Five things Albo’s government can do to encourage cruise tourism

• The Labor Party won the election, scoring a resounding majority.
• Cruise industry figures are hoping this will lead to more streamlined passing of legislation and decision-making, which could benefit the industry.
• Below are how the newly formed government can stabilise and grow the industry.

Senior figures in the cruise industry will be watching the announcement of new Australian Federal ministers on Tuesday with particular interest. The impact on cruise tourism could be enormous.

If Catherine King is back as Minister for Infrastructure, Transport, Regional Development and Local Government, there will be considerable relief.

Cruise leaders have been enjoying something of a surge in popularity of late. They have been welcomed at events like the Australian Tourism Exchange, presented at major conferences and found state governments in places like South Australia and Victoria ready to invest in infrastructure.

But there are two big issues that could make a big difference: the Coastal Trading Act, which governs shipping and grants licences to lines to sail into Australian ports. The industry wants longer exemptions as the regulations add to costs.

And new facilities in Sydney.

The cruise industry has been calling for better communication and cooperation between the industry and government bodies over recent years, and this process can now hopefully involve less red tape. 

Especially in terms of attracting ships to Australia, cruise is a game of certainty. Cruise lines need to make their bookings years in advance, meaning they’re attracted to regions that offer stability, and aren’t likely to suddenly inform cruise lines of new regulations, fees or infrastructure issues. 

The new government has many existing problems across the industry that it could quickly work to resolve, as well as many opportunities to grow the industry as a whole and reverse the trend that Australia is currently seeing, of fewer cruise ships on our shores. 

Cruising provides a huge economic benefit to Australia, bringing in more than $8 billion in the 2023/2024 season, and while analysis shows these numbers are in danger of dropping, some swift government action could see cruise expenditure on the rise in Australia, and looking more stable for the future. 

Here are five things the re-elected government can start working on:

A new port for Sydney

A third cruise terminal for Sydney has been an issue plaguing the industry for as long as many cruisers can remember. Sydney’s sparkling harbour has consistently high demand for cruise ships, but can only take one ship at a time. 

Executives of cruise lines such as Norwegian Cruise Line have pinpointed this lack of capacity as a key reason for not homeporting out of Sydney or expanding Australian operations. 

Furthermore, the use of White Bay as Sydney’s second cruise terminal means cruise lines aren’t bringing their best and biggest ships to our shores, as only ships that fit under the harbour bridge are maybe to make it to White Bay. 

We’ve been told there is progress towards making a decision, including the formation of a specialised committee, but given that the debate has been going on for more than a decade, you can’t blame people for being skeptical that the committee will produce a swift and tangible result.

So far, the most realistic option to be presented appears to be that of Port Kembla in Wollongong. Its local politicians are strongly behind the Port’s bid, and it’s even received some important industry support from Royal Caribbean executives, who have said they would move ships there if the port opened. 

Swift action on this issue would be a huge bonus for the Australian cruise industry. 

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Infrastructure for bigger ships

Australia has beautiful towns dotted along its coasts. However, the major cruise lines in Australia rarely visit Australian coastal towns, apart from Queensland itineraries, which are more consistent, cruise lines are paying less and less attention to Victoria, Tasmania, South Australia and Western Australia

While larger cities may not rely on cruise tourism for an economic boost, cruise ship visits can offer huge economic injections into coastal communities. However, often smaller towns don’t have the port infrastructure to host these larger ships.

A great example of this successfully being reversed has happened in Eden. The government was able to invest heavily into the infrastructure of the port, to allow for more modern facilities, as well as larger ships to visit. When the work was done, cruise lines instantly took notice, and lines such as Royal Caribbean and Disney Cruise Lines instantly rerouted several cruises to Eden, as well as scheduled future visits. 

If this could be replicated in more ports around the country, it’d be a win for cruise passengers, small towns, and the government. If the infrastructure is built, cruise lines will be happy to offer new destinations and itineraries, as well as save on fuelling costs and taxes by sailing more Australia-only itineraries. 

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Decreased regulatory costs and port fees

Australia and New Zealand have developed a reputation for costly port fees and high regulatory costs for cruise ships, which have been deterring cruise ships from wanting to grow and invest in the region.

For example, in Melbourne, rising port fees have been touted as a major factor in the decline of cruising out of the city. 

The reality is that the regions in which cruising is most successful, such as the Caribbean, generally have low regulatory costs and lower port fees than ports such as Sydney or Melbourne.

Australia is already at a disadvantage due to its remote location, as well as the long distances between key locations, such as between Australia and New Zealand. 

This means that adding on port fees and regulatory costs to what are already higher fuelling costs to get out to a remote region, seems to be pushing big cruise ships out of Australia and New Zealand.

Furthermore, cities around the world have been implementing new cruise taxes and other costs. This puts the industry in a position where they would readily embrace governments willing to work with them and reduce regulatory barriers in exchange the economic benefit that ships can bring.

If the government can work to reduce these fees, we would likely see not only more, bigger and better ships in Australia, but a wider range of itineraries and more visits to different ports, as well as maybe even lower cruise fares, as cruise lines wouldn’t have to penny pinch to run profitable operations in Australia.

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Renewal of the Coastal Trading Act exemption

The Coastal Trading Act is a key piece of legislation for the operation of cruise ships in Australia. 

It contains an exemption for cruise ships that are over 5000 gross tonnes and carrying at least 100 passengers, from needing a special license to carry passengers between Australian ports.

Essentially, without this exemption, cruise lines would be unable to operate in Australia without obtaining another type of license and following through on more costs and red tape. 

This act previously used to be renewed in ten-year instalments, offering cruise lines plenty of certainty in their planning. However, in recent years, the act has only been renewed for one or two years at a time. This makes it difficult for cruise lines to forward planning, knowing their license to operate in Australia could be potentially revoked.

The act is currently valid until December 31, 2026. This is a perfect example of the dangers of renewing it for such short periods, as cruise lines will already be scheduling their 2027 sailings in Australia. 

If the government were able to provide either a long and more certain renewal of the act, or a new legislative structure for ships to operate in Australia, this would provide more stability for the industry. 

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Get cruise back into north Western Australia

The northern towns in Western Australia, such as Broome and Geraldton, are seeing dramatic drops in cruise visitorship due to an unfortunately avoidable reason.

Previously, when cruise ships would sail down from Asia into Australia, they would often visit Broome as their first port of call. 

A special immigration process must occur when ships arrive in Australia, and previously when a ship was set to visit Broome as its first port, the Australia Border Force would send agents directly on to board the ship and perform the immigration processes. 

When the ABF’s funding was cut, this service was eliminated. Unfortunately the port of Broome doesn’t have the infrastructure or staff to service immigration processes without this assistance from the ABF. 

This means that cruise ships are instead skipping over the north of WA, leaving ports like Geraldton and Broome without many ships, and rather starting their itineraries at Perth.

This deprives both these coastal cities of money, and cruisers of the chance to visit some of WA’s best natural beauty. 

Whether it involves building up infrastructure in Broome to perform these immigration services, or returning to the old system, allowing ships sailing down from Asia to visit Broome as their first port of call once again, would be a great boost to WA and Aussie cruises.