The volatility of New Zealand's tourism policies are problematic for operators. Photo: NZ Herald/Paul Taylor
The cruise sector hopes crisis talks at this year's industry conference will help chart a course through rocky financial waters.
The theme of this year's NZ Cruise Association Conference - 'This is Not a Drill' - speaks for itself.
Passenger numbers have fallen year on year, down 20 percent last summer and projected to fall another 20 percent this year, but NZCA chief executive Jacqui Lloyd maintains an optimistic outlook.
"It is a little [like] crisis talks, but there is also a lot of positivity," she told RNZ, between panel discussions from the conference in Napier.
"[We're talking about] how we all need to work together, and make sure that the messaging is going out around central and local government on how important cruise is for regional economies, particularly our tourism and hospitality operators."
Lloyd expected 660 port calls and about 215,000 cruise passengers to visit New Zealand shores in the 2025/26 season.
"That's down from 1120 port calls in 2023/24 and around 330,000 passengers."
She said the industry could do little to adapt, rather policy change was needed to keep it from sinking.
"We'd rather not adapt, to be honest. We'd like to instead make sure that we get some return in that business, and a key part of it has been around working with government on regulatory changes, transparency on increased costs, and also biosecurity risks."
Lloyd said New Zealand was particularly harsh on biofouling - the build-up of algae and other microorganisms on a ship's hull.
"[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, if ships do have any issues, and cruise lines have to go off the 12-mile limit, and wait for a calm day for a diver to go down and clean the ship.
"Meanwhile, passengers are on board, wondering why they're not at the destination that they had planned, so that's a real strong risk from a brand reputation and cost reputation."
Biosecurity New Zealand deputy director-general Stuart Anderson insisted biofouling rules had been developed over 10 years, and then introduced slowly and carefully to allow the cruise industry and others time to adapt.
"In the past cruise season, not one of the 45 vessels that entered New Zealand was turned away," he said. "In the 2023/24 season, only one vessel cancelled its voyage due to biofouling, but it returned fully compliant later in the season.
"What the above shows is that our close work with the cruise industry is paying off.
"Before each cruise season, Biosecurity New Zealand works closely with cruise operators to ensure they understand our requirements and meet them. Vessel operators have months to provide us proof their hulls are clean and plan any required maintenance, before arriving in our waters.
"We make no apologies for ensuring vessels are not carrying organisms - oysters and others growing on hulls - that will damage unique environments like Milford Sound or cost the fishing industry unknown amounts in lost revenue, because of the real and nasty impacts of exotic pests."
Lloyd said representatives from Ports of Auckland had also spoken at the conference about their plans to facilitate in-water cleaning for visiting ships.
"Ports of Auckland has been speaking today about the trials they're doing for in-water cleaning, which has been positive, and they are working with MPI on how they might be able to do that going forward," she explained
"That's safe cleaning, not only for the ship, but also New Zealand's environment. We don't want to let any nasties into our waters and cause concerns with our aquaculture industry."
Meanwhile, the volatility of New Zealand's tourism policies were problematic for operators that often planned cruises years in advance.
"Passengers will book their cruises two years in advance and we've had cases recently where government agencies have increased costs by $11, $12, $20 per passenger, with only a very short two to three-month window," she said.
These challenges were causing a decline in New Zealand's global reputation as a cruise destination.
"[It was] interesting talking to Princess Cruises today, who spoke at conference, and talked about the fact that the searches for New Zealand and Australia for Princess are down quite considerably on what they have been previously," Lloyd said.
"We will need to do a lot of work, as a nation, to promote passengers to come back to our shores."
She said job losses would be inevitable.
"There will be [job losses], and that will predominantly be through hospitality and tourism providers, drivers for coaches, likely within ports for teams that usually will look after cruise vessels.
"There are 10,000 jobs created by [the cruise industry] in the 2023/24 season and we do have concerns that we'll see a reduction for this season coming."
Viv Beck, the chief executive of central Auckland's business association Heart of the City, said cruises were an essential source of visitors.
"[Cruises] are really important and particularly at a time where spending is down, and we've had severe impacts with construction and Covid-19, and all of the above," she said. "This is one of the means of getting people in here and they arrive right on our doorstep at the bottom of Queen Street.
"A reduction in numbers is definitely going to be missed."
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