Is this the beginning of the end for Australian cruising?

Or is this finally the wake-up call we desperately need?

Watching ship after ship leave our shores breaks my heart. Carnival’s decision to withdraw Carnival Luminosa and Carnival Adventure from Australia is more than another fleet announcement. It is another warning sign for an industry that seems to be losing ground while Australians remain eager to cruise.

The world is cruising. Australians are cruising. So why is Australia losing its ships?

Australian cruising is heading in the wrong direction.

This is no longer just a conversation about two vessels leaving our shores. It is about Australia's ability to compete in a global industry, the economic opportunities we're losing and whether anyone is prepared to do what it takes to turn things around.

The numbers tell a troubling story

In 2025, a record 1.45 million Australians took a cruise holiday, an increase of 9.5% on the previous year. Australia remained the world's fourth-largest cruise source market, behind the United States, Germany and the United Kingdom.

Globally, cruise passenger numbers reached 37.2 million, up 7.5%.

Yet Australia's cruise tourism economic contribution fell from $8.4 billion in 2023–24 to $7.32 billion in 2024–25. The number of ships operating in Australian waters declined from 75 to 68, while supported employment fell from 26,370 to 22,720 full-time equivalent positions.

Let that sink in.

The industry points to reduced ship deployments, higher operating costs, regulatory uncertainty and increasing international competition as contributing factors.

This is the heart of the crisis: Australia isn't failing to attract people to cruising. It is struggling to translate that demand into ships, sailings and spending that stay here.

The world is competing. Australia cannot afford to stand still.

Every ship Australia loses is a ship that could be generating revenue, supporting jobs and building customer loyalty somewhere else.

Australia has some significant advantages, particularly our summer cruise season, which offers opportunities for ships to operate in the Southern Hemisphere while it is winter in the Northern Hemisphere.

But having beautiful destinations isn't enough.

Carnival has highlighted the importance of long-term certainty and globally competitive operating conditions when explaining its Australian deployment decisions.

And once a cruise line commits its ships to another region, winning that capacity back isn't necessarily easy.

The Federal Government: certainty cannot wait forever

The government cannot dictate where cruise lines deploy their fleets, but it can influence the conditions in which they operate.

The ongoing debate over coastal trading rules illustrates the challenge. Extending the industry's exemption until the end of 2028 provides temporary certainty, but a longer-term framework is still needed.

Australia must establish regulatory arrangements that are practical, predictable and commercially workable.

How can we expect cruise lines to commit ships years in advance when important operating arrangements remain unsettled?

The government needs to move beyond temporary extensions and deliver a lasting solution.

CLIA: the warnings must become action

CLIA has repeatedly highlighted the economic value of cruising and the risks posed by Australia's declining competitiveness.

But after years of warnings, we need to see a clear plan for change.

What reforms are being pursued? Who is responsible for delivering them? How will progress be measured?

I want answers, and I know the Australian cruising public wants transparency.

CLIA cannot change legislation or order cruise lines to stay. But it can bring governments, ports and industry together to push for practical reforms and measurable outcomes.

Cruise lines: commercial decisions have consequences

Cruise lines are businesses. They must protect their investments and deploy their ships where they see the strongest commercial opportunities.

But they also need to offer Australians compelling cruise experiences, communicate clearly and deliver the value passengers expect.

The retirement of P&O Cruises Australia in 2025 and the transition of its remaining ships to the Carnival brand fundamentally changed the local market. Now, further fleet reductions raise fresh concerns about passenger choice and competition.

We cannot blame government policy for every decision a cruise line makes. Nor can we ignore the impact those decisions have on Australian passengers, businesses and communities.

What happens if we get this wrong?

The consequences extend far beyond fewer ships at our ports.

Fewer ships could mean fewer itineraries, less choice and potentially higher fares. Regional destinations could lose visitors, hotels and restaurants could miss out, and Australian suppliers could lose valuable business.

Cruise tourism contributed $7.32 billion to Australia's economy in 2024–25 and supported more than 22,000 full-time equivalent jobs. We cannot afford to watch that contribution continue to shrink.

And here's the real danger: once cruise lines invest elsewhere, Australia may not find it easy to win them back.

We risk losing not just ships, but jobs, tourism dollars and our standing in an increasingly competitive global cruise market.

I'm tired of the same conversation. I want results.

I devoted so much time to advocating for cruising during the pandemic because I believed in this industry and the thousands of people whose livelihoods depend on it.

I still do.

But I don't want to spend the next decade writing about another ship leaving, another decline in economic activity and another promise to fix things.

I want to celebrate new ships arriving, exciting itineraries launching and regional communities benefiting from cruise tourism.

So, government, CLIA, ports and cruise lines, it's time to stop passing the responsibility around.

Give the industry certainty. Make Australia competitive. Invest in the experience.

Loving cruising isn't enough to save Australian cruising. It's time to turn the tide before even more ships sail away.