Cruise Season Providing Boost For Local Businesses

October 7, 2024: Research by NZIER on the economic and social impact of cruise tourism shows the 2023/2024 season generated $5.3 million for the local economy, with total cruise tourist expenditure between $23 and $35 million. The NZIER report – commissioned by ChristchurchNZ – revealed a positive view of cruise tourism, with 69 percent of local businesses seeing it as important for their business, and 68 percent describing cruise tourism as having a ‘positive’ or ‘very positive’ impact on their revenue.

Cruise operations are estimated to have contributed $5.3 million to the local region, with total cruise tourist expenditure between $23 and $35 million, and an average spend of $146 per person in the central city alone.

The report indicated a largely positive view of cruise tourism by Christchurch businesses and residents. When asked about the overall contribution of cruise tourism to the local region, 79 percent of business respondents indicated a positive or extremely positive impact. Businesses identified “creating a ‘buzz’ around products and services” (47.4 percent) and “increasing customer diversity” (42.1 percent) as the key non-economic benefits of cruise tourism. In addition to positive survey feedback, small businesses spoken to in Christchurch say they are grateful for the cruise season, which provides a significant bump to business.

Juliet Mountfort of Silver Central – which operates a small jewellery business in the Cathedral Square market – says cruise ships bring an influx of customers they wouldn’t have otherwise. “The impact of the cruise passengers is most beneficial at the beginning and end of the season. It gives the season more structure and makes it longer.”

Mrs Mountfort estimates cruise passengers provide as much as 60% of their trade from October to April.

The number of cruise ships visiting Christchurch has increased since the pre-COVID period due to the opening of a purpose-built cruise berth. This allowed for the return of large ships to Lyttelton in 2022, the first time since the earthquakes.

Residents surveyed by NZIER were also largely positive about cruise tourism. When asked about the impact of the most recent cruise season, 85 percent of residents reported a positive or neutral perception. Central City residents expressed more positivity compared to those in Lyttelton and Akaroa, where responses were more mixed, with 36 percent indicating both positive and negative impacts.

Another small business benefitting from the cruise season is Prime Currency Exchange, which operates in the BNZ Centre, Central Christchurch. Managing Director

Ali Alizadah estimates between 15 to 20 percent of their yearly turnover is from cruise ship passengers. “That's the average over a year, but in the cruise months it’s more than half of our turnover.”

The report also surveyed cruise visitors. When asked how likely they were to consider returning to Christchurch, 86 percent of respondents answered ‘likely’ or ‘very likely’.

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