Cruise Lines International Association (CLIA) has blasted a 15% tax
hike for passengers arriving at Melbourne’s cruise terminal that will
see Princess Cruises and Cunard no longer sailing from the Victorian
city from 2025-26.
CLIA said the loss of major international cruise operators from
Melbourne will undermine an industry worth almost A$380 million
(US$251m) to the local economy and would drive tourism to other parts of
Australia and overseas.
Carnival Cruise Lines, which has Princess Cruise Lines in its
portfolio, said the decision to bypass Melbourne and homeport its ships
at other destinations had been taken reluctantly, but had been driven by
the Victorian Government’s port tax increase from A$28.50 (US$19) per
passenger to A$32 (US$21) per passenger.
The Victorian government said the tax increase will help to maintain Melbourne’s historic Station Pier cruise terminal.
CLIA Australasia managing director Joel Katz said, “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 the loss of two major ships from Melbourne would cost the
city 23 home-port visits and up 69,000 cruise guests, “with negative
impacts for local businesses including tour operators, hotels,
retailers, restaurants and bars, and a host of industry suppliers
including farmers and food producers”.
“To sustain and foster
cruising’s presence in Australia, there needs to better alignment and
rationalisation of fees, taxes and other costs, to make us competitive
with other countries,” Katz added.
Carnival cruise company's chief strategy officer Teresa Lloyd said
the decision to no longer have ships dock in Melbourne was not made
lightly. “We love Melbourne and so do our guests,” she said.
"We want to be in Melbourne and remain open to finding a long-term
solution together with Ports Victoria and the Victorian government."