Cruise lines have urged the New Zealand Government to reconsider a proposed 136% increase in cruise visitor fees, warning it could exacerbate the decline in cruise tourism across the country.
Cruise Lines International Association (CLIA) raised concerns over New Zealand Customs' plan for a substantial rise in border processing fees, stating it would further impact an industry already facing escalating costs and regulatory hurdles.
According to Joel Katz, Managing Director of CLIA Australasia, "while cruise tourism is at record levels internationally, New Zealand destinations face a 22% fall in cruise visitors during the upcoming summer season, largely due to high costs and regulatory complexities."
Katz explained that several cruise lines had scaled back operations in New Zealand, now considered one of the most expensive cruise destinations worldwide. He noted that, even before the Customs fee hike, local communities were projected to lose NZ$157 million in tourism revenue during the 2024-2025 season.
The proposal by New Zealand Customs Service could add millions to the cost of cruise operations, further straining an already challenging environment. Despite long-standing investment by cruise lines in the New Zealand market, Katz warned that the planned increases threaten the future of an industry valued at NZ$500+ million annually to coastal communities.
In response, CLIA and its members have called for government intervention to halt the fee increase and support a comprehensive strategy for sustainable cruise tourism. CLIA also welcomed the recent National Cruise Strategy introduced by the New Zealand Cruise Association (NZCA), which seeks to boost economic and social benefits through closer collaboration among stakeholders, including government, ports, and tourism operators.