The campaign to halt NZ cruise passenger fee hike gathers speed

Cruise lines are launching a strong lobbying campaign to try to get the New Zealand government to back down over its cruise passenger fee hike by a staggering 88%.

The NZ cruise passenger fee hike has been condemned by the NZ Cruise Association, Cruise Lines International Association, cruise lines and travel industry officials, coming on top of a 22% decrease in cruise visits and the hull cleaning demands that ruined thousands of cruise holidays.

Those involved in putting the case for stopping the fees to the New Zealand government told Cruise Passenger on condition of anonymity that it was still a proposal and there was a chance of getting the fee hike overturned.

Asked what the likelihood of success was, our source shrugged and said: “It’s New Zealand!”

The Kiwi destination, with its beautiful fjords, is an essential part of the success of Australia’s cruise industry, which supports thousands of jobs and $5 billion of economic benefit.

Australia is already fighting a potential 30% decline in cruise capacity as America experiences a boom and cruise lines complain that Australia and New Zealand are among the most expensive regions in the world for shipping, with high port fees and regulation.

All of this as the industry experiences record demand.

NZ Cruise Passenger Fee Hike

NZ Cruise Association CEO Jacqui Lloyd said last week: “This proposal, slated to take effect on 1 December 2024, comes at a critical time for the cruise industry, which is already experiencing a 22% reduction in passenger numbers for the 2024-2025 season due to rising operational costs in New Zealand.”

The association maintains there has been no explanation regarding the increased costs.

And she maintained it was really all about a error in forecasting and NZ Customs trying to recoup its losses.

“Early estimates suggest this increase could cost cruise lines visiting New Zealand an additional unbudgeted $2 million for the 2024-2025 season,” she said.

Cruise Lines International Association (CLIA) Australasia maintains the move threatens to cause serious harm to the local tourism industry at a time when New Zealand is already suffering the impact of reduced cruise ship deployment.

CLIA has warned that New Zealand is one of the most expensive countries in the world for cruise operations, which negatively impacts the deployment of cruise ships to the region.

“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”.

Currently, the border processing fee per cruise ship passenger is NZ$11.48, and it is set to rise to $21.54 in December. There is also a per-passenger biosecurity levy of NZ$10.58.

Have your say on NZ Cruise Passenger Fee Hike

Here’s what the NZ Customs is saying…and where you can register your views:

Joint consultation on levies for travellers

The New Zealand Customs Service (Customs) and the Ministry for Primary Industries (MPI) are undertaking public consultation on proposed changes to Border Processing Levy charges which travellers pay to cross New Zealand’s border.

The levies will change on 1 December 2024.

What is being consulted on

Public consultation is on:

• proposed new levy rates for six border processing levies
• setting new caps for Customs’ four levies (that reflect the proposed new levy rates)
• deciding when the next levy period will finish.

Key changes proposed

For a traveller arriving and departing by air or by sea (but not on a cruise ship), the following are the changes in the proposed levies

For a traveller arriving and departing by cruise ship, the following are the changes in the proposed levies

Proposed levy rates to apply from 1 December 2024

MPI’s two levies will remain the same as the current rate:

• Arriving air travellers and sea travellers not arriving by cruise ship would pay $16.92.
• Arriving cruise ship travellers would pay $10.58.

Three of the four Customs’ levies would be lower than currently:

• Arriving air travellers and sea travellers not arriving by cruise ship would pay $$14.17.
• Departing air travellers and sea travellers not departing by cruise ship would pay $3.45.
• Departing cruise ship travellers would pay $2.31.

If you combine the two reductions, arriving and departing air travellers and sea travellers not departing by cruise ship see a reduction of $3.49.

One of the Customs’ levies would increase:

• Arriving cruise ship travellers would pay $21.54.

If you combine Customs’ proposed increased levy rate on arriving cruise ship travellers with the proposed reduction in the levy rate for departing cruise travellers, the net increase would be $7.82.

We also propose to reset the date for the next border processing levies review to the middle of the year, so the next change would occur on 1 July 2027 (rather than on 1 December).

What the levies are used for

All passengers arriving in New Zealand are assessed for risk before they arrive, whether they are travelling by air or sea. On arrival a range of methods are also used to further screen travellers, such as use of Customs and Biosecurity detector dogs, questioning by Customs or MPI officers, and x-ray and manual searches of baggage.

Border Processing Levy charges are required to recover the costs of these services.

Having your say

Consultation is open for public submissions until 9:00am on 9 August 2024:

By email to – [email protected]

By post to – Consultation: Recovering the costs of border processing services

                     New Zealand Customs Service

                     PO Box 2218

                     Wellington 6140