New study shows cruise passengers spend $371 a day as cruise industry generates $3.2 billion for Australia

A landmark study of the value of cruising has revealed that cruise passengers spend an average of $371 a day in Australian ports, helping push the cruise industry’s total economic contribution in Australia to an impressive $3.2 billion last year.

Topping the list of big spenders are international passengers who ring up an average $756 a day on accommodation, shopping, dining and transport before they board their ship. During their cruise they spend $204 a day in the ports they visit, mostly on shopping and tours.

Australian cruisers also like to splurge, spending an average $450 a day before they board their ship as well as $156 a day in ports they visit during their cruise.

With cruise passengers spending more than $700 million across Australia last year, the study found Sydney, Fremantle and Melbourne topped the list in terms of highest daily spend for international passengers pre-cruise ($762, $669 and $612 respectively).

Meanwhile Cairns attracted the highest spend from both international passengers and domestic passengers during a cruise ($366 and $187 respectively).

Commissioned by peak cruise industry body Cruise Lines International Association (CLIA) Australasia, the independent study provides the most comprehensive insight yet into the value of Australia’s booming cruise industry. It follows a separate CLIA report earlier this year that found Australia was the world’s fastest growing cruise source market, with passenger numbers soaring 20 per cent to reach a record 833,348 in 2013 and a population penetration rate of 3.6 per cent.

According to the new study, the cruise industry’s economic output in Australia in 2013 reached a massive $3.2 billion, with direct expenditure by passengers, crew and cruise lines accounting for $1.72 billion of this figure. Indirect and induced economic output accounted for the remaining $1.49 billion.

In addition to the $3.2 billion economic output, the report also found the cruise industry generated $1.59 billion in value added contribution, $940 million in wages and employed 14,000 people across Australia last year.

Prepared for CLIA Australasia by Business Research & Economic Advisors (BREA), the report used a global methodology adopted for economic impact statements on cruise tourism in the US, UK and Europe.

CLIA Australasia Chairman Gavin Smith described the report as a landmark study which clearly captured the far-reaching benefits of a growing cruise industry.

“This is the first independent report to draw on cruise line data and passenger surveys to show us how much cruise lines, passengers and crew spend across the country,” Mr Smith said.

“It’s a valuable snapshot which should demonstrate to governments and businesses around the country the enormous value that every cruise ship brings to their local economy.”

Other key findings of the report include:

• Direct expenditure by cruise lines and their passengers and crew totalled $1.72 billion in 2013, with passengers spending $724 million, crew $29.6 million and cruise lines a further $963 million

• Of the $724 million spent by passengers, domestic cruise passengers accounted for 77 per cent ($559 million) of passenger expenditure and international passengers 23 per cent ($165 million)

• On average 25 per cent of passenger spending was on transportation (excluding international airfares), 23 per cent was on accommodation, 13 per cent was on food and beverages, and 13 per cent on shore excursions

• Crew spent an average of $104 per day in Australian ports. Shopping and dining accounted for more than half their expenditure

• Cruise lines’ direct expenditure of $963 million included $276 million on fuel (28.7 per cent of expenditure), $143 million on food and beverage (14.8 per cent), $121 million on travel agent commissions (12.6 per cent) and $97.5 million on port charges (10 per cent)

• New South Wales accounted for 75 per cent of the national economic contribution by the cruise industry, Queensland 15 per cent and Victoria 5 per cent

• Cruise ship calls in Australia grew by 11 per cent from 673 in 2012 to 746 in 2013

• 43 per cent of calls were home port calls from a ship based in the port and 57 per cent were transit port calls

• Passenger port visit days grew by 22 per cent from 1.6 million days in 2012 to 1.95 million in 2013

New South Wales
• NSW accounted for 37 per cent of cruise visit days (309) across the nation and 55 per cent of passenger visit days (1.1 million).
• International passengers spent 2.6 nights in Sydney prior to their cruise and spent an average of $762.51 per day prior to their cruise, while domestic passengers spent an average of 1.4 nights in Sydney and $450 a day prior to their cruise.
• The key areas of expenditure for homeport passengers were accommodation, transportation and dining which represented about 75 per cent of spending.
• For transit passengers about 75 per cent of spending was on shore excursions and shopping.
• The total economic output of cruise tourism in NSW was $2.36 billion.
• Direct cruise tourism expenditure in NSW equalled $1.26 billion (73 per cent of the national total). This included $517 million by passengers.
• Cruise tourism also created $1.17 billion in value added benefits and more than 10,500 jobs in NSW.

Queensland
• Queensland had 29 per cent of total cruise ship visit days (241) and 21 per cent of passenger visit days (417,734) in 2013. Of these Brisbane, as the State’s only homeport for roundtrip cruises, claimed 107 cruise ship days and 230,000 passenger days while Cairns had 43 ship visit days and 61,000 passenger days and Airlie beach had 39 ship days and 61,000 passenger days.
• On average international passengers spent four nights in Brisbane prior to their cruise while domestic passengers spent an average of 1.3 nights
• International homeport passengers spent an average of $450 a day during their pre-cruise stay in Brisbane while domestic passengers spent an average of $425. Key areas of expenditure included accommodation, food and beverage and transport.
• Meanwhile domestic transit passengers spent $289 a day in Brisbane while international passengers spent $200, with key areas including retail shopping and shore excursions.
• Cairns recorded the highest average transit passenger expenditures in the country with international passengers spending an average of $366 per transit day and domestic transit passengers spending $187 per day. Around 80 per cent of this expenditure was on retail shopping and shore tours.
• Direct cruise tourism expenditure in Queensland equalled $269.3 million including $120 million in passenger spending.

Victoria
• Victoria had 77 cruise visit days and 146,529 passenger visit days (7.5 per cent of the total).
• On average international passengers spent 3.7 nights in Melbourne prior to their cruise while domestic passengers spent an average of 1.4 nights
• International passengers who started their cruise in Melbourne spent an average of $612 a day during their pre-cruise stay in the city while domestic passengers spent an average of $531. Key areas of expenditure included accommodation, food and beverage and transport.
• Meanwhile international transit passengers spent $182 a day in Melbourne while domestic transit passengers spent $146, with shopping and shore excursions accounting for 75 per cent of expenditure.
• Direct cruise tourism expenditure in Victoria equalled $87.5 million including $38.7 million in spending by passengers.

Western Australia
• WA had 76 cruise visit days and 103,704 total passenger days in 2013. Fremantle accounted for 23 ship visit days, while Broome had 13 calls and a range of other WA ports accounted for the other 40.
• The study estimated that on average international passengers spent 2.7 nights in Fremantle prior to their cruise while domestic passengers spent an average of 1.4 nights.
• International homeport passengers spent an average of $669 during their pre-cruise stay in Fremantle while domestic homeport passengers spent an average of $442. Key areas of expenditure included accommodation, food and beverage and transport.
• Meanwhile international transit passengers spent $145 in Fremantle while domestic transit passengers spent $103 a day, with key areas including food and beverage and shore excursions.

Tasmania
• Tasmania had 74 cruise visit days and 117,210 total passenger days.
• International passengers spent an average of $161 during their transit visits to Tasmanian ports while domestic passengers spent an average of $131 with key areas including shopping and shore excursions.

South Australia
• South Australia had 18 cruise visit days and 29,410 total passenger days.
• International passengers spent an average of $150 during their transit visits to SA ports while domestic passengers spent an average of $139 with key areas including shopping and shore excursions

Northern Territory
• The NT had 40 cruise visit days and 47,312 total passenger days in 2013.
• International passengers spent an average of $228 during their transit visits to Darwin while domestic passengers spent an average of $160 with key areas including shopping and shore excursions.

sourced:traveldailynews.asia