Travel Bulletin

Infrastruc­ture bitescruis­egrowth

- Joel Katz, Managing Director, CLIA Australasi­a

Growth in the Australian cruising sector ground to a screeching halt in 2018, with passenger numbers overall up less than 1% to 1.345 million, according to the Cruise Lines Internatio­nal Associatio­n 2018 Australian Ocean Source Market Report which was released last month. While still a record in terms of overall numbers, the figure indicated the impact of cruise infrastruc­ture constraint­s, particular­ly in Sydney, which have clearly had a key influence on deployment decisions by the major cruise lines.

The long haul fly-cruise market out of Australia showed growth of 3.4% to 315,000 passengers, but that wasn’t nearly enough to offset flat capacity growth for domestic cruising, which only expanded by 0.1% for the year, making the net growth figure just 0.9% – following a decade of strong year-on-year industry expansion.

And the bad news isn’t over for domestic cruising, with CLIA

expanding cruise market across Australia. NSW remained the largest source of cruise passengers, accounting for just over half of all cruisers, but its share declined slightly as other states and territorie­s contribute­d more to the total. Queensland grew to 22% of ocean cruise passengers, followed by Victoria with 13%, 5% for Western Australia, 4% for South Australia, while Tasmania, the ACT and Northern Territory comprised about 3% of passenger numbers. The average age of Australian cruisers was 49 last year, but there was a strong correlatio­n between age and length of cruise, with passengers on longer cruises to Northern Europe, Alaska and expedition destinatio­ns more likely to be in their 60s. The report analysed average cruise length, which reduced slightly from 9.1 days last year to 8.8 days in 2017. That most likely reflected an increasing number of short break itinerarie­s in local waters. Cruises of 8-13 days remained the most popular, accounting for almost 40% of the market.

Despite the relative softness of 2018, CLIA Australasi­a Managing Director, Joel Katz was upbeat about the future. “Cruising continues to be exceptiona­lly popular among Australian travellers after many years of growth and world-leading market penetratio­n. A lack of berthing capacity in Sydney has hampered cruise lines’ efforts to expand their operations in local waters, but the increasing number of Australian­s flying to ports overseas shows the market is still strong and holds great potential for the future,” he said.

Katz noted that cruise lines had already announced significan­t new vessel deployment­s in this region from the 2020-21 season, with smaller, older ships to be replaced with newer, larger options. He highlighte­d the “urgent infrastruc­ture priority” of Sydney capacity for the cruise sector in Australasi­a, adding that the industry looked forward to further announceme­nts on the NSW Government’s Cruise Developmen­t Plan.

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