As the Australian cruise season unfolds, recent data from the 2024-25 summer season reveals a mixed economic impact, with the Australian Cruise Association (ACA) reporting a total economic output of $7.32 billion. This figure, while substantial, marks a decline in returns for the industry, which also supports 22,720 jobs nationwide.
According to the ACA, cruise-goers’ spending extends beyond the cruise itself, significantly benefiting hotels and accommodation providers, which account for one-third of all passenger expenditures. Transportation services capture nearly 12% of spending, indicating that pre- and post-cruise accommodations are becoming more costly than the cruises themselves.
State-by-State Economic Impact
New South Wales (NSW) emerged as the primary beneficiary of the cruise industry, followed by Queensland. Despite Queensland hosting more ship visit days, Victoria experienced a sharp decline in cruise-related economic output, down by 33.3%. Other states also saw declines, with NSW and Queensland down by 10.7% and 15.7%, respectively. The Northern Territory, however, bucked the trend with an increase in cruise activity.
The overall economic output dropped by 13.2% compared to the previous year, which had been the industry’s best on record. This decline is attributed to a reduction in the number of cruise ships visiting Australia—68 compared to 75 in the previous season—and shorter port stays. Additionally, cabin capacity decreased by 8,174 passengers.
Spending Patterns and Economic Contributions
Despite these challenges, cruise ships visited more Australian ports than ever before, with 56 ports welcoming ships. Cruise passengers spend an average of $440 per day while onshore, encompassing flights, accommodations, dining, entertainment, shopping, and tours. Spending is higher in turnaround or home ports at $504 and peaks at $650 for international passengers.
The crew contributes to the economy as well, with an average daily spend of $134 per person.
The expenditure breakdown for cruise lines in Australia reveals that 39.9% goes towards fuel and operating expenses, 22% on administration and marketing, 22.1% on port and government fees, and 12.8% on food and drink purchases.
Trends in Cruise Destinations and Demographics
During the 2024-25 cruise season, a significant majority of Australian cruisers (81.5%) chose to explore within Australia, New Zealand, and the South Pacific, reflecting a slight increase. Notably, over 10% of passengers cruised solely within Australia, suggesting a preference for shorter, more affordable trips amid economic tightening.
The demographic profile of Australian cruisers is shifting, with 32% now aged under 40, and the average age standing at 48.4. This younger demographic indicates a growing interest in cruising among working-age Australians.
Challenges and Future Outlook
Despite Australians’ continued enthusiasm for cruising, the ACA highlights several challenges, including rising operating costs, planning uncertainties, regulatory hurdles, and competition from more profitable cruise destinations. These factors contribute to fewer ships sailing to Australia, signaling potentially turbulent waters ahead for the industry.
As the cruise sector navigates these challenges, stakeholders are closely monitoring trends and adapting strategies to sustain growth and capitalize on emerging opportunities within the Australian market.
