Value of Australia’s Cruise Industry Soars Past $5 Billion
A record number of ships making a
record number of visits to ports around
Australia has seen the value of the
cruise industry surge past $5 billion for
the first time, but sluggish growth for
New South Wales spells crunch time
for the nation’s gateway port, Sydney.
A new report has revealed that the
Australian cruise industry’s national
economic output surged by 15.4 per
cent in 2016-17 to reach $5.3 billion, up
from $4.6 billion in 2015-16.
Commissioned by Cruise Lines
International Association (CLIA)
Australasia, the independent report
revealed that cruise line expenditure
exceeded $1.5 billion, up 12 per cent
on the previous financial year, while
direct passenger expenditure rose
19.8 per cent to almost $1.2 billion. The
indirect and induced contribution of
cruise tourism made up the rest of the
figure with the industry’s suppliers and
their employees contributing a further
$2.6 billion, up 15 per cent on 2015-16.
With a record 58 cruise ships sailing
local waters in 2016-17, and more than
half offering local itineraries, there was
a 19 per cent increase in cruise ship
visit days to 1401 in total. Ship visit days
for homeported vessels increased by
14.5 per cent while transit ship visit days
jumped 23 per cent.
Highlighting the value of homeported
ships, the report found that passengers
spent on average $527 a day in a port
before or after their cruise, compared
to $153 during a transit day, adding up
to a total of $976 million, or 85 per cent
of total passenger expenditure.
While just about every area of the
report showed positive signs, the
international cruise industry has warned
that infrastructure constraints in Sydney
threatens further growth of the industry,
resulting in economic benefits not being
fully realised for Australia.
According to the report, New South
Wales remains the dominant cruise
state, accounting for 58 per cent of
the industry’s economic contribution,
but its 6 per cent growth last financial
year means its share has dropped 10
per cent in just two years due to Sydney
reaching capacity. NSW’s sluggish
growth had positive flow on effects for
other states with Queensland up 14
per cent to now represent a fifth (21
per cent) of the national economic
contribution or more than $1.1 billion,
and Victoria experiencing a 12 per cent
increase to take a 7 per cent share of
the national contribution.
Meanwhile increased ship deployments
to Western Australia and Tasmania
in 2016-17, saw both these states
experience substantial growth. A 104
per cent increase to Western Australia’s
coffers brought the State’s share of the
national contribution in line with that of
Victoria at 7 per cent, while Tasmania
grew 138 per cent in total output
growth to up its share to almost 3 per
cent as Hobart and Port Arthur saw a
spike in ship visit days.
Releasing the “Cruise Tourism’s
Contribution to the Australian Economy
2016-17” report in Sydney, CLIA
Australasia Chairman Steve Odell
said the findings provided compelling
evidence of the value of the cruise
industry and how crucial its continued
growth was to the economy.
Managing Director of CLIA Australasia,
Joel Katz, said “The latest Australian
Cruise Industry Economic Impact
Analysis reveals an industry with strong
growth potential that generates
significant national and regional
economic activity. CLIA’s economic
report not only quantifies our economic
output and contribution, it also
provides a vital insight into what’s
driving the growth in our economic
value from creating thousands of jobs
to the economic benefits that flow to
businesses and communities far beyond
our ships and ports,”
“The industry is now contributing
more than $5 billion to Australia’s
economy but it could be much more.
With the nation’s cruise gateway at
crisis point, the challenge is to ensure
strong economic growth for years to
come and the only way to make that
happen is to find a solution to Sydney’s
capacity constraints. Australia is one
of the world’s most appealing cruise
destinations for global cruise lines but
Sydney is a big drawcard and if Sydney
is full, this discourages more cruise ships
from heading to our shores.”
He acknowledged the support of the
Australian Cruise Association (ACA) in
the gathering of data and the delivery
of a single economic impact report.
The report also found:
• A 15 per cent increase in full time
equivalent jobs, meaning the
cruise industry now employs 21,000
Australians each year, directly and
indirectly
• Combined passenger and crew visit
days increased by 21 per cent to 3.4
million days
• The industry carried around 200,000
international inbound cruise
passengers – the equivalent of
France and Italy’s inbound visitor
numbers to Australia combined.
• Domestic cruise passengers spent
$758 million in Australian port cities,
with international passengers
spending $392 million
• Accommodation, transport, food
and beverage, and shore excursions,
accounted for 79 per cent of total
passenger onshore expenditures,
more than $900 million
• Crew spent $39.5 million at Australian
cruise ports with an average
expenditure of $95 per crew visit
ashore.
• Operating expenses accounted for
91 per cent of cruise line expenditure
with port charges, food and
beverages, fuel, and travel agent
commissions accounting for most (63
per cent) costs
• The economic contribution of
cruise tourism was concentrated
in four states, NSW, Queensland,
Victoria and Western Australia,
which accounted for 94 per cent of
economic output
• New South Wales contributed $3.1
billion to the national economic
contribution, followed by Queensland
with $1.1 billion and Victoria and
Western Australia both benefited
from a contribution of $387 million
each
The report was released at a function at
Sydney’s Pier One and also celebrated
the 21st anniversary of the Association.
Photo – Toasting the association's 21st
anniversary – Steve Odell, Sarina Bratton
and Joel Katz
www.worldwidecruisecentres.com.au
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