Otago-Southland’s coffers were boosted by $156million from cruise tourism last financial year — the second-highest figure of the 21 ports and destinations visited in New Zealand.
Two industry bodies — Cruise Lines International Association and the New Zealand Cruise Association — commissioned the economic impact assessment to provide the first comprehensive picture of the country’s cruise economy.
The findings, released yesterday, showed direct spending by passengers, crew and cruise lines reached $637million nationally with an indirect benefit of $729.2million.
Auckland received the biggest piece of the pie, $604.7million injected into the region and 4184 jobs supported, while Otago was a more distant second.
Port Otago general manager customer Craig Usher said people did not necessarily realise the extent of the impact on the region from cruise ships visiting.
Instead, they often heard the “small minority” commenting on “any specific topic”, including cruises, and saying that the industry was bad, or that cruise visitors did not spend money.
Talk to small retailers in the city, who relied on foot traffic, and there was a different view.
They also brought a vibrancy to the city.
Some recent cruise visitors headed to Queenstown before returning to Dunedin to play golf and then setting sail from Port Chalmers, he said.
New Zealand Cruise Association chief executive Jacqui Lloyd said the industry was being hampered by rising costs and regulations.
“While cruise tourism is thriving in the rest of the world, New Zealand is going backwards and local communities are facing a 20% reduction in visitor numbers over the coming season,” she said.
“New Zealand has become one of the world’s most expensive destinations for cruise operations, and this is already costing Kiwi businesses millions of dollars as ships head elsewhere.”
The retail industry received the highest direct passenger spend — about 28% — receiving $123.5million, followed by the hospitality industry drinking in about a-quarter of the spend or $109.6million.
Cruise lines spent $317.6million, including $146.2million in port and government fees, and $113.9million in fuel and other operating costs.
Mr Usher agreed New Zealand was getting “very, very expensive” and, with the drop in vessels this coming season, spending was expected to drop accordingly.
He expected to see similar numbers over the next three to four years and he hoped it would then get back to where it was previously.
Competition was not necessarily just with Australia but vessels being deployed back to the United States or Japan.
Ms Lloyd said cruise tourism supported businesses ranging from tour operators and restaurants to the producers feeding into the extensive supply chain.
“A cruise passenger spends an average $283 every day on shore in New Zealand, but that’s only one piece of the picture.”
“We also benefit from the spending of crew members and the spending of cruise lines to support their operations and provision their ships.”
— Additional reporting RNZ
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