The Global State of the Cruise Industry

With New Zealand as a ‘cautionary tale’ and Western Australia on the up and up

The 2025 Australian Cruise Association Conference started in Fremantle on Wednesday at The Esplanade Hotel Fremantle by Rydges and a Welcome function at Gage Roads.

It’s a big deal with speakers and delegates coming from all sectors of the cruise industry, including the ACA and the CLIA – the Cruise Lines International Association, and government port and tourism entities. The WA Minister for Tourism, Reece Whitby, opened proceedings.

CLIA members, it should be noted, include the big three – Carnival, Royal Caribbean, and Norwegian Cruise Lines.

The first keynote address Friday morning was delivered by Joel Katz, Managing Director, Australasia for CLIA who addressed the Global State of the Cruise Industry, and it is worth reporting on.

Mr Katz’s main messages were that the industry is recovering well from the dark days of Covid and is on an upward swing. But challenges remain in our region in encouraging guest to make the long haul journey here.

Here are the slides Mr Katz used in his presentation that tell the global story he sketched for the audience. It’s a fascinating one. (Just tap on each image to access the full screenshot.) Big cruise ships are still being built and the cruise industry is welcoming a younger, new demographic on board. It sounds like it is on something like an high. And it is taking seriously its 2050 net zero emissions commitments.

In the course of discussions about the future of the industry in Australia, what happened to the industry in New Zealand was more than once referred to as a ‘cautionary tale’.

New Zealand’s cruise story has become a kind of regional parable for how regulatory friction and missed coordination can stall a booming sector. Here’s a breakdown of what unfolded and where things now stand.

What Went Wrong: The Downturn

New Zealand’s cruise industry, once a rising star in the region, hit serious headwinds post-COVID. Despite global recovery, NZ saw a projected 40% drop in cruise visitation for the 2025/26 season compared to its peak in 2023/24. The causes were layered:

• Regulatory Overload: Strict biosecurity rules led to ships being turned away, even with passengers onboard.

• Rising Costs: Port fees and operational expenses surged, making NZ less attractive to cruise operators.

• Environmental Pressure: Milford Sound, a marquee destination, faced calls to ban large vessels. The government’s slow response added uncertainty.

• Lack of Coordination with Australia: Since most NZ-bound cruises originate in Australia, any drop in Australian capacity directly impacts NZ. Yet, formal collaboration between the two governments remained minimal.

Turning the Tide: The Government’s New Approach

The current NZ government, led by Tourism Minister Louise Upston, has pivoted toward proactive engagement:

• Industry Summits: Recent meetings with cruise operators and the Cruise Lines International Association (CLIA) signaled a reset in tone.

• Tourism Growth Roadmap: A new workstream is focused on enhancing cruise connectivity and streamlining regulations.

• Economic Emphasis: With cruising contributing over NZ$1 billion and supporting nearly 10,000 jobs, the government now frames it as a key economic lever.

• Collaborative Messaging: The Minister has emphasized working across agencies and with industry to restore cruise numbers to pre-pandemic levels.

Despite the renewed optimism, the numbers remain sobering.

Cruise leaders still describe NZ as a “jewel” destination, but warn that without consistent policy and regional alignment, the downturn could deepen.

As Mr Katz’s presentation to the conference emphasises, getting the regulatory and industry settings right is critical to the future health of the cruise industry, and in that regard the cruise industry associations are the primary advocates to government for getting them right.

Other speakers emphasised the important of networking between Australian States and Territories, and NZ in ensuring the best Shorex itineraries and experiences are in place to attract cruise guests, especially from overseas. We can’t operate in splendid isolation from each other.

These messages seem to have been heard loud and clear in Western Australia. In opening the Conference on Wednesday night, WA Minister for Tourism, Reece Whitby’s observations showed strong support for the cruise industry. He highlighted that WA’s cruise sector currently generated $385 million in economic impact in 2023–24, supporting over 1,200 local jobs. He described the industry as a “vital contributor” to WA’s tourism landscape and emphasized its role in regional dispersal, with ports like Geraldton, Broome, and Albany acting as gateways for an international spend.

The Minister also framed the conference as a platform for innovation and collaboration, aligning with broader government efforts to elevate WA’s reputation as a destination for world-class experiences.

His presence at the event – alongside Fremantle’s Deputy Mayor Jenny Archibald and other civic leaders and the symbolic sail-past of the Scenic Eclipse II – was seen as a strong signal of State and community support for the cruise industry out of WA.

Then this morning came confirmation of the additional big news from Princess Cruises and Minister Whitby, that from late 2027, into 2028, the Sapphire Princess will be home-ported out of Fremantle, sailing up and down the WA coast. As the Minister said at his presser this morning, imagine the significant economic impact when the ship berths in Freo and Perth, the South West, and the regional areas surrounding Albany, Geraldton and Broome, and some 3,500 guests disembark to discover the delights on offer!

On this basis, the immediate future of the cruise industry out of WA is looking very much on the up and up.

By Michael Barker, Editor, Fremantle Shipping News.

*Fremantle Shipping News attended the Conference at the invitation on the Australian Cruise Association.

~ If you’d like to COMMENT on this or any of our stories, don’t hesitate to email our Editor.

~ WHILE YOU ARE HERE –