New Zealand’s High Fees Could Reduce Cruise Tourism
A proposed 88% increase in border processing fees aimed at cruise passengers may significantly raise the cost of cruising to New Zealand and complicate travel later this year.
This new fee, scheduled to take effect on December 1, 2024, is facing strong opposition from tourism groups, Cruise Lines International Association Australasia, and the New Zealand Cruise Association.
With the proposed fee hike set to be implemented in less than five months, cruise lines would struggle to operate profitably in the region. Due to environmental regulations, fees, and other factors, New Zealand is already one of the most expensive markets for cruise lines, with very thin profit margins.
“Cruise lines meticulously plan and budget their operations two to three seasons ahead, leaving no room to pass unexpected cost increases to passengers who have already booked and paid for their trips,” explained Jacqui Lloyd, CEO of the New Zealand Cruise Association.
Lloyd estimates that the fee increase would amount to an additional $2 million (NZ – approximately $1.2 million USD) for the 2024-2025 cruise season. “These financial burdens will fall squarely on the cruise lines, threatening to devastate an industry already operating on razor-thin margins,” she added.
Cruise lines usually estimate port fees and taxes, which are included in passengers’ fares at the time of booking. When the final fees are calculated during the cruise, guests may receive a small refund to their onboard accounts for any overestimation.
If the fees have been underestimated, the cruise lines must cover the excess fees from their profits, as additional charges cannot be added to guests after full payment. Although cruise lines are adept at estimating fees, the substantial increase New Zealand is proposing is beyond any estimation error.
This could result in over $20,000 in extra fees per cruise ship visit, depending on the number of passengers and crew members aboard.
The cruise industry is attempting to negotiate with the New Zealand government on fees, regulations, and restrictions as part of regular consultations. However, it remains unclear if any changes will be made before the new fees take effect.
Cruising Down in New Zealand
It’s important to note that New Zealand cruise tourism has not yet returned to pre-pandemic levels, unlike many regions that have already surpassed those numbers.
Although the nation is on a path to recovery, the proposed fee increase could hamper cruise tourism due to unsustainable costs. Some projections suggest a potential 22% decline in cruise ship visitors for the 2024-2025 season.
Many cruise travelers are anxious about visiting New Zealand. Despite its stunning landscapes and tourist attractions, stringent regulations make port visits challenging.
Biosecurity measures sometimes force ships to skip port visits or change itineraries to clean the hull or decontaminate the vessel. This could mean that a dream cruise itinerary might not visit the ports travelers had hoped for, making the vacation less ideal.
New Zealand cruise itineraries may depart from homeports in New Zealand or Australia, often including ports in both countries and other South Pacific destinations, depending on the cruise length. The typical cruise season runs from October through April, the region’s summer season.
Top New Zealand ports include Wellington, Lyttleton (Christchurch), Napier Port, and Auckland. Various cruise lines offer itineraries to these destinations, including Princess Cruises, Carnival Cruise Line, Royal Caribbean International, Silversea Cruises, AIDA Cruises, Celebrity Cruises, Norwegian Cruise Line, Holland America Line, Oceania Cruises, and more.
