Demand for cruising among South Australians has seen a remarkable surge, with RAA Travel reporting a near tripling of sales compared to pre-COVID figures during the last financial year. According to data, cruise sales increased by 79% in the 2023-24 financial year, which is 198% above the levels recorded in 2019. This uplift suggests that for many local travellers, cruising offers a cost-effective and hassle-free vacation alternative.
Gina Norman, RAA Travel’s General Manager, highlighted the growing appeal of cruises. “Cruising is one of, if not the fastest growing category of travel right now,” said Norman. She noted the appeal comes from the convenience and value of the vacation packages, which include organised schedules that ensure relaxation. “It’s not just the traditional demographic either – we’re increasingly seeing young groups and couples book a cruise to celebrate a milestone like a 21st or anniversary, or just to get away together and hang out,” she added.
However, the industry faces potential challenges in Adelaide due to rising port fees on the eastern seaboard, including a significant 15% increase in Victoria. Such increases could make South Australia a less attractive option for cruise lines. This comes after decisions by ship operators, such as the Carnival Cruise Line-owned P&O, which closed its Australian operations and retired the popular Pacific Explorer. This ship had included Adelaide in eight of its last season sailings. Additionally, Princess Cruises and Cunard are withdrawing or reducing their sailings from Melbourne starting the 2025-26 season.
Despite these setbacks, the cruise industry’s contribution to South Australia’s economy remains substantial. “Last year, the cruise industry generated $215 million for the South Australian economy and supported more than 700 local jobs,” Norman stated. She further explained that the economic benefits extend beyond the metropolitan areas, positively impacting regional hospitality businesses and tourism operators.
Norman sees these challenges as opportunities for South Australia to enhance its appeal to cruise lines by investing in infrastructure and forming strategic partnerships. Proposals include upgrading the Outer Harbor train station and investing in sustainable shoreside power facilities which would significantly attract cruise lines. RAA Travel also advocates for the expansion of the Port Adelaide Passenger Terminal’s capabilities to handle larger cruise ships and improving collaboration with governments in Western Australia and Tasmania to develop a comprehensive cruise season across the south of Australia.
These initiatives are a part of a broader vision supported by RAA to ensure the state continues to capitalize on the lucrative cruise market. With plans for infrastructure enhancement and regulatory review, South Australia might increase its competitiveness as a premier cruise destination. The organisation also campaigns for a Federal Government review of the Coastal Trading Act to eliminate tax disincentives that currently affect direct routes to Adelaide.
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