January 24, 2026 — 5:00am
The cruise industry in Australia has seen a significant shift in economic dynamics during the 2024-25 summer season. While the sector continues to contribute substantially to the economy, the returns are showing signs of decline. According to the Australian Cruise Association (ACA), the industry generated $7.32 billion in total economic output, supporting 22,720 jobs. This figure encompasses all expenditures by cruise-goers, extending beyond just the cost of cruises.
Hotels and accommodations emerged as the primary beneficiaries, absorbing a third of all passenger spending. Transportation accounted for nearly 12 percent. Interestingly, costs associated with hotels before and after cruises appear to surpass the expenses of the cruises themselves.
State-by-State Economic Impact
New South Wales reaped the most benefits from the cruise industry, followed closely by Queensland, which recorded more ship visit days. However, Victoria experienced a steep decline in cruise output, dropping by 33.3 percent. All states reported declines, with New South Wales down by 10.7 percent and Queensland by 15.7 percent. In contrast, the Northern Territory saw an increase in cruise-related economic activity.
The total economic output from cruising dropped by 13.2 percent compared to the previous year, which had been the best on record. The decline is attributed to fewer and smaller cruise ships visiting Australia—68 compared to 75 in the previous season—and shorter stays.
Passenger and Crew Spending Patterns
The ACA reports that cruise passengers spend an average of $440 per day while onshore, covering expenses such as flights, hotels, dining, entertainment, shopping, and tours. This rate increases to $504 in turnaround or home ports and peaks at $650 for international passengers. Crew members also contribute to the economy, spending an average of $134 per person per day.
“The vast majority of Australian cruisers, 81.5 percent, traveled within Australia, New Zealand, and the South Pacific during the 2024-25 season, a slight increase from previous years.”
The number of Australians cruising solely within the country rose above 10 percent, suggesting a trend towards shorter, more affordable cruises. Additionally, there is a notable demographic shift, with 32 percent of Australian cruisers now under the age of 40, bringing the average age to 48.4 years.
Industry Challenges and Future Outlook
The ACA attributes the reduction in ship visits to rising operating costs, planning uncertainties, regulatory challenges, and increased competition from other, more lucrative cruise destinations. These factors are causing some rough seas for the Australian cruise industry.
Despite these challenges, Australians continue to show a strong interest in cruising. However, the industry must navigate these obstacles to sustain its economic contributions and growth. As the season progresses, stakeholders will be closely monitoring these trends and strategizing to adapt to the evolving landscape.
Looking forward, the industry may need to explore innovative solutions and partnerships to enhance its appeal and competitiveness. The focus will likely be on improving infrastructure, streamlining regulations, and enhancing the overall passenger experience to attract more cruise lines and passengers to Australian shores.
As the cruise season continues, the industry remains hopeful for a rebound, driven by strategic adjustments and a renewed focus on delivering exceptional travel experiences.
