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Australian Cruising One Decimal Point From Being A Three Billion Dollar Industry

September 27, 2013 Cruise No Comments Email Email

Cruising in Australia – the world’s fastest growing cruise market – is just one decimal point from becoming a three billion dollar industry.

Ann Sherry, CEO of Carnival Australia which operates or represents most of the cruise ships that sail to or from Australia, said the cruise industry’s long value chain had been vital in achieving a new milestone for direct and indirect economic activity.

Total economic activity generated by both domestic and international cruise operations confirmed cruising as an economic powerhouse that generated $2.9 billion** in economic opportunity in 2012-2013 – 18 per cent more than the $2.4 billion recorded in 2011-2012. HH250x250-2

Ms Sherry said numerous sectors benefited from cruising including agriculture, hotel accommodation, restaurants, tourist attractions tour operators, taxi owners and transport operators.

At any one time, as many as 70 local suppliers could be involved in replenishing cruise ships with fresh food, beverages and other goods.

Tourism Accommodation Australia (TAA) said cruising has a flow-on effect across the economy with pre and post cruise passengers accounting for an average two to three nights in hotels in Sydney involving average spend of nearly $600 on accommodation, food and drink.

TAA NSW director Carol Giuseppi said: “Cruise ship business is vital for increasing investor confidence in the Sydney hotel market. It generates millions into the Sydney visitor economy, particularly sustaining hotel performance during the quieter trading months of December and January.”

Glandore Estate owner and chief wine maker, Duane Roy, whose winery in the NSW Hunter Valley supplies P&O Cruises’ ships, said: “Our relationship with P&O Cruises has been one of the foundation blocks that have helped us to continue to grow Glandore Estate over the last four years.

“Secure and mutually beneficial partnerships such as these provide the stability that allows us to continue to invest for the future with some degree of certainty, and our continuing relationship with the cruise industry has been particularly important over a time when the wine industry has not seen the highs of previous years.”

Ann Sherry said such a stunning increase in cruise-generated economic activity helped explain why businesses and regional ports wanted to be part of the fastest growing sector of Australian tourism.

“The latest evidence of cruising’s growing economic contributions has come as the industry prepares for another record cruise season with 34 vessels, most of them Carnival Australia ships, operating in Australian waters from the start of October to the end of April,” Ms Sherry said.

“These ships will make nearly 600 calls at Australian ports during the summer cruise season, around 30 more than for the 2012-2013 season.”
Ms Sherry said the new figures on cruising’s economic contribution showed New South Wales remained the biggest beneficiary again putting the spotlight on Sydney’s port infrastructure challenges as well as the city’s importance as the cruise gateway to Australia and regional ports.

“The certainty of long-term shared access at Garden Island is vital if cruising is to continue to grow and generate the widespread ripple effect of commercial opportunities for hotel accommodation, restaurants, transport and tour operators,” Ms Sherry said.

“It was encouraging to see support for the Garden Island solution across the political spectrum during the recent federal election. However, we are also pleased that the idea of moving naval assets from Garden Island is no longer on the table.

“We value our positive relationship with the Royal Australian Navy. The thought co-existing with real estate developers was not an exciting prospect, which would have also placed the existence of the Garden Island graving dock in jeopardy.

“The graving dock is a national asset and the only drydock in Australia that can accommodate large cruise ships.”

** The new data is included in Cruise Down Under’s Economic Impact Assessment of the Cruise Shipping Industry in Australia.

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