Job losses 'inevitable' in cruise industry slump
The cruise sector hopes crisis talks at this year's industry conference will help chart a course through rocky financial waters.
The theme of this year's NZ Cruise Association Conference - 'This is Not a Drill' - speaks for itself.
Passenger numbers have fallen year on year, down 20 percent last summer and projected to fall another 20 percent this year, but NZCA chief executive Jacqui Lloyd maintains an optimistic outlook.
"It is a little [like] crisis talks, but there is also a lot of positivity," she told RNZ, between panel discussions from the conference in Napier.
"[We're talking about] how we all need to work together, and make sure that the messaging is going out around central and local government on how important cruise is for regional economies, particularly our tourism and hospitality operators."
Lloyd expected 660 port calls and about 215,000 cruise passengers to visit New Zealand shores in the 2025/26 season.
"That's down from 1120 port calls in 2023/24 and around 330,000 passengers."
She said the industry could do little to adapt, rather policy change was needed to keep it from sinking.
"We'd rather not adapt, to be honest. We'd like to instead make sure that we get some return in that business, and a key part of it has been around working with government on regulatory changes, transparency on increased costs, and also biosecurity risks."
Lloyd said New Zealand was particularly harsh on biofouling - the build-up of algae and other microorganisms on a ship's hull.
"[There's a] risk of being turned away, because we don't have a safety net in New Zealand to allow any kind of cleaning, if ships do have any issues, and cruise lines have to go off the 12-mile limit, and wait for a calm day for a diver to go down and clean the ship.
"Meanwhile, passengers are on board, wondering why they're not at the destination that they had planned, so that's a real strong risk from a brand reputation and cost reputation."
Lloyd said representatives from Ports of Auckland had also spoken at the conference about their plans to facilitate in-water cleaning for visiting ships.
"Ports of Auckland has been speaking today about the trials they're doing for in-water cleaning, which has been positive, and they are working with MPI on how they might be able to do that going forward," she explained
"That's safe cleaning, not only for the ship, but also New Zealand's environment. We don't want to let any nasties into our waters and cause concerns with our aquaculture industry."
Meanwhile, the volatility of New Zealand's tourism policies were problematic for operators that often planned cruises years in advance.
"Passengers will book their cruises two years in advance and we've had cases recently where government agencies have increased costs by $11, $12, $20 per passenger, with only a very short two- to three-month window," she said.
These challenges were causing a decline in New Zealand's global reputation as a cruise destination.
"[It was] interesting talking to Princess Cruises today, who spoke at conference, and talked about the fact that the searches for New Zealand and Australia for Princess are down quite considerably on what they have been previously," Lloyd said.
"We will need to do a lot of work, as a nation, to promote passengers to come back to our shores."
She said job losses would be inevitable.
"There will be [job losses], and that will predominantly be through hospitality and tourism providers, drivers for coaches, likely within ports for teams that usually will look after cruise vessels.
"There are 10,000 jobs created by [the cruise industry] in the 2023/24 season and we do have concerns that we'll see a reduction for this season coming."
Viv Beck, the chief executive of central Auckland's business association Heart of the City, said cruises were an essential source of visitors.
"[Cruises] are really important and particularly at a time where spending is down, and we've had severe impacts with construction and Covid-19, and all of the above," she said. "This is one of the means of getting people in here and they arrive right on our doorstep at the bottom of Queen Street.
"A reduction in numbers is definitely going to be missed."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Otago Daily Times
4 hours ago
- Otago Daily Times
Job losses 'inevitable' in cruise industry slump
By Felix Walton of RNZ The cruise sector hopes crisis talks at this year's industry conference will help chart a course through rocky financial waters. The theme of this year's NZ Cruise Association Conference - 'This is Not a Drill' - speaks for itself. Passenger numbers have fallen year on year, down 20 percent last summer and projected to fall another 20 percent this year, but NZCA chief executive Jacqui Lloyd maintains an optimistic outlook. "It is a little [like] crisis talks, but there is also a lot of positivity," she told RNZ, between panel discussions from the conference in Napier. "[We're talking about] how we all need to work together, and make sure that the messaging is going out around central and local government on how important cruise is for regional economies, particularly our tourism and hospitality operators." Lloyd expected 660 port calls and about 215,000 cruise passengers to visit New Zealand shores in the 2025/26 season. "That's down from 1120 port calls in 2023/24 and around 330,000 passengers." She said the industry could do little to adapt, rather policy change was needed to keep it from sinking. "We'd rather not adapt, to be honest. We'd like to instead make sure that we get some return in that business, and a key part of it has been around working with government on regulatory changes, transparency on increased costs, and also biosecurity risks." Lloyd said New Zealand was particularly harsh on biofouling - the build-up of algae and other microorganisms on a ship's hull. "[There's a] risk of being turned away, because we don't have a safety net in New Zealand to allow any kind of cleaning, if ships do have any issues, and cruise lines have to go off the 12-mile limit, and wait for a calm day for a diver to go down and clean the ship. "Meanwhile, passengers are on board, wondering why they're not at the destination that they had planned, so that's a real strong risk from a brand reputation and cost reputation." Lloyd said representatives from Ports of Auckland had also spoken at the conference about their plans to facilitate in-water cleaning for visiting ships. "Ports of Auckland has been speaking today about the trials they're doing for in-water cleaning, which has been positive, and they are working with MPI on how they might be able to do that going forward," she explained "That's safe cleaning, not only for the ship, but also New Zealand's environment. We don't want to let any nasties into our waters and cause concerns with our aquaculture industry." Meanwhile, the volatility of New Zealand's tourism policies were problematic for operators that often planned cruises years in advance. "Passengers will book their cruises two years in advance and we've had cases recently where government agencies have increased costs by $11, $12, $20 per passenger, with only a very short two- to three-month window," she said. These challenges were causing a decline in New Zealand's global reputation as a cruise destination. "[It was] interesting talking to Princess Cruises today, who spoke at conference, and talked about the fact that the searches for New Zealand and Australia for Princess are down quite considerably on what they have been previously," Lloyd said. "We will need to do a lot of work, as a nation, to promote passengers to come back to our shores." She said job losses would be inevitable. "There will be [job losses], and that will predominantly be through hospitality and tourism providers, drivers for coaches, likely within ports for teams that usually will look after cruise vessels. "There are 10,000 jobs created by [the cruise industry] in the 2023/24 season and we do have concerns that we'll see a reduction for this season coming." Viv Beck, the chief executive of central Auckland's business association Heart of the City, said cruises were an essential source of visitors. "[Cruises] are really important and particularly at a time where spending is down, and we've had severe impacts with construction and Covid-19, and all of the above," she said. "This is one of the means of getting people in here and they arrive right on our doorstep at the bottom of Queen Street. "A reduction in numbers is definitely going to be missed."
RNZ News
4 hours ago
- RNZ News
Cruise industry brainstorms over falling foreign visitor numbers
The volatility of New Zealand's tourism policies are problematic for operators. Photo: NZ Herald/Paul Taylor The cruise sector hopes crisis talks at this year's industry conference will help chart a course through rocky financial waters. The theme of this year's NZ Cruise Association Conference - 'This is Not a Drill' - speaks for itself. Passenger numbers have fallen year on year , down 20 percent last summer and projected to fall another 20 percent this year, but NZCA chief executive Jacqui Lloyd maintains an optimistic outlook. "It is a little [like] crisis talks, but there is also a lot of positivity," she told RNZ, between panel discussions from the conference in Napier. "[We're talking about] how we all need to work together, and make sure that the messaging is going out around central and local government on how important cruise is for regional economies, particularly our tourism and hospitality operators." Lloyd expected 660 port calls and about 215,000 cruise passengers to visit New Zealand shores in the 2025/26 season. "That's down from 1120 port calls in 2023/24 and around 330,000 passengers." She said the industry could do little to adapt, rather policy change was needed to keep it from sinking. "We'd rather not adapt, to be honest. We'd like to instead make sure that we get some return in that business, and a key part of it has been around working with government on regulatory changes, transparency on increased costs, and also biosecurity risks." Lloyd said New Zealand was particularly harsh on biofouling - the build-up of algae and other microorganisms on a ship's hull. "[There's a] risk of being turned away, because we don't have a safety net in New Zealand to allow any kind of cleaning, if ships do have any issues, and cruise lines have to go off the 12-mile limit, and wait for a calm day for a diver to go down and clean the ship. "Meanwhile, passengers are on board, wondering why they're not at the destination that they had planned, so that's a real strong risk from a brand reputation and cost reputation." Lloyd said representatives from Ports of Auckland had also spoken at the conference about their plans to facilitate in-water cleaning for visiting ships. "Ports of Auckland has been speaking today about the trials they're doing for in-water cleaning, which has been positive, and they are working with MPI on how they might be able to do that going forward," she explained "That's safe cleaning, not only for the ship, but also New Zealand's environment. We don't want to let any nasties into our waters and cause concerns with our aquaculture industry." Meanwhile, the volatility of New Zealand's tourism policies were problematic for operators that often planned cruises years in advance. "Passengers will book their cruises two years in advance and we've had cases recently where government agencies have increased costs by $11, $12, $20 per passenger, with only a very short two to three-month window," she said. These challenges were causing a decline in New Zealand's global reputation as a cruise destination. "[It was] interesting talking to Princess Cruises today, who spoke at conference, and talked about the fact that the searches for New Zealand and Australia for Princess are down quite considerably on what they have been previously," Lloyd said. "We will need to do a lot of work, as a nation, to promote passengers to come back to our shores." She said job losses would be inevitable. "There will be [job losses], and that will predominantly be through hospitality and tourism providers, drivers for coaches, likely within ports for teams that usually will look after cruise vessels. "There are 10,000 jobs created by [the cruise industry] in the 2023/24 season and we do have concerns that we'll see a reduction for this season coming." Viv Beck, the chief executive of central Auckland's business association Heart of the City, said cruises were an essential source of visitors. "[Cruises] are really important and particularly at a time where spending is down, and we've had severe impacts with construction and Covid-19, and all of the above," she said. "This is one of the means of getting people in here and they arrive right on our doorstep at the bottom of Queen Street. "A reduction in numbers is definitely going to be missed." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
6 hours ago
- RNZ News
Mediawatch: RNZ rejigging radio to arrest audience decline
Far-reaching changes to RNZ have been recommended. (File photo) Photo: RNZ / Cole Eastham-Farrelly "We now need to take a different approach," RNZ chief executive Paul Thompson told RNZ staff today. He said RNZ National's "live listening audience has unfortunately continued to decline" in spite of changes made that were guided by previous audience research. Survey results show RNZ National's cumulative audience peaked at just over 607,000 in 2021, but slumped each year since to 468,000 this year. RNZ's target audience will now be "broadly 50-69, male and female" and RNZ National staff will be given data to "better tailor the station to their preferences," Thompson said. RNZ is appointing a Chief Audio Officer to oversee live radio and on-demand audio - and implement its new audio plan which targets 500,000 RNZ National listeners by November 2026 and 520,000 one year later. "Growing our presence in Auckland" is also a key part of the new strategy which was discussed by the RNZ board in a meeting earlier this week. A review carried out by RNZ former head of news Richard Sutherland said Auckland must be treated as "the strategic centre of gravity." Richard Sutherland, the former head of news at RNZ, carried out the report. (File photo) Photo: RNZ RNZ is moving into TVNZ's central Auckland premises later this year - and now plans to host more radio and production roles there. Richard Sutherland - who left RNZ in July 2023 - has recommended far-reaching changes to RNZ in a "turnround strategy" completed in July. RNZ said this is "one of several inputs' into its new audio plan. In it, he warns that continuing falls in listenership risk the perception of RNZ becoming irrelevant. He concluded RNZ National must clearly define its broad target demographic as people aged 50 and over "with a primary target of 50-69." He said RNZ's to-be-appointed Chief Audio Officer should be in charge of news programmes and dedicated to RNZ National's strategy for at least 12 months. Sutherland also recommends an "urgent audit" of on-air staff and new hires should only be put on air after being assessed and cleared by an expert. He also recommended key presenters and producers must be working when audience research numbers are being gathered. He recommended hosts should focus on their live duties rather than podcast projects, other assignments or "extra-curricular employment" during the turnaround period. "The management of on-air talent will be for the chief audio officer to determine in consultation with colleagues," RNZ responded. Sutherland's review says key RNZ National time slots should be refreshed "where existing presenters don't align with the needs and preferences of the target audience." RNZ's briefing to staff says it is "not about reducing kaimahi numbers." "However, every part of RNZ National needs to work for the available audience and will be reviewed to ensure that is the case. This may mean that some programmes/shows are discontinued. If that is the case we will look for redeployment options for impacted kaimahi." There will also be "a strong focus on lifting on-air standards" with more training for presenters, RNZ told staff. Morning Report has been running for 50 years. (File photo) Photo: supplied Sutherland's review recommended Morning Report and its presenters should relocate fully to Auckland, and most of the production staff. RNZ said in response that Morning Report will have "a more Auckland-focused team.' "However, there is still a need for resource outside of Auckland, including, importantly, for resilience." Morning Report was already preparing for change with the impending retirement of Martin Gibson, the programme's editor since 1999. Some changes have already been made to Morning Report, including more production in Auckland. On-air changes introduced this month include a smoother handover from the preceding First Up show, shorter news bulletins and more conversational treatments of sport, rural and business news. A weekly CEO interview and sports discussion panel are also part of the Morning Report mix, and a head-to-head political discussion featuring opposing MPs every Wednesday. The same feature at the same time is longstanding feature of Newstalk ZB's Mike Hosking Breakfast, which comfortably out-rates Morning Report. RNZ's money correspondent Susan Edmunds has become a regular on Morning Report lately with coverage of personal finance issues. The programme now features fewer recorded and live news interviews, though it varies depending on when news breaks and develops. "These changes are driven by the need to improve the live listening experience for RNZ National's available audience. However, the digital team is also looking at ways they can exploit these new radio features to drive overall audience," RNZ said when unveiling changes to staff last month. RNZ has had a longstanding target of reaching 80 percent of New Zealanders over 18 by 2027 with its on-air broadcasting and its fast-growing online output, including content shared with other media outlets. RNZ also said it targets 65 percent of New Zealanders agreeing that RNZ "provides a valuable service," a figure previously published in RNZ's Statement of Performance Expectations for 2026. The government has also pressed RNZ on that this year. "I expect RNZ to improve audience reach, trust and transparency... in a period of tightened fiscal constraint," media and communications minister Paul Goldsmith said in a stern statement after Budget 2024 in May. Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
