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Outrage over 88% hike in New Zealand cruise passenger processing fees

Cruise Lines International Association Australasia warned a proposed steep increase in border processing fees for New Zealand cruisers threatens serious harm at a time when the country is already suffering the impact of reduced cruise ship deployment.

Helen Hutcheon, Australasia correspondent

July 18, 2024

1 Min Read
CRUISE Joel Katz
CLIA Australasia MD Joel Katz warned the proposed increase threatens to cause serious harm to New Zealand’s cruise industryPHOTO: CLIA AUSTRALASIA

The increase would take effect December 1.

A CLIA Australasia statement said New Zealand is one of the most expensive countries in the world for cruise operations, which negatively impacts the deployment of cruise ships in the region.

Double-digit decline even before the hike

The New Zealand Cruise Association calculates New Zealand faces a 22% reduction in cruise visitors during the 2024/25 season, even before the proposed fee increase. 

CEO Jacqui Lloyd said early estimates suggest the fee increase would cost cruise lines visiting New Zealand an additional unbudgeted NZ$2m for the 2024/25 season.

Razor-thin margins

‘Cruise lines meticulously plan and budget their operations two to three seasons ahead, leaving no room to pass unexpected cost increases to passengers who have already booked and paid for their trips,’ Lloyd said.

‘These financial burdens will fall squarely on the cruise lines, threatening to devastate an industry already operating on razor-thin margins.’

CLIA’s statement said the cruise industry is advocating for a more constructive process in New Zealand, where the economic potential of cruise tourism is supported by a whole-of-government approach to fees and regulation, with a cohesive national cruise tourism strategy.

Submissions to government

CLIA Australasia and the New Zealand Cruise Association will make submissions to the New Zealand Customs Service and New Zealand Government as part of their consultation process.

About the Author

Helen Hutcheon

Australasia correspondent

Helen Hutcheon did her cadetship on a shipping magazine and worked in P&O’s Sydney office for seven years as a public relations journalist.

For 19 years she was deputy editor of Travel Week, which was Australia’s leading trade newspaper that covered major local and international industry events.

In 2008 the late legendary Rama Rebbapragada presented her with an award from Royal Caribbean Cruises Ltd ‘in recognition of her outstanding contribution to the cruising industry.’

In 2010 she won the Neil Frazer Award for ‘outstanding contribution to the cruise industry,’ elevating her to CLIA Australasia’s hall of fame.

She has been the Australasia correspondent for Seatrade Cruise Review since 1997 and for Seatrade Insider (now Seatrade Cruise News) since its launch in 2000.

 

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