Cruising declines – especially in one state – as fewer ships visit

This cruise season in Australia is still underway but the numbers are out on our 2024-25 summer season. And while plenty of money is still sloshing around the cruise scene, its returns are dwindling.

The Australian Cruise Association (ACA) reports that the cruise industry in Australia generated $7.32 billion in total economic output and supported 22,720 jobs. That figure counts all spending by cruise-goers, not just spending on cruises.

Hotels and other accommodation were the biggest beneficiary, accounting for one-third of all passenger spending, with transportation just shy of 12 per cent. Hotels pre- and post-cruise, it seems, are costing much more than cruises themselves.

New South Wales benefited the most from cruising, followed by Queensland, although Queensland actually got more ship visit days.

Victoria wasn’t only a distant third but had a steep decline in cruise output, down 33.3 per cent. In fact, all states had a decline (NSW down 10.7 per cent, Queensland down 15.7 per cent), although the Northern Territory managed an increase.

The total economic output was down a hefty 13.2 per cent on the previous year, which was the best year on record.

Why? Well, because fewer (and smaller) cruise ships visited our fair shores – 68, compared with 75 the previous season – and some ships didn’t stay as long. Overall cabin capacity was down by 8174 passengers, compared with the previous season.

Last season there were 1700 port days, another decrease. On the plus side, ships visited more ports than ever before, with 56 Australian ports welcoming cruise ships.

The ACA says cruise passengers spend an average $440 a day while on shore, which includes everything from flights to hotels, restaurant dining, entertainment, shopping and tours. The rate is unsurprisingly higher ($504) in turnaround or home ports and higher still ($650) for international passengers.

The crew is also adding to our economy, with an average $134 spend a person a day.

If you want to know what cruise lines themselves spend money on in Australia, then 39.9 per cent of their expenditure goes on fuel and other operating expenses, 22 per cent on administration and marketing, 22.1 per cent on port and government fees, and 12.8 per cent on food and drink purchases.

The vast majority of Australian cruisers (81.5 per cent of them) cruised within Australia, New Zealand and the South Pacific during the 2024-25 cruise season. That percentage is up slightly.

The number of those who cruised wholly within Australia rose above 10 per cent, perhaps indicating that we’re tightening our belts and looking for shorter, cheaper cruises. More cruise passengers are still working, with 32 per cent of Australian cruisers now aged under 40. The average age is 48.4.

Australians clearly still have an appetite for cruising but fewer ships are sailing here, which the ACA puts down to rising operating costs, planning uncertainty, regulatory hurdles and competition from other (read: more profitable) cruise destinations. Rough seas ahead, perhaps.