A major review into NSW’s tourism strategy up to 2030 will acknowledge the contribution of cruising and reveal that the state’s Port Authority is closing in on a viable way to step up Sydney’s capacity.

While a report summary on the Visitor Economy Strategy 2030 Review failed to mention cruising, causing some concern in the cruise industry, Cruise Passenger has been assured the area of tourism that contributes over $5 billion annually in Australia and supports over 18,000 jobs is an important part of the review.

“The review released on Tuesday 8 October will inform the forthcoming NSW Visitor Economy Strategy 2035 which, led by Destination NSW, proposes to include the significant opportunity presented by cruise,” a Destination New South Wales statement to Cruise Passenger said.

“The long-term future of cruise in NSW is very bright and our existing cruising facilities still have capacity to accommodate growth for years to come.

“The Port Authority of NSW is exploring alternate locations for a third terminal to cater for the expected long-term growth of cruise in NSW and has been engaging closely with the cruise industry.

“The Port Authority is well underway with this work and once completed will report back to the NSW Government on viable options.”  

The state has set itself an ambitious $91 billion stretch target for tourism income in the next decade, and plans to prioritise tourism across the government. With a new Western Sydney airport and an emphasis on “experience tourism”, the state government believes it can reach the target, growing tens of thousands of jobs.

Infrastructure is a key element – and the mention of Sydney’s chronic capacity problems augers well for a solution to a thorny issue that has been running for years.

Successive governments have tried to oust the Royal Australian Navy from Garden Island, and the search has gone as far as Port Kembla for alternatives.

But lately, new problems have emerged for Australia’s burgeoning cruise industry – the Aussie Dollar’s dive, high port charges and over regulation have all contributed to a drop in cruise capacity as US cruise companies move their ships to where the money is: The Caribbean and the Med.

Next year sees the closure of P&O Australia, the 92-year-old brand that brought cruising to the masses and helped turn Australia into one of the world’s top countries for cruisers, with the number one market penetration at over five per cent and 1.2 million passengers.

What Tourism Minister John Graham and the review team, led by former Tourism Australia CEO Andrew McEvoy must face is a new era in which Australia needs to roll out the welcome mat to cruise ships which can support jobs in regional port towns and in some of the most remote parts of the state.

Our reports estimate next season could see capacity for local cruising, which brings the dollars back to Australia, reduced by as much as 30 per cent. And that is now driving a move by cruise lines to persuade Australia’s cruise enthusiasts to fly to Europe, Asia and America and spend their dollars there.

Tourism development at ports in particular can drive visitation from hundreds of high-spending foreign visitors to places like The Hunter Valley and beyond.

Lines like Royal Caribbean, considering investment in the first private island in the Pacificn to increase the variety of destinations in the region, are to be applauded.

But what will really make a difference, and what we hope to see from the review, is more “experiences” at smaller ports which will encourage overseas cruise passengers from Europe and America, who already consider Australia a highly aspirational destination, coming to sail our waters.

And we also need to see more continuity around the business of bringing an expensive vessel to ur waters. The short tenure of the Coastal Trading Act, which has profound consequences for the cruise industry and port charges much higher than those in any other ports including New York and Barcelona, also need to be addressed.

Today, Minister Graham will hold an event with Cruise Lines International Association president and CEO Kelly Craighead. The perfect opportunity to assure the industry in America that Australia intends to support the growth of cruise.

The event is titled: Cruising’s Global Impact – exploring the industry’s social and economic impacts in Sydney and globally.” It couldn’t be more perfectly timed.