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Cruises

India Bets on Cruises: New Ports,

More Ships – Big Goals
Amrita Ghosh, Skift
July 9th, 2023 at 11:00 PM EDT

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D estinations, cruise service

providers and the government
have been sitting up and taking note
of the country’s potential in 1
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generating revenues and jobs. Now to read

only if the sailing is smooth.

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India wants to bet big on cruises. Consider these

ambitious plans from Union Tourism Minister G
Kishan Reddy:

Increase the number of cruise passengers to

4 million by 2041, up from just 300,000 this
year.
Build three new international cruise ports by
2024.
Grow the number of cruise ships from 208 in
2023 to 500 by 2030 and a staggering 1,100
by 2047.

The goal is to bring in some $4.9 billion in revenue

from cruises by 2041.

India has many natural advantages, including 12

major and 200 minor ports, a coastline stretching
4,660 miles and a network of over 12,427 mile-long
navigable waterways.

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The international cruise terminal in Mumbai will be

operational by December this year, the one in
Goa’s Mormugao by November, and the
Visakhapatnam terminal will start functioning next
month. A $2 million swanky cruise terminal was
recently inaugurated at Chennai Port, spread over
an area of 2,880 square meters with a capacity to
host 3,000 passengers at a time. Additionally,
plans are afoot to develop new cruise tourism
terminals in Andamans, Puducherry and
Lakshadweep circuits.

Last month, India’s maiden international cruise

ship, Cordelia Cruises’ MV Empress, set sail from
the southern city of Chennai to the island nation of
Sri Lanka. And the Italian cruise line Costa Cruises
announced 23 new sailings in the country for the
winter.

Just a week later, the government floated a draft

national cruise tourism policy under which the
Ministry of Tourism proposed to set up a board to
facilitate ease of business and ensure that cruises
are used as a tool to drive tourism into and within
India.

While India’s e!orts in port infrastructure

upgrades, cutting port fees and taxes, and
granting priority berthing to cruise ships are
already underway, the country has a long way to
go to implement standard clearance procedure
across all ports and reduce documentation
requirements.

“In major ports like Mumbai, if multiple ships call

the port in a day, the infrastructure will crumble.
Ports need to be upgraded to accommodate
cruise ships,” said Ratna Chadha, co-founder and
chairperson at TIRUN Travel Marketing, which
represents U.S.-based Royal Caribbean Cruises in
India.

“Unless clear policies and procedures are rolled

out, it’s di!icult to market India as a cruise
destination,” she added.

Chadha said two Royal Caribbean ships will call

on India (a classic port call is 12 hours) in October
and December.

Tax Structure Hinders Growth

The current tax policy and lack of coordination
among government agencies have been identified
as “threats” to the potential growth of cruise
tourism in India, according to the Draft National
Strategy for Cruise Tourism.

“What India’s cruise sector still doesn’t know very

clearly is how to handle elements of finance,” said
Nalini Gupta, managing director of Lotus
Destinations and general sales agent of Costa
Cruises in India, adding that tax reform is urgent.

Another challenge, said Gupta, is that cruising is

not well known in India though that could change
rapidly. “Despite a varied group of customers, from
corporate and wedding groups to honeymooners
and senior citizens, India currently stands at
300,000 cruise passengers a year and contributes
to not even 1% of the global cruising numbers,”
she added.

“We want the government to take measures such

as a five-year tax break that will boost the industry
to expand the way the government aims,” said
Gupta.

“I am certain that our two-month schedule will be

closely watched and there will be more cruises
sailing in the Indian waters from next year,” Gupta
said.

Challenges Persist, But We’ll Get

There
The cruise terminal at Chennai Port reported
several infrastructural setbacks when it was
handling immigration procedures for the first time,
for 1,800 passengers set to board Cordelia’s ship
to Sri Lanka.

“It was like opening an airport for the first time for
international flights. We worked throughout that
one day over long queues and technology outages
as new immigration o!icers were not fully aware
of the requirements,” Jurgen Bailom, president and
CEO of Cordelia Cruises.

The biggest challenge today, he pointed out, is the

outdated infrastructure and getting access to the
ports.

“Most ports are located in remote areas, and this

calls for a significant enhancement of roads
leading up there. City infrastructure needs to be
revamped, which requires an integrated e!ort
involving state and central tourism bodies and
shipping departments,” said Bailom.

Bailom is keen on having a tax holiday for five to 10

years, which could benefit the individual traveler.

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Amrita Ghosh, Skift

July 9th, 2023 at 11:00 PM EDT

Tags: costa cruises, cruise industry, cruise ships,

india, msc cruises, royal caribbean cruises

Photo credit: India's first international cruise vessel, MV

Empress set sail from Chennai to Sri Lanka. Cordelia Cruises
/ Cordelia Cruises

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