Australian cruise tourism is booming, with its economic contribution soaring to a record A$8.43 billion for the 2023-24 financial year, representing nearly a 50 per cent jump from the previous year.
This surge, outlined in a recent report by Cruise Lines International Association (CLIA) and the Australian Cruise Association (ACA), highlights the growing significance of the cruise sector for the national economy, supporting over 26,000 jobs and significantly boosting local tourism and trade.
This year’s findings reflect a remarkable return to growth for Australia’s cruise industry, driven by increased passenger spending and greater investment from cruise lines. As CLIA Australasia Managing Director Joel Katz explains, “Cruise tourism is thriving, and passengers have been spending more when they step on shore, creating a record benefit for communities around the Australian coast.”
The report further shows the breadth of the economic benefits, extending to travel agencies, accommodation providers, and even local farms supplying fresh produce for onboard dining. Yet, Katz warns that rising costs and regulatory complexities threaten future growth.
“While the economic impact is enormous, Australia remains one of the world’s most expensive destinations for cruise lines,” Katz noted.
“Rising fees and charges have combined with a complex regulatory environment, which reduces Australia’s competitiveness.” He stresses the need to address these challenges to maintain the current momentum and ensure long-term growth in the region.
Cruise tourism’s economic impact spans the entire Australian coastline, with cruise ships making 1,650 visits to 49 ports and destinations across the country. These visits brought 4.3 million passenger visit days, a nearly 27 per cent increase from the prior year, helping to generate A$8.43 billion in total economic output.
ACA Chief Executive Officer Jill Abel commented on the widespread benefits, stating, “The result is an enormous windfall for businesses like tourism operators, hotels, and restaurants. Passengers often return to destinations they initially discovered on a cruise, creating long-term advantages for communities.”
Financial benefits to destinations
This year’s report also highlights significant increases in key spending categories. Passenger expenditures totaled A$1.94 billion, up 29.6 per cent, with the highest spending directed towards accommodation (A$593.1 million), followed by food and beverage, shore excursions, and transport. Crew members contributed as well, spending A$60.4 million directly in local communities.
Turnaround passengers—those who begin and end their cruise journey in Australia—were some of the highest-spending visitors. Their spending drove a 35 per cent increase in turnaround passenger visit days to 3 million, compared with 1.25 million transit passenger days, up 11.1 per cent. The report also highlighted that average daily onshore spending per passenger rose to A$455, while crew members spent an average of A$138 per day, both marking increases from last year.
State-by-state data further demonstrates the economic reach of cruise tourism. New South Wales emerged as the biggest beneficiary, recording a total economic impact of A$4.41 billion and supporting over 13,700 full-time jobs. Queensland followed with A$2.41 billion in economic output, generating nearly 7,800 jobs. Other states, including Victoria, Western Australia, and South Australia, also saw substantial benefits, with Victoria’s cruise economy alone increasing by nearly 68 per cent to A$636.9 million.
The report notes that cruise lines themselves play a crucial role in supporting local economies, with direct expenditures of A$1.59 billion, up 35.9 per cent from last year. This spending includes A$350.7 million paid to ports and governments, up by more than 54%. Such investments are essential for maintaining port infrastructure, ensuring high service standards, and supporting local supply chains.
Abel emphasized the importance of these numbers, adding, “The growing number of ship visits and passenger days bring substantial benefits to communities.”
This increased visitation translates to more support for local businesses, retailers, and port operators. As cruising becomes increasingly popular, passengers are likely to return to destinations they discovered on a cruise, providing even greater long-term benefits.
As Australia’s cruise tourism reaches record levels, the industry faces both opportunities and challenges. While the economic benefits are evident, keeping the sector competitive on a global scale is vital. Without measures to reduce operational costs and simplify regulations, Australia risks deterring future growth in the cruise sector.
With these record-breaking results, the 2023-24 economic impact assessment underscores the importance of continued support and investment for this valuable sector, which has established itself as a cornerstone of Australia’s tourism industry.
