Tax to hit cruise ship business

BOOM TIME: The Bay of Islands' upcoming cruise ship season is expected to set records in passenger numbers - more than 100,000 - as well as economic impact. PHOTO/WAITANGI TREATY GROUNDS

The booming cruise ship industry is forecast to pump $22.3 million into Northland's economy this coming season, a jump of almost 70 per cent from last season's $13.4m.

The increase, as forecast in a Cruise New Zealand economic impact report, is due to more and bigger ships visiting the Bay of Islands.

The report also predicts a near-doubling of cruising-related jobs in Northland, from 273 last season to 473, but warns that those gains are at risk from a new tax on travellers.

The 2015-16 season is predicted to bring 56 ships carrying 110,000 passengers to the Bay, smashing the previous record set in the Rugby World Cup year of 2011-12 when 52 ships brought 78,000 passengers.

The report ranks Northland in sixth place for income generated by cruising, behind Auckland, Wellington, Canterbury, Otago and Bay of Plenty.

The region has climbed one place since last season, overtaking Hawke's Bay.

Auckland continues to reap the lion's share of cruising's benefits with $190m of the forecast total $436m "value added" economic impact for 2015-16. Many of the jobs, 3217 out of the 8365 total, are also concentrated in Auckland.

Anika West, of the Bay of Islands Cruise Ship Committee, said improvements were being made each year to better capitalise on the cruise ship influx and increase Northland's share of the pie.

One reason the Bay was "missing a bit of the market" was its lack of a website targeting cruise ship passengers, particularly those who organised their own activities on land.

That was being rectified with a new website detailing everything a cruise ship passenger needed to know, from restaurants and attractions to wi-fi and ferry times.

Although not the biggest player in dollar terms, Mrs West said the Bay of Islands rated highly for passenger satisfaction. As a cruise ship destination it was second only to Milford Sound.

That was in part due to the Ambassador Scheme, in which disembarking passengers were greeted by volunteer "ambassadors" answering questions and giving directions.

The Cruise NZ report predicts continued growth in 2016-17, thanks largely to the Australian and Chinese appetite for cruising, but is less rosy after that.

General manager Raewyn Tan said the full effect of the new Border Clearance Levy, a travel tax introduced in the 2015 Budget, would be felt in 2018-19.

Companies were planning to reduce home porting in New Zealand and cost-conscious lines could quit the country altogether, costing up to 1600 jobs and $85m in income.

Ms Tan said a large percentage of wealth generated by cruising went to the regions so it was vital the Government supported the industry's growth instead of erecting barriers.

The Bay's first ship of 2015-16 will be the 2670-passenger Diamond Princess on October 9. The world's biggest cruise ship, the 6500-passenger Ovation of the Seas, is due in January 2017.