## Australia’s Cruise Industry Sets Sail for Record-Breaking Economic Impact
Australia’s cruise tourism industry is riding a wave of unprecedented success, reporting a record-breaking economic impact for the 2023-2024 period. The industry’s contribution to the national economy has reached an impressive A$8.43 billion, marking a significant leap from the previous year and solidifying its position as a major player in the Australian tourism landscape.
This remarkable growth is attributed to a confluence of factors: a surge in passenger spending, increased cruise line expenditures, and a noticeable rise in the number of ship visits to Australian ports. The latest economic impact assessment, commissioned by Cruise Lines International Association (CLIA) in collaboration with the Australian Cruise Association (ACA), reveals a staggering 49.7% increase in the cruise industry’s total economic output over the last fiscal year, the highest recorded to date.
The report highlights the significant impact of passenger spending, which reached a remarkable A$1.94 billion. These cruise enthusiasts contribute significantly to the local economy, with an average spending of A$455 per person per day onshore. Their expenditures fuel a variety of industries, from hotels and accommodation, which received A$593.1 million in passenger spending, to restaurants, retail shops, transportation, and entertainment venues.
The crew members of these majestic vessels also play a vital role in the economic landscape, contributing A$60.4 million through their own onshore spending, highlighting the broader economic benefits of the cruise industry. On average, crew members spend A$138 per day, supporting local businesses and injecting further economic stimulus into coastal communities.
This surge in activity has also translated into a significant job creation boom. The cruise industry supported a total of 26,370 full-time equivalent positions during the 2023-2024 fiscal year, representing a remarkable 44.7% increase from the previous year. This employment surge has also led to a substantial rise in wages, with A$2.83 billion paid out to Australian workers, a 55.8% increase compared to the previous period.
The ripple effects of this job creation extend far beyond the cruise industry itself, benefiting a wide range of businesses in coastal states and territories. Tour operators, transport providers, and retailers have all reaped the rewards of increased visitor spending, boosting local economies and fostering further growth in the tourism sector.
The number of cruise ships gracing Australian ports has also experienced a noticeable increase, with 1,650 ship visits recorded during 2023-2024, a 5.1% increase from the previous year. These visits spanned 49 ports and destinations across Australia, with every coastal state and territory witnessing increased visitor numbers and economic activity. Cruise passengers spent a total of 4.26 million visit days in Australia during the fiscal year, with 3.00 million of those being turnaround passenger visit days.
Turnaround passengers, who embark and disembark in Australia, are among the highest spenders in the cruise sector, contributing significantly to the local economy. Transit passengers, who make shorter stops, accounted for 1.25 million visit days. These figures underscore the growing demand for Australia as a prime cruise destination, not only for domestic travelers but also for international visitors seeking unique cultural and natural experiences.
While the Australian cruise industry is sailing on a high, there are challenges ahead. CLIA Managing Director in Australasia, Joel Katz, has cautioned that rising operational costs and regulatory complexities in Australia could hinder future growth, potentially making the region less attractive to international cruise lines. He emphasizes that Australia’s competitiveness is at risk due to rising fees and charges, coupled with a complex regulatory environment.
ACA CEO Jill Abel shares these concerns, acknowledging the significant benefits the industry brings to local communities while highlighting the need for continued efforts to ensure its long-term sustainability. She underscores the importance of repeat visitation, as many passengers return to destinations they first experienced on cruises, generating long-term economic benefits.
Despite these challenges, the outlook for Australia’s cruise industry remains optimistic. With increasing demand for cruise travel and a growing number of ship visits, the sector is poised for continued growth. Industry stakeholders are hopeful that regulatory reforms and cost reductions can further bolster Australia’s competitiveness, making it an even more attractive destination for international cruise lines.
The 2023-2024 figures serve as a testament to the cruise industry’s vital role in the Australian economy. It creates jobs, drives spending, and promotes the country’s coastal regions as world-class travel destinations. With ongoing support and strategic planning, Australia’s cruise sector is well-positioned to maintain its growth and establish itself as a leading force in the global cruise industry.