Dire warning to New Zealand over ‘crippling’ cruise visitor fees

This comes hot on the heels of the New Zealand Cruise Association’s annual conference in Auckland this month where the ‘crippling’ costs for cruise ship visits were a major topic.

MD Joel Katz said the New Zealand Customs Service proposal for a multimillion-dollar increase in border processing fees would worsen a costs crisis that is already harming New Zealand businesses and local communities.

Costs ‘prohibitive’

He said this is despite warnings from cruise lines that existing costs had become prohibitive.

‘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 said.

‘Cruise Lines have been forced to reduce their deployment in New Zealand which is now one of the most expensive destinations in the world for cruise operations,’ he said.

‘Even before this Customs increase, New Zealand communities are facing estimated losses of at least NZ$157m in reduced tourism over the 2024-25 season.’

Huge investment

Katz said New Zealand is one of the most desirable cruise destinations in the world and cruise lines have invested heavily over many years to develop international cruise operations in local waters.

He said this is now threatened by a succession of exorbitant cost increases by ports and government agencies.

Whole-of-government strategy

He said CLIA and its cruise line members have called on the New Zealand government to intervene in the planned Customs fee increase and adopt a whole-of-government strategy to foster a well-managed cruise tourism economy.