Lord mayor Sally Capp says Carnival Australia’s decision to dump ships from coming into Melbourne ports will come as an “enormous loss” to the state’s economy.

The company’s decision comes on the back of a 15 per cent increase in the Port of Melbourne taxes from 2025, which is on top of the $200,000 every time a ship pulls in.

Ms Capp says its a loss not only for tourism, but local business.

Press PLAY to hear her explain + the measures being taken to stamp out graffiti 

From January 1, the Port of Melbourne will charge the new tax to upgrade Station Pier.

The cruise line company says its now a lot cheaper to berth in Sydney and Brisbane, and Melbourne will lose out on the more than $300 million it brings to the state’s economy each year.