers, crew and cruise lines reached $637 million last financial year with an indirect benefit of $729.2 million.

Close to 10,000 local jobs were supported by cruise tourism, providing $425.9 million in wages.

About 1011 cruise ships visited, with 1.55 million passenger visit days recorded.

Of the 21 ports and destinations visited, Auckland received the biggest piece of the pie with $604.7 million injected into the region and 4184 jobs supported.

Otago was a more distant second, receiving a $156 million boost last financial year, with Canterbury, Bay of Plenty, and Wellington also top regions for cruise tourism.

New Zealand Cruise Association chief executive Jacqui Lloyd said cruise tourism supported businesses ranging from tour operators and restaurants to the many producers feeding into the extensive supply chain.

"A cruise passenger spends an average $283 every day on shore in New Zealand, but that's only one piece of the picture," she 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 Lines International Association Australasia managing director Joel Katz said the assessment expanded on the data produced by StatsNZ and also calculated the indirect benefits and jobs created.

"Cruise tourism provides enormous economic benefits, not just in the major cities but also dispersed among regional ports and destinations around New Zealand," 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."

The industry was being hampered by rising costs and regulations, Lloyd said.

"While cruise tourism is thriving in the rest of the world, New Zealand is going backwards and local communities are facing a 20 percent reduction in visitor numbers over the coming season," she 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 retail industry saw the highest direct passenger spend - about 28 percent - receiving $123.5 million, followed by the hospitality industry drinking in about a quarter of the spend or $109.6 million.

Cruise lines spent $317.6 million, including $146.2 million in port and government fees, and $113.9 million in fuel and other operating costs.

Cruise Lines International Association and the New Zealand Cruise Association commissioned the economic impact assessment.

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