DRMumbai: Inaugurating the first ever Global Cruise Conclave organised by India Cruise Lines Association (INCLA) in Mumbai, Nitin Gadkari, Minister of Road Transport and Highways, Shipping and Water Resources, River Development and Ganga Rejuvenation, Government of India, said that he has requested Arun Jaitley, Minister of Finance, to either cap GST at 5 per cent or exempt the cruise tourism industry from it. He said the matter might be discussed in the upcoming GST Council.
At the Global Cruise Conclave, INCLA brought all stakeholders and global leaders of the cruise industry on a single platform. Speaking candidly Gadkari expressed unhappiness over the way cruise tourism has progressed in the country. He urged investors to invest in the shipping industry and said the government will provide 20 per cent subsidy to ship builders.
“The earlier version of the Cruise Tourism Policy did not impress investors. So we have made a lot of changes to it keeping feedback in mind,” he said, adding that “At least three lakh passengers are going to Singapore from Mumbai on a daily basis. At least one crore passengers must use cruise tourism in the next three years. We will create world class infrastructure and ensure highly professionalised services for the same”.
Cruise tourism has tremendous scope in India and can become an economically viable and profitable sector. With a potential of one crore cruise tourists, an employment opportunity in excess of 25 lakh jobs is very much possible.
Gadkari was presented with a White Paper on ‘Recommendations for Indian Cruise Industry’, by INCLA executive committee members in the presence of Subhash Chandra, Chairman, ZEE & Essel Group.
India has been aggressively developing the potential of its rivers and seas and already received interest from foreign players to set up manufacturing of hovercrafts and seaplanes, among others in the country. “The ministry has also recently resolved the issues regarding Cabotage laws and will look at the charter of demands from industry stakeholders to resolve them at the earliest to promote cruise tourism,” Gadkari informed the gathering.
“As an industry leader we feel the proliferation of cruise tourism will bring one million jobs in the next three to four years. We will provide a homegrown alternative for Indians who are presently going abroad to enjoy cruises,” added Chandra while speaking at the conclave.
INCLA has been formed by leading cruise liners and other stakeholders from around the world with the objective of creating a roadmap for the development of the cruise sector in India and also to highlight various issues being faced by the Indian cruise industry, reforms required to address the said issues and ensure that reforms are implemented effectively at the ground level.
Sanjay Bhatia, Chairman, Bombay Port Trust & Chairman, Indian Ports Association, said, “There has been a strategic shift in thinking regarding utilisation of ports in India. We are planning to transform ports to support cruise tourism. The government is working very closely and several reforms, including reducing tariffs at five ports (Mumbai, Goa, New Mangalore, Kochi and Chennai) have been undertaken.”
The viability of domestic and international cruise tourism originating from India was enthusiastically discussed amongst eminent panellists. Nalini Gupta, Executive Committee Member, INCLA said, “The opportunity is huge and the market is hungry for cruise tourism. We believe that the Indian government has a vision to promote the marine economy. A few years back there were some grey areas and hence there were considerable apprehensions among industry players. INCLA will collaborate with government and stakeholders to bring clarity in policy to boost cruise tourism in the country.”
Jurgen Bailom, Convener, INCLA and President & CEO, Zen Cruises, said, “Economies world-over are gaining immensely from cruise tourism owing to stakeholder-friendly policies, evolution of customer needs and rapid development of infrastructure. With INCLA, we hope to bring a transformation in the Indian waters, which are yet to be explored and experienced by tourists in India.”
This white paper was prepared by INCLA with a view to highlight the necessary changes or clarifications in policy and various tax and regulatory laws, to ensure a level playing field for cruise business in India compared to cruise operators based abroad and attract investors or cruise liners and other stakeholders to set-up cruise operations in India.
INCLA believes that the growth of the cruise sector in India would lead to substantial development of the local tourism economy and other allied sectors like hospitality, transportation, etc., thus leading to an increase in tax revenues for the government and generation of employment.
Essel Group forays into cruise tourism
Diversified Essel Group entered the cruise tourism business through its entity Zen Cruises, which will operate with their brand Jalesh (Lord of the Waters). The company has purchased a used vessel from P&O Australia and refurbished it. Package bookings will commence in November this year and the first voyage will be in May 2019.
The company is making an initial investment of more than $100 million, including $23 million on refurbishing the vessel. The yet-to-be-renamed vessel can accommodate 1,800 guests and 600 crew members.
Subhash Chandra, Chairman, Essel Group said, “The Indian cruise industry should handle five million passengers by 2020. At Essel Group, we have commenced the cruise business with the commitment to give people a great experience.”
“Our target is to welcome 2,50,000 guests in 2019,” said Jurgen Bailom, President & CEO, Zen Cruises. “Initially, it will call on six Indian ports which have cruise terminals. Going forward, the company’s cruise ships will sail to international destinations.”
Zen Cruises wants to make cruising affordable for Indians and the aim would be to provide premium services at affordable rates. Rates as low as Rs. 10,000 per person per night is what is being reported along with EMI options. Zen Cruises will be adding another vessel soon.
