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Cruise Tourism in Gujarat PDF
Cruise Tourism in Gujarat PDF
Cruise Tourism in
Gujarat
Project Concept 3
Market Potential 5
Growth Drivers 9
Gujarat – Competitive Advantage 10
Project Information 14
- Location/ Size
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower
- Key Players/ Machinery Suppliers
- Potential Collaboration Opportunities
- Key Considerations
Project Financials 19
Approvals & Incentives 20
Page 2
Project Concept
Home Port or Hub Port: the port would act as the Examples of other Cruise Terminals
base for a cruise ship, which would take passengers across the world are – Dubai Cruise
around a cruise circuit and then return to the Terminal and Singapore Cruise Terminal
homeport.
Source: ‘Cruise Tourism Potential & Strategy Study: Final Report’ Ministry of Tourism, Government of India and CRISIL, December 2005
Page 3
Project Concept
Page 4
Market Potential
Global market overview – Global cruise industry is touching new heights with a forecast of 23
million sailing the oceans in 2015,a 4% increase as compared to 2014.
In spite of the growing global figures, Caribbean destination continue to remain more in demand. It
accounts to one-third (35.5%) of global capacity deployment in 2014.In 2015, the expected
investment in the global cruise industry is estimated to be around US$4 billion.
Global source markets by cruise Some key trends in global cruise industry are-
passengers 2014
► Industry wide capacity utilization is more than
Rest of
the World 100% in 2014.
Asia-
Pacific 5% ► Caribbean and Bahamas remain preferred
11% destination with 35.5% of capacity in 2015.
► More than half of the cruise tourist passengers
North
come from North America (~55%) in 2014.
America
55% ► Capacity growth in terms of capacity
Europe addition has been 18% y-o-y from 2009 to
29% 2013.
► Long term growth of the cruise tourism industry
Source: Cruise Industry overview 2015 has been 7.2% y-o-y from 1980.
A single trip in an average ship carrying 3,000 passengers and 500 crewmembers—
generates $287,760 in passenger spending, $48,490 in crew spending and roughly
$15,000 in port fees, a total of $351,250 direct economic
Asia 6.0%
► Cruisers spent $2,200 per person on their last
voyage, with $1,635 spent on fare,$565 for
Australia/New Zealand/S. Pac. 6.0%
onboard and shoring expenditure and $524 for
South America 2.9%
airfare to the boarding port.
Others 15.0%
Page 5
Market Potential
India has over 7,517 km of coastline, peppered with places of great interest for the cruise tourist.
Along the coastline, India also has 12 Major Ports and 184 minor ports
1400 Cruise Tourism potential in India
1200
While the Cruise
1000 Tourism in India has
In thousands
Presence of significant number of domestic cruise tourists along with the strategic
position of India with proximity to nearby islands and inland natural wonders can fuel
growth of cruise tourism in India. It will also provide employment opportunities as
well.
Page 6
Market Potential –
Tourism Sector
Tourism is not only a growth engine but also generates employment
for diverse sections in the society
World - Total contribution of Travel & Tourism to GDP World - Total Domestic Expenditure (USD billion)
(USD billion)
CAGR: CAGR:
3.0% 3.0% 4,792
10,254 4,269
9,035 3,746
7,816 3,342
6,846
India - Domestic Tourists (in million) India - International Tourists (in million)
CAGR: 2,775
CAGR: 13
8.0% 2,099 5.0% 10
1,422 8
6
865
Source
http://incredibleindia.org/index.php/trade-nav/latest-news/1534-tourism-an-export-growth-engine-and-employment-generator-says-
economic-survey-2011-12-15-march-2012
Page 7
Market Potential
Page 8
Growth Drivers
Good
Governance The state is one of the least Gujarat leads in project
corrupted in the country with an clearance in coastal areas with
anti-corruption index of 0.69 a success rate of 93%
Page 9
Gujarat - Competitive
Advantage
The Gross Tourist Flow has been increasing for Gujarat
Gujarat Gross Tourist Flow (Number in millions)
38.3
CAGR:
32.7
28.8
13.6% 25.4
22.4
19.8
15.8 17
12.3 14.1
10.7
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Source: Tourist Flow Information System (TFIS) Annual Report 2015-16
► Gujarat has many tourist destinations and sacred Gujarat Gross Foreign Tourist Flow
pilgrimages, which attracts both Indian and Foreign (Number in thousands)
travelers. CAGR:
16.2% 309
► The total flow of tourist is expected to record an increase
over the years. This is attributed to the growing 228 245
prominence of the state as a major business hub. Vibrant
Gujarat is a biennial investors' summit held by the
government of Gujarat in Gandhinagar, Gujarat, India. in
The event is aimed at bringing together business leaders,
investors, corporations, thought leaders, policy and
opinion makers. The Gujarat Vibrant Summit 2015
attracted 25,000 delegates from 110 countries. 2013-14 2014-15 2015-16
Source: TFIS Annual Report 2015-16
Total contribution to GDP Total Investment (USD Billion) Employment (in million)
CAGR:
5.76% 5.0% CAGR:
11.0%
4.00 CAGR: 3.00
2.7% 15.63%
0.81 0.95
► Tourism in India accounts for 7.5 per cent of the GDP and is the third largest foreign exchange
earner for the country. Gujarat is expected to contribute 5% to the total GDP by 2025. The
business is expanding both in terms of turnover and boundaries and therefore contributions
total investments by Gujarat are expected to increase. Today worldwide, one in eleven jobs may
be ascribed to the tourism industry. Gujarat is expected to generate 3 million jobs by 2025.
Page 10
Gujarat - Competitive
Advantage
Initiatives – Gujarat Tourism Policy 2015-2020
Grant of Industry status to First state to have accorded INDUSTRY STATUS to Tourism
Tourism Sector Sector
Source
http://www.gujarattourism.com/downloads/Tourism%20Policy%202015.pdf
Page 11
Gujarat - Competitive
Advantage
Regional Profile
► The gross tourist flow in Gujarat reached 38.3 Gross tourist arrivals in Gujarat
(in million)
million in FY16, growing at a CAGR of 14.1%
over the period FY11-FY16
► Ahmedabad, Ambaji, Dwarka, Surat and 38.3
Vadodara accounted for ~42% of gross tourist 32.7
28.8
flow to Gujarat in FY16 25.4
19.8 22.4
► Tourist flow to Gujarat in FY16 was driven by
business purpose (56%), followed by religion
(35%), leisure (7%) and other purpose (2%)
FY11 FY12 FY13 FY14 FY15 FY16
Within Gujarat Other Indian states Foreign Economy Luxury Medium High
Page 12
Gujarat - Competitive
Advantage
Gujarat Tourism Landscape
Business Tourism
► High presence of Indian
and global companies
Archeological and Heritage Adventure Tourism
► 18 SEZs operational
Tourism ► Longest shoreline of 1,600
km - beaches, forests, hills,
► Variety of historical forts, Science City, theme parks,
palaces, dargahs, temples Gujarat zoos, lakes
► Proactive Government and
aggressive marketing
► Untapped tourism opportunity
► Strategic location
► Unique blend of pilgrimage, adventure,
hill station, beaches,
Cultural Tourism Wild Life Tourism
heritage and desert
► Handicrafts such as ► Rarest and large number
bandhani, patolas, kutchi of flora and fauna
► Fairs and festivals like ► Four national parks and
navratri, makarsankranti Religious Tourism 21 sanctuaries
► Home to multitude
devotional centres and
temples like Dwarka,
Dakor, Ambaji, Somnath
Mangdalla Nargo
► Dedicated 24 x 7 tourist helplines and
Bhavnagar Vansi Borsi tourist centers
Veraval Hazira
► Attractive landscape from
Dahej Dahej Sahiyadhri, Vindhya and Aravalli Hills
to the white desert of Kutch
Jakhau Mundra
► Gujarat Maritime Board manages more than 44 ports. Out of these 44 ports, 10
ports are major ports.
► In the recent years private investment has been encouraged in this sector, various
ports have been developed in Pipavav, Dahej, Mundra, Hajira and 4 other greenfield
projects are underway in various locations.
Page 13
Project Information
Page 14
Project Information
Rail Road
► The railway stations in circuit are at Okha, ► Gujarat is amongst the leading states
having last mile connectivity
Dwaraka, Porbandar, and Veraval
► Total length 77,265 Km
(Western Railways).
► National Highways – 3245 Km
► State Highways – 19761 Km
Air Port
► Closest airports in the circuit are at ► Gujarat had 1600 km coastline with 1
Jamnagar, Porbandar and Diu Major and 44 Minor Ports
► The closest international airport is at ► Ports that can be accessed for the circuits
are Okha, Dwaraka, Porbandar, Veraval
Ahmedabad and Diu
Utility
Water Power
Page 15
Project Information
Government Public or
Private Operator
of Gujarat private player
Terminal
Other basic Marketing and
Development and
infrastructure Promotion
O&M
► In the cruise circuit the following related activities needs to be developed in partnership basis
► Water sports, tours to destinations with guide, local cuisine, guided tours of heritage sites,
cultural programs, panelled luxury hotels for retiring in between destinations, on demand
medical support etc.
► Various cost associated with O&M of the ship like salary of crew members, insurance of ship,
safety equipment's, etc. will be borne by the private operator.
► The revenue from the cruise ship belongs entirely to the operator. The revenues from terminal if
developed by government would be taken care by government.
Page 16
Project Information
1 Terminal Reception 5
2 Security 10
3 Operations staff 15
4 Helpdesk 3
5 Managers 6
6 Others 13
Total 52
http://www.cruiseindustrynews.com/
http://www.indianholiday.com/luxury-cruises/
http://www.tourism.nic.in/writereaddata/Uploaded/Tender/032420150301832.pdf
Source: ‘Cruise Tourism Potential & Strategy Study: Final Report’ Ministry of Tourism, Government of India and CRISIL, December 2005
Page 17
Project Information
Key Players
► The Dubai Cruise Terminal at Port Rashid was opened in 2001 and is the only cruise terminal
managed and operated by the Department of Tourism in Dubai – The private players involved in
the development of the Terminal can be brought in to develop a terminal in Gujarat to synergize
with cruises starting with Dubai as the Homeport or port of call
► Singapore Cruise Centre was built and developed by the Port of Singapore Authority at a cost of
$ 50 Million in 1992 – The developers of the Singapore Cruise Centre can be a key player in the
development of cruise terminals in Gujarat to synergize with Cruise circuits starting in Singapore
and Asia
Car Rentals ► For pick up and drop off services – between ports and tourist
attractions in respective cities
Domestic Airlines and ► For foreign tourists – to be able to access the ports of call after
Western Railways landing in the international airport at Ahmedabad
Key Considerations
► Accessibility: Time and ease from the port to other destinations should be considered keeping
in mind the cruise trip time and the time of holidays for domestic and international tourists
► Connectivity packages – drop and pick up from international airports
► Port policies and easy clearances (immigration and customs)
► Branding and marketing with attractive offers for travellers
► Innovation and theme based cruise like adventure, sports, movies et al. can be a part of the
advertisement to attract tourists
► Cruise safety and regulatory guidelines : All cruise ships must be designed and operated in
compliance with strict requirements of international law and follow an extraordinary number of
established rules and regulations to protect everyone on board. Every aspect of the cruise
experience is heavily regulated and monitored under both Merchant Shipping Act, 1958 and the
guidelines issued by Gujarat Maritime Board (GMB).
► Presence of Medical Assistance: 24 hours presence of so many passengers away from land
requires presence of medical assistance on-board ship. At least 5 beds per 200 passengers
should be available round the cloak with 360 degree medical support with at least 2 surgeons
or specialist on board
Source: ‘Cruise Tourism Potential & Strategy Study: Final Report’ Ministry of Tourism, Government of India and CRISIL, December 2005
Page 18
Project Financials
Source: ‘Cruise Tourism Potential & Strategy Study: Final Report’ Ministry of Tourism, Government of India and CRISIL, December 2005
Page 19
Approvals / Incentives
Approvals Required
Industrial approval
► Registration with Director General of Shipping
► Registration at Gujarat Maritime Board(GMB) for operating in ports.
Land for project
► Allotment of plot/shed in Industrial Estate from GIDC
Environment clearance
► ‘No Objection Certificate’ from the Gujarat Pollution Control Board
► Environmental Clearance (EC) from Ministry of Environment and Forest (MOEF)
Arrangement of power
► GIDC estates - Zonal office
► Captive power - Gujarat Energy Transmission Corporation Limited (GETCO)
Government Initiatives
Following initiatives taken by Government of India will help cruise tourism grow-
► Marketing of India as a tourist destination under “Incredible India Scheme”
► Indian Cabotage Law to benefit domestic players and ships registered in India.
► Reduction in port tariffs, in some cases the reduction is up to 33%.
► Upcoming SoP ( on cruise terminal operation to further boost cruis tourism
► ‘No Objection Certificate’ from the Gujarat Pollution Control Board
► Environmental Clearance (EC) from Ministry of Environment and Forest (MOEF)
Arrangement of power
► GIDC estates - Zonal office
► Captive power - Gujarat Energy Transmission Corporation Limited (GETCO)
Page 20
Industries and Mines Department, Gujarat
www.imd-gujarat.gov.in/
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.