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Cruising worth close to A$5bn to the Australian economy

PHOTO: Helen Hutcheon
Announcing 2017/18 Economic Report - Joel Katz, left, with CLIA Australasia chairman Sture Myrmell, president of Carnival Australia
The cruise industry contributed A$4.8bn to the Australian economy last financial year, according to the 2017/18 Economic Report released to the industry this evening by Cruise Lines International Association Australasia, and md Joel Katz said there is potential for much more.

Commissioned by CLIA Australasia and the Australian Cruise Association, the new independent assessment by AEC Group revealed that 1,236 ship visits led to 3.5m passenger and crew visit days which raised A$2.3bn in direct economic output and A$2.5bn in indirect and induced output, as well as A$2.6bn in value added dollars.

More than 17,000 jobs

More than 17,000 full-time jobs were supported by the direct expenditure of cruise passengers, crew and cruise lines in Australia, while wages added A$1.4bn to the economy.

Cruise passengers embarking or disembarking spent nearly A$1.2bn in Australian port cities. Transit passengers spent A$171m in the ports they visited.

Domestic passengers spent A$934m in Australian port destinations, with international passengers spending A$257m.

Accommodation, transport, food and beverage and shore excursions accounted for almost 78% of total passenger onshore expenditures, valued at more than A$900m.

Retail shopping by passengers onshore accounted for 11.3% of total spend at A$134m.

Pre- and post-cruise spending

On average an international cruise passenger spent A$590 per day pre- or post-cruise and A$215 per day in transit ports. Domestic cruise passengers spent A$447 per day pre- or post-cruise and A$165 per day in transit ports.

Crew spent A$37m at Australian cruise ports with an average expenditure of A$101 per crew visit ashore.

Operating expenses accounted for 82% of cruise line expenditure with port charges, food and beverages, fuel and travel agent commissions accounting for 69% of these costs at A$710m.

Previously CLIA Australasia and ACA produced separate economic impact reports based on different methodologies. In line with a memorandum of understanding between the two organisations that was signed late last year, they have worked together with the AEC Group to redevelop the Australian Economic Impact Assessment report.

‘The new economic assessment found that the cruise industry continues to make significant contributions to Australia’s economy and will continue to have a positive economic benefit if the industry is able to achieve sustainable growth in the coming years,’ Katz said.