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AN international cruise ship will be based in Adelaide for the first time for a summer season when the 550-passenger MV Funchal arrives early next year.

The Portuguese-registered liner will run five cruises in South Australian waters in a multi-million dollar windfall for the state.

If successful, the liner's operators expect the 9500-ton Funchal to be based here on a regular basis for longer summer sailings.

The ship will begin its first Adelaide season sailing on a six-night cruise from Fremantle to Outer Harbor via Albany and Esperance next January.

It then will have a four-night Kangaroo Island voyage, also taking in Port Lincoln, followed by a long weekend at sea, then a six-night Adelaide-Fremantle voyage via Port Lincoln.

The cruises, priced from $645 a person, will showcase SA's spectacular coastline and offshore waters, with the KI cruise, in particular, expected to generate strong interstate and overseas interest. Many such guests are expected to extend their stay in SA with trips to popular tourist destinations such as the Barossa Valley.

Adelaide-based tourism operator Proud Australia secured the ship after negotiations with owners Classic International Cruises.

The SA Tourism Commission will support the venture with a marketing and promotional campaign.

Officials declined to say how much financial support SATC will give because it is commercially sensitive information.

The three-star ship is a more intimate, old-style cruise ship than luxurious modern mega-liners that carry five times as many passengers.

Its heritage includes being the Portuguese presidential yacht for state visits and it was rebuilt as a full-time cruise ship in 1972/73, with regular refurbishments ever since.

The senior staff are virtually all Portuguese and the ship's decor reflects its European heritage. CIC Australia managing director Grant Hunter said the vessel has a strong focus on food and service.

"You won't find any huge atriums, it is not that type of ship," he said. "It is more like stepping into an old-style English country pub – it is very warm and welcoming.

"All ships have their own distinct character and this is a cosy, welcoming vessel.

"This is a multi-million dollar commitment but we see very good opportunities sailing in SA waters." The Funchal has spent part of the past five summers based in Fremantle. Mr Hunter said CIC's long-term plan was to base the ship in SA waters for increasingly longer periods.

Proud Australia director Ben Mead said the venture would have considerable ripple effects, from the local food and wine sourced for the ship to visitors being enticed from the northern hemisphere.

"This will appeal to everyone, from first-time cruisers who don't want to travel interstate to get on a ship, to people from overseas keen to see our stunning coastal scenery," he said.

"We expect the success of the first season will lead to extended cruising seasons in the future."

Proud Australia is putting together a variety of packages aimed at interstate markets, such as rail/sail packages travelling aboard the Ghan or Indian Pacific.

SATC chief executive Andrew McEvoy said the cruise ship was a coup for SA.

"Plans to increase tourism in SA over the next six years require this style of product to generate tourism," he said.