Research reveals cruise tourism boosts Christchurch economy

Chris Lynch
Chris Lynch
Oct 07, 2024 |

Research by the New Zealand Institute of Economic Research (NZIER) on the economic and social impact of cruise tourism has shown that the 2023/2024 season generated $5.3 million for the local economy, with cruise tourists spending between $23 and $35 million.

The report, commissioned by ChristchurchNZ, provided a positive view of the cruise industry, with 69 percent of local businesses recognising its importance to their operations.

Additionally, 68 percent described the impact of cruise tourism on their revenue as ‘positive’ or ‘very positive’.

The cruise industry is estimated to have contributed $5.3 million to the local region, with an average spending of $146 per person in Christchurch’s central city alone.

Total expenditure by cruise tourists is estimated to range between $23 and $35 million.

Christchurch businesses and residents generally held positive views about the benefits of cruise tourism.

In the NZIER survey, 79 percent of business respondents reported a positive or extremely positive impact from the industry. Businesses also pointed to non-economic benefits, such as creating a ‘buzz’ around products and services (47.4 percent) and increasing customer diversity (42.1 percent).

Local businesses expressed appreciation for the boost provided by the cruise season. Juliet Mountfort of Silver Central, a jewellery business at the Cathedral Square market, said cruise ships bring in customers they would not see otherwise.

“The impact of the cruise passengers is most beneficial at the beginning and end of the season. It gives the season more structure and makes it longer,” she said.

Mountfort estimated that up to 60 percent of their trade from October to April comes from cruise passengers.

The number of cruise ships visiting Christchurch has grown since the pre-COVID period, thanks in part to the opening of a purpose-built cruise berth. This development allowed large ships to return to Lyttelton in 2022, marking the first time since the earthquakes.

Residents surveyed by NZIER were also mostly positive about the cruise industry. When asked about the impact of the most recent cruise season, 85 percent reported a positive or neutral perception.

Central city residents were more positive than those in Lyttelton and Akaroa, where opinions were more mixed, with 36 percent indicating both positive and negative impacts.

Another local business, Prime Currency Exchange, has also benefitted from the cruise season. Managing Director Ali Alizadah estimated that between 15 to 20 percent of their annual turnover comes from cruise ship passengers. “That’s the average over a year, but in the cruise months it’s more than half of our turnover,” he said.

The report also surveyed cruise visitors, finding that 86 percent of respondents were ‘likely’ or ‘very likely’ to consider returning to Christchurch.

Chris Lynch
Chris Lynch

Chris Lynch is a journalist, videographer and content producer, broadcasting from his independent news and production company in Christchurch, New Zealand. If you have a news tip or are interested in video content, email [email protected]

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