Lok Sabha Question No. 2992 (UNSTARRED), answered on 2017-08-03
Subject: Domestic Cruise Industry
Ministry: SHIPPING
Asked by: PRALHAD VENKATESH JOSHI

## GOVERNMENT OF INDIA MINISTRY OF SHIPPING

## LOK SABHA

## UNSTARRED QUESTION NO.2992 TO BE ANSWERED ON 3 rd AUGUST, 2017 DOMESTIC CRUISE INDUSTRY

## 2992. SHRI PRALHAD JOSHI:

Will the Minister of SHIPPING be pleased to state:

- (a) whether the Government proposes to boost domestic cruise industry in the country and if so, the details thereof;
- (b) the details of revenue and employment generation expected as a result thereof; and
- (c) the details of specific routes identified for the purpose?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF SHIPPING (SHRI PON. RADHAKRISHNAN)

- (a) To boost cruise industry including domestic cruise industry in the country, the following important actions have been taken:-
- (i) All  major  ports  offer  a  minimum  rebate  of  30%  across  the  board  to  cruise ships on all vessel related charges (port dues, pilotage and berth hire) from the notified scale of rates.
- (ii) Major ports  do  not  levy  any  priority/ousting/shifting  charges  for  berthing  the cruise  vessel,  provided  the  liner  informs  port  30  days  in  advance  about  the requirement of the berth.
- (iii)  To  attract  cruise  liners  to  make  major  ports  as  homeports,  the  major  ports provide rebate of 25% in vessel related charges for coastal cruise movement. This  is  in  addition  to  the  40%  existing  rebate  for  coastal  vessels.    Further, walk-in berthing/preferential berthing is given to cruise vessels at home port without any extra charge.
- (iv)  Foreign flag vessels carrying passengers had been allowed to call at Indian ports  for  a  period  of  10  years  with  effect  from  6 th February,  2009  without obtaining a license from Director General of Shipping.  This has been further extended for a period of five years i.e. upto 5th February, 2024.
- (v) For  promoting  cruise  tourism,  a  Task  Force  has  been  constituted  jointly  by Ministry of Shipping and Ministry of Tourism.  The Task Force is responsible for drawing up strategies for promotion of cruise tourism including development of facilities and related infrastructure as well as facilitation.
- (vi)  Standardized  Operating  Procedures  (SOPs)  forhandling  cruise  vessels  and passengers have been implemented.
- (vii) To  address  manpower,  coordination  and  logistic  issues  for  handling  cruise vessels at ports, Port Level Committees with chairman of the respective Major Port Trust as Chairman, Secretary Tourism of the concerned state as ViceChairman  and  Regional  Director  of  the  respective  region  of  Ministry  of Tourism as Convener have been constituted.

- (viii)  Ministry  of  Tourism  under  its  Scheme  for  Assistance  to  Central  Agencies extends  financial  assistance  to  the  Ports  for  development  of  cruise  related tourism infrastructure.
- (b) It is estimated that on an average a cruise tourist spends about US$200-300 and  a  cruise  staff/officer  spends  about  US$100-150  per  port  visit.Cruise tourism  is  a  high-end  luxury  tourist  segment  of  tourism  sector.    Cruise operations augment local economic activities as business opportunities arise for  supply  for  provisions,  transport,  hotels,  bunkering  etc.  to  cruise  ships which  generate  direct  and  indirect  employment.    The  local  economy  also gains from the spending by cruise tourists during land excursions.  It is difficult to  quantify  the  expected  employment  generation  on  account  of  domestic cruise industry.
- (c) The development and promotion of tourists' destination and products including cruise circuits and implementation of tourism projects is primarily the responsibility of the respective State Government/Union Territory Administration.      During  2016-17,  cruise  ship  Costa  Neoclassica  made Mumbai port as home port for operating a cruise service from Mumbai-New Mangalore-Cochin-Male -Colombo-Goa-Mumbai for seven voyages. Further,  a  domestic  cruise  ship  has  shown  interest  to  commence  domestic cruise between Mumbai Port and Mormugao port in November, 2017.

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