Auckland looks to cruisy summer as ships pour in

By SIMON HENDERY tourism writer

New Zealand's growing popularity as a cruise ship destination will pump an extra $60 million into the Auckland economy this summer.

A report on the economic impact of the cruise industry says ship operators, crew and their 48,000 passengers are expected to spend $171 million in New Zealand this year.

The spending will generate $613 million in economic activity, adding $108 million to the country's gross domestic product and supporting the equivalent of 3000 fulltime jobs.

The McDermott Fairgray report was commissioned by Cruise New Zealand, a joint tourism and shipping industry marketing group responsible for promoting New Zealand as a cruise ship destination.

It says 64 cruises - mostly on four- and five-star ships - are booked to pass through New Zealand this summer.

Last year, 32,000 passengers visited the country on 51 cruises.

Almost two-thirds ($121 million) of total cruise ship spending will be in Auckland - up from $61 million last summer.

More than 1900 fulltime jobs in the region will be supported by the industry.

Tourism Auckland chief executive Graeme Osborne said the number of days ships were in port in the city was expected to grow from 48 to 58.

"This has enormous impact on the Auckland economy as a whole, with accommodation, transport, attractions, retail and restaurants all reaping the benefit," Mr Osborne said.

Cruise New Zealand chairman Craig Harris said the report showed that Auckland had become as important a South Pacific hub port as Sydney.

If the current rate of growth continued, the Auckland region would have to address capacity issues at both the Princes Wharf passenger terminal and Auckland Airport, Mr Harris said.

Auckland soaked up 61 per cent of the industry's direct spending last summer, with most overseas passengers who were joining or leaving a cruise flying into or out of Auckland and the majority of ship servicing and supply restocking occurring in the city.

Ship visits to the Bay of Islands, Wellington and Port Chalmers (Dunedin) accounted for 7 per cent of the spending each, while Tauranga and Lyttelton made up 6 per cent each.

Regions outside Auckland needed to ensure they maximised the opportunities presented by growth in cruise ship visits, Mr Harris said.

"We need to make sure that if we are attracting this number of high-spending visitors to New Zealand regions, there are the appropriate activities for them with the infrastructure to support it."

Tourism New Zealand chief executive George Hickton said the cruise industry had other longer-term economic spin-offs because about 40 per cent of ship tourists returned to New Zealand as independent travellers.

"That means that there are longer-term benefits from cruise ship visitors than just their initial visit.

"It also means we have got to work hard to create a quality experience for these visitors so they do want to come back and, of course, bring friends and family."