The cruise industry in Australia faces numerous challenges, including high port fees and stringent regulatory constraints. 

Australia’s port fees are among the world’s highest, coming in at around three times the world average. While port fees are payable by you and me (cruise lines pass this charge on to customers) they impact overall consumer spending and Australia’s attractiveness to cruise lines as a cruise hub or destination.

In a short period of time, we’ve already seen the demise of the P&O Australia brand, a reduction in the number of Princess Cruises ships scheduled to call Australia home, a reduction in the number and size of Royal Caribbean ships scheduled to call Australia home, and the absence of consistent home-port seasons from cities outside of Sydney and Brisbane once Pacific Explorer leaves Australia in February, 2025.

Additionally, cruise operators are currently exempt from regulations imposed by the Coastal Trading (Revitalising Australian Shipping) Act 2012. This exemption allows cruise vessels exceeding 5000 gross tonnes, capable of at least 15 knots, and carrying at least 100 passengers, to operate freely between Australian ports.

This exemption is set to expire on 31 December 2024. If the exemption expires, cruise lines will need to apply for licences under the Act, adding significant regulatory and administrative burdens to the viable operation of the local cruise industry. Forward cruise line passenger capacity in Australia is projected to drop by 30% in the coming years.

A retraction in the local cruise industry will ultimately impact consumers, US, most. Cruise lines will just find somewhere else to go, as they have been, but it will be cruisers that pay the price. A smaller local cruise industry will mean fewer choices and higher costs. It already has had that impact, with those outside of Sydney and Brisbane effectively having no choice but to fly to cruise beyond February 2025.

The exemptions should urgently be extended for a minimum of 5 years to best provide cruise operators with a solid foundation from which to plan their forward deployments.

We also call on state governments to proactively work with the cruise industry to establish more realistic port fees, better suited to ensure the continued sustainability and growth of international cruise tourism. 

The cruise industry is vital to our economy, generating over $5 billion annually and supporting 18,000 jobs. The expiration of this exemption and continual increases in port and operating fees will further impact the economy, local cruise industry, competition, and ultimately, consumer pricing.

Prompt action is essential to support the cruise industry, protect jobs, and ensure affordable and competitive cruising options for Australians and those with an interest in cruising here.

NB:
Separately to this petition, I've lodged an e-petition with the Australian federal government for review. Specifically, the petition concerns legislation that may prevent cruise lines from easily and freely operating cruise itineraries between Australian cities. If it’s approved (we should know in a week or two) then the petition will be open for signatures and if we reach 50, it will be handed to Minister Catherine King for a response.