A major cruise ship company will be pulling several of its cruises from Melbourne, in protest of the Victorian government’s decision to increase port fees.
Carnival Australia’s Princess Cruises will visit other interstate docks from 2025 following the Victorian government’s move to increase port fees.
The fees will come into effect on January 1st and will increase by 15 per cent to fund the ongoing maintenance of Station Pier.
The cruise company’s chief strategy officer Teresa Lloyd said in a statement: “We cannot continue to plan voyages to Melbourne should unexpected and substantial fee increases be imposed by port operators.”
For the 2023-2024 season, it is estimated the cruise company will bring in more than 65,000 people into Port Melbourne and beyond.
Minister for Ports and Freight Melissa Horne told reporters the 15 per cent tax hike would fund ongoing maintenance to Station Pier.
“We have got a historic pier down at Station Pier, it’s beautiful and it’s much beloved by the community, it needs maintenance,” she said.
“That’s why Ports Victoria have increased their fees by a really modest 15 per cent, from $28.50 per passenger to $32 per passenger.
“Fees have not increased in two-and-a-half years and we need those fees to be able to maintain this beautiful and historic pier.”
Cruise tourism is estimated to bring a total economic benefit of $379.5 million per year in Victoria, according to the latest Cruise Lines International Association (CLIA) Value of Cruise Tourism report.
CLIA managing director Joel Katz said it was just another major blow to businesses.
“Australia already has some of the highest operating costs in the world for cruise lines and further increases directly impact the viability of operations,” Katz said.
“Cruise lines paid $227 million in fees and charges to Australian ports and governments during 2022-23, which is almost 20% of their spending in this country.
“This ultimately impacts holidaymakers and makes Australia an expensive country for cruise operators.”
Tourism & Transport Forum Australia chief executive Margy Osmond said it was “deeply disappointing” that Carnival Australia would no longer sail from Melbourne.
“The loss of Princess Cruises and Cunard from Victoria’s cruise sector is a major blow to the state’s tourism industry. These brands have been instrumental in attracting visitors and generating economic benefits for the state,” she said.
“We must address cruise ship operators concerns and ensure they have the support needed to prevent further erosion of the cruise industry.”
Osmond called for “urgent collaboration” between the state government and cruise companies to secure the future of cruising in Victoria.
“The value of cruising cannot be underestimated, having contributed nearly $380 million to Victoria’s economy in 2022-23 and helping support jobs across tourism, hospitality, retail and related sectors.”
However, the state government believes the cruise industry is “well and truly” alive in Melbourne.
“Let’s get a bit of perspective, it’s two ships in the entire season,” Horne said.
“We have got 126 ships booked for this financial year alone and we are taking bookings for 25/26.”
The Spirit of Tasmania recently moved its main dock from South Melbourne to Geelong on October 23 last year.
(9 News / Sky News)
