$1 Billion crisis: Why Australia can’t afford to lose its cruise industry

There’s no holiday like a cruise. From waking up every day in a new location to the thill of being aboard a massive ship, most travellers become hooked.

But it’s not just about holidaymakers. Cruising in Australia is actually really important to the economy. Like multibillion-dollar important.

In 2024–25, cruise tourism generated $7.32 billion for the country. Cruises generate more than $1.1 billion in wages a year, and those cruisers spend more than $1.8 billion in Australia.

On top of that, cruise lines splash out more than $1.5 billion annually with Australian suppliers and service providers.

Think about it. All those delicious dishes you eat, the wine you drink, all comes from somewhere.

And while most cruise lines are American-owned, when they’re in Australia, they’re loading up with local produce.

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And, if things go wrong, they may need experts to help out, like Aussie engineers.

Then there are all those passengers who get off at ports, and spend money at local shops, hotels, and on tours and transport.

There’s also travel agents who make a living from booking people’s holidays, as well as other businesses.

In total, experts say cruising supports 22,000 jobs.

And while cruising bounced back after the COVID shut down, alarm bells are being sounded again.

Multiple cruise lines have pulled out like Disney Cruise Line and Virgin Voyages.

Others, like Cunard, have stopped home porting, which means a ship is based in a certain city for the season.

That’s despite more Aussies cruising than ever before.

Some of the highest port fees in the world are partly to blame. There’s also a lot of red tape surrounding cruising in Australia, which makes it hard for cruise lines to plan ahead.

It is also out of the way for cruise ships to get to. Cruise firms have to make a special effort to come here, and sailing away from the moneymaking voyages in the Mediterranean and Caribbean.

Carnival Cruise Lines is now the only one here with ships all year round.

More Aussie passengers are also opting to fly cruise elsewhere too.

Now, businesses which depend on cruising are calling for action. They say a billion dollars has been lost from the industry.

They’ve got together to launch what they’re calling the Paddock to Port Alliance.

Australia’s cruise boss, Joel Katz, Executive Director of the Cruise Lines International Association said officials need to do something to stop more money draining away.

“Cruise lines have been warning that Australia is becoming uncompetitive as a destination and risks losing cruise tourism to other countries, due to regulatory uncertainties and rising costs,” he said.

“Every cruise that comes to Australia creates activity before, during and after the voyage, from the food loaded on board, to the hotels passengers stay in, the tours they book, the transport they use and the local businesses they support.”

“We are asking for stable, practical and competitive settings so Australia can continue to attract cruise ships, passengers and investment.”

Cruise ships visited 56 Australian ports and destinations during 2024-25, from cities like Sydney to small towns like Eden in NSW.

He has told nine.com.au before how much of a knock-on effect cruising has, right down to his farmers and truckies who grow and transport the produce.

Steve Biviano, who runs a company called Select Fresh Providores loads up many shops with all the goodies.

Get rid of that and the whole chain will collapse, meaning real job losses.

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“It is real orders, real produce, real staff and real planning,” he said.

As Michael Guerin, CEO of the National Farmers’ Federation put it: “Cruise may start at the port, but the economic activity reaches back to paddocks, processing facilities, transport networks and regional businesses.”

Now, while cruising is a decisive holiday, if any other industry had lost a billion dollars, there would probably be an outcry.

So I hope the plea is heard by those who can do something, before it’s too late and more cruise lines turn their back on Australia.

Nine has contacted the Department of Infrastructure, Transport, Regional Development, Communication, sports and the Arts which governs the industry for comment.