The value of cruise tourism in Australia has surged to a record high, generating A$8.43 billion for the national economy during 2023-24 while supporting more than 26,000 jobs around the country.
An economic impact assessment jointly commissioned by Cruise Lines International Association (CLIA) and the Australian Cruise Association (ACA) shows a thriving cruise economy in Australia, driven by significant increases in passenger spending and cruise line outlays.
Released today, the annual assessment shows A$8.43 billion in total economic output generated by cruise tourism in Australia during the 2023-24 financial year, a 49.7% increase over the previous year and the highest level ever recorded. It shows cruise tourism supported a total employment of 26,370 full time equivalent positions around Australia (up 44.7% from the previous year), with total wages of A$2.83 billion paid to Australian workers (up 55.8%).
CLIA Managing Director in Australasia Joel Katz said cruise tourism had been booming as travellers embraced holidays at sea, but he warned future prosperity was being hampered by high costs and regulatory complexities in Australia.
“Cruise tourism is thriving and passengers have been spending more when they step on shore, creating a record benefit for communities around the Australian coast,” Mr Katz said. “The number of Australians who benefit from cruise tourism is huge, from the travel agents who manage the passengers’ bookings through to the farmers who provide the local produce served on board.”
“The value to the local economy is enormous, but the deployment of ships to this region is at risk of decline while Australia remains one of the world’s most expensive destinations for cruise lines,” Mr Katz said. “Rising fees and charges have combined with a complex regulatory environment, which reduces Australia’s competitiveness.”
ACA Chief Executive Officer Jill Abel said cruise ships had visited 49 ports and destinations around Australia during 2023-24, bringing increases in visitor spending to every coastal state and territory.
“Cruise ships made 1,650 visits to communities around the Australian coast in 2023-34, an increase of 5.1% on the year before,” Ms Abel said. “Together these destinations recorded almost 4.3 million passenger visit days over the financial year, an increase of 26.9%.”
“The result is an enormous windfall for businesses like tourism operators, hotels and restaurants, retailers, transport providers and port operators,” she said. “In addition, passengers often return to destinations they initially discovered on a cruise, which creates added benefits for communities in the longer term.”
The Value of Cruise Tourism economic impact assessment for Australia was prepared by AEC Group on behalf of CLIA and the ACA. Its key findings for 2023-24 show:
- A total economic output of A$8.43 billion nationally (up 49.7% over 2022-23), including direct output of A$3.38 billion and indirect/induced output of A$5.05 billion.
- Total employment of 26,370 full time equivalent positions nationally (up 44.7%), with total wages of A$2.83 billion (up 55.8%).
- A total of 49 Australian ports and destinations visited, welcoming 1,650 ship visits (up 5.1%).
- A total of 4.26 million passenger visit days (up 26.9%).
- A significant increase in turnaround passengers, the highest-spending visitors. Turnaround passenger visit days totalled 3.00 million (up 35.0%). Transit passenger visit days totalled 1.25 million (up 11.1%).
- Total direct passenger expenditure of A$1.94 billion (up 29.6%) and direct crew expenditure of A$60.4 million (up 16.0%).
- An average passenger spend per day on shore of A$455 per person (up 2.0%).
- Average crew spend per day on shore A$138 per person (up 0.7%).
- The largest beneficiary of direct passenger expenditure was the hotel and accommodation sector which received A$593.1 million, or 30.6% of passenger spending. Other beneficiaries included food & beverage (A$392.2 million, 20.2%), shore excursions (A$224.9 million, 11.6%), transport (A$285.7 million, 14.7%), retail shopping (A$211.8 million, 10.9%) and entertainment (A$75.4 million, 3.9%).
- Direct cruise line expenditure of A$1.59 billion (up 35.9%), including A$350.7 million paid to ports and governments (up 54.5%).
- New South Wales recorded the biggest benefit from cruising with a total economic impact of A$4.41 billion (up 60.4%), which supported 13,714 full time equivalent jobs.
- Queensland is the country’s second-largest cruise economy, with a total economic output of A$2.41 billion (up 43.1%), which supported 7,733 full time equivalent jobs.
- Victoria recorded a total economic impact of A$636.9 million (up 67.8%), which supported 1,893 full time equivalent jobs, followed by Western Australia (A$384.9 million, up 15.4%, and 1,211 jobs), South Australia (A$227.1 million, up 5.4%, and 738 jobs), Tasmania (A$176.0 million, up 22.1%, and 542 jobs) and the Northern Territory (A$181.4 million, up 42.5%, and 527 jobs).
