Unlocking the potential of the Coastal Bay of Plenty cruise sector
11 October 2024
The results of the first research project to gauge community and stakeholder perceptions and the value of the cruise sector in Tauranga, New Zealand, have just been released.
Tourism Bay of Plenty general manager Oscar Nathan says the KPMG study shows a resounding 86 per cent of residents who live near the Port of Tauranga and in Mount Maunganui agree or strongly agree that the cruise sector has a positive impact in the region.
This perception is largely based on the way that cruise ship visits boost the local economy, add a sense of vibrancy to the community, and enable the region to be positively showcased to the world.
“The study also shows that Tauranga continues to rate as a popular stop on cruise ship itineraries due to the ease of passenger disembarkation at the port, our relaxed coastal lifestyle, the warm welcome passengers experience while they’re here, and the unique foodie flavours they can savour and local shopping options they can explore,” Oscar says.
Tourism Bay of Plenty, with support from Priority One, commissioned KPMG Tauranga earlier this year to conduct the study to ascertain local perceptions and the cruise sector’s value proposition. The results are being shared with key partners to guide strategic planning to ensure sustainable, long-term value for all stakeholders.
“We’re very much aligned with the strategic document that the New Zealand Cruise Association [NZCA] recently released - Cruise Aotearoa New Zealand 2040. We were keen to support that mahi [work] by focusing on what’s happening in our region to inform the development of our own bespoke cruise strategy,” says Oscar.
The Coastal Bay of Plenty Cruise Study started with a steering committee consisting of key local, national and international representatives, all of whom were interviewed. Several residential and business focus groups and surveys were undertaken and data and insights from other national and global cruise studies and reports were also incorporated into the study.
“The New Zealand cruise sector is facing some challenges right now. Cruise ship numbers rebounded nicely when our border reopened, post-Covid, but rising operating and regulatory costs, Northern Hemisphere route disruptions, and tough global competition means we’re expecting a 23 per cent drop in the number of cruise ship visits this coming season,” Oscar says.
“While most of those factors sit beyond the control of our Regional Tourism Organisation, we’re keen to focus on what we can do to leverage the additional opportunities cruise offers our region while also encouraging our key partners to help us address any risks or difficulties.
“The study shows the current lack of regional economic cruise data (representing passenger and crew spending, vessel expenditure, and GST contributions) makes it difficult to quantify the value of cruise in our region. NZCA is working hard to obtain and release this data within the next few months, and we’ll then conduct a cost-benefit analysis to help inform further investment decisions in our region.
“This is one of six suggested improvement areas that have been identified in the Cruise Study. We now have a clear road map of actions, priorities, and responsibilities that we intend to progressively work through with our key partners (NZCA, the Ministry of Business, Innovation & Employment, cruise lines, tangata whenua, Tauranga City Council, Port of Tauranga, mainstreet organisations, Bay of Plenty Regional Council, and tourism operators). These actions are starting now, as the 2024/25 cruise season gets underway, and will continue into next season,” Oscar says.
New Zealand Cruise Association chief executive officer Jacqui Lloyd says the study is a valuable piece of work that reinforces the positive economic and social impact of cruise tourism in the region.
“It not only aligns with the national cruise strategy but also fits into the broader international framework, highlighting the opportunities for New Zealand and the Bay of Plenty in the growing global cruise industry.
“We wish the Bay a successful and prosperous season ahead,” Jacqui says.
ENDS
For more information (the full report and a two-page summary), please see Coastal Bay of Plenty Cruise Study.