Tuesday, 17 June 2025

Cruise ship port fees

Trung LUU (Western Metropolitan) (18:34): (1711) My adjournment matter is for the Minister for Tourism, Sport and Major Events and is regarding the Allan Labor government’s hasty decision to increase cruise ship port fees, an economic decision that is already costing Victorians millions of dollars in revenue from tourism. The action I seek from the minister is to urgently review and reverse the port fee hikes that have driven major cruise lines away from Melbourne and have triggered a sharp decline in tourism revenue. In November 2023 the Allan government increased berthing charges at Station Pier by 15 per cent. Since then two world-renowned cruise lines, Cunard and Princess, have pulled their ships from Melbourne. Cunard has exited Australian ports entirely, while Princess now docks in Sydney and Brisbane.

These were not minor operators. Together they accounted for 25 visits to Station Pier in 2024 alone, with ships carrying more than 3000 passengers, nearly double the average capacity of other cruise liners. According to an independent analysis by the Parliamentary Budget Office, this decision will result in 113 fewer cruise ships visiting Melbourne between 2025 and 2028, 138,000 fewer cruise tourists visiting our city, a $27.8 million hit to tourism spending and a $9.8 million loss in port revenue.

This is not just a tourism issue, it is an economic failure. Local businesses are already feeling the impact. Limousine operators, hospitality venues and their suppliers who benefit from cruise traffic are now seeing bookings dry up. One operator described the drop in cruise-related business as a complete reversal from the post-COVID boom. And now it is not just the tourism sector that is hurting, it is the loss of cruise ship provisioning, everything from fresh produce to beverages. Many Victorian suppliers are missing out on millions in trade. These ships need to source large volumes of goods locally, supporting jobs and small businesses across the state. By hiking up the fee, Premier Allan has effectively handed Victoria’s cruise industries to other states on a silver platter. Queensland and New South Wales are now reaping the benefits of the Allan Labor government’s short-sighted action. So again, I ask the minister: where is the cruise strategy? Where is the plan to restore confidence in Melbourne as a cruise destination, because right now we are seeing that the Allan government cannot manage money, cannot manage tourism and is leaving Victorian businesses to pay the price.