Cruise lines must bear sudden fee hikes or stop coming to New Zealand – representative

The Silver Shadow cruise ship docked in Taranaki last cruise season.
photo: supply

The cruise industry says the number of cruises visiting New Zealand will drop if border taxes are increased at short notice as planned.

The cruise industry says the proposed border tax changes came with no advance warning and could cost businesses the chance to visit the cruise sector.

Customs and the Ministry for Primary Industries propose New border feeswhich will come into effect on December 1. The consultation began in mid-July and the public comment period closed on August 9.

Under the proposal, border tax rates would be reduced for all air passengers and sea passengers not arriving by cruise ship.

In contrast, travelers arriving by cruise ship will face an 88 percent increase in customs fees, from $11.48 to $21.54.

New Zealand Cruise Association chief executive Jacqui Lloyd said it would be cruise operators rather than passengers this summer who would be hit as cruise tickets were sold at least 12 months in advance.

With 279,000 passengers expected this quarter, Lloyd’s said the total increase in fares per passenger would be $7.82, which would cost cruise operators about $2.2 million.

She said it was an “extraordinary” increase for a reeling industry still recovering from the pandemic. Carnival Cruise Line is one cruise operator that has “very publicly” acknowledged its $30 billion deficit.

“Post-pandemic…cruise margins are extremely thin and any unbudgeted costs will not offset profits. This cost cannot be passed on to passengers because they have already paid for it.

“Cruise lines are happy to increase fees, but it needs to be done during a booking period that works for travel.”

Lloyd said cruise lines were already irritated by rising operating costs in New Zealand.

“We expect production to fall by 15% next quarter and by another 15% to 20% in the 2025/2026 quarter.”

The cruise industry has been “very surprised” by the number of fee increases at a time when the country needs to lure tourists back.

from October 1 Visitor visa fees will increase from $190 to $300, while the International Visitor Protection and Tourism Tax will also be increased. Can jump From $35 to $100.

“That’s a $400 fee before you even buy the cruise or the flight,” Lloyd said.

“The Government has been very public about trying to increase visitor numbers and visitor spending. We need a blanket approach from the Government to deal with costs and taxes. If you look at each one individually they are reasonable, but when you put them together the increased cost of coming into New Zealand is quite expensive.”

Lloyd said the cruise line association submitted a proposal during a three-week consultation period and had also engaged with the minister for tourism and hospitality and the minister for customs.

Lloyd added that the industry had been stressing to the government that a year’s notice of changes was needed, so the four-month notice period was “disappointing”.

“We kept sending the message that cruise ships needed to take a 12-month hiatus, but people just didn’t listen.”