Cruising’s economic impact in Australia takes a hit as headwinds persist

New data shows cruising’s economic value in Australia has taken a billion-dollar hit over the last year in a scenario the industry’s peak body blames on onerous regulation and high operating costs.

An economic impact report commissioned by Cruise Lines International Association and the Australian Cruise Association shows cruising generated $7.32 billion in economic benefits to the national economy in 2024-25.

It’s a big contributor to the economy nevertheless, but economic output is down $1.1b, or 13.2 per cent, from last year’s record $8.43b. This year, the industry supported 22,720 Aussie jobs (down 13.8 per cent).

Western Australia was not immune to the decline — total economic impact in 2024-25 was down 4.3 per cent to $368.3 million, with 1118 jobs, also down from about 1200.

CLIA managing director in Australasia Joel Katz says Australia risks losing cruise tourism dollars to other countries.

“Demand for cruising is at record levels internationally and Australians continue to be among the world’s most passionate cruisers,” he says.

“However, Australia’s cruise community has been warning for some time that we risk losing tourism to other countries because of a difficult regulatory environment and high operating costs.

“This report confirms we face headwinds and that action is needed to create a better environment for cruising in Australia.”

The peak body considers a complex regulatory environment and high costs from fees and charges, as factors in the drop in capacity in Australia in recent years.

Several lines have either consolidated services or pulled out of basing ships in Australia altogether.

ACA chief executive Jill Abel says many small to medium-sized businesses in communities across the country rely on cruise ship visits.

“Cruise passengers spent more than $1.82b around Australia last year, but this was down 5.9 per cent because there were fewer ship visits,” she says.

“Australia needs to create a co-ordinated national approach to cruise tourism, bringing together all elements of government and industry, so that we can return to growth and maximise the benefits to local communities.”

CLIA and ACA are calling for a national action plan involving governments at all levels “to support cruise tourism, improve Australia’s competitiveness, attract more ships, safeguard jobs, and create greater economic opportunities in destinations around the country”.

The report, compiled by researchers AEC Group, also shows 56 Australian ports and destinations visited (up 14.2 per cent); 1700 ship visit days (down 2.7 per cent); 4.1 million passenger visit days (down 2.7 per cent); total direct passenger expenditure of $1.82b (down 5.9 per cent) and direct crew expenditure of $53.7m (down 11.2 per cent); and average passenger spend per day on shore of $440 per person (down 1.1 per cent).