"Each season seems to get bigger and bigger and bigger. There will be some changes with the Panama Canal opening up its third channel, so that will allow some bigger ships."
While the majority of the current passengers were from Australia, the United States and the United Kingdom, Mr Arrowsmith said the changes to the Panama Canal would change the demographic.
"What we will see is a more Asian influence opening up in the next few years," he said. "We'll be getting bigger ships carrying more people."
Mr Arrowsmith said the larger ships would be able to carry upward of 4500 passengers, compared with the current 2500 person capacity.
"We're very capable of taking on the volume. It's a good solid base of business for the region. It gives us a good solid base for investment.
"Cruise has grown 900 per cent in the last 10 years."
Mount Mainstreet manager Peter Melgren said an increase in visitor numbers was good for the region, although work needed to be done to make sure local businesses could capitalise on the influx.
"It's an opportunity that we need to be a little bit more reactive and prepared for. As a community, we need to collaborate and work a little bit more cohesively to give them reasons to spend here," he said.
"It's an odd thing but a lot of people overlook the richness of our heritage here and go to Rotorua. Some of the stories we've got here are absolutely unique and have never been told. These are things that we've got to offer."
Work was under way on strategies and ventures to encourage cruise ship passengers to spend their time in the Western Bay, rather than going further afield, he said.
This year, Voyager of the Seas will also be returning, fresh from a multi-million-dollar refurbishment that will see it with new features, including the first Flowrider surf simulator to visit the country.
New Zealand's largest superliner, Voyager of the Seas is also undergoing a bow to stern revitalisation that will see her fitted with a 3D cinema.
Nichola Edgecombe, manager at Tauranga Cruiseabout, said Royal Caribbean was innovative and aimed to attract a younger group.
"You've got your different cruise lines that attract your different markets. Royal Caribbean is there for families, because they have a lot of activities to do on board."