Cruise Industry Faces Job Losses Amid Significant Decline

The cruise industry in New Zealand is grappling with a substantial downturn, leading to inevitable job losses within the sector. During the recent NZ Cruise Association Conference held in Napier, industry leaders discussed pressing concerns as passenger numbers plummet. According to Jacqui Lloyd, chief executive of the NZ Cruise Association, the conference theme, “This is Not a Drill,” aptly reflects the industry’s current precarious situation.

Passenger numbers have fallen dramatically, with a reported 20 percent decline last summer and another 20 percent projected for this year. Lloyd expressed cautious optimism, stating, “It is a little [like] crisis talks, but there is also a lot of positivity.” The discussions focused on the need for collaboration to communicate the importance of the cruise sector to regional economies, particularly for tourism and hospitality operators.

Looking ahead to the 2025/26 season, Lloyd anticipates approximately 660 port calls and around 215,000 cruise passengers visiting New Zealand, a significant drop from 1,120 port calls and 330,000 passengers in the 2023/24 season. She emphasized that adapting to these challenges is not the desired approach; instead, proactive policy changes are essential to stabilize the industry.

One of the critical concerns raised by Lloyd is the stringent regulations regarding biofouling—an accumulation of organisms on the hull of ships. She noted, “There’s a risk of being turned away, because we don’t have a safety net in New Zealand to allow any kind of cleaning.” This situation poses risks not only to cruise lines but also to their reputation and operational costs, as ships may need to wait offshore for cleaning before proceeding to their destinations.

Efforts are being made to address this issue, as representatives from Ports of Auckland discussed plans for in-water cleaning trials for visiting ships. Lloyd highlighted these initiatives as positive developments, ensuring safe cleaning for both vessels and the local environment.

The unpredictability of New Zealand’s tourism policies complicates matters further, particularly for operators who often plan cruises years in advance. Lloyd pointed out that recent increases in costs imposed by government agencies, such as $11, $12, or $20 per passenger, have created challenges for cruise operators, leaving them with little time to adjust their pricing structures.

The decline in passenger interest is concerning, as indicated by discussions with Princess Cruises, which revealed a significant reduction in search interest for New Zealand and Australia. Lloyd stated, “We will need to do a lot of work, as a nation, to promote passengers to come back to our shores.”

With these challenges looming, job losses in the sector appear inevitable. Lloyd mentioned that hospitality and tourism providers, alongside coach drivers and port teams responsible for cruise vessels, would likely face the brunt of these reductions. The cruise industry supported approximately 10,000 jobs in the 2023/24 season, and concerns regarding a reduction in employment opportunities are growing.

Viv Beck, chief executive of the Heart of the City business association in Auckland, echoed these sentiments, highlighting the significance of cruise visitors. She remarked, “Cruises are really important, particularly at a time where spending is down.” Beck emphasized the need to attract more visitors to the area, especially given the recent impacts of COVID-19 and construction on local economies.

As the cruise sector strives to navigate through these turbulent financial waters, the focus remains on collaboration and communication to ensure a robust recovery. The outcomes of the conference may set the stage for essential changes needed to revitalize New Zealand’s cruise industry and safeguard its economic contributions for the future.