Australian Cruise Industry Experiences Significant Economic Downturn
The Australian cruise industry reported a decline in economic output during the 2024-25 summer season, according to the Australian Cruise Association (ACA). The industry generated $7.32 billion in total economic output and supported 22,720 jobs, figures that encompass all spending by cruise-goers.
Overall economic output decreased by 13.2% compared to the previous year, which had been a record high.
Economic Performance Overview
This reduction is primarily attributed to a decrease in the number of cruise ship visits, with 68 ships recorded compared to 75 in the prior season, as well as shorter port stays. Total cabin capacity was also down by 8174 passengers.
While New South Wales benefited most from cruising economically, followed by Queensland, nearly all states experienced a decline in cruise output. The Northern Territory was the sole exception.
- Victoria recorded the most significant decrease, down 33.3%.
- New South Wales declined by 10.7%.
- Queensland saw a 15.7% reduction.
Spending Habits: Passengers and Cruise Lines
Passenger Spending Insights
Most Australians (81.5% of those who cruise) opted for domestic, New Zealand, or South Pacific itineraries.
Onshore, cruise passengers' spending patterns were notable:
- Hotels and other accommodation accounted for one-third of all passenger spending.
- Transportation followed at nearly 12%.
Passengers spent an average of $440 per day while on shore. This figure increased to $504 in turnaround or home ports and $650 for international passengers. Cruise crew members also contributed to the economy with an average daily spend of $134 per person.
Cruise Line Expenditure
Cruise lines' expenditure in Australia reflects significant operational costs:
- 39.9% on fuel and operating costs
- 22% on administration and marketing
- 22.1% on port and government fees
- 12.8% on food and beverage purchases
Navigating Challenges and Changing Demographics
The average age of Australian cruisers is 48.4, with 32% of passengers now under 40, indicating a sustained appetite for cruising among Australians across different age groups.
Despite this demand, the ACA indicated that fewer ships are visiting due to rising operating costs, planning uncertainties, regulatory hurdles, and competition from other cruise destinations.