Wellington, Oct 16 NZPA - P&O Cruises will launch The Pacific Pearl cruise liner in Auckland and the vessel will be based in the city.

The Pacific Pearl will be launched on December 19 next year.

The 63,500 tonne vessel will be able to carry 1800 passengers.

This is the first time the company has launched a vessel in New Zealand.

The cruise liner business has been expanding rapidly in New Zealand.

Ports of Auckland handled 69 cruise ships in the year to June 30. It will continue to handle cruise ships while no longer owning Queens Wharf and expects the number of arrivals to fall to 63 or 64 ships this season due to the economic downturn.

But when the wharf is redeveloped and economies recover the cruise ship business is expected to grow.

"I think the sky is the only limit, you will see a boom in the industry going forward. We are welcoming new facilities in Auckland," Ports of Auckland managing director Jens Madsen said in September.