Australia’s Cruise Industry Sinks: Why Major Lines Are Abandoning Our Shores as Record Numbers of Aussies Take to the Seas
- A record 1.45 million Australians took an ocean cruise in 2025, but the industry is facing a crisis as major international cruise lines abandon our shores.
- Australia is losing tourism to other countries, with the industry generating a lower economic output of $7.32 billion in 2024-25 compared to $8.43 billion the previous year.
- High port charges, regulatory complexities, and infrastructure constraints are driving cruise lines away, with experts warning that Australia is becoming “uncompetitive as a destination”.
- Despite this, Aussies are still keen to cruise, with the average age of cruisers falling to 47.3 years and millennials showing strong interest in the industry.
The latest figures from Cruise Lines International Association (CLIA) show that a record number of Australians are taking to the seas, but the industry is facing a crisis as major international cruise lines abandon our shores.
In 2025, 1.45 million Australians took an ocean cruise, a 9.5 per cent jump on the previous year. However, this growth is not enough to offset the decline in the number of ships operating in Australian waters.
According to CLIA Australasia executive director Joel Katz, the industry is facing significant challenges, including high port charges, regulatory complexities, and infrastructure constraints. “The lack of competitiveness in Australia is driving cruise lines to look for more attractive destinations,” Katz said.
“We need a national action plan to address these issues and ensure that Australia remains a viable option for the cruise industry.”
The decline of the Australian cruise industry has been exacerbated by the departure of major international cruise lines.
Richard Branson’s Virgin Voyages cancelled its plans to return to Australia after just one season, while Carnival Corp-owned Cunard has announced that it will no longer homeport in Australia.
Disney Cruise Line has also abandoned its Australian operations after just three seasons.
So, why are cruise lines opting out of Australia? According to Flight Centre Travel Group’s Cruiseabout general manager Brad Kennedy, it all comes down to cost and certainty.
“Australian port charges are among the highest in the world, and regulatory settings like the Coastal Trading Act exemption being renewed annually, rather than locked in, make it hard for cruise lines to commit billion-dollar ships years in advance,” Kennedy said.
The Caribbean and Mediterranean are booming, and US-based mega lines can fill ships closer to home without the cost of repositioning to the Southern Hemisphere.
Currency is also a factor, but a more minor one. A weaker Australian dollar increases operating costs for US dollar-based cruise lines.
Despite the challenges facing the industry, there are still opportunities for growth.
The Mediterranean, Japan, Alaska, and Northern Europe are emerging as popular destinations for Australian cruisers, with many opting for fly-cruise holidays to explore new parts of the world.
The innovation happening in these regions is “world-class”, according to Kennedy, with new ships and itineraries being launched regularly.
Analysis: What This Means for Australia
The decline of the Australian cruise industry has significant implications for our economy and tourism sector.
The industry generates billions of dollars in economic output each year, and the loss of major cruise lines will have a ripple effect throughout the economy.
The challenge for Australia is to address the issues driving cruise lines away and find ways to make our shores more competitive.
Security analysts say that the decline of the cruise industry also has implications for national security.
With fewer ships operating in Australian waters, there is a reduced presence of security personnel and equipment, which could leave our borders more vulnerable to threats.
Law enforcement insiders warn that the decline of the industry also has implications for public safety. With fewer ships operating in Australian waters, there is a reduced presence of law enforcement personnel, which could leave our communities more vulnerable to crime.
Industry observers believe that the key to reviving the Australian cruise industry lies in addressing the issues driving cruise lines away. This includes reducing port charges, simplifying regulatory settings, and investing in infrastructure.
By doing so, Australia can regain its competitiveness and attract more cruise lines to our shores.
As the world’s largest cruise ship, Royal Caribbean’s Hero of the Seas, prepares to launch in 2027, it remains to be seen whether Australia will be able to regain its place as a major cruise destination.
One thing is certain, however: the future of the Australian cruise industry hangs in the balance.
