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RNZ News
a day ago
- Business
- 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
a day ago
- Business
- RNZ News
Cruise ship season sinking fast
business tourism 27 minutes ago Napier Port has revealed its cruise ship revenue is down nearly 10%. Bookings for the upcoming season that starts in October are headed in the same direction. Cruise ship numbers in the Bay of Island have almost halved from the peak two years ago. Meanwhile, Disney Cruise Line has confirmed it will only be sailing to to New Zealand up until February 2026. New Zealand Cruise Association chief executive Jacqui Lloyd spoke to Lisa Owen.
NZ Herald
21-05-2025
- Business
- NZ Herald
New Zealand's cruise industry falters as bookings drop 40%
The association's chief executive Jacqui Lloyd told the Herald the decline is 'deeply concerning' for the cruise industry, with cargo and shipping also affected by regulatory, commercial and logistical hurdles. 'This is not a consumer demand issue, it is a supply problem - visitors still want to come here and passenger ratings for NZ are incredibly high, but the cost and complexity for cruise lines means they are shifting their focus to other more welcoming destinations.' Smaller port towns are more likely to be affected by the slump, with Regional Tourism NZ's David Perks saying the potential negative impacts 'could be very significant to individual businesses and their ability to survive'. What's behind the decline? The cruise industry brought $648 million in direct expenditure and supported nearly 12,000 jobs across NZ in the 2023/24 season, which was the largest on record. Yet cruise passenger numbers are expected to fall below 2017/18 levels this season, with only 663 port calls recorded for 2025/26 - down from 1123 in 2023/24. 'A decline in ship visits and passenger numbers means fewer tourism dollars for regional communities, less investment in NZ by global cruise operators, and the potential loss of our reputation as a world-class cruise destination,' Lloyd said. While consumer demand remains strong, cruise operators are being put off by a perfect storm of rising costs, regulatory uncertainty and operational complexity. Government fees, port charges and local levies combined with global fuel price and currency shift pressures have made NZ 'the most expensive cruise destination in the world'. Uncertainty around regulations is also making it harder for cruise lines to plan schedules in advance and recover added costs, creating the perception that NZ is becoming too difficult to include in itineraries. One example impacting long-term planning is the proposed ban on cruise ships entering Milford Sound's inner sound, proposed by the Government-funded Milford Opportunities Project (MOP) in a 2021 masterplan. Biofouling requirements Biofouling management regulations introduced in 2018 have inadvertently disrupted ship itineraries, with Lloyd saying it's become the number one concern for cruise operators. Eight cruise ships turned themselves away and three required cleaning over the 2022/23 season. Only one cruise ship required cleaning in 2024/25, but operators still worry they'll be denied entry and have adjusted their schedules accordingly. 'Even when cruise lines meet standards, the threat of being denied entry over minor issues creates unacceptable financial and brand risk,' Lloyd said. 'Cargo and shipping sectors also share these concerns, making this a broader supply chain issue.' With about 90% of invasive marine species arriving in NZ on international ship hulls, the Ministry for Primary Industries' biofouling requirements - among the strictest in the world - are designed to protect Aotearoa's maritime industries and marine environment. But while cruise lines aren't opposed to strong environmental protections, there is currently no way to clean ships within NZ waters if they're denied entry. New Zealand port cleaning restrictions and the lack of a dry dock in Australasia (the closest is in Singapore) mean the only way to clean a ship here is through using a dive team at sea outside the 12-nautical-mile limit. Biosecurity NZ's northern regional commissioner Mike Inglis said this method can be a 'difficult and complex task often dictated by the weather'. 'To help manage the risk, we've been asking cruise lines to submit all their documentation and risk management plans as early as possible so we can provide early notification of any cleaning requirements, helping avoid voyage delays.' Advertise with NZME. Cruise operators have generally adapted well to the rules, Inglis said, which is 'evident in the number of cruise ships arriving in our waters fully compliant with our rules'. Lloyd said work was under way to find a local solution for biofouling compliance, including in-port cleaning trials at Port of Auckland, so cruise lines had 'the confidence and certainty they need to plan deployments without fear of denial'. Regional impact The cruise downturn is expected to hit the regions harder, Perks said. In smaller cities or towns like Napier, Akaroa and Picton, cruise traffic provides crucial support for the local economy. 'In each region there would be tourism businesses for which the cruise passengers would be their bedrock.' While NZ's cruise industry operates seasonally from October to April, Perks said 'its reliability has provided businesses with an ability to invest and grow, in a way which is now being challenged'. Lloyd said regional towns 'lack the economic diversity of larger cities', so the decline in cruise arrivals can disproportionately affect local jobs and incomes. 'Many of these towns are also off the main international touring route, so cruise plays a major role in bringing international visitors and spend to their communities.' Larger cities will likely feel the drop differently. For Auckland, fewer cruise departures mean fewer visitor nights, while Wellington stands to lose foot traffic during the city's quieter January period. Tracey Black, acting manager of tourism at the Ministry of Business, Innovation and Employment, said recent Government research published in April confirmed a decline in cruise activity across Australia, NZ and the Pacific. The economic impact of this is unclear, but Black said the Government is steadfast in supporting tourism growth. 'We are working collaboratively with the cruise industry on what is needed to grow the value of international tourism.' Lloyd said the Minister of Tourism and Hospitality, Louise Upston, has been 'really proactive and supportive' in trying to improve outcomes for the industry. 'The Minister and officials are engaging directly with cruise lines, listening to the concerns,' Lloyd said, turning to the April research as proof 'that the benefits of cruise to NZ continue to outweigh the direct costs'. However, as cruise lines plan their voyages two to three years in advance, Lloyd said urgent action needs to be taken before NZ starts getting left off future itineraries.
