September 4th 2024.
As the new season for cruising begins, cruise executives are urging for a more coordinated approach to boost the already prosperous $5.6 billion industry. A total of 62 ships are scheduled to make their way to Australia during the cruising summer season, which runs from October to March. While this number is slightly lower than last year's 70 ships, it is still a promising figure. However, there are some concerns as companies like Virgin Voyages have decided to withdraw from the region.
Joel Katz, the Managing Director of Cruise Lines International Association in Australasia, has expressed the need for action to be taken to ensure the industry's growth. Despite an expected increase of three percent in the number of port calls in Australia, there are still some challenges that need to be addressed. Discussions about a potential third cruise port in Sydney have not yielded any answers yet, and an increase in port taxes has caused some companies to avoid Melbourne. Additionally, the paperwork required for foreign ships to sail in Australia has only been extended until December 31, 2026.
This season also marks the farewell of budget cruise brand P&O Australia, which will now be integrated into its parent company, Carnival Cruises. According to Katz, the industry is urging the federal government to recognize the value that cruising brings to Australia. "While the numbers have been strong, we are seeing a flattening in future deployment announcements for our region," he told 9News. "We've always been an expensive operating region, but we're now seeing a significant increase in costs. There seems to be a lack of coordination among government agencies and ports when it comes to dealing with the cruise industry. This is resulting in various cost increases that are difficult for cruise lines to recover, especially when they are last minute."
Katz also highlighted the challenges of planning future deployments due to uncertainty about the conditions under which they will be able to operate. "Cruise lines plan their deployments well in advance, with itineraries already confirmed for 2026 and beyond. However, if they don't know the operating conditions, it becomes an unappealing option," he explained.
The weak Australian dollar is also having an impact on the industry. However, despite these challenges, Katz remains optimistic about the industry's contribution to the nation's economy. He believes that this year's figures will surpass previous records.
9News has reached out to the federal government for comment on the matter. In the meantime, viewers can catch all the action from the Paralympic Games Paris 2024 on Channel 9, 9Gem, and 9Now. With 4K streaming available on Stan Sport, fans can watch every moment, every medal of the games live, and ad-free.
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