The report, compiled by Cruise New Zealand, forecast that direct spending in Otago this season would increase from $15.1 million to $19 million.
Despite some tourism operators beginning to feel the effects of a downturn in the economy, the cruise industry was "on the cusp of another significant jump in passenger numbers and potential expenditure", the report said.
"The current global economic environment is not expected to have any significant impacts on passenger numbers for the forthcoming season, commencing in October."
Tourism Dunedin acting chief executive Hamish Saxton said the report showed "the growing significance of the cruise industry".
"Passengers are big spenders and cruises have been the cream of an already significant tourism industry," Mr Saxton said when interviewed this week.
Otago received $15.1 million (7.8%) of the national total cruise direct spend of $204 million during the 2007-08 season.
Auckland received $123.8 million (60%); Bay of Plenty $17.7 million (8.6%); and Canterbury $16.8 million (8.2%).
The report said there might be a decline in the number of visitors from the United States this season, but this would be offset by "the rapid growth of the Australians visiting New Zealand on cruise vessels".
The worldwide cruise industry was expected to grow by more than 17 million passengers by 2010, up 70% on 2000.
New Zealand and Dunedin were set to benefit from a growing demand, Mr Saxton said.
Cruise passengers, while only staying a short time, were "big spenders" and often became "repeat visitors", he said.
A key to encouraging tourists to return was making the right impression when they arrived, and a group of stakeholders had established a cruise network to ensure Dunedin remained a popular destination, he said.
Port Otago commercial general manager Peter Brown said the report documented the value of the industry, which had grown steadily during the past 10 years.
"Cruise ships are a valuable part of our business and the feedback we get is that passengers, while not familiar with the harbour, enjoy their experience here," Mr Brown said.
Preliminary bookings for the 2009-10 season indicate a similar level of interest to the 2007-08 season.
• Cruise Figures
- More than 116,000 people visited or were in transit in New Zealand during the 2007-08 season.
- During this period 31 vessels offering 98 cruises carried passengers to 20 ports.
- The ships made a total of 342 port calls in New Zealand, 203 in the North Island and 139 in the South Island.
- In total, more than 452,000 passenger days were spent in New Zealand ports.
- Americans account for 39% of international passengers and Australians, 24%.
Source: Cruise NZ economic impact report
