New cruise ship deed of agreement signed

An updated Cruise Ship Deed of Agreement has been signed by Environment Southland recently, although it is being done with the knowledge that any substantial income from cruise ships could be some time off.

Chairman Nicol Horrell said the loss of marine fees from visiting cruise ships is continuing to have a significant impact on Environment Southland’s revenue.

“While working on our budgets for the Long-term Plan, we’ve had to base our financial plans on a number of assumptions, including that our borders may not reopen to international cruise ships in 2021, and even after that, a transition back to the usual number of visitors could be several years away.”

The Deed of Agreement reinforces measures to protect some of our most spectacular coastlines.

Although international cruising is currently suspended in New Zealand, the Environment Southland Deed of Agreement applies over the long term, until October 2030 or when a new Regional Coastal Plan comes into force, and has been designed to enable managed access to the Southland coast while at the same time fostering and promoting the sustainable management of the region’s internal waters.

Marine fees are budgeted to bring in approximately $2.8 million per year, but due to the border closures over the last year only a very small number of local cruises have taken place. The fees are used to fund a variety of work, including harbourmaster and navigation safety activities, as well as the management of the coastal environment. While the funding has not been received, much of the work still has to be carried out and reserves built up from previous marine fees have been used to fund this since the closure of our borders.

Partner in developing the deed of agreement, Cruise Lines International Association (CLIA), managing director Australasia Joel Katz said “New Zealand’s unique environment is world renowned and its protection is essential,” Mr Katz said. “The future of responsible tourism is dependent on protecting our marine environment and cruise lines are determined to show leadership in this area, both in New Zealand and around the world.”

“We also expect a return to normal marine fee revenue to be impacted by a smaller number of cruise ships initially once the borders do open. It is likely to take some time for the industry to rebuild,” Chairman Horrell said.

View the agenda and draft consultation document for the Council meeting at 10am on Monday 3 May 2021.