Global Cruise Lines International Association president and CEO Charles \u201cBud\u201d Darr has fired another shot across the bows of the Australian cruise industry, saying it risks losing pace with the rest of the world and faces being left behind if high local costs and government red tape are not addressed.<\/strong><\/p>\n The warning came at the unofficial opening of the Australian wave season, the Australian Paddock to Port\u2019s economic impact report commissioned by CLIA Australasia and the Australian Cruise Association and hosted by Business Sydney\u2019s Paul Nicolaou at a lunch at the MCA in Sydney\u2019s Circular Quay.<\/p>\n In a Q&A with Destination NSW CEO Karen Jones \u2013 with Crown Princess<\/em> berthed at the Overseas Passenger Terminal in the background \u2013 Darr said a combination of threats to the local industry, which generated $7.32 billion in economic output in 2024\u201325, included costs that were considered \u201coff the charts\u201d. Add to that the bid to apply domestic labour standards to the international cruise labour market and a harsh regulatory environment and they threatened to hinder existing growth.<\/p>\n Australia\u2019s cruise fleet has declined to 11 homeported ships for the 2026\/27 season, dropping significantly from 18 ships during the 2023\/24 season, despite being Australia being fourth largest cruise market in the world.<\/p>\n Darr also noted the mismatch between demand and supply: 1.4 million Australians cruise each year out of a population of 27 million \u2013 a far higher proportion than the roughly 37 million passengers drawn from a global international tourism market of 1.6 billion.<\/p>\n Darr told the room of 120 guests that the state of the global industry was \u201cexcellent\u201d, pointing to an order book of 86 ships worldwide worth roughly US$96 billion (AU$147 billion) in capital commitment, stretching beyond 2036.<\/p>\n \u201cYou could have the biggest steamer trunk in the world full of cash, and you can\u2019t get a slot in a shipyard to build a ship before about 2037 right now, if it\u2019s going to be a ship of significant size,\u201d he said.<\/p>\n Global passenger numbers climbed from 34.3 million in 2024 to 37.3 million in 2025, and are forecast to hit 42 million by 2029, generating economic output of US$198.8 billion (AU$304 billion) across the industry\u2019s 328 ships.<\/p>\n Against that backdrop, Darr said Australia was not keeping pace \u2013 with the market recording $1.1 billion in lost year-on-year economic output against a $7.3 billion base.<\/p>\n \u201cThe question that needs to be asked by those in a position to control it is: are we getting our share of the growth?\u201d he said. \u201cIf you\u2019re maintaining the status quo and it\u2019s a flat line\u2026 you\u2019re losing pace. If you\u2019re declining, you\u2019re really losing pace with the rest of the industry.\u201d<\/p>\n Darr said that while geographic and infrastructure constraints played a role, the controllable factors were cost and regulation.<\/p>\n \u201cIf I\u2019m a cruise line CEO and I have 10 ships, I don\u2019t have to think about is Australia just off the charts too expensive. It\u2019s just: did Australia go from number 10 to number 11 on the 10 most economically viable itineraries that I could deploy that ship on?\u201d<\/p>\n He also pushed back on proposals to apply domestic labour standards to what he described as a globally regulated industry already governed by international convention.<\/p>\n \u201cIf we fail to implement it, by all means, call us out and we\u2019ll fix it,\u201d he said, but warned that imposing domestic standards on a ship that could be anywhere in the world within weeks created regulatory instability.<\/p>\n Darr said the cruise sector supported 1.8 million jobs worldwide, with only around 22,000 of those in Australia \u2013 compared with 93,000 in Brazil.<\/p>\n \u201cAustralia has so much going for it. I really think the potential here is enormous. It\u2019s yet to be fully unlocked,\u201d he said.<\/p>\n Asked by Jones what government could do to support the industry, Darr pointed to long lead times on itinerary planning \u2013 some three years out, with luxury lines booking up to 36 months ahead.<\/p>\n \u201cAs I sit here today, from the cruise industry\u2019s perspective, it might as well be September of 2029,\u201d he said. \u201cWe can\u2019t have a shifting landscape of what we would be required to do operationally\u2026 government could play an important role\u2026 in keeping it a viable, competitive destination.\u201d<\/p>\n He cited Dubrovnik mayor Mato Frankovi\u0107 as a model for productive government\u2013industry partnership, contrasting him with local leaders in Nice and Cannes, who he said used cruise tourism \u201cto score cheap political points\u201d.<\/p>\n![\"Destination](\"https:\/\/travelweekly.com.au\/wp-content\/uploads\/2026\/09\/IMG_2306-1024x768.jpg\"\/)
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Global order book \u201ccan\u2019t exist without optimism\u201d<\/strong><\/h3>\n
Costs and labour standards under fire<\/strong><\/h3>\n
Stability the key question for government<\/strong><\/h3>\n
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