The Value of Cruise Tourism
PURPOSE OF THE STUDY
This report, commissioned by Cruise Lines International Association (CLIA) Australasia in partnership with the New Zealand Cruise Association (NZCA), provides a comprehensive economic impact assessment of cruise tourism in New Zealand for the 2023-24 season. The findings highlight the critical role cruise tourism plays in New Zealand’s economy, not only in generating substantial revenue but also in creating employment opportunities and supporting diverse regional communities.
ECONOMIC IMPACT OF CRUISE TOURISM
In 2023-24, cruise tourism generated a total economic output of NZ$1.37 billion across New Zealand. This figure reflects direct expenditure from passengers, crew, and cruise lines, alongside the ripple effects of indirect and induced spending. Total direct expenditure reached NZ$637.8 million, while indirect and induced impacts added an additional NZ$729.2 million to the economy.
Key figures include:
• Total output: NZ$1.37 billion
• Direct Expenditure: NZ$637.8 million
• Direct wages: NZ$198.5 million
• Indirect and induced wages: NZ$227.5 million
• Employment: 9,729 jobs (4,553 direct and 5,176 indirect/induced)
• Value added: NZ$681 million
Table E.1 New Zealand economic impacts of cruise tourism, 2023-24
| Impact | Value |
|---|---|
| Output ($M) | |
| Direct | $637.8 |
| Indirect & Induced | $729.2 |
| Total | $1,367.0 |
| Wages Income ($M) | |
| Direct | $198.5 |
| Indirect & Induced | $227.5 |
| Total | $425.9 |
| Employment (PE) | |
| Direct | 4,553 |
| Indirect & Induced | 5,176 |
| Total | 9,729 |
| Value Added ($M) | |
| Direct | $318.9 |
| Indirect & Induced | $362.0 |
| Total | $680.9 |
Notes: Direct output or more accurately cruise tourism output is estimated by removing taxes and subsidies and imports (e.g. fuel) from cruise tourism expenditure. Direct impacts represent the economic activity of the cruise sector. Indirect and induced impacts are the expenditure generated by the spending of the direct cruise tourism output by businesses (indirect) and their employees (induced). Source: AEC
The economic benefits of cruise tourism are far-reaching, with 21 ports and destinations across New Zealand benefiting from over 1,000 cruise ship visits. This dispersed visitation ensures that regional economies, from Auckland to Fiordland, receive substantial economic injections through visitor spending and cruise line operations.
JOB CREATION AND WAGE CONTRIBUTIONS
One of the most significant findings of the report is the support of nearly 10,000 jobs throughout New Zealand. These jobs are spread across direct and indirect employment in a variety of industries such as tourism, hospitality, retail, transport, and port services. Total wages paid to New Zealand workers from cruise tourism amounted to NZ$425.9 million.
Cruise tourism is a vital employment engine, especially in regional areas where cruise ships often serve as a crucial source of revenue for local businesses. This employment spans a wide array of sectors, creating opportunities for both skilled and unskilled workers, and contributing to the livelihood of thousands of New Zealanders.
REGIONAL ECONOMIC IMPACT
Cruise tourism’s impact extends well beyond the major urban centres, delivering benefits to communities throughout the North and South Islands. The North Island, with its strong concentration of ports, recorded an economic output of NZ$981.9 million, supporting over 6,800 jobs. Meanwhile, the South Island, renowned for its natural beauty and popular cruise destinations such as Fiordland and Dunedin, saw an economic impact of NZ$385 million, supporting 2,843 jobs.
Notable regions benefiting from cruise tourism include:
• Auckland, the gateway for many international visitors, saw NZ$604.7 million in economic output and supported 4,184 jobs.
• Otago (Dunedin) recorded NZ$156 million in output, with 1,155 jobs supported.
• Canterbury (Christchurch, Akaroa) experienced NZ$135.1 million in output, supporting 995 jobs.
Cruise tourism also supports smaller regions of New Zealand such as:
• Hawke’s Bay with NZ$89.6 million in output, supporting 657 jobs.
• Marlborough recording NZ$60.6 million in output, with 452 jobs supported
These figures highlight the importance of cruise tourism in spreading economic benefits to a wide range of communities, contributing to local economies through visitor spending and the use of regional services.
KEY CRUISE TOURISM STATISTICS
The 2023-24 cruise tourism season saw 1,011 visits to 21 ports/destinations by 54 different cruise ships. Of these 76 visits were turnaround, or exchange, visits which represented 195,014 passenger days in port. Almost 1.36 million passenger days were spent in transit ports/destinations.
Passenger and crew expenditures were derived by combining past expenditure estimates by StatsNZ (2020) and Market Economics Limited (2014) and indexed by the consumers price index (CPI) (StatsNZ, 2024) to 2023-24 values.
Cruise line expenditure was sourced via survey from local CLIA members and extrapolated to the entire population of cruise lines and their operations in New Zealand.
Cruise tourism statistics for the 2023-24 season are summarised below.
| Statistic | Level |
|---|---|
| New Zealand ports/destinations visited | 21 |
| Visiting Cruise Ship Characteristics | |
| Number | 54 |
| Pax Capacity | 72,989 |
| Crew Capacity | 34,414 |
| Cruise Ship Visits | |
| Turnaround Port | 76 |
| Transit Port | 935 |
| Total | 1,011 |
| Cruise Ship Visit Days | |
| Turnaround Port | 80 |
| Transit Port | 944 |
| Total | 1,024 |
| Passenger & Crew Visit Days at Port | |
| Turnaround Pax | 195,014 |
| Transit Pax | 1,358,866 |
| Total Pax Visit Days | 1,553,880 |
| Crew | 318,438 |
| Total | 1,872,318 |
| Direct Expenditure ($M) | |
| Turnaround Pax | $137.1 |
| Transit Pax | $302.4 |
| Total Pax | $439.5 |
| Crew | $23.5 |
| Cruise Lines | $317.6 |
| Total | $780.6 |
| Source: AEC | |
A CAUTIONARY OUTLOOK
While the 2023-24 season shows robust economic benefits, there are significant challenges ahead that threaten the sustainability of these numbers in future seasons. Rising operational costs, increasing port fees, and regulatory uncertainty have led to a reduction in scheduled cruise deployments to New Zealand, with some cruise lines opting to deploy ships elsewhere. This shift could result in a 20% decline in visitor numbers in the coming season, impacting local communities and businesses reliant on cruise tourism.
New Zealand is increasingly viewed as one of the more expensive cruise destinations globally, which presents a growing challenge for maintaining competitiveness in the international market. Without addressing these issues, the impressive economic contribution of cruise tourism may be at risk in the near future.
CONCLUSION
This report clearly demonstrates the significant value of cruise tourism to New Zealand’s economy. With a total contribution of NZ$1.37 billion, it is evident that the cruise industry is a key pillar of New Zealand’s tourism sector. By supporting nearly 10,000 jobs and generating hundreds of millions of dollars in wages, cruise tourism offers vital economic benefits, not only to major cities but also to regional communities across the country.
However, sustaining these benefits will require action to address the rising costs and regulatory complexities currently impacting the cruise industry. By fostering a more supportive and competitive environment, New Zealand can continue to grow its cruise sector and safeguard the economic opportunities it creates for the nation.
METHODOLOGY
This economic impact assessment of cruise tourism was independently conducted by AEC Group Pty Ltd, a consultancy with over 30 years of experience in economic analysis for government and private sectors and who has undertaken the economic impact of cruise tourism every year since 2004-05 in Australia. The methodology involved collecting direct expenditure data from cruise lines which encompasses spending onshore, port charges, and operational expenses and deriving passenger and crew onshore expenditure estimates from previous studies by Market Economics Limited and StatsNZ. These direct expenditure figures are then analysed using economic multipliers, derived from the StatsNZ national input output tables, to estimate the total economic impact, including indirect and induced effects. This globally recognised approach provides reliable, evidence-based insights into the economic contributions of cruise tourism, supporting informed decision-making across the sector. The full report is made available to members, government and key stakeholders.