Cruise passengers arriving in New Zealand will face a lower border processing levy from July 1st, 2027, following changes announced by Customs Minister Casey Costello. The revised rates will reduce the charge for arriving cruise passengers by approximately NZ$20, while the levy for departing passengers will increase slightly.
Under the new structure, the levy for arriving cruise passengers will fall from NZ$27.14 to NZ$7.20, while the charge for departing passengers will rise by NZ$0.03 to NZ$0.71. The Border Processing Levy was forecast to recover NZ$124.3 million in Customs border processing expenses during the 2026/27 financial year.
Jacqui Lloyd, chief executive of the New Zealand Cruise Association, described the announcement as a positive development for the industry. She noted that cruise tourism accounts for approximately one in 10 visitors to the country, but cruise lines have been reducing the number of New Zealand port calls, resulting in fewer passengers visiting some destinations.
Lloyd identified several factors behind the trend, including difficulties securing berthing slots in Sydney, a major embarkation and turnaround port for cruises to New Zealand. Scheduling constraints can shorten itineraries because ships must depart from and return to Sydney within specified timeframes, limiting the number of calls they can make in New Zealand.
Operating costs are another concern. Lloyd estimated that government charges and port fees for a vessel carrying 3,000 passengers and making approximately eight New Zealand port calls could total NZ$650,000. These expenses include Maritime New Zealand fees and oil pollution levies, border processing charges administered by Customs and the Ministry for Primary Industries, and port fees for berthing, passenger handling, security, gangways and staffing.
According to Lloyd, New Zealand has been regarded as one of the more expensive destinations for cruise operators. However, recent cooperation between government agencies and ports could help improve the country’s competitiveness. She noted that Maritime New Zealand had agreed to hold its levies steady for the next few years, with the Ministry for Primary Industries also maintaining its rates. The revised Customs charges represent another change in the cost structure.
Lloyd clarified that the adjustments had not been introduced solely to benefit the cruise sector, although they could provide additional support to operators. She also cautioned that the effects might take several years to become apparent because cruise itineraries and deployments are planned well in advance. Consequently, changes in operating costs are unlikely to prompt cruise lines to increase New Zealand calls immediately.
She emphasised that continued coordination among government agencies, ports and the tourism industry would be important in assessing how regulatory and cost changes affect the wider sector.
Lloyd identified greater certainty as a key requirement for future cruise deployment. Cruise lines need advance notice of changes in fees and regulations to incorporate them into budgets and deployment decisions. Ports and tourism businesses also require reliable information about future cruise activity so they can plan investment in infrastructure, staffing and related services.