New Cruise Tax Hike Draws Strong Opposition

Cruise industry leaders in New Zealand are seeking talks with government officials over a planned sharp increase in border processing fees for cruise ship passengers. They say it would amount to a massive 88% increase. It is expected to take effect from December 1.

NZ Cruise Ship Traffic on the Decline Partly Due To Costs

Cruise Lines International Association Australasia warns this would severely impact New Zealand’s standing as a cruise destination. The New Zealand Cruise Association forecasts a 22% decline in cruise ship visitors for the 2024/25 season, even without this extra cost. The trade groups say margins are already extremely thin for New Zealand cruises.

Furthermore, they say that, with a December 1 start, cruise lines are on the hook for the costs applicable to guests who have already booked and paid for their cruise. CLIA claims the country is already one of the most expensive to operate in.

New Zealand Cruise Association CEO Jacqui Lloyd says the fee hike could cost cruise lines an estimated NZ$2 million extra for the 2024/25 season.

“Cruise lines carefully plan and budget their operations two to three seasons ahead, leaving no room to pass unexpected cost increases to passengers. “These financial burdens fall squarely on the cruise lines,” she added.

Trade Groups Demand Talks with Government Officials

Both the CLIA and the NZCA are pushing for a “more constructive process” where cruise lines have a voice and can highlight the economic impact of cruising, especially in New Zealand’s more remote ports of call.

“The increase will exacerbate declines in passenger numbers, negatively impacting regional tourism,” the NZCA stated.

The trade groups plan to discuss cruise lines’ grievances with the New Zealand Customs Service and government officials. Currently, the border processing fee per cruise ship passenger is NZ$11.48, and it is set to rise to $21.54 in December. There is also a per-passenger biosecurity levy of NZ$10.58 payable.