The Hindu Business Line : Indian cruise shipping still waiting for the wind

Global cruise companies continue to develop the European market. Investments targeted at European travellers continue with orders for Costa Crociere, Aida Cruises, P&O Cruises and MSC. A number of companies have redeployed ships from the US and the Caribbean along popular routes in Europe.

One of the drivers for the increased investment in the European cruise market is the desire to reduce the industry's reliance on the US economy by earning additional income in euros, says Lloyd's Register, the UK-based independent risk management organisation.

India, despite having 7,500-km-long coastline, 12 major and 185 minor ports, is yet to make its mark in the global cruise industry. "With lack of infrastructure at major ports and across tourist destinations, it will take years for us to be part of the global cruise market," rued an industry source.

Lack of coordination

There is lack of coordination among the various stakeholders, including State governments, the hospitality industry, ports and the maritime industry, to make the country attractive for the cruise industry, the source said.

The 2004-05 annual report of the Shipping Ministry says that the Indian coastline is "unfortunately" not witnessing the same growth pattern as seen globally. Therefore, it is said that a strong policy intervention by the Centre would be necessary for its stimulated growth.

With its vast and beautiful coastline, virgin forests and undisturbed idyllic islands, long historical and cultural tradition of architecture, theatre and performing arts, India can be a destination of choice for Western cruise tourists. The global scenario for cruise shipping is picking up rapidly, with an annual increment of 10-20 per cent in the cruise ship fleet and passengers carried.

Desire to spend

Further, with the Indian economy growing at around 9 per cent and people having more money, there is a desire to spend on entertainment and pleasure. Therefore, besides attracting foreign tourists, India can also target this group for growth of the cruise sector, the report said.

In the last two years, there has been some movement, but the pace is slow. The Government is projecting Mumbai, Mormugao, New Mangalore, Kochi, Tuticorin and Chennai ports for the cruise circuit. This is apart from streamlining systems and procedures to facilitate seamless travel by tourists. The Government also relaxed Cabotage Law (this does not permit foreign flag vessels to carry coastal cargo in India) for cruise ships for five years (from December 2003) and provided a rebate of up to 50 per cent on vessel-related charges such as berth hire and pilotage.

A committee headed by the Shipping Minister was also constituted to formulate a cruise shipping policy. "We need immediate action in this sector to attract more cruise line to India," the source said.

It may be recalled that permission was given to Ocean Cruises India to operate from Goa to Lakshadweep via Kochi, and Star Cruises to operate from Mumbai to Lakshadweep (Kadmat Island) and Mumbai to Goa.

In 2005, Singapore's top three cruise source markets were led by India with a throughput of more than 63,000 visitors, registering a growth of six per cent over the previous year, according to information available on the Web.

Bid to attract cruise ships

Three major cruise terminals are being planned at Mormugao, Mumbai and Kochi at a cost of around Rs 480 crore. The Mormugao Port Trust will spend Rs 185 crore to create a cruise-cum-container terminal at Baina.

The Mumbai Port Trust will spend Rs 150 crore to create a new cruise terminal near Gateway of India and the Kochi Port Trust would spend Rs 150 crore for an international cruise terminal, says the Unions Shipping Ministry.

Large ships

Cruise operators are ordering larger ships; vessels of over 100,000 GRT (gross registered tonnage) are becoming common. The 160,000-tonne Freedom of the Seas, of the Royal Caribbean International (RCI) is the largest cruise and passenger ship.

The vessel, which has more than 1,800 rooms for up to 4,375 passengers, is more than 1,110 ft long.

The North American cruise industry generated $32.4 billion for the US economy in 2005, an increase of nearly eight per cent over 2004.

An annual study commissioned by the International Council of Cruise Lines, Business Research and Economic Advisors found that the cruise industry supported more than 330,000 jobs nationwide and paid a total of $13.5 billion in wages and salaries to Americans in 2005.