| Cruise outlook “uncertain”

THE Independent Pricing and
Regulatory Tribunal of NSW has
raised concerns for the long-term
outlook for the cruise industry,
saying in a newly released report
that growth in recent years “is
uncertain” to be maintained.
The whopping 108-page draft
report, entitled Maximum fees
and charges for cruise ships in
Sydney Harbour makes a number
of observations and suggestions
relating to site occupation
charges.
“The cruise industry contributes
to local economies through
employment and spending from
cruise operators, passengers and
crew. Our recommendations on
site occupation charges have the
potential to affect the growth and
viability of the cruise industry &
the benefits this industry provides
to the NSW economy,” it said.
The document reconfirms that if
growth in the sector is sustained,
a new cruise terminal east of
the Sydney Harbour Bridge “will
be required”, with IPART NSW
saying the naval facilities at the
southern end of Garden Island is
the most “preferred location…if
appropriate arrangements can be
made with the Australian Govt”.
IPART NSW said, in principle, a
new unrestricted terminal should
be funded by the cruise industry.
The tribunal suggested an
arrangement whereby cruise
operators agree to foot the bill
for a minimum number of visits
per season for a fixed term would
be a suitable option for a new
passenger terminal in Sydney.
“If the cruise industry requires a
new facility then it is appropriate
that they bear demand-side
risks,” the report said.
It found that based on a list
of 22 popular cruise ports in six
countries where Royal Caribbean
turned around Vision Class
vessels, “Sydney had the highest
aggregated costs”.
Other suggestions raised in
the study include looking at the
adoption of an ‘evening slot’ for
ships to berth in Sydney.
“To provide an incentive, we
consider the Port Authority
should negotiate discounts with
cruise operators where the
take up an evening slot leads to
improved utilisation,” the study
reported.
The preliminary report also
determined the Port Authority
“is operating and maintaining its
cruise terminals in an efficient
manner”.
Elsewhere, the study said the
Port’s discounts to the cruise
industry on navigation charges
are too high.