This week the cruise sector enjoyed a rare victory in the waters of our red tape-laden neighbour New Zealand, with the Kiwi government ruling out a ban on cruise ships from entering the inner harbour of Milford Sound.
A recommendation put forward by the Milford Opportunities Project, which began way back in 2017, sought to prohibit cruise ships from entering the beautiful waters inside the UNESCO Heritage Site of Te Wāhipounamu.
While nobody wants to see beautiful natural wonders like Milford Sound wrecked by tourism, the blunt instrument approach of prohibition that appears to be proliferating around the world in travel is also an avenue to exercise abundant caution.
Take New Zealand as the example, a beautiful country with more tourism allure than most, but also one that has effectively taken a sledgehammer to its own visitor economy through a combination of high operator charges and officious regulatory approaches.
I am a fairly fierce advocate for environmental protection, but surely this moral objective shouldn’t be achieved at the expense of so much of the tourism economy?
It certainly feels as though New Zealand has been guilty of this approach in recent years, and so this latest ruling favouring cruise ship visits in Milford Sound feels like a precious gap in the armour of obstinate protectionism.
One could feel the elation through the words of the New Zealand Cruise Association (NZCA) following the decision, labelling it an announcement to “end years of uncertainty around the future of cruise”.
The word ‘uncertainty’ jumped out at me in the body’s statement, because as people working inside the cruise sector – and travel industry more broadly – would know all too well, certainty is an indispensable commodity for a prosperous industry.
Cruise ships don’t just show up in places like Australia and New Zealand. The massive pieces of billion-dollar hardware take months, sometimes years of planning to be positioned where they are most profitable.
The logistical undertaking is immense, and so any disincentive, let’s say the potential ban of visits to a highly sought-after destination like Milford Sound, could well create enough doubt for cruise lines to hedge their bets elsewhere and ditch our region altogether.
And frankly, we have seen that transpire over the last two years. While demand for cruising in Australia remains very high, there is clearly a concerning trend of cruise companies redeploying their vessels to where it makes more economic sense to station them, such as the Mediterranean or the Caribbean.
High port fees in states like Victoria for example have created enough of a disincentive to cause anxiety amongst local stakeholders, with brands like Virgin Voyages and Cunard shipping off to more cost-effective waters.
Across the Tasman, there are reports a 40% drop in cruise bookings is expected for the 2025/26 season, so needless to say, the industry’s win to sail Milford Sound docks with plenty of extra heft.
The NZCA said “some cruise lines” had already reconsidered their future deployments in New Zealand as a result of the glacial process to decide the policy play around Milford, adding that the latest government judgment will provide much-needed support regional tourism planning and investment.
“Cruise operations in Fiordland have long been managed through a collaborative and environmentally responsible framework led by Environment Southland,” the NZCA said.
“Cruise vessels entering Fiordland, including Milford Sound, are required to be a signatory to the Deed of Agreement with by Environment Southland, setting clear environmental obligations for cruise operators.”
Cruise Lines International Association (CLIA) also welcomed the news, stating the cruise industry will continue to work closely with New Zealand authorities to ensure the appropriate management of cruise tourism in the region.
Cruise operations in Milford Sound are already limited to short scenic visits, usually for periods in the early morning or late afternoon, rather than the full-day calls hosted by most other New Zealand destinations.
No more than two ships may visit on any given day, and the sound is clear of cruise ships for the overwhelming majority of the time, including during the summer season.
From the sea to the air now, and one of the worst kept secrets in the travel sector was made official yesterday, with Virgin Australia’s parent company Bain confirming the Aussie carrier will return to the ASX on 24 June.
As flagged earlier in the week by Travel Daily, VA will list with a share price of $2.90 and boast a market capitalisation of around $2.3 billion.
A relisting was always part of the roadmap for Bain, which has a history of beefing up asset’s value through cuts and efficiency before selling.
The company will retain equity in Virgin Australia however, as it monitors how profitable the airline can get now that it has linked with Qatar Airways on flights to Doha and beyond, starting later this month.
With the domestic duopoly well and truly reinstalled after the downfalls of Rex and Bonza, coupled with a lack of interest from overseas entrants, it appears the balance sheet for VA looks bright from my vantage point.
Staying in aviation for a bit longer, and it is a very interesting period for residents of the Hunter region, with its nearest major hub Newcastle Airport announcing its first route outside of Australasia.
Yes, Aussies will soon be able to zip from Nobby Beach to Bali in only six hours with Jetstar from 21 October, adding around 70,000 seats annually between the two destinations.
For some not paying close attention, this move may seem a bit left field, but Newcastle is determined to become the next major international gateway in NSW outside of Sydney.
With a fast-growing population, the incentive for Novocastrians and those in surrounding regions must be high to avoid having to make connecting flights from Sydney to travel overseas.
Newcastle Airport is already ploughing millions through its own funds and private investment to get the hub up to code, with a new international terminal on track to open around August.
Runways have also been worked on to accommodate larger aircraft in the hope of courting connections from players in major aviation corridors like Singapore, the UAE and Qatar.
Now if they can only make the Newcastle Knights play well, the former steel city would be sorted.
Finishing now on some bittersweet news, with the departure of popular Tourism Australia CEO Phillipa Harrison.
This was news that few saw coming, with the executive most affectionately refer to by people as ‘Pip’ bidding farewell to the tourism body to pursue a yet-to-be-revealed role.
I have had the pleasure of chatting with Pip a couple of times, and I have always found her to be transparent, and always at pains to give credit to the team around her.
The truth is, Tourism Australia has faced off generational challenges under Harrison’s watch, most notably the restoring of confidence for travellers to make their way to the far-off land Down Under after the pandemic.
Despite this difficult mission, tourist numbers in Australia are within a whisker away from where they were before the dreaded COVID derailed the globe, and if it were not for a sluggish return of China, we would already be surging ahead. Interestingly, the TA chief was only a year and change into a new five-year term, so one would imagine the overseas gig must be one worth chasing to cut her tenure so short.
Watch this space as they say, or better yet, stay tuned to Travel Daily and Cruise Weekly.
