Cruise industry outpaces the Rugby World Cup in economic boost to New Zealand

Published on November 1, 2024

By: Paramita Sarkar

For the first time, the substantial economic impact of New Zealand’s cruise tourism sector has been revealed, showing a windfall of NZ$1.37 billion during the 2023-24 financial year, according to a new report jointly commissioned by Cruise Lines International Association (CLIA) and the New Zealand Cruise Association (NZCA).

The study offers a comprehensive look at the industry’s contributions, from direct expenditures by passengers, crew, and cruise lines to the ripple effects across local economies and employment.

Key findings from the AEC Group report include a NZ$637.8 million direct injection from cruise-related spending and an additional NZ$729.2 million from indirect and induced economic activities.

In total, cruise tourism supported nearly 9,729 jobs across New Zealand and provided NZ$425.9 million in wages for Kiwi workers.

“Cruise tourism provides immense economic value, benefitting not only our major cities but regional ports and destinations as well,” said Joel Katz, CLIA Managing Director in Australasia.

This latest analysis, he noted, goes beyond past studies by including both direct and wider economic impacts.

NZCA CEO Jacqui Lloyd highlighted the NZ$439.5 million in passenger spending distributed nationwide, noting that each passenger spends an average of NZ$283 onshore daily, alongside spending from crew members and operational investments by cruise lines.

“This sector supports a vast range of Kiwi businesses, from tour operators and hotels to local food producers and maritime services,” said Lloyd.

Despite its positive impact, the cruise industry faces challenges in New Zealand due to rising costs and regulatory hurdles.

Lloyd warned of a projected 20% drop in visitor numbers in the coming season, with New Zealand’s high operational costs driving ships to other destinations.

Report Highlights for 2023-24:

Economic Output: Total of NZ$1.37 billion, including NZ$637.8 million in direct spending and NZ$729.2 million in indirect/induced output.

Employment: 9,729 jobs across New Zealand, generating NZ$425.9 million in wages.

Port Visits: 21 New Zealand destinations hosted 1,011 ship visits, with 1.55 million passenger days recorded.

Passenger Spending: NZ$439.5 million, averaging NZ$283 per person daily.

Crew Spending: Direct expenditure of NZ$23.5 million, averaging NZ$73.9 per day per crew member.

Among the biggest beneficiaries of direct passenger spending were the retail sector (NZ$123.5 million), food and beverage services (NZ$109.6 million), and shore excursions (NZ$76.7 million).

Regional Economic Impact:

North Island: NZ$981.9 million in economic output, supporting 6,886 jobs.

South Island: NZ$385 million, supporting 2,843 jobs.

Top regions included Auckland (NZ$604.7 million, 4,184 jobs), Otago (NZ$156 million, 1,155 jobs), and Canterbury (NZ$135.2 million, 990 jobs).

This landmark assessment offers new insights into the crucial role of cruise tourism in supporting New Zealand’s economy and its diverse regional businesses.

However, with regulatory challenges posing risks to future growth, industry leaders are urging policymakers to address cost concerns to maintain New Zealand’s appeal as a leading cruise destination.