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Home / Business / Companies / Tourism

Cruise industry wants more investment

Owen Hembry
By Owen Hembry
Online Business Editor·
21 Jan, 2007 04:00 PM3 mins to read

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Cruise industry wants more investment

Cruise industry wants more investment

KEY POINTS:

A lack of investment in the growing cruise-line sector could put at risk a business that pumps more than $100 million into the economy every year, an industry body says.

According to the marketing organisation Cruise New Zealand, the number of people seeing the country from a deck
has more than trebled in the last decade from 19,400 in 1997 to an estimated 62,800 this season.

This year the cruise line sector is expected to contribute $129 million to the economy and sustain more than 2130 full-time workers.

However, Cruise New Zealand chairman Craig Harris said the sector was guilty of not improving the infrastructure and resources needed to cope with the increase in visitors.

This week the Sapphire Princess will dock in Auckland carrying about 3800 passengers and crew - the equivalent of 11 jumbo jets.

However, facilities to cater for such a large number of visitors are not adequate, Harris said.

The tourists could easily be caught out by bad weather. "That doesn't happen in any airports in the world.

"You don't stand with your bags ... on a tarmac of an airport in the rain."

The problem was that although the ports were the linchpin, the main economic benefit was felt outside the gate, he said.

Auckland benefited more from the cruise industry last year than any other region, with $65.5 million.

"One of the main issues is ensuring that the ports and the regions work together for a regional benefit," Harris said.

But Wayne Mills, Ports of Auckland general manager for port services, said the doubling of cruise line business in the last three years was testament to the port's success at servicing its customers.

Forty-six cruise ship dockings were planned this year, and a record 66 booked for next year, and improvements to facilities were on the way.

"This financial year we're looking to spend around $750,000 on upgrading our cruise facilities and we'll be obviously reviewing our expenditure for next year as well based on the growth," Mills said.

"Essentially we are working for the benefit of the city of Auckland and we see that as quite an important role."

The port had an air-conditioned passenger terminal and was beating cruise line requests to board 1000 passengers an hour.

"The fact that you might have five jumbo jets embarking and five jumbo jets disembarking, it's huge peaks in volume flow and even the airport would have difficulty dealing with that."

Harris said the global cruise industry was expected to grow to more than 17 million passengers by 2010 - a rise of 70 per cent on 2000 - and as far as the cruise lines were concerned you were either a cruise-friendly country or you were not.

Passenger numbers were expected to increase by about 24 per cent next season. Other issues facing the local industry included tight air capacity and the availability of trained coach tour operators, Harris said.

New Zealand had an excellent reputation as a safe destination with diverse activities, where ships called at five or six ports compared with just one or two in other countries.

HOLIDAYS AFLOAT
2006-2007 forecast


* $129m economic contribution.

* 79 cruises arriving nationwide.

* 62,800 passengers.

* 287,230 passenger days in port.

* 2130 full-time workers employed.

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