Fear of flying dampens cruise industry

By SIMON HENDERY tourism writer

Americans may love cruising but their new-found fear of flying to meet the boat has sunk hopes of another record cruise season in this country.

Direct spending by the cruise ship industry in New Zealand this summer is expected to reach $172 million, slightly down on last year's record $181 million but still significantly up on 1999-2000's $77 million. The more than 20 ships expected to visit will bring 55,000 passengers into the country, compared with last year's record of 57,000.

The figures come from a report commissioned by Cruise New Zealand before the Bali bombings, which the industry body says could affect some cruise companies' schedules.

Tourism New Zealand product marketing manager Vaughan Schwass told a meeting of tourism operators in Auckland last week that after the September 11 attacks last year, cruise companies had altered their schedules this year to put ships in ports that Americans can drive to.

On the positive side, the number of five- and six-star vessels visiting New Zealand was increasing. "We think this is encouraging because they [passengers] tend to spend more when they arrive at their destinations," Schwass said.

Floating luxury apartment block The World is scheduled to make its first visit to New Zealand in February, to coincide with the America's Cup.

Schwass said Americans were traditionally eager cruisers - 14 million took at least one cruise between 1998 and 2000. For 53 per cent of them it was the only type of holiday they took.

The US cruise industry has been hit hard by the September 11 terror attacks but has undertaken a strong marketing drive to encourage holidaymakers back on to the water.

One concern for the New Zealand industry was that despite the US marketing drive - which involves companies offering cut-rate cruises and free connecting flights - many potential passengers had seen their disposable income knocked by the downturn in the US sharemarkets.

Cruise New Zealand chairman Craig Harris said this country also had to face up to infrastructural issues related to more large ships visiting our ports.

When it visits for the first time next season, the giant 3000-passenger, 290m-long Star Princess will take up almost the entire length of Auckland's Princes Wharf.

Six cruise ships will be forced to berth at the less glamorous Queens Wharf while in Auckland this summer because on several days more than one ship will be in port at the same time.