Thursday, 18 June 2020

Cruise industry facing a crisis in Australia

The ongoing shutdown of the cruise industry in Australia - and possible resistance to resuming cruising by consumers - is creating a potential crisis in the sector. 

The Cruise Lines International Association Australasia has warned thousands of jobs are at risk over the cruise ship ban.


Analysis commissioned by CLIA says the suspension will cost Australia more than $1.4 billion in lost economic activity by mid-September and put nearly 5,000 jobs at risk.

Research by AEC Group says the cruise shutdown has already led to $500 million economic loss to the end of May.

If the cruise suspension continues beyond the current end date of September 17 and impacts the summer high-season, job and economic losses will be significantly worse.

It forecasts an additional 13,000 jobs could go due to economic losses of $3.8 billion. This despite the fact that very few crew members are Australians.

"Cruise tourism is worth $5.2 billion a year to the Australia economy and supports more than 18,000 jobs," CLIA Australasia managing director Joel Katz told Travel Mole

"The suspensions that cruise lines and governments have enacted worldwide have been the right response but there is an enormous cost to those who make up the wider cruise community. 

"There are many thousands of travel agents, tour operators, ports and destinations, technical support providers, and food and beverage suppliers who support the cruise industry and are suffering enormous financial stress."

CLIA has written to the Australian Government to emphasise the importance of the cruise industry to the job market and the wider economic value to a number of indirect industries that it supports.

It has also requested an extension to the JobKeeper scheme for travel agents and t travel industry workers.

"CLIA cruise lines are using this time to ensure we learn as much as possible from Covid-19 and develop the best possible response," Katz added.

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