Wellington Cable Car braces for $800,000 profit drop as cruise visits decline
Wellington’s Cable Car is bracing for an $800,000 profit drop compared to two years ago, driven directly by a severe decline in cruise ship visitors that has left operators scrambling to plug the revenue gap.
Cable Car chief executive Tansy Tompkins said that almost nothing can make up for the steep reduction in cruise passengers. The shortfall has triggered funding concerns over how the organization will afford much-needed cable car replacements scheduled between 2030 and 2035.
Merchandise and Wedding Bookings Fail to Cover Deficit
To claw back the lost income, management has turned to wedding bookings and merchandise sales. Tompkins noted that merchandise sales doubled over the past year, generating an extra $27,684. Operators have also collaborated closely with Wellington’s events centre, Takina, to draw in conference attendees. Yet Tompkins emphasized that these alternative streams fall well short of replacing an $800,000 deficit.
The downturn extends across the local tourism ecosystem. Wellington tour company Ka Rawe, which relies on cruise ships for the majority of its 4,000 guests, is facing heavy operational pressures. Owner Nathan Greenham pointed to stubborn overheads, particularly fuel costs, that compound the difficulty of running the business this season.
Expansion and Adaptation Amid Industry Headwinds
According to the New Zealand Cruise Association (NZCA) 2025 report, the broader drop in cruise liners stems from strict national biofouling rules, alongside an international perception that the local industry is “difficult to work with, unwelcoming and unpredictable”. Additional pressure came from booking-window regulations and steep costs levied by Customs, the Ministry for Primary Industries, Maritime New Zealand, and individual ports.
Despite short-term pain, NZCA chief executive Jacqui Lloyd pointed to an expected 83% increase in port calls over the next two years as a sign of recovery. Nationally, the visitor losses equalled the total size of the German or Indian market. Tourism Minister Louise Upston traveled to Miami alongside industry representatives to attend the annual Seatrade Cruise Global conference to pitch New Zealand as a destination.
WellingtonNZ and Centreport have responded by hiring a Cruise Strategy Delivery Lead, launching a new berth trial, and setting up a permanent shuttle hub on Wakefield Street to smooth visitor flow into the capital.
The 2024/2025 cruise season injected $1.23 billion into the national economy and supported 8,253 jobs. Cruise line spending accounted for $260.6 million of that total, including $11.3 million spent directly on New Zealand produce, wine, beer, and kaimoana, while port charges and fees added $131.6 million.