New Zealand’s cruise industry is facing a steep decline, with port bookings expected to fall by more than 40% in the 2025/2026 season compared to the previous year’s peak.
While the global cruise market is flourishing, New Zealand’s sector is experiencing a troubling downturn, sparking concern among industry leaders and tourism operators.
Bookings in Freefall, Passenger Numbers to Drop Below 2017 Levels
The New Zealand Cruise Association (NZCA) has raised serious concerns over the steep decline in cruise bookings, warning that the sector’s appeal is dwindling.
“The 2025/26 forecast reinforces the very real concerns NZCA has been raising since the post-Covid restart,” the association stated. “Bucking the global trend of dynamic cruise tourism growth, New Zealand’s booking momentum has slowed significantly, and while final itineraries are still being confirmed, current projections indicate a major downturn.”
The expected decrease in passenger days, dropping below 2017/2018 levels, highlights the fragile state of the industry’s recovery. This downturn is not only damaging for cruise operators but also for local businesses that rely heavily on cruise tourism.
Regulatory Uncertainty and Biofouling Risks Create Market Instability
The decline in New Zealand’s cruise sector is driven by a number of factors, with biofouling regulations and changing government policies among the top concerns.
While environmental restrictions have led to fewer ships being turned away in recent seasons, uncertainty continues to cloud the industry’s future.
“Given that cruise lines need to organise years in advance, the constant changing of NZ cruise regulations, as well as a looming possibility of a Milford Cruise ban, make it difficult for lines to plan ahead,” the NZCA said. Uncertainty over port access and operating conditions is making it harder for cruise lines to commit to New Zealand.
High Costs and Executive-Level Concerns Deter Investment
New Zealand’s reputation among cruise executives is taking a hit, with logistical difficulties, regulatory obstacles, and escalating costs painting the country as a challenging place for business. “New Zealand is now the most expensive place in the world for a cruise ship to visit,” the NZCA reported.
High fees from central government agencies, port charges, and regional authorities are making it increasingly hard for cruise lines to justify docking. Broader economic issues, such as the weakening Australian and New Zealand dollars, along with geopolitical disruptions, have further exacerbated the situation.
Additionally, with Australia’s cruise capacity also shrinking, New Zealand is experiencing a decline in traffic, as many cruises to the country start in Australian ports.
Loss of a Homeported Ship Further Weakens Market Position
The situation has been exacerbated by the loss of a homeported vessel. P&O’s Pacific Explorer, which previously based itself in New Zealand for parts of the year, has been retired following the end of P&O Australia’s operations. As a result, Carnival is now focusing its efforts on Sydney and Brisbane, leaving New Zealand without a major homeported ship.
This shift significantly impacts the country’s ability to attract cruise lines, as homeported vessels typically generate higher passenger numbers and increased tourism revenue. Without a dedicated cruise presence, New Zealand is at risk of slipping further down the priority list for international cruise operators.
NZCA Pushes for Urgent Action
The NZCA is stepping up its efforts to address the sector’s challenges, engaging in talks with the government, especially with the Tourism and Hospitality Minister.
NZCA CEO Jacqui Lloyd has travelled to Miami, where she is focusing on Auckland’s planned port upgrades in a bid to promote New Zealand’s cruise potential. The association will also attend the Seatrade Miami conference in April, bringing a record-sized delegation to engage directly with cruise leaders. “The organisation is so concerned they are sending a big delegation to the Miami cruise conference to tackle the cruise lines in their home town to try and persuade them to return,” the NZCA noted.
Conclusion
New Zealand risks becoming a low-priority destination unless decisive action is taken. Industry experts stress the need for greater collaboration between the Australian and New Zealand cruise markets, as well as intervention from the government to address cost concerns and regulatory hurdles.
“The sharp drop in forecast bookings—over 40% lower than our bumper 2023/24 season—has many in the industry deeply concerned about the future,” the NZCA stated. If New Zealand fails to act, it could continue losing ground to other destinations that offer a more attractive and cost-effective environment for cruise operators.
The coming years will be critical in determining whether New Zealand can reverse this decline. The outcome of the NZCA’s efforts in Miami and ongoing discussions with government officials may play a decisive role in shaping the future of the country’s cruise industry.