Navigating the future: Unlocking Australia’s cruise potential

At the Australian Cruise Association Conference in Fremantle earlier this month, Scott Lovett had the privilege of facilitating the ‘State of the Australian cruise industry and future outlook’ panel with leaders from across the sector—Peter Little (Carnival Corporation), Gavin Smith (Royal Caribbean Group), Ben Angell (Norwegian Cruise Line) and Jill Abel (Australian Cruise Association). The panel's focus was clear: how do we convert strong demand and global momentum into durable, sustainable growth for Australia’s cruise economy? 

Coming off the pandemic, the Australian cruise story is one of remarkable growth. Australians’ appetite to sail, both domestically and internationally, has rebounded faster and stronger than many expected, mirroring surging demand in the US and Europe. Over 80 new cruise ships are under construction globally slated for deployment over the next five years. The question isn’t whether the market will grow; it’s whether Australia will capture a proportionate share of that growth.

The constraint set: regulatory uncertainty and rising costs

Despite this demand, the Australian cruise sector faces mounting pressures. Cruise lines are navigating a more uncertain regulatory environment and higher operating costs here than in competing destinations. That combination dampens deployment decisions and squeezes itineraries, particularly at the regional port level where margins are tighter and logistics are more complex. The recent exit of the P&O brand from Australia underscores the reality: capital is finite, and ships will go where returns (and certainty) are highest.

To retain and attract cruise investment, Australia must offer a policy environment that is certain, competitive, and collaborative. Certainty means aligning regulatory frameworks with global planning cycles, which often span four years or more. Competitive settings require commercial terms that reflect the realities of a highly contested global market. Collaboration demands a unified approach across government, industry, and tourism bodies.

Sustainability as a strategic advantage

Cruise lines are leading the charge in sustainability innovation. From advanced fuel technologies and shore power systems to waste management practices that often exceed land-based standards, the industry is evolving rapidly. Yet, broader recognition of these advances remains limited. Australia has an opportunity to champion these efforts, positioning itself as a destination that values and supports sustainable tourism.

A strategic blueprint for growth

To truly unlock its cruise potential, Australia should look to regional exemplars like Singapore and Japan. These nations have adopted long-term strategic approaches that integrate cruise lines, tourism operators, marketing agencies, and regulators. Australia must do the same, leveraging its world-class destinations and existing infrastructure to attract new product and itineraries.

Importantly, Australia and New Zealand are intrinsically linked in the cruise ecosystem. Strengthening this regional partnership could yield significant benefits, from shared marketing initiatives to coordinated policy development.

Retention before expansion

In a market where cruise ships are mobile and capital allocation is fiercely competitive, retaining existing operators is paramount. It is far easier to keep a ship in the region than to attract a new one. Australia must maintain a laser focus on supporting the cruise lines already committed to its ports, ensuring they continue to see value in staying.

Australia has the destinations, the infrastructure foundation, and a population that loves to cruise. With policy certainty, a sharpened competitiveness agenda, and a partnership mindset across industry and government, we can turn today’s demand into tomorrow’s durable growth—keeping Australia firmly on the global cruise map for the decade ahead.

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