War in the Red Sea affecting the economy of South Coast town

The war in the Red Sea being waged by the Houthis, an Iranian-backed rebel group, has meant a number of cruise ships will not visit Eden during the 2024/25 season.

Virgin Voyages, the cruise arm of the multifaceted travel company has pulled out of the Australian market for the coming season because of the difficulties in moving its cruise ships around the world.

The company's cruise ships operate in the northern hemisphere during the summer months there and move to Australia for the summer here.

But the war in the Red Sea which has seen commercial ships the subject of drone and missile attacks and even hijacking, has meant the return route to Australia via the Suez Canal and Red Sea is considered too dangerous.

The alternative route around the Cape of Good Hope is longer and therefore more costly in terms of time, labour and fuel as well as being infamous for bad weather conditions.

Port Authority CEO Philip Holliday said cruising was still feeling the effects of COVID as cruise companies planned their routes and holiday packages at least three years ahead.

"But the challenges in the Red Sea have affected Virgin which has pulled out of Australia," Mr Holliday said.

The combination of the COVID lag and the war in the Red Sea meant that 25 ships were booked into Eden for the 2024/25 season.

This is down from the current season which saw a record number of 41 ships and over 100,000 passengers and crew sailing into Eden.

The economic benefits are considerable with over $19million pumped into Eden's economy as a result, Minister for Transport Jo Haylen said.

"According to data from Cruise Lines International Association, each domestic cruise passenger spends on average $197 per day while in port which helps to boost NSW regional economies," Ms Haylen said.

The Minister was speaking in Eden following a visit to tourism operators to take in some of the tourist attractions on offer to cruise ship visitors on Wednesday morning, March 27 after the Norwegian Spirit had berthed at Eden.

Port Authority CEO Philip Holliday said there was good news on the horizon despite the expected dip in cruise ship numbers in 2024/25.

Numbers were expected to pick up again in 2025/26 when 47 ships would be visiting Eden, he said, adding that he expected Virgin Voyages would be returning then.

"This has been a very successful season and we look forward to continued growth in the future. The wharf only opened in 2020, in time for COVID to come along and devastate the industry.

"We're still only in the infancy and to be where we're at in such a short space of time and the projections in a couple of years time, this is a business that will continue to grow and benefit the community," Mr Holliday said.

Some of that growth is expected to come from changes to the wharf in terms of taking larger ships and accommodating overnight stays. They are part of a consultative process but Mr Holliday is clearly positive about the potential outcome for the cruise industry and Eden.

"At the moment we're trying to maximise the value of the cruise wharf. We're close to getting a decision to provide more use of the facilities," he said.

"The more ships come, the more success the local economy has but at the same time we don't want to ruin the thing that brings people here," Mr Holliday said.

Ms Haylen said the application was with the Department of Planning and more would be known in "coming months".

A couple of ships were too large to dock this season and therefore fewer people got off because tenders had to be used.

"We want to see more people get off, and to be frank, opening their wallets because it's better for the local economy," Ms Haylen said.

There is also the question of a marina, although Ms Haylen said it was a longer term project requiring significant investment.

There is no doubt that with more ships, ultimately there is a need for improved infrastructure. At a fairly basic level that can be mean more toilets.

It's something that has been raised in consultations over increased use of the wharf and more ships.

"We wouldn't want it to stand in the way. We've looked at this and could provide support," Mr Holliday said.

Member for Bega Michael Holland said he had talks with B J Cruse of the Eden Aboriginal Land Council on the subject of the Discovery Centre land that had been returned to the organisation.

However he said while he was happy to assist it was about self-determination and ultimately a decision for the Land Council.

But he said the community had indicated they would like to see something similar to what had previously been in the area, such as shops and cafes.

He also saw an opportunity for expanding cultural experiences possibly with a cultural centre as part of the development.