Cruising News Magazine Cruising News June 2018 | Page 5

Australian Demand for Cruising Continues Transport and Main Roads Minister Mark Bailey, President of Carnival Australia and P&O Cruises Australia, Sture Myrmell, PBPL Chief Executive Officer Roy Cummins and local member Joan Pease. New Cruise Terminal Is Now Full Steam Ahead A new international cruise terminal will be operating in Brisbane within two years after Port of Brisbane and Carnival Australia announced they had reached a commercial agreement. The Brisbane International Cruise Terminal (BICT) at Luggage Point will be operating by mid-2020 and is expected to generate almost $5 billion in economic value for the Queensland economy alone within 15 years. The amended commercial agreement between Port of Brisbane Pty Ltd (PBPL) and Carnival Australia follows the Australian Competition and Consumer Commission’s (ACCC) conditional approval of the project in May 2018. Both PBPL and Carnival Australia had been considering the commercial implications of the ACCC’s conditions and have agreed a way forward in the best interests of the cruise industry, Queensland tourism and the state’s economy. “The decision means Port of Brisbane will now get on with the job of building the terminal, which is a key plank of Queensland’s tourism growth story,” PBPL Chief Executive Officer Roy Cummins said. “The agreement with Carnival Australia gives us commercial certainty to construct the BICT, and we thank them for their ongoing support. This is also good news for the cruise industry as a whole, which will benefit from access to a world-class terminal facility. Cementing this partnership means we can avoid delays and maintain our construction timeline which – weather permitting – targets completion in second quarter 2020.” President of Carnival Australia and P&O Cruises Australia, Sture Myrmell, said the new terminal was a ‘win-win’ for cruising as well as the Queensland economy. “It means Brisbane can take its place on the world cruising map for some of the globe’s most iconic cruise lines with ships too large to use existing facilities at Portside,” Mr Myrmell said. “The terminal will be a major piece of national infrastructure and the single most important investment in cruise tourism in Queensland in 12 years.” Transport and Main Roads Minister Mark Bailey said the announcement was welcome news for industry across Queensland. “The Brisbane International Cruise Terminal will support an average of 245 jobs a year over its two-year construction period, and adds 49 operational jobs on average each year over the next 20 years. This project safeguards Brisbane’s role as an important cruise ship port, ensuring we keep the existing 1,250 jobs related to the industry in Brisbane.” he said. Carnival Australia has entered into a long-term agreement with Port of Brisbane Pty Ltd committing to purchase a maximum of 100 ‘foundation’ berthing days of no more than four in any week for 15 years to underwrite the construction of the new terminal at Luggage Point. In exchange, Carnival Australia receives priority berthing rights at the terminal. Carnival Australia’s arrangements remain subject to approval by the Foreign Investment Review Board. More Australians than ever are taking to the seas for a holiday, with Cruise Lines International Association (CLIA) Australasia revealing that in 2017 the Australian cruise market grew by 4.4 per cent, equating to almost 6 per cent of the Australian population taking a cruise last year. With more than 1.34 million Australians taking an ocean cruise in 2017, CLIA Australasia Managing Director Joel Katz said cruising had now become the quintessential modern Australian holiday. According to the industry body’s annual ocean passenger Cruise Industry Source Market Report, Australia remains the only market in the world to surpass a 4 per cent population penetration rate, well ahead of more mature markets. Mr Katz said that while the growth wasn’t as dramatic as recent years, it was more than two and a half times higher than the rate of Australia’s inbound holiday arrivals growth rate of 1.7%. “This growth rate puts Australia on par with the world’s largest cruise market, the USA, which experienced growth of 4.7 per cent, and was well ahead of more established cruise markets such as Europe (up 2.5 per cent), and the UK and Ireland (up 0.5 per cent). With demand for cruising as high as ever, there is still so much potential. The best way to future-proof cruise tourism in Australia is to resolve infrastructure constraints and ensure the right regulatory settings to allow more cruising to Australian ports. As long as we can solve the lack of cruise infrastructure development in Sydney and across the region, we’ll see further increases in passenger numbers,” Mr Katz said. “As cruise continues to grow in popularity, more cruise lines will base more ships down under and the number of homeports and itineraries will only grow. With the equivalent of almost 1 in every 18 Australians cruising last year, Australians are overwhelmingly choosing a cruise as their holiday of choice and they’re coming back time and time again”. The report also revealed that Australians still spend most of their time cruising local waters with the South Pacific (35 per cent) and Australia (34 per cent) accounting for the most cruise passengers. Mr Katz said one of the great success stories of the booming cruise industry was seeing valuable cruise dollars spread right around Australia’s vast coastline. “With about one third of Australian cruise passengers embarking on an Australian itinerary in 2017, regional economies continued to reap the benefits of cruise tourism. As long as infrastructure and regulatory policy allows, we will increasingly see vessels homeporting outside of Sydney in cities including Brisbane, Melbourne, Fremantle and Adelaide, and visiting regional ports such as Broome, Eden, Geraldton and Gladstone, to cater to this demand,” Mr Katz said. “Australia needs to develop appropriate infrastructure and policy to ensure the growth potential here is fully realised. With the popularity of cruising booming in Asia, and specifically in China, and regional Asian governments developing berthing facilities for the cruise market, Australia cannot afford to be left behind,” Mr Katz noted. Other key findings of the 2017 Ocean Passenger Cruise Industry Source Market Report include: • Australasia accounted for 5.4 per cent of global cruise passenger numbers and as a region with a comparatively small population, is punching well above its weight in the cruise stakes. • Asia remained the most popular long-haul fly-cruise destination for Australian cruisers accounting for 7.3 per cent of travellers, followed by the Mediterranean (4.6 per cent) and Alaska (2.8 per cent). • The youngest average age demographic for Australian cruisers (44 years-old) was found on South Pacific and Caribbean cruises, while the oldest average age (67 years- old) was found on longer expedition itineraries. • Global statistics showed that Australasia was an attractive cruise destination for international visitors with around 200,000 people travelling to the region for a cruise holiday, mostly from the USA (87,000), and the Unite d Kingdom (21,000). Globally there are 109 new cruise ships set to be delivered between 2018 - 2027. www.worldwidecruisecentres.com.au 5