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  • 8/7/2019 cruise tourism benefits


  • 8/7/2019 cruise tourism benefits


    Minister 'sM e s s a g eThe cruise sector is a lucrative onewhich is growing in popularity aroundthe world. Each year, more and morepeople are taking cruises, includingincreasing numbers of Australians.The NSW State Government recognisesthe benefits that the cruise sector canhave for tourism in th is state, and theassociated economic boon for NSWand the many local communities alongour beautiful coastline.We also acknowledge the importanceof ensuring our ports and coastaldestinations are carefully managed andsmartly promoted for the sustainablegrowth of this important market in NSW.To that end, Tourism NSW coordinatedthe first ever comprehensive researchstudy into the worldwide cruise sector- its current trends, and its futuredirections throughout NSW.This research will be used to draft theupcoming NSW Cruise Strategy to setNSW on a clear path towards maximisingthe lucrative cruise sector.This Discussion Paper clearly summarisesthe research. I encourage you to evaluatethis Discussion Paper, review the research,and register your comments andsuggestions.Byworking together, Iam confident thatwe can develop a long-term strategy tosustainably grow the cruise sector in NSW.The Hon Sandra Nori M PMinister for Tourism andSport and RecreationMinister for WomenMinister Assisting the Ministerfor State Development

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  • 8/7/2019 cruise tourism benefits


    IDIilEn. .1 i fhe Global Cruise Industr~

    What Influences Itineraries? Existing NSW Cruise conomic Benefits of Cruise Visits NSW Cruise Market

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    S yd ne y P orts C orr:_ >o ra tio n, N SW tv la ritim e,


  • 8/7/2019 cruise tourism benefits



  • 8/7/2019 cruise tourism benefits


    T h e G lo b a l C ru ise In d u s tryThe global cruise industry is aluc rative on e th at is grow in gin popularity. In order for N SWports and destinations to fu llyc ap ita lis e o n th is g ro win gto uris m s ec tor, it is ne ces sa ryto exam ine the current trendsand future direction of thew orld wid e c ru is e in du stry .

    S ize o f th e m arke tThe global cruise industry has grown byan average of 10 per cent a year over thelast 30 years. This is more than in otherareas of tourism. More than 13 millionpassengers worldwide went on cruisesin 2005.In 1993, there were some 130 visits bycruise ships to Australian ports. By2004,this had increased to 840, representingan average growth of 20 per cent per year.However, approximately 450 of thesevisits were from one ship cruising theGreat Barrier Reef. Excluding this vessel,the growth rate was still 10 per centannually (in line with the global average).The global cruise industry generatessome SA18 billion a year in passengerexpenditure. The bulk of activity isconcentrated in a few regions:Table 1: Pr incipal Cruise RegionsCountry % of Market ShareCaribbean 45%Mediterranean 13%Northern Europe 10%Mexico/Panama 10%Alaska 8%

    Australia and the South Pacific havejust under four per cent of the globalcruise market.


    Apart from the Caribbean, all of theabove are seasonal destinations whereit is unusual to cruise in the northernhemisphere winter. It isduring this time(i.e. the southern hemisphere summer)that Australia and the South Pacific attractcruise ships deployed from the northernhemisphere. The Australian cruise season isfrom November to April.

    S ig nifica nt c ru is e lin esThere are 116 cruise lines, 17 of whichare owned by just three companies -Carnival Corporation (130,000 berths),Royal Caribbean Cruises (60,000) andStar Cruises (22,000). These threecompanies control over 80 per cent ofthe total world cruising capacity.Carnival Corporation contributes 70 - 80per cent of Sydney's annual revenue fromcruise ships.

    T re n d to w ard s la rg e r s h ipsThe worldwide trend is for largercruise ships. World cruising changeddramatically after the September 11attacks, and Australia, regarded as asafe destination, is now regularly visitedby these mega-cruise ships.The current building program for thecruise industry comprises 21 mega-sizevessels - the smallest having 2,000berths. Many older cruise ships will notbe able to pass new international safetystandards (which come into effect in2008) and will cease trading, thusreducing the number of smaller shipsthat normally cruise in the Australia-South Pacific region.The mega-vessels each weigh in excessof 110,000 tonnes and carry more than3,000 passengers.

    P as se ng er tre nd sEighty per cent of cruise passengersworldwide come from North America (theUnited States and Canada). With less than10 per cent of this population ever havingtaken a cruise, the potential for growth inthis market is enormous. This marketsource is growing by more than 8 per centannually.The United Kingdom is the second-largest market in the world, with otherfast growing market sources includingEurope and South America. The Japanesemarket is also increasing and major cruisecompanies are now beginning to go afterthe Chinese and Indian markets.Australia is a fast-growing source ofpassengers. This market grew 35 per centbetween 2002 and 2004, making it thefastest-growing sector of the travelindustry. In 2005, some 186,000Australians took a cruise compared with116,000 in 2002, and 154,000 in 2004.Country o f originPassengers visiting Australia on cruiseships come from approximately 50different countries. But the bulk visitingNSW are Australian, North American,British and European. The majority ofpassengers cruising to Australia are aged65 and over. However, the average ageof passengers is falling, with the worldaverage now around 47 years old.Longer staysMany cruise passengers worldwide arerepeat customers, prompting cruise linesto vary destinations and programs. Sydneyis the least affected by this as most shipsuse Sydney as a base or turnaround port.Of particular interest to NSW is thetendency of more than 60 per cent ofpassengers to use a cruise to select a shoredestination for a longer stay. In recentyears, some island resorts inAustraliahave taken advantage of this trend andencouraged visits by cruise ships and wonincreased patronage for their resorts.

  • 8/7/2019 cruise tourism benefits


  • 8/7/2019 cruise tourism benefits


  • 8/7/2019 cruise tourism benefits


    Itin e ra ry D e ve lo pm e n tD e stin atio ns h av e th e o pp or tu nityto a ss ist cru is e lin es w ith itin era rydevelopm ent in order to attractan d build new cru ise b usiness.M any factors im pact on theit in e ra ry s ele ctio n p ro ce ss .

    R e ve n u e p o te n tia lIn an era where cruise lines are investingin new vessels and charging passengersless per day than 10 years ago, theimportance of revenue potential initinerary selection has increased.The cruise business is booming in theCaribbean, Mediterranean, Alaska andEurope, where the potential cruisepassenger market is large, it is not costlyto transfer passengers to vessels, and therelative closeness of ports maximisesshore excursions and associatedeconomic yield.However, the economic return is notas great in countries like Australia. Thedistance to get to Australia is long,requiring a lot of fuel and nurnerousdays at sea which means fewer shoreexcursions and associated revenue. Thelogistics of operating and rnaintaining acruise ship when away from its traditionalhome port are far more difficult, moretime consuming and more costly.

    A u st ra lia 's a p pe a lMany of the popular cruising destinationsof the world are becoming overcrowdedand cruise companies are looking toAustralian itineraries because they offersomething new, exciting and exotic.These companies are looking to increasetheir presence in Australia, and to offertheir repeat passengers a wider choiceof new destinations.

    In te rn atio na l v sd o m e s tic itin e ra rie sCruising in Australian waters, but withan international component, has decidedcost-price advantage because of the CST:

    The CST does not apply to aninternational voyage, so thepassengers do not pay CST.The supplies and fuel do not includea CST cornponent on an internationalvoyage so the cruise company has abetter bottom line on such a voyage.Cruise ships on an international voyagefrom Sydney can offer duty-free andCST-free shopping, with the addedprofit margin.Cruise ships on an international voyagefrom Sydney can offer gaming/gamblingwithout having to pay State taxes.Cruise ships on an international voyagefrom Sydney do not have to pay Stateliquor-licence taxes if they trade ininternational waters.

    Therefore, it is more profitable for a cruisecompany to include New Zealand or otherinternational ports than have an itinerarywith only Australian ports. For coastalcruising to be cornpetitive there needsto be an international destination on theitinerary. Currently the only scope for thisis to cruise to the Great Barrier Reef andinclude a call at Willis Island, which istreated as an international destination.

    Id ea l it in era ry le ng thSeven-days is the ideal itinerary lengthbecause the ship leaves the base porton the same day each week and thishas scheduling advantages for connectingairlines, supplies and other services. Thisideal itinerary length is a disadvantagefor Sydney due to the 9-10 days it takesfor a return trip to South Pacific Islanddestinations.

    W h a t m ak e s a g o o d b a s e p o rt?The cruise operator looks for safe,efficient, cost-effective port facilities,including efficient passenger handling,provedoring, supply of bulk water, fuelfor the ship and waste disposal.From a passenger's perspective a baseport should be easily accessible by roadand/or public transport, be serviced bydirect flights and have good standardhotel accommodation close by.S e le ct in g d e s tin a tio n sFor a destination to be selected as apotential cruise destination, four keyfactors rnust be present:

    1. It must accommodate vessels safelyand guarantee bookings up to twoyears ahead.2. There must be something about thedestination that isattractive, unique,iconic and/or worthwhile from thepassengers' perspective.3. The destination has to have localcommunity support and providea warrn welcome for visitors andprovide safe and attractive conditionsfor the visitors.4. The destination must provide aconsistent level of access, and highquality of service and passengersatisfaction for every visit. Some NSWdestinations cannot guarantee accesson every visit due to adverse seaconditions, which limits their capacityto attract cruise lines.


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    Wh at In flu en ces Itin eraries?There are a range of key decisionm ak ers w ho in flu en ce itin era rys ele ctio n. It is v ita l th at d es tin atio nsare aware of the im portant roletha t the follow ing in flue nc es pla yin it in er ar y s e le c ti on .

    P a s s e n g e r sPassengers look for:

    attractions for half-day and full-daytours;a clean, safe destination without touts,beggars or unsavoury areas near the ship;high standard of transport - coaches,taxis and limousines, etc;friendly, informative guides andhospitable locals;good shopping with reasonable pricesand interesting range of goods;walking distance to the city/town;a comfortable climate;proximity to an internationalairport, with good services for fly/cruise operations.

    T he s hip 's co mp a nyThe master , officers and crew reporton each destination from both anoperational and passenger satisfactionpoint of view. Keyfactors include:

    Isthe wharf of sufficient length?Can the ship turn around 180 degreesto sail from the port?Is there sufficient water depth forunder-the-keel clearance?Does the destination have theinfrastructure and facilities to ensurea world-class experience for passengers(eg tour guides, coaches, restaurantseating etc)?

    10 T HE N SW C RU IS E M AR KE T

    It in e ra ry p la n ne rsThe itinerary planners make theirrecommendations based on:

    passenger survey comments;comments from masters, officers,crew and ground handlers;cruise company scheduling anddistance from previous port;quality of shore tours and theon-board revenue that may beavailable from them;safety of passengers while ashore;cost of calling at a destination;time it takes to organise permits andmake arrangements at a destination.

    G ro un d h an dle rsThere are generally only a handfulof ground handlers used by cruisecompanies in each cruise region.Cruise companies rely on their groundhandlers in each cruise region to makearrangements for tours/activities at theport of call. Ground handlers usually takea commission from tour operators.Ground handlers have the ability tomake or break a cruise destination bythe selection of tours and activities thatthey present to the cruise company. It istherefore important for destinations toform strong alliances with the groundhandlers that represent cruise companiesin Australia.

    C o m p l e m e n t a r ys h o re e xp e rie n ce sA significant factor often overlookedby most destinations is the need forcomplementary experiences ashore forpassengers at each destination. On anAustralian itinerary, for example, onedestination may present a wineries tour,one may present a nature experience,and another may present an indigenousexperience. Ultimately, the cruisecompany, assisted by the ground handler,decides which shore itineraries areselected for its passengers.

    T h e re qu ire m e n ts o fr ep ea t p as se n ge rsRepeat passengers are very importantto cruise lines, and they need a differentitinerary each year. This is why adestination cannot always expect tobe on every cruise of any particularcompany, despite good performance.Cruise companies often vary theiritineraries from year to year while stillreturning to Australia.

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  • 8/7/2019 cruise tourism benefits


  • 8/7/2019 cruise tourism benefits


    E co n o m ic B en efits o f C ru ise V is its

    The global cruise industry is alucrative one, w hich has thepotentia l to im pact greatly onre gio na l a nd lo ca l e co no mie s.

    The Commonwealth Department ofIndustry, Tourism and Resources and theindustry organisation Cruise Down Underconducted research into the economicimpact of the cruise shipping industry inAustralia (Economic Impacts of the CruiseShipping Industry in Australia 2004/05).Some key results were:

    The total expenditure generated bythe cruise shipping industry in Australiawas approximately $228.1 million,including direct expenditure ofapproximately $132.1 million.Total wages income was estimated at$65.7 million, including $41.8 million indirect wages income and $23.9 millionin indirect or flow on wages income.The estimated employment impactsof the cruise shipping industry inAustralia were equal to 1,633 fulltime equivalent positions.The estimated value added impactor additional Gross Domestic Product(GDP) generated by the cruise shippingindustry was approximately $121.8million, including a direct value addedimpact of $74.6 million.The largest state economic impactfrom the cruise shipping industryin 2004/05 was NSW.Total expenditurein NSW was estimated at approximately$110.6 million. This expenditureresulted in an additional $58.7million in Gross State Product.

    Pa ss en g er -r el ate d e xp e nd it ur ePassenger expenditure varies dependingon whether the ship is visiting a baseport or a transit port. Expenditure willbe much greater if passengers stay inSydney before and/or after the cruise.To maximise before and after cruise

    spending, overseas passengers need to beenticed to book a longer stay in Sydneywhen booking their cruise.A major factor influencing expenditureat transit ports is the tours available.The benefits for local operators dependon the cost of the tour they negotiatewith a ground handler.Ground handlers and cruise companiesalso receive a percentage of revenuefrom the tours. Some passengers willnot buy a shore tour but will make anindependent visit to local attractions.In this case berth proximity to localattractions and retail outlets is important.For transit ports the economic benefitsare affected by such factors as: the pricethe local operator gets for a shore tour;the percentage of passengers takingshore tours; the likely expenditure ofindependent travellers; and, the percentageof independent travellers on a voyage.How much tourists spend varies withtheir income level, star class of the ship,and passengers' country of origin. Forexample, passengers who spend someUS$l,OOO per person for a double cabinwould be expected to spend more than apassenger spending some US$200 perperson for a double cabin. Therefore theclass of ship and origin of the passengers

    will both have a substantial impacton expenditure patterns of passengers.Table 2 shows the star class and originof ships that regularly visit NSW.

    C r ew - re la te d e xp e nd it ur eThere has been minimal work undertakeninAustralia on the level of crew expend-iture. The average level of expenditure percrew member will depend on both thepercentage of crew that is given leave ineach port, and the amount of money thateach of those crew members has to spend.

    Sh ip -r el at ed e xp e nd it ur ePort chargesFor Sydney, these include site-occupationcharges, navigation service charges, pilotfees, tug fees, and security charges. Thesite occupation charge is $250 per hourfor a cruise ship. The charge is the samefor Circular Quay or Darling Harbour andslightly lower, $200 per hour, if the shipis required to go to another berth.ProvedoringThis expenditure by a ship in port is animportant element of the economicimpact for a base port. An Australian-based cruise will often take on all of itssupplies in NSW, whereas overseas shipsmay fly in container loads of provisions.

    Star class and origin ShipTable 2: Ships v isiting NSW by S tar C lasses and O rigin of Ship

    E uro pa (6 -sta r), S ilv er S had ow , S ilv er W hispe r, S ilv er W in d, S ilv er C lo ud ,C C olu mb us , D eu ts ch la nd

    E uro pe an 5 -s ta r

    A stor, D elphin R enaissance , D elphin , M axim G orkiE uro pe an 4 -sta rQ E2, O riana , A rtem is, A donia, A urora , S aga Ro se , B lack W atchU K - 4 -star

    U SA - 5-star C rystal Serenity , C rysta l Sy mphony, C rysta l H arm ony , Seabourn Spirit,Seab ourn S un, Seven Seas N avigator, V oyager & Mariner

    U SA - 4 -star S apphire P rin ce ss, S tar P rin ce ss, D ia mo nd P rin ce ss, R egal P rin ce ss,A msterdam , P rinsen dam , R otterd am , S tatendam , V olendam , L egendof the Seas, N orwegian W ind , C rown Odyssey

    Asia - 4 star Superstar L eo , A suka, Pacific V enus, N ippon M aruA ustra lia - 3 -sta r P acific S un , P ac ific S ta r, P acific S kyA ustra lia - 4 -sta rExpedition

    P ac if ic P rin ce ss, D aw n P rin ce ssO rion (A ustra lian - 5-star), C lipper O dyssey (U SA - 4-star),H an seatic (E urope - 4 -star)

    T HE N SW C RU IS E M AR KE T 13

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    M ilita ry V is its to Po rts

    M ilita ry v es se ls h av e s im ila rc ha ra cte ris tic s a nd n ee ds toc ru is e s hip s a nd h av e s im ila rpotential fo r re turning e con om icben efits to N SW co mm unities .

    Military vessels have up to 5,000 crewmembers who, like cruise passengers, arelooking for ways to spend their time andmoney onshore, particularly in buyingand utilising local souvenirs and products.Military visits have supply needs similar to

    InAustralia, decisions by military ships A major requirement for a destinationabout destinations they will visit are is a secure berth. It is rare for anchoragesdetermined by a range of factors including: to be selected.

    Where the ship is normally based and Other than Sydney, the Royal Australianwhere families of the crew are located. Navy (RAN) often visits Newcastle, withWhether there are militarymanoeuvres associated with the visit.Whether the visit is for rest andrecreation (R&R) only.The nationality of the ship.Nuclear-powered ships can only callat certain ports, designated to acceptthem safely.

    visits also to Port Kembla and Eden.Foreign navies visit Australia from timeto time and they have similar selectionand approval processes. They liaise withthe RAN,their host, on port selectionand timing. Leisure activities for theirpersonnel are coordinated by the RAN.

    cruise ships, including towage, fuel, water For Australian ships the initial selection ofand supplies. Additionally, the families of an R&Rdestination is made by the ship'screw and military personnel often visit the company about a year ahead and liaisedship for the duration of its stay in port, through the Operations Coordinator atwhich results in additional spending on Maritime Headquarters at HMASair travel and accommodation. Kuttabul in Sydney.

    right: credit, Andrea Francol ini

    14 T HE N SW C RU IS E M AR KE T

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    SuperyachtsIn N SW , the S uperyachts S ydneyc lu ste r h as a g oo d re pu ta tio n,e xc elle nt fa cilitie s a nd s er vic es ,and is cred ite d w ith attra ctingm any S uperyachts to N SW .

    Much of the current popularity ofAustralia as a Superyacht destinationis credited to the various Superyachtclusters which exist along the easternseaboard of Australia (Sydney, Gold Coast,Brisbane, Great Barrier Reef).Superyachts have irnportant econornicbenefits associated with rnaintenanceand other vessel services, particularlyfor srnaller ports.

    People who influence decisions on whereSuperyachts visit are:

    The owne rs . Ifusing the yachtthernselves, the owners will decidewhere they wish to go.T h e m a na gi ng a g en t. If t he yacht ischartered out, the rnanaging agent willrnake the decisions in consultationwith the rnaster.T h e m a st er o f t he v es se l. When theowner is not aboard, there is no charter,and when rnaintenance is required, thernaster heavily influences the itinerarytaking into account weather conditions,availability of berths or shelteredanchorages, fuel availability, rnaintenancefacilities and a pleasant location toberth while waiting for orders.

    Generally, the decision rnaking will bebased on sirnilar criteria as for cruise ships.The rnain difference is the size of thevessel, with Superyachts able to reachrnore destinations. A significant attractionfor Superyachts is the availability of highclass rnaintenance facilities.Superyachts that undertake charters whilein NSW are considered to be cornrnercialvessels and would be expected to rneetsurvey and crewing requirernents.

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  • 8/7/2019 cruise tourism benefits


    S y d n e ySydney'spoll position in theAustralian cruise industry isdue to its role as a baseandturnaround port.

    Sydney as a cruise portThe majority of international cruisepassengers arrive in, and depart from,Australia via Sydney InternationalAirport. This combined with theavailability of two cruise terminals,gives Sydney a considerable competitiveadvantage over other ports.Sydney's advantages include:

    Internationally, Sydney is the mostrecognised Australian location -it has top-of-mind awarenessamong potential visitors.The icons of Sydney Harbour, theSydney Opera House and the SydneyHarbour Bridge are usually featured inthe promotion of Australia as a whole.Sydney has a huge range of tourismattractions and retail outlets thatprovide it with the opportunity tobenefit from its pre-eminent positionin Australian cruising.Sydney has a natural harbour inthe centre of the city with deep-water frontage and a potential toaccommodate ships of any size.Ships can berth close to the touristhubs and passengers can disembarkand easily walk to many of theattractions.Sydney's weather allows for year-roundcruising. Its sunshine is particularlyappealing for those passengers escapingthe northern hemisphere winter.Sydney has a reputation as a safedestination for both cruising andshore excursions, with friendlypeople and a good hygienic standardof facilities.

    Sydney on cruise itinerariesThere are a number of different itinerariesthat include Sydney:

    Home port: cruise ships that haveSydney as their base-port - this ismostly the South Pacific productoffering of P&O Cruises (incorporatingboth three and four-star vessels)eg Pac if ic Sun, Pac if ic Pr incess .Regional deployments: cruise shipsnormally based in the northernhemisphere, deployed to Australianwaters for up to four months duringthe northern winter. Temporarilybased in Sydney, these vessels sailbetween Sydney, other Australian portsand New Zealand, making as many asfive ship turn-rounds in Sydney duringeach annual deployment (egSapphirePr incess , Diamond Pr incess , S tatendam) .International visits: cruise ships callingSydney as part of an internationalitinerary or round-world cruise(eg Qu e en E li zab et h 2, Q ueen M ary 2,Aurora , Or iana) .

    Until recently, Sydney was the only portin Australia to have international cruiseships base-porting. This changed in 2004when the Pac if ic Sky , previously basedyear-round in Sydney, began base-portingfrom Melbourne, Auckland and Brisbanefor part of the year. The Brisbane-basedcruises may potentially present achallenge to Sydney in the cruise market.

    Table 3: Growth in Ship Sizes

    Impact of larger vesselson SydneyThe major challenge to Sydneymaintaining its role as a premier cruisedestination is the trend towards largercruise ships. The strategy of the cruiseindustry is to ensure that all large newships are developed to carry as manypassengers as possible.Growth in ship sizes in the lastthree decadesUntil recently, there was no questionabout the ability of Sydney to handlethe ships that were likely to visitAustralia. However, the increase in thenumber of Grand Class ships coming toAustralia, which are too high to fit underthe Sydney Harbour Bridge puts extrapressure on the facilities at Circular Quay.This requires the management of 2,600passengers disembarking and another2,600 passengers embarking on thesame day. It also includes dealing withadditional security requirements, which isnow a feature of all international travel.These challenges were highlighted bythe visit of the mammoth Q ueen M ary 2during the 2006/07 cruise season. TheQ ue en M ary 2 is too long for the CircularQuay terminal and instead docked at theNavy facilities at Garden Island.Sydney's ability to compete with othercruise destinations within Australia andoverseas will also depend on keepingpace with changes in the cruise marketand in the infrastructure needs of thenext generation of cruise ships.

    Gross TonnageCompany Decade Ship Passengers tonnage increaseCarnival 1980s Holiday 1,452 46,052

    1990s Imagination 2,052 70,367 53%2005 Carnival Liberty 3,000 110,000 56%

    Royal Caribbean 1980s Song of America 1,402 37,5841990s Splendour of the Seas 1,800 69,130 84%2006 Freedom of the Seas 3,600 160,000 131%

    T HE N SW C RU IS E M AR KE T 1 7

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    Re g io n a l N SW D e s tin a tio n sIn 2005/06 regional N SW w asvisited by 18 cruise ships and fours m alle r s hip s. C o ntin ue d e ffo rtsand investm ent to m ark et regionalNS W ports are anticipated toy ie ld fu rth er in cre as es in c ru is eb us in ess fo r th e S ta te .

    C o a s ta l c ru is in gA large number of the visits to regionaldestinations are from Orion, an expeditionship that has been introduced intoAustralia for coastal cruising by OrionExpedition Cruises. This 106-passengership is offering 5-star cruises to both thedomestic and international markets. Orionhas scheduled itineraries from Sydneyincorporating the NSW destinations ofYamba, Broken Bay,Jervis Bay and Eden.The visits to Eden are part of a 7 -dayitinerary from Sydney to Hobart, whichthen returns to Sydney with a 7-nightitinerary from Hobart to Sydney (aftera 7-night Tasmanian circumnavigationand a visit to Antarctica).Other ships plan to use the Tasmaniaroute, so Eden is in a prime location tobe part of a Tasmanian itinerary. Theincreased number of small cruise shipsoperating in northern Australia couldlead to the re-introduction of furthercoastal cruises. Insummer these couldbe between Sydney and far northQueensland, with destinations in NSW.

    right: Port Hunter, Newcastle

    18 T HE N SW C RU IS E M AR KE T

    S ho rt c ru is es fro m SydneyIn 2005/06 Jervis Bay and Port Stephensbenefited from a two-night cruise bySi lver Shadow. This was a charter cruiseorganised by a travel agent providingthe domestic market with an opportunityto cruise on a 5-star ship. There was alsoa two-night cruise from Sydney featuringLord Howe Island, Coffs Harbour andPort Macquarie, but passengers didnot go ashore.

    A 2006 circumnavigation voyage for28 days by the larger Dawn Pr incess ,carrying 1,950 passengers, also sold wellwithin two weeks. However, the DawnPrincess is too long to berth at Newcastleand Eden. Both destinations have thepotential to increase their berth lengthsto accommodate longer ships.

    C ir cu m n av ig atio n o f A us tra liaThe visits of Pacific Pr incess to Newcastleand Eden were part of a circumnavigationof Australia. Circumnavigation voyageswere popular in the 1960s and 70s andre-emerged in 2005. The circumnavigationin October 2005 using Pacific Pr incesswith 682 passengers was sold out in lessthan two weeks.

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    E xisting N SW C ru ise F acilitiesR ese arch ca rried out for th isD i sc u ss io n P a pe r in c lu d ede xa m in in g e xis tin g c ru is e fa cilitie sthroughout N SW , to determ ineth eir c urren t s tatus an d fu turep ot en tia l a s c ru is e d es tin at io ns .NSW cruise facilities, see below, wereevaluated in relation to their existingcruise facilities, using the following criteria:1. The destination must be able to accom-

    modate the vessels safely and guaranteethe booking up to two years ahead.

    2. There must be something at thedestination to attract passengers to visitthe destination - something unique,iconic, entertaining, and different fromneighbouring destinations.

    3. The population must be friendly andable to provide a warm welcome andsafe conditions for visitors, includinglong term community support.

    4. Return visits require reliability interms of providing a consistent levelof access, high quality of service andpassenger satisfaction.

    Destin ation Curren t EvaluationT able 4: E valuation and Potentia l o f Exis ting N SW Cruise Facilities


    Each destination was then assessedto determine its potential as a cruisedestination. The Action Plan beingformulated will address the actionsrequired to reach this potential.It should be noted that in some cases,infrastructure would not be justified onthe basis of the economic benefits ofcruise shipping. The infrastructure wouldneed to offer substantial benefits toother users to be justified.Table 3 outlines the evaluation andpotential of existing NSW cruise facilities.

    A repeat destin atio n fo r expedition ships.S ea cond itions can b e d ifficult.A pproval system in recen t years has varied and can bed if fi cu lt t o n eg ot ia te .S uffic ient tours for sm all num ber o f passen gers.L ack of com mun ity support for cru ise shippin g.R eq uires persistence to gain approvals to v isit.

    Byron B ay Potentia l for cru ise c ompanies opera ting exped ition shipsthat can handle the varying approval process.

    Y am ba andC la re nc e R iv er

    S mall sh ips only in low er reaches.W eather an d tid e dependent.A nchorage un like ly to appeal as crew has to rem ain onstand by whilst also operatin g ten ders for passen gers.W e ll-e sta blis he d to ur is m o rg an is atio n.S uffic ient tours for sm all num ber o f passen gers.

    L im ited potentia l beyond curren t ab ility to handle sm allsh ips an d S upery achts on ly in low er reaches.Im pact of rock reef a t en trance has significance to loca lA b or ig in al p eo pl e.G oodwood W harf has potentia l for sm all cru ise ships butd re dg in g r eq ui re d.P urpo se-b uilt ship co uld e sta blish C la re nc e R iv er c ruise sif there is a m arket.

    C offs H arbour C an hand le ships a t anchorage outsid e the harbour.W e ath er d ep en de nt.E xte ns iv e a ttr ac tio ns fo r p as se ng ers .S trong com munity support, well established tourism base .

    G ood poten tial for d ev elopm en t as cruise destin atio n b etw eenS yd ney an d B risb an e but w ould require sub stantia l capitalinves tm ent, which m ay be possib le as part of M asterp lan forH ar bo urs id e D ev elo pm en t ( cu rr en tly u nd er c on sid er atio n) .

    Port M acquarie Unsuitable fo r cruise ships. However, Superyachts curren tlyenter usin g the tid e.

    W ould not be suitab le fo r cruise ships w ithout d regdging.P oss ib le lo ng er te rm s ma ll po ten tia l fo r S up ery ac htssubject to capital expenditure on dredging and berths .

    South W est Rocks/ A ttractive destina tion for sm all sh ips w ith 200 passengersT ria l B ay using zodiacs.

    C an also provid e safe an chorage fo r S uperyachts.S uffic ient attractio ns for expeditio n ships or o ther vesse lsw ith sm all n um ber o f passen gers.S trong com munity support, w ith m ore than 100 volunteers.

    Potentia l to prom ote destina tion for sm all sh ips(2 00 p as se nge rs), p artic ula rly e xpe ditio n s hips e quip pe dw ith zod iacs or ten ders suitable for beach land ings.A lso good protected ancho rages for Superyachts onc oa st al p as sa ge s.

    Tuncurry /Forster Unsuitable fo r cruise ships and Superyachts . N ot suitab le for cruise ships or Superyachts in imm edia tefuture.

    20 T HE N SW C RU IS E M AR KE T

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    Destina tion Potentia lC u rr en t E v al ua ti onPo rt S tephens H as successfully handled expedition ships from

    a nch orag e u sin g te nd ers.E xte ns iv e a ttr ac tio ns f or p as se ng ers .S tron g com mun ity support for sm aller vesse ls.C oo pera tes w ell w ith N ew ca stle .

    Good po ten tia l for expedition and sm all cruise ships subjectto suitab le anchorages and channels being iden tified on theappropria te m aps or charts .P otentia l to pro vide m ulti-purpose floa ting berth outsidem arin a fo r cruise ships, S uperyachts and local craft.

    N ewcastle C ruise ships up to 240m under consid era tion.E xte ns iv e a ttr ac tio ns f or p as se ng ers .V ery stron g co mm unity support, established cruises hi p c o o rd i na to r.H as conducted interna tional m arketing since 2002.C oopera tes w ell w ith P ort S tephen s.

    C on tinue to prom ote for m id-size ships utilising extens iverange of sho re tours available . If m ajority of ships do ingS ydn ey -B risb an e route were a ttracted , could b e po ten tia lfo r 1 5+ v isits per year.A lso prom ote for m ilita ry and Superyachts, particularly ifo ld tug b erths re sto re d.P ote ntia l to ha nd le la rg er sh ips if c urre nt b erth ca n b e le ng the ne d.Hom e basing is poss ible , but is unlike ly to be taken awayfr om S yd ne y.

    B rok en B ay andH aw kes bury R iv er

    S mall ships o nly in low er reaches.S uffic ien t a ttraction s fo r passengers o f exped ition shipsan d ships w ith sm all n um bers o f passengers.

    S om e potentia l fo r sm all exped ition ships and S uperyachtso nly in lo we r rea che s. P urp ose -b uilt s hip c ou ld re -e sta blis hH aw ke sb ury R iv er c ru is es .

    Sydney One of few Australian ports ab le to accomm odatem ega c ru ise ship s.

    P re mie r cruise p ort fo r A ustralia .C an handle a ll c lasses o f cruise ships from sm allest throughto large r v es sels . E xte nsiv e a ttra ctio ns fo r pa sse nge rs.S tro ng c om m un ity s upp ort.

    Wol longonglP ort K em b la

    W hile the port is capab le of handling larger cruise vesse ls,curren t port opera tions an d lack of passenger facilitiesm ake this location unsuitable as a po rt o f call for cru isevesse ls at th is tim e.E xte ns iv e a ttr ac tio ns f or p as se ng ers .S tro ng c om m un ity s upp ort.

    A ble to hand le largest cru ise ships, so there is som e po ten tialas a lte rn ativ e po rt clo se to Sydney, but would require m ajorredevelopm ent to ca ter for base port opera tions .P roxim ity to transport link s to S ydney A irport and S ydney 'swestern and southern suburbs is a key facto r.P roposed m arina developm ent a t Shellharbour could bedesign ed to accom mod ate S uperyachts.

    Jerv is Bay Som e potentia l fo r prom otion fo r expedition and possiblym id -siz e v es se ls (up to 6 00 p as se nge rs ).

    Suitab le fo r cruise ships up to the capacity of the navy buoy.T wo a ltern ativ e a nc ho ra ge s a re av aila ble .S uffic ien t a ttraction s fo r passengers o f exped ition shipsan d ships w ith sm aller num bers of passen gers .S tro ng c om m un ity s upp ort.

    U lladulla H arbour too sm all for cruise ships, but m ay be suitab le fo rSuperyachts up to 60m long.T endering from an anchorage in the bay m ay be possiblein fin e weather, but is exposed and could not be guaranteedfo r use at a ll tim es.D ue to clo se proxim ity to Jervis Bay and Port Kem bla,it is unlike ly to be se lected by cruise com pan ies .S tro ng c om m un ity s upp ort.

    M ajor upgrading of m ain wharf accom modating vesse lsup to 60m com ple ted . (Superyachts and large com mercia lf is h in g v e ss e ls .)Harbour M aster P lan is consid ering harbour expans ion withim pro ved w av e c lim ate.

    Eden Two berths available - Snug Cove for sm all sh ips and then avy w harf for m id-s ize ships.A ttractio ns in clude tours for up to 45 0 passengers.V ery stron g co mm unity support.E stablished cruise ship co mm ittee . H as b een m arketingin tern atio nally sin ce 2 00 2.

    M ajor upgrading of m ain wharf accom modating vesse lsup to 60m com ple ted . (Superyachts and large com mercia lf is h in g v e ss e ls ).Harbour M aster P lan is consid ering harbour expans ion withim pro ved w av e c lim ate.

    L ord H owe Island D ependen t on sea cond itions for land ing passengers .C urrent po licies by L ord Howe Island Board do note nco urag e c ruise sh ips.

    A ttra ctiv e d estin atio n o f in te res t to so me c ruise sh ips. H ow ev er,se a c on ditio ns an d c urre nt p olic ies fo r c ru ise ship a ctiv itie s m ak eit a n u nre lia ble d estin atio n tha t is d ifficu lt to m ark et.

    T HE N SW C RU IS E M AR KE T 21

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    N SW C ru ise M arke t - A Sn apsh o tT his D is cu ss io n P ap er h ash ig h li gh te d c o m pr eh e ns iv ere se arc h in to th e w orld w id ecru ise sector and N SWd e st in a ti on s . T h e f ol lo w in gs nap sh ot s um m aris es th em ajor in fluences on and futurec h al le n ge s a n d o p po rt un it ie sfor the N SW cruise m ark et.

    Sydney AirportThe majority of international cruisepassengers arrive in and depart fromAustralia via Sydney.SydneyAn icon - particularly in the USA,Sydney isthe only place in Australiawhich has high recognition, hence it isa major attraction. Sydney is a largesource market for cruise passengers.ClimateCruise companies from the northernhemisphere tend to direct their vesselsand passengers to warmer places.Tourist attractionsIn addition to Sydney, NSW is hometo a range of attractions includingworld heritage areas, national parks,rainforests, wineries, and wildlife.SafetyNSW provides a high level of safetyfor both cruising and shore excursions,and a good standard and hygieneof facilities.

    right: Pacific Princess, Eden .


    Growth of world cruise marketThis is the fastest growing sector ofthe tourism industry, achieving annualgrowth of more than 8 per centconsistently since 1980s. This has ledto overcrowding at popular destinationsand caused cruise companies to seekalternatives likeAustralia. Australia is apopular exotic destination particularlywith North Americans and Europeans.Potential to develop cruise marketNSW's current share of the world cruisemarket offers substantial room for growth.

    SuperyachtsSydney isa natural magnet for Superyachtsand there are also opportunities at someregional destinations.Need for knowledge of NSWdestinations by cruise executivesMore cruise companies could visit themany destinations available in NSW.It is essential to keep cruise companiesaware of suitable destinations for theirships and passengers, without swampingthem with irrelevant information.

    The safety, common language, friendliness Strategic alliancesand similarity of food make Australia apopular choice for North Americans.River cruisingMay be scope for development of cruiseson the Clarence Riverand the reintroductionof cruises on the Hawkesbury Riverusingappropriately designed ships.Expedition cruisingMost regional ports in NSW are best suitedto the smaller expedition cruise shipsequipped with zodiacs or suitable tendersfor landing on beaches or at small jetties.Coastal cruisingRecent success of the re-emergenceof circumnavigation cruises plus theincreased number of small cruise shipsoperating in northern Australia could leadto the reintroduction of coastal cruises.Circumnavigation voyages of AustraliaThe popularity of these cruises re-emergedin 2005 with a circumnavigation voyagesold out in less than two weeks of beingoffered. A 2006 circumnavigation cruisewas also offered.

    Destinations, tourism organisations,ground handlers, cruise shipping agentsand individual cruise companies mustwork together to ensure complementaryshore experiences are offered as wellas quality meet, greet and farewellprograms. Lack of airline capacity forbase porting in Australia is a majorproblem, particularly for five-star cruisepassengers who usually prefer businessor first class travel.

    F or further in form ation aboutres ea rc h d eta ile d in th isD is cu ss io n P ape r, o r to co mm en tabout fu ture opportun ities forN SW ports and cru ise shipd es tin at io ns , p le as e c on ta ctcru ise@to u r ism.n sw .g o v .au .

    An i ni ti at iv e o f T o ur ismNew S o ut h Wa le so n b e ha lf of t he N SW G ov er nm e nt .

    mailto:[email protected]:[email protected].
  • 8/7/2019 cruise tourism benefits



  • 8/7/2019 cruise tourism benefits