Opinion: Here’s how the Australian cruise industry can regain the crown as the regions leading hub

• The Australian cruise industry season is about to kick off a new season with fewer ships and capacity.
• Yet we remain the world’s fourth-largest market for cruise holidays.
• The UK Government has just launched a whole-of-government plan to expand cruising.
• We need to do the same.

The Australian cruise industry is in trouble. While demand is soaring, over the past two seasons, many cruise ships that once called Australia and New Zealand home for our cruise season have been redeployed to Asia, the Caribbean and the U.S.

The changes put our capacity in terms of how many passengers we can carry at home down around 30%.

The recent withdrawal of Disney Cruise Line – revealed by Cruise Passenger – is not an isolated event but a symptom of a deeper malaise. Unless urgent action is taken, more lines will follow, and our region will slip further down the list of global cruise priorities.

“Sydney is now one of the most expensive cruise ports in the world – costing twice as much as New York.”

The problems are clear. Sydney’s soaring port fees run into the hundreds of thousands of dollars per day, New Zealand’s once heavy-handed environmental regulations have worried cruise bosses, and global lines are increasingly chasing higher yields in the Caribbean and Asia.

NZ And the UK Are Acting – Why Not Australia?

In New Zealand, the alarm has already sounded. Tourism Minister Matt Doocey convened a cruise industry summit earlier this year to tackle the crisis head-on. His message was simple: if New Zealand doesn’t change course, the economic damage will be devastating.

Australia, however, has yet to show the same urgency. While state governments, port authorities and operators wrestle with local challenges, what’s missing is a federal, whole-of-government strategy that recognises cruise as a national priority.

And a sense of urgency. When Cruise Passenger asked Senator the Hon Don Farrell, Minister for Trade and Tourism about the actions in New Zealand and UK, there was no reply.

The UK shows the way

If Canberra needs inspiration, it should look to London.

In January 2025, the UK Government released its UK Cruise Growth Plan – a joint blueprint developed with the cruise industry and the UK Chamber of Shipping. The plan demonstrates what can be achieved when government takes cruise seriously.

Key pillars of the British plan include:

• Infrastructure and Investment – reforms to streamline port planning, encourage new berths, and promote maritime innovation.
• Border and Immigration Modernisation – a shift to digital systems to ease passenger and crew flows.
• Tourism and Marketing – embedding cruise into VisitBritain’s global campaigns, ensuring coastal destinations are promoted to international travellers.
• Skills and Jobs – funding half the cost of officer cadet training, expanding maritime and hospitality career pathways, and ensuring future workforce readiness.
• Environmental Leadership – integrating cruise into the UK’s broader Maritime Decarbonisation Strategy.
• Community Benefits – direct engagement with coastal communities to share the economic rewards of cruise tourism.

Crucially, the UK framework commits to an ongoing dialogue with the industry.

“The UK plan proves what’s possible when government recognises cruise as a strategic industry – not a side note.”

Australia Should Follow Suit

The stakes for Australia are enormous. Every lost ship means lost revenue for hotels, restaurants, tour operators, and small coastal communities that rely on cruise visitors. Industry estimates already suggest Australia is on track to lose up to 35% of its cruise capacity this year.

Without a national framework:

• Cruise lines will continue to be deterred by high port costs and red tape.
• Australia will remain absent from key international tourism campaigns.
• Regional communities will miss out on the chance to benefit from cruise tourism.

The lesson from Britain is simple: if you want cruise ships, you have to fight for them.

What an Australian Cruise Growth Plan Could Deliver

To restore confidence and capacity, Canberra must lead with a bold, coordinated strategy. Here’s what that should look like:

1. A Federal Taskforce – bringing together Infrastructure, Tourism, Immigration, Environment and Treasury, alongside CLIA Australasia, state governments, and port authorities.
2. Port Reform – tackling Sydney’s excessive costs, incentivising regional ports, and fast-tracking berth expansions.
3. Smarter Borders – introducing digital systems for cruise passengers and crew while maintaining strong biosecurity.
4. Tourism Integration – ensuring Tourism Australia promotes cruise itineraries as part of its international marketing, especially in Asia and North America.
5. Skills & Training – funding maritime and hospitality training programs tied to cruise, creating jobs for Australians.
6. Environmental Alignment – working with New Zealand to harmonise cruise regulations and encourage innovation in cleaner fuels and technologies.
7. Community Partnerships – guaranteeing local input and shared economic benefits in the towns and cities cruise ships visit.

The Cost of Doing Nothing

If Australia does not act, the consequences are clear. More ships will bypass our shores. More towns will lose visitors. More Australians will lose jobs.

We risk cementing Australia and New Zealand as secondary markets, visited only when convenient, rather than must-have destinations, while ports like Singapore win a stronger cruise presence and get the benefits of a booming fly cruise marmet.

With the right action, we can turn the tide. A national strategy would send a clear signal to global cruise lines: Australia is open for business, committed to growth, and serious about cruise tourism.

A Final Call to Action

Cruise is worth fighting for. It is not just about ships in Sydney Harbour – it’s about sustaining jobs, supporting regional economies, and ensuring Australia remains on the global tourism map.

Behind the scenes, Joel Katz, MD of Cruise Lines International Association Australasia, has been working to bring state governments together. His success in Western Australia, which recently announced new port investment and the homeporting of a Princess ship, is a testament to that.

He told us: “The most successful cruise destinations are those that have a comprehensive strategy to guide their development and maximise the social and economic benefits of cruise tourism.

“CLIA has long advocated for a collaborative approach to support a long-term vision – one that brings together destinations, communities, industry and governments at all levels. This has been the focus of CLIA and our cruise lines around the world, and it’s the approach we take here in Australia and New Zealand.”

The UK has shown the way. It’s time for Canberra to step up, listen to industry, and deliver a whole-of-government Cruise Growth Plan.

Because if we don’t act now, the ships – and the billions they bring with them – could simply sail away.