The cruise industry has raised concerns about a sudden increase in border fees in New Zealand, warning that it could lead to fewer ships visiting the country.
New Zealand’s Customs and the Ministry for Primary Industries have proposed new border levies that will take effect from December 1, 2024. Public consultation on these changes began in mid-July and closed on August 9.
Under the proposal, customs fees for cruise ship passengers would rise by 88%, from $11.48 to $21.54 per traveler. In contrast, fees for air travellers and other sea travellers would decrease. The New Zealand Cruise Association, led by Chief Executive Jacqui Lloyd, argues that this short-notice increase could hurt cruise companies, as trips are often planned over a year in advance.
With an expected 279,000 cruise passengers this season, the fee increase could cost cruise operators an estimated $2.2 million. This is a significant burden on an industry still recovering from the pandemic, where profit margins are already slim. Lloyd also pointed out that the rising costs of operating in New Zealand have already discouraged some cruise lines, with a predicted 15% reduction in visits this season and possibly a further 15-20% drop in the 2025/2026 season.
Lloyd emphasised that the cruise sector needs at least a year’s notice for fee changes to be fair, but this request has been largely ignored by the government. The cruise industry is worried that these increasing costs could make New Zealand a less attractive destination for future travellers.
