Lok Sabha Question No. 41 (UNSTARRED), answered on 2024-11-25
Subject: Cruise Tourism
Ministry: TOURISM
Asked by: Shri Magunta Sreenivasulu Reddy, Shri Prabhakar Reddy Vemireddy, Shri G M Harish Balayogi

## GOVERNMENT OF INDIA MINISTRY OF TOURISM

## LOK SABHA UNSTARRED QUESTION NO.41

## ANSWERED ON 25.11.2024

## CRUISE TOURISM

- 41 SHRI G M HARISH BALAYOGI: SHRI PRABHAKAR REDDY VEMIREDDY: SHRI MAGUNTA SREENIVASULU REDDY:

Will the Minister of TOURISM be pleased to state:

- (a) whether the Government  has conducted any  assessment to identify  the  potential  routes  for  cruise  tourism  including  but  not limited  to  inland  and  coastal  in  the  country,  if  so,  the  details thereof State-wise, including the State of Andhra Pradesh;
- (b)
- if not, the reasons therefor;
- (c) the details of the steps/initiatives  undertaken by the Government for  the  promotion  of  such  cruise  tourism  across  the  country especially in the State of Andhra Pradesh;
- (d) the details regarding the skill development initiatives undertaken by the Government specifically for such cruise tourism across the country, State-wise especially in the State of Andhra Pradesh;
- (e) the details regarding the steps/initiatives undertaken  by the Government  for  attracting  investments  for  development  of  such cruise tourism;
- (f) whether the Government has established a simpler tax regime with regards to cruise tourism as announced in the Budget 2024-25, if so, the details thereof and if not, the reasons therefor; and
- (g) whether  the  Government  has/is  planning  to  establish  a  National Cruise Tourism  Board  and  a  National  Coordination Body  for coordination among different bodies, if so, the details thereof and if not, the reasons therefor?

## ANSWER

THE MINISTER OF TOURISM         (SHRI GAJENDRA SINGH SHEKHAWAT)

- (a)  to  (g):  Development  and  promotion  of  tourist  destinations  and products, including cruise tourism, is primarily the responsibility of the respective State Government/Union Territory (UT) Administration.

As  part  of  its  on-going  activities,  the  Ministry  of  Tourism  regularly promotes India as a holistic tourism destination including cruise tourism through various mediums including social media and websites.

A Task Force on Cruise Tourism has been formed jointly by the Ministry of  Tourism  and  Ministry  of  Shipping  with  representatives  of  all  major ports  and  stakeholders  for  coordinated  efforts  to  create  an  enabling ecosystem for the development of Cruise Tourism in India.

Ministry of  Tourism provides Central Financial Assistance (CFA) to the Central  Government  Agencies  for  development  of  tourism,  including Cruise Tourism  and  Cruising  along  rivers  on  receipt  of  complete proposals  under  the  Scheme  of  'Assistance  to  Central  Agencies  for Tourism Infrastructure Development'.

In addition, Ministry of Tourism has identified Coastal Circuit as one of the fifteen thematic  circuits  for  development  under  the  Swadesh Darshan Scheme.

As  conveyed  by  the  Ministry  of  Ports,  Shipping  &  Waterways,  the following steps/initiatives have been undertaken by the Government for the promotion of such cruise tourism in the country:

- (i) For berthing, cruise vessels are given priority over cargo vessels.
- (ii) Rationalized cruise tariff has been introduced in terms of standard port charges and a nominal passenger head tax. Further, provision of  discount  ranging  from  10%  to  30%  based  on  volume  of  their calls is also provided for in Port Tariff.
- (iii) Removal of ousting charges to attract cruise vessels.
- (iv) Cabotage has been waived for foreign cruise vessels. This relaxation allows foreign cruise ships to transport Indian Nationals from one Indian Port to another Indian Port during its domestic leg.
- (v) E-Visa and on-arrival visa facilities have been extended.
- (vi) Conditional  IGST  exemption  has  been  approved  for  foreign  flag foreign going vessels when it converts to coastal run, subject to its re-conversion to foreign going vessels within six months.
- (vii) Standard  Operating  Procedure  (SOP)  for  uniform  &  pre-defined services by various stakeholders like Ports, Customs, Immigration, CISF, Port Health, Cruise agent, Cruise Terminal Operators, State Government, Tourism Boards, etc. has been implemented.
- (viii)  Single  e-Landing  Card  has  been  introduced  which  is  valid  for  all ports in cruise itinerary.
- (ix)
- Cruise Bharat Mission has been launched in September, 2024.

The Ministry of Tourism conducts demand driven training courses under its 'Capacity Building for Service Providers (CBSP)' scheme. The  Union  Budget  2024-25  has  put  in  place  a  presumptive  taxation regime  for  domestic  cruise  ship  operations  of  non-residents.  Further, exemption is provided for any income of a foreign company from lease rentals of cruise ships, received from a related company which operates such ships in India. The same are given effect by insertion of section

44BBC and clause (15B) of section 10 in the Income Tax Act, 1961.

******