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Home / Business / Companies / Freight and logistics

Cruising Kiwis: Recovery of $540m industry threatened by rising costs

Grant Bradley
By Grant Bradley
Deputy Editor - Business·NZ Herald·
25 Apr, 2024 05:00 PM4 mins to read

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Behind the wheel on the Norwegian Prima cruise ship speedway. Cruise holidays are exceeding pre-Covid levels around the world. Video / Grant Bradley

The number of New Zealanders taking cruise holidays has surged to more than 80 per cent of pre-pandemic levels but the recovery of the industry in this region is threatened by soaring costs.

New data released today by Cruise Lines International Association (CLIA) show that 86,300 New Zealanders took an ocean cruise during 2023, the first full year of cruise operations in this region.

The result is down on the 106,300 New Zealanders who sailed in 2019, but in line with the cruise recovery seen in other parts of the world.

“New Zealand was among the last countries to reopen to cruising, but New Zealanders began heading back to sea in significant numbers once ships returned,” said CLIA managing director in Australasia Joel Katz.

And by the final quarter of 2023, the number of New Zealanders cruising had pushed ahead of the same quarter of 2019, suggesting demand is on track for recovery.

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CLIA’s 2023 Source Market Report for New Zealand shows a clear preference for close-to-home itineraries during 2023, with 77 per cent of Kiwis cruising in Australia, New Zealand and the Pacific.

Just over a quarter (25.1 per cent) chose itineraries within New Zealand.

Katz said the recovery was threatened by rising port and regulatory costs being imposed in what was already a “challenging” region for the industry.

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The number of port visits could drop by up to 25 per cent in some places, according to published scheduling data.

During the season just ended there were about 1100 port visits involving about 350,000 passengers. Although new figures were still being calculated, based on pre-pandemic data, the economic contribution was estimated at $540 million.

“New Zealand is moving backwards in terms of deployment, and that is driven by high port costs and the the regulatory complexity of operating in the region,“ Katz said.

“It is putting continued growth under pressure. While we know the demand is recovering well, we are concerned that the supply is contracting.“

New Zealand is a highly sought-after cruise destination and Kiwis have shown a passion for cruising in their own back yard, but it is important that the right settings are in place to ensure New Zealand is internationally competitive.

“Collaboration among government, ports and destinations is vital, along with balanced regulation and reasonable costs to fostering a thriving cruise economy in New Zealand.”

New Zealand Cruise Association chief executive Jacqui Lloyd said none of the cruise lines appeared to be leaving this country but some were doing fewer port calls or they were using smaller ships.

She said cruise companies could understand price rises from ports or agencies in line with inflation but questioned increases above that, especially when they were imposed at just six months’ notice. Booking cycles for cruises could be up to two years, meaning the companies had to absorb costs not budgeted for.

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Katz said cruise holidays were perceived as good value as the cost of others had soared following the pandemic. Passengers liked the certainty of knowing how much their holiday would cost.

New data was being worked on to calculate the value.


Passenger profile

The association figures also show a fall in the average age of New Zealand passengers. The average age of a New Zealand cruiser was 49.3 years in 2023, down from 52.4 years in 2019.

· The average duration of an ocean cruise taken by New Zealanders in 2023 was 9.2 days, slightly down from 9.6 days in 2019, reflecting an increase in short itineraries offered by cruise lines.

· The most popular cruise destination for New Zealanders in 2023 was the Pacific (39.1 per cent), followed by New Zealand (25.1 per cent), Australia (12.8 per cent), the Western Mediterranean (3.6 per cent), Alaska (3.1 per cent), Asia (2.9 per cent), and the Caribbean (2.3 per cent).

· The number of New Zealanders cruising within New Zealand was up 5.5 per cent from 2019 to 66,400.

· Worldwide, a record 31.7 million people took an ocean cruise during 2023, breaking the previous global record of 29.7 million in 2019.

Port calls in NZ

2023/24 schedule

55 vessels

205 voyages

1102 booked port calls - 58 cancellations (mainly for weather) = 1044

Preliminary 24/25 schedule

52 vessels

178 voyages

905 port calls

(Some more are expected to come)

Grant Bradley has been working at the Herald since 1993. He is the Business Herald’s deputy editor and covers aviation and tourism

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