A major Carnival cutback is set to hammer Australian tourism and retail, with the cruise giant halving its local fleet from 2028 in a move that will mean fewer passengers flooding into shops, cafes and tourism hotspots around the country.
The decision threatens to strip millions in visitor spending from port cities and coastal destinations, while also reducing choice for travellers and putting upward pressure on cruise fares.
Carnival will slash its Australian fleet in half from 2028, in a fresh blow to a cruise sector already losing ships as operators battle rising costs and uncertainty over future rules.
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The company confirmed Carnival Luminosa and Carnival Adventure will both leave the Australian market in March 2028, leaving Carnival Splendor and Carnival Encounter as its only ships sailing year-round from Australia.
Carnival Luminosa, which has operated seasonally from Brisbane since cruising resumed in 2022, will make its final local voyage from Sydney on March 15, 2028.
Carnival Adventure and Encounter
Carnival Adventure will then depart Sydney on March 20, 2028 and, despite earlier plans, will not return to Australia.
The move means a sharp reduction in Carnival’s ongoing local presence, with the company pointing to regulatory uncertainty and high operating costs as the key reasons behind the decision.
In a statement released on Thursday, Carnival said cruise deployments are planned years in advance and depend on long-term certainty and operating conditions that can compete with other global markets.
The federal government recently extended the cruise industry’s exemption from the Coastal Trading Act until December 2028, but Carnival signalled that had done little to ease wider concerns about what happens after that date.
Carnival pointed to regulatory uncertainty and high operating costs in explaining the decision. Picture: Supplied
The exemption allows international cruise ships to operate without being subject to the same industrial relations laws and licensing fees as local operators.
Carnival Cruise Line country manager Peter Little said the extension was “a welcome but interim step” while a long-term operating framework for the Australian cruise sector is developed over the next two years.
“As the only cruise line with ships dedicated year-round to Australia, Carnival has greater exposure to changes in local market and operating conditions than cruise lines with a seasonal or more limited presence,” Mr Little said.
Carnival’s retreat adds to a growing list of cruise operators backing away from Australia.
Cunard, Virgin Voyages and Disney have all pulled away from the market, while the P&O Cruises brand is due to be retired in March 2025.
Disney Cruise Line only remained in Australia for three seasons after launch. Picture: Rhett Wyman
Cruise expert Adrian Tassone, from The Cruise and Travel Guy, said the change would lead to a “significant reduction in capacity and choice for Australian cruisers”.
“This change may well contribute to higher cruise fares, as growing demand will likely outstrip supply in 2028 and beyond,” he told nine.com.au.
“The Australian federal government has long acknowledged the positive economic impact that the cruise industry has on the Australian economy.
“However, its most recent decision to merely extend for two years the exemptions that allow foreign flagged ships to operate locally undermines the entire industry and the many Australian stakeholders who are financially invested in its success.”