Cruise season providing boost for local businesses

Research by NZIER on the economic and social impact of cruise tourism shows the 2023/2024 season generated $5.3 million for the local economy, with total cruise tourist expenditure between $23 and $35 million.

The NZIER report – commissioned by ChristchurchNZ – revealed a positive view of cruise tourism, with 69 percent of local businesses seeing it as important for their business, and 68 percent describing cruise tourism as having a ‘positive’ or ‘very positive’ impact on their revenue.

Cruise operations are estimated to have contributed $5.3 million to the local region, with total cruise tourist expenditure between $23 and $35 million, and an average spend of $146 per person in the central city alone.

The report indicated a largely positive view of cruise tourism by Christchurch businesses and residents. When asked about the overall contribution of cruise tourism to the local region, 79 percent of business respondents indicated a positive or extremely positive impact. Businesses identified “creating a ‘buzz’ around products and services” (47.4 percent) and “increasing customer diversity” (42.1 percent) as the key non-economic benefits of cruise tourism.

In addition to positive survey feedback, small businesses spoken to in Christchurch say they are grateful for the cruise season, which provides a significant bump to business.

Juliet Mountfort of Silver Central – which operates a small jewellery business in the Cathedral Square market – says cruise ships bring an influx of customers they wouldn’t have otherwise. “Since the pandemic the cruise ships are very important, because in the past we had more tourists. It was beneficial then, but not as crucial.”

The number of cruise ships visiting Christchurch has increased substantially since the pre-COVID period due to the opening of a purpose-built cruise berth. This allowed for the return of large ships to Lyttelton in 2022, the first time since the earthquakes.

Mrs Mountfort, who estimates cruise passengers provide as much as 60% of their trade from October to April.

She notes that since the pandemic, Cathedral Square is much quieter in the winter months, with non-cruise tourism yet to reach pre-Covid levels. Some of the larger cruise ships such as Ovation of the Seas carry as many as 4000 tourists, greatly increasing foot traffic in central Christchurch.

Residents surveyed by NZIER were also largely positive about cruise tourism. When asked about the impact of the most recent cruise season, 85 percent of residents reported a positive or neutral perception. Central City residents expressed more positivity compared to those in Lyttelton and Akaroa, where responses were more mixed, with 36 percent indicating both positive and negative impacts.

Another small business benefitting from the cruise season is Prime Currency Exchange, which operates in the BNZ Centre, Central Christchurch. Managing Director Ali Alizadah says the cruise ships give his business a big lift.

“If we haven't done so well in other parts of the year, the cruise season really boosts us.”

He says COVID was a big blow to the business, which relies entirely on international travel, and the two cruise seasons since borders reopened have helped them rebound. He estimates between 15 to 20 percent of their yearly turnover is from cruise ship passengers.

He says his business is often the first port of call for many tourists, who he believes bring vibrancy to the city, and an economic boost for many businesses.

“As soon as they arrive in town, they come in changing money with us and then go and spend locally in the cafes, restaurants, souvenir shops and whatnot.”

He believes the boost is more than a short term hit and has benefits that go further. “When people from other countries come into Christchurch, it puts our city further on the map. It gives us that extra profile.”

The report also surveyed cruise visitors. When asked how likely they were to consider returning to Christchurch, 86 percent of respondents answered ‘likely’ or ‘very likely’.