Industry welcomes reduction in cruise ship costs

MEDIA RELEASE

27 May 2010

Tourism industry welcomes reduction in cruise ship costs

The Tourism Industry Association has welcomed the Government’s announcement this week that marine safety charges paid by cruise ships will be reduced by almost $5 per passenger, saying it will stimulate this fast growing tourism sector.

“TIA and the Ministry of Tourism have been advocating strongly on behalf of the cruise ship sector for a reduction in these charges ever since Maritime New Zealand hiked the fees by almost 300% in 2008,” says TIA Chief Executive Tim Cossar.

“We argued that the revenue Maritime New Zealand was collecting was well in excess of the cost of servicing the cruise ships and we are delighted that the Government has listened and agreed with us.”

Mr Cossar says the industry is very pleased the charges will be reduced from $8.29 to $3.30 per passenger port call from 1 October this year, in time for the start of the 2010/2011 cruise season.

“It is critical we do everything we can to improve the competitiveness of the cruise ship sector, and the tourism industry generally, at a time when it is still feeling the fall-out of the global financial crisis.”

Eighty-one cruise ships and more than 112,000 passengers are expected to have visited New Zealand by the end of the 2009/10 season (year ending August), says Mr Cossar. In total they will make 479 port calls, with each cruise estimated to be worth about $1 million to the New Zealand economy. The sector is expected to grow by a further 30% in the 2010/11 season, with a record season forecast for 2011/12.

“This is a high value tourism sector, driven by high-spending and discerning international baby boomers,” continues Mr Cossar.

“The decision by Transport Minister Steven Joyce to reduce the Maritime New Zealand safety charges paid by cruise ships highlights that this Government recognises the importance of the tourism industry to the New Zealand economy and communities throughout the country.”

He says TIA would like to be part of the steering group that was also announced by the Transport Minister this week that will review whether Maritime NZ is providing value for money, including around marine safety charges.

ENDS

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