At this month’s ordinary monthly meeting Clarence Valley Council will be considering whether or not to give in principle support to the NSW Government’s proposal to designate the Port of Yamba as a cruise ship destination and possibly build a cruise ship terminal in the Clarence River estuary.
The Berejiklian Government appears to be presenting this proposal as a way to increase the annual regional income of the Clarence Valley. But is it and will it?
Nowhere have I found any mention of the business model employed by the global cruise ship industry. An industry which seeks to create demand through the judicious use of political donations and paid lobbyists.
According to Professor Ross Klein, Associate Dean for Graduate Programs and Research, Memorial University of Newfoundland; “Standing up to a cruise line can sometimes be difficult, especially given the industry’s generous contributions to political campaigns, their active lobbying efforts, and their degree of influence with mass media” [Klein, R. (2013) The Cruise Industry’s Business Model: Implications for Ports]
In the first instance the business model used by cruise ship operators seeks to have passengers spend most of their money on-board the ship.
So many of the traditional services supplied on a cruise are no longer covered by the upfront cost of the fare and attract an additional charge per use.
Any land-based tours or shopping trips are organised by the cruise operator and not infrequently the cost is not absorbed by the cruise line so a fee for participation is paid by passengers directly to this shipping company.
The fee paid by the cruise operator to a land-based tour business contracted to supply the actual service usually ranges from as little as 10% up to an est. 50% of the fee paid by passengers.
Even when passengers leave the ship to wander around coastal zone towns you can bet that the cruise ship operator will have approached local businesses requesting a fee to include these businesses on a list of recommended shops/cafes/hotels/clubs - because that is part of the business model.
From state government a cruise line expects and often receives reduced harbour fees & charges and from state and local government it expects upgrades in infrastructure worth literally millions of dollars, without giving a firm guarantee that it will continue to use a particular port as a genuine destination rather than as a short "technical call".
What is worse is that once the cruise industry becomes established in a small port there is evidence to suggest that the regular incursion of up to 350 passengers at a time into coastal towns sees a decrease in the number of land-based tourists, who now see these towns as crowded and impersonal - no longer offering an intimate holiday experience.
It is these land-based tourists who fill Yamba and Iluka’s camping grounds, motels, hotels and holiday units and, are more likely to patronise the full range of dining/entertainment/sporting experiences on offer. So to see a significant proportion of them replaced by cruise passengers over time is not likely to compensate for the risk of economic loss during peak holiday periods in the Lower Clarence.
The first small cruise ship is due in Yamba on or about 24 October 2018 and this is it’s published itinerary: arrive during breakfast, disembark to visit “Flinders Well, Yamba Lighthouse, and the Yamba Historical Museum” or “alternatively walk in the nearby Iluka Nature Reserve”, return to ship for lunch and depart in the afternoon.
Now I'm no economist but even I know that this itinerary doesn’t exactly ring the till in a big way for businesses in Yamba or Iluka.
Through the prism of this industry business model the Port of Yamba will not be seen as a boutique destination but merely as one more excuse to extend the number of nights passengers spend on a floating hotel being milked by the hotelier for as much money as possible before they finally leave the cruise at a major city port.
What Australian lobbyists for the cruise industry are not telling the regional ports they are currently attempting to smoodge is that when it comes to Australian east coast cruise destinations Sydney,
Brisbane and Melbourne accounted for 65% of total passenger onshore visit days
and 90% of the home port passenger onshore visit days. [Cruise Lines International Association
(CLIA), 2016 & 2017]
Which means most of the spending money cruise ship passengers have in their wallets is more likely to be spent at large ports.
One cannot escape the suspicion that the health of the Clarence River estuary, existing coastal tourism revenue and safety of the Native Title reef Dirrangun are being placed at risk by this proposal, for what is essentially a dream of financial return for Lower Clarence communities rather than a solid reality.
