A major cruise ship company will pull two of its largest brands from Melbourne ports in protest of an "unreasonable" tax hike.
Carnival Australia's Princess Cruises and Cunard will instead visit other interstate docks from 2025, in a move that will likely have a major impact on the state's tourism economy.
The cruise company's chief strategy officer Teresa Lloyd said the decision to no longer have ships dock in Melbourne was not made lightly.
"We love Melbourne and so do our local, interstate, and international guests. The cultural capital of Australia is the gateway into southern Australia but also a much-loved destination for millions of tourists," she said in a statement.
"However, the decision to homeport these popular cruise lines in other markets, is in no small part due to the recent decision made by Ports Victoria to significantly and unexpectedly increase fees and charges.
"We understand these fees will be ongoing and will largely go towards the ongoing costs of maintaining Station Pier."
Lloyd urged the state government to reconsider the tax hike, which is expected to take effect from January 1.
"Our economic benefit to Victoria is immense and we appreciate the importance of maintaining our ports but to be expected to carry a 15 per cent increase with no notice is unreasonable," she said.
"We want to be in Melbourne and remain open to finding a long-term solution together with Ports Victoria and the Victorian Government."
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Cruise tourism is estimated to bring a total economic benefit of $379.5m per year in Victoria, according to the latest CLIA Value of Cruise Tourism report.
Tourism & Transport Forum Australia chief executive Margy Osmond said it was "deeply disappointing" that Carnival Australia would no longer sail from Melbourne.
"The loss of Princess Cruises and Cunard from Victoria's cruise sector is a major blow to the state's tourism industry. These brands have been instrumental in attracting visitors and generating economic benefits for the state," she said.
"We must address cruise ship operators concerns and ensure they have the support needed to prevent further erosion of the cruise industry."
Osmond called for "urgent collaboration" between the state government and cruise companies to secure the future of cruising in Victoria.
"The value of cruising cannot be underestimated, having contributed nearly $380 million to Victoria's economy in 2022-23 and helping support jobs across tourism, hospitality, retail and related sectors."
The Spirit of Tasmania recently moved its main dock from South Melbourne to Geelong on October 23 last year.
Ports Victoria has been contacted for comment.