Page 6 - 2017-october
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Value of Australia’s Cruise Industry Soars Past $5 Billion
       A record number of ships making a   growth had positive flow on effects for
       record number of visits to ports around   other states with Queensland up 14
       Australia has seen the value of the   per cent to now represent a fifth (21
       cruise industry surge past $5 billion for   per cent) of the national economic
       the first time, but sluggish growth for   contribution or more than $1.1 billion,
       New South Wales spells crunch time   and Victoria experiencing a 12 per cent
       for the nation’s gateway port, Sydney.   increase to take a 7 per cent share of
       A new report has revealed that the   the national contribution.
       Australian cruise industry’s national   Meanwhile increased ship deployments
       economic output surged by 15.4 per   to Western Australia and Tasmania   is full, this discourages more cruise ships
       cent in 2016-17 to reach $5.3 billion, up   in 2016-17, saw both these states   from heading to our shores.”
       from $4.6 billion in 2015-16.       experience substantial growth. A 104   He acknowledged the support of the
       Commissioned by Cruise Lines        per cent increase to Western Australia’s   Australian Cruise Association (ACA) in
       International Association (CLIA)    coffers brought the State’s share of the   the gathering of data and the delivery
       Australasia, the independent report   national contribution in line with that of   of a single economic impact report.
       revealed that cruise line expenditure   Victoria at 7 per cent, while Tasmania   The report also found:
       exceeded $1.5 billion, up 12 per cent   grew 138 per cent in total output
       on the previous financial year, while   growth to up its share to almost 3 per   •   A 15 per cent increase in full time
       direct passenger expenditure rose   cent as Hobart and Port Arthur saw a   equivalent jobs, meaning the
       19.8 per cent to almost $1.2 billion. The   spike in ship visit days.      cruise industry now employs 21,000
       indirect and induced contribution of   Releasing the “Cruise Tourism’s     Australians each year, directly and
       cruise tourism made up the rest of the   Contribution to the Australian Economy   indirectly
       figure with the industry’s suppliers and   2016-17” report in Sydney, CLIA   •   Combined passenger and crew visit
       their employees contributing a further   Australasia Chairman Steve Odell   days increased by 21 per cent to 3.4
       $2.6 billion, up 15 per cent on 2015-16.  said the findings provided compelling   million days
       With a record 58 cruise ships sailing   evidence of the value of the cruise   •   The industry carried around 200,000
       local waters in 2016-17, and more than   industry and how crucial its continued   international inbound cruise
       half offering local itineraries, there was   growth was to the economy.    passengers – the equivalent of
       a 19 per cent increase in cruise ship   Managing Director of CLIA Australasia,   France and Italy’s inbound visitor
       visit days to 1401 in total. Ship visit days   Joel Katz, said “The latest Australian   numbers to Australia combined.
       for homeported vessels increased by   Cruise Industry Economic Impact    •   Domestic cruise passengers spent
       14.5 per cent while transit ship visit days   Analysis reveals an industry with strong   $758 million in Australian port cities,
       jumped 23 per cent.                 growth potential that generates        with international passengers
       Highlighting the value of homeported   significant national and regional   spending $392 million
       ships, the report found that passengers   economic activity. CLIA’s economic   •   Accommodation, transport, food
       spent on average $527 a day in a port   report not only quantifies our economic   and beverage, and shore excursions,
       before or after their cruise, compared   output and contribution, it also   accounted for 79 per cent of total
       to $153 during a transit day, adding up   provides a vital insight into what’s   passenger onshore expenditures,
       to a total of $976 million, or 85 per cent   driving the growth in our economic   more than $900 million
       of total passenger expenditure.     value from creating thousands of jobs   •   Crew spent $39.5 million at Australian
       While just about every area of the   to the economic benefits that flow to   cruise ports with an average
       report showed positive signs, the   businesses and communities far beyond   expenditure of $95 per crew visit
       international cruise industry has warned   our ships and ports,”           ashore.
       that infrastructure constraints in Sydney   “The industry is now contributing   •   Operating expenses accounted for
       threatens further growth of the industry,   more than $5 billion to Australia’s   91 per cent of cruise line expenditure
       resulting in economic benefits not being   economy but it could be much more.   with port charges, food and
       fully realised for Australia.       With the nation’s cruise gateway at    beverages, fuel, and travel agent
       According to the report, New South   crisis point, the challenge is to ensure   commissions accounting for most (63
       Wales remains the dominant cruise   strong economic growth for years to    per cent) costs
       state, accounting for 58 per cent of   come and the only way to make that   •   The economic contribution of
       the industry’s economic contribution,   happen is to find a solution to Sydney’s   cruise tourism was concentrated
       but its 6 per cent growth last financial   capacity constraints. Australia is one   in four states, NSW, Queensland,
       year means its share has dropped 10   of the world’s most appealing cruise   Victoria and Western Australia,
       per cent in just two years due to Sydney   destinations for global cruise lines but   which accounted for 94 per cent of
       reaching capacity. NSW’s sluggish   Sydney is a big drawcard and if Sydney   economic output
                                                                                •   New South Wales contributed $3.1
                                                                                  billion to the national economic
                                                                                  contribution, followed by Queensland
                                                                                  with $1.1 billion and Victoria and
                                                                                  Western Australia both benefited
                                                                                  from a contribution of $387 million
                                                                                  each
                                                                                The report was released at a function at
                                                                                Sydney’s Pier One and also celebrated
                                                                                the 21st anniversary of the Association.
                                                                                Photo – Toasting the association's 21st
                                                                                anniversary – Steve Odell, Sarina Bratton
                                                                                and Joel Katz

      6    October 2017
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