Two cheers as cruise industry wins relief from big Aussie cost rises

A potentially huge cost increase to cruising in Australian waters has been averted after a concerted campaign from cruise operators.

But the threat of cost rises – which could well put off foreign cruise ship owners from sailing here or mean big price hikes for local cruises – still hangs over the industry.

The Australian government has extended industry’s The Coastal Trading Act exclusion until December 31, 2026, which will allow foreign-flagged cruise ships to call at Australian ports without a license, significantly reducing costs and regulations for cruise lines.

The act was previously extended for just 12 months, however, the Cruise Lines International Association advocated for a longer extension to give more certainty to the cruise industry.

This campaign also involved Business Sydney, which advocated for the importance of the exemption for the Australian Cruise Industry.

Furthermore the Shadow Minister for Trade and Tourism Kevin Hogan put out a press release, calling on the current government to extend the act.

Essentially, the extension of the act and its cruise ship exemption provides positive news for the region, which can now plan ahead with more certainty. However, stakeholders will still be hoping to see a longer extension of the act well before its current expiry, with the government set to review the act as a whole.

CLIA statement

CLIA wrote in a statement.

“Cruise Lines International Association (CLIA) welcomes the Australian Government’s extension of regulatory provisions for cruise ships until 31 December 2026, which provides clarity for cruise passengers, cruise lines, and the Australian tourism industry,” said CLIA.

“Following advocacy from CLIA, cruise lines, and key industry stakeholders, the Australian Government has continued an exemption to the Coastal Trading Act, which maintains existing arrangements and means eligible cruise lines can continue to operate between Australian ports.

“The exemption is an important regulatory provision in Australia and supports cruise operations worth more than $5.6 billion a year to communities around the coast. Cruise ships made almost 1,400 port calls around Australia in 2022-23, creating an economic impact that supports more than 18,000 Australian jobs. 

“As cruise operations are often planned and booked several years in advance, CLIA and cruise lines look forward to participating in the Australian Government’s upcoming review of the Coastal Trading Act, with a view to creating longer-term regulatory certainty for cruising in this region.”