Cruise industry expects fall

By SIMON HENDERY

Reluctance by American holidaymakers to travel far from home is expected to hit the local cruise ship industry this summer.

Economic impact research commissioned by Cruise New Zealand and Tourism New Zealand has concluded that the cruise ship industry contributed $172 million in direct expenditure to the economy last summer. But that figure is expected to fall to $125 million this summer as the number of ship visits drops from 62 to 44 and passenger numbers fall from 43,000 to 38,000.

Cruise New Zealand chairman Craig Harris said the drop was expected because 82 per cent of cruise ship passengers were North Americans.

"The continuing global unrest has meant many Americans are reluctant to travel too far from home, and more cruise liners are basing themselves close to the American mainland," he said.

The cruise market had grown 400 per cent in the past decade and this season's decline was expected to be short-lived, with a return to last summer's levels in the 2004-05 season.

The research, by consultancy Market Economics, estimated that cruise expenditure generated 2660 full-time jobs.