A major cruise ship company is set to withdraw its two largest brands, Princess Cruises and Cunard, from Melbourne ports in protest of an "unreasonable" tax increase.
Starting 2025, these Carnival Corporation subsidiaries will divert to other interstate docks, impacting Victoria's tourism economy significantly.
Teresa Lloyd (Carnival Australia's Chief Strategy Officer) expressed that the decision was not taken lightly. She cited the recent unexpected and substantial fee and charge increase by Ports Victoria as a key factor in the redirection of the cruise lines.
She emphasized the importance of Melbourne as a cultural destination and urged the state government to reconsider the tax hike, slated to take effect from January 1st. She highlighted the significant economic contribution of the cruise company to Victoria and expressed openness to finding a long-term solution in collaboration with Ports Victoria and the Victorian government.
In response, Minister for Ports and Freight Melissa Horne defended the 15% tax hike, stating that it would fund necessary maintenance of the historic Station Pier. She emphasized the modest increase from $28.50 to $32 per passenger, indicating the need for fees to sustain the pier.
Cruise tourism in Victoria is a substantial economic contributor, estimated at $379.5 million annually, according to the Cruise Lines International Association (CLIA) Value of Cruise Tourism report.