Ministry of Shipping meets on ‘Cruise Shipping’

Consultative Committee of Ministry of Shipping meets on ‘Cruise Shipping’ The Parliamentary Consultative Committee attached to the Ministry of Shipping met at Cochin today on board a Cruise Ship to discuss ‘Cruise Shipping’.

Following is the text of inaugural address by Shri G.K. Vasan, Union Minister of Shipping:

“Cruise Shipping is an important and growing component of the leisure industry worldwide. It contributes directly and indirectly to the economy of the country concerned. This sector has a number of spin-off effects in service sector. Besides generating revenue in the form of passenger fares, port charges, etc., it also promotes many industries like handicraft, guide service and catering, etc., and earns valuable foreign exchange for the country.

Cruise Tourism has tremendous potential in India. If it is made more affordable and the availability of cruise services are enhanced, the vast Indian middle class could form a huge pool of client base. The saturation witnessed in world’s most favorite cruising areas like the Caribbean, Mediterranean, etc. provides India a tremendous opportunity to position herself as a new destination for cruise tourism. Despite inherent advantages and tremendous potential of ‘Cruise Shipping’ sector, the country has not witnessed worthwhile growth as compared to the growth witnessed in Latin America and South East Asia in this segment. It requires a special marketing strategy and focus.

The Cruise Shipping Policy, approved by the Government in 2008, provides for relaxation of cabotage for coastal runs by foreign flagships, conducive fiscal regime and development of facilities at ports. It also envisages rail, road, air and metro connectivity. Quick and hassle free immigration and custom clearance for the tourist has also been emphasized in this policy.

A Steering Committee Chaired by Secretary (Shipping) and comprising of senior officers of Shipping and Tourism Ministries was constituted in January, 2010 to address issues related to Cruise Shipping. Five Major Ports, namely Goa, Chennai, Cochin, Mumbai and Mangalore have been identified for development of cruise terminals by this Committee. The Committee has also recommended inclusion of travel by river cruise and coastal runs of cruise ships under LTC facilities provided for Government employees.

The Government is addressing all issues concerned with the development of cruise shipping in the country like creating port infrastructure, cruise terminals, providing financial incentives and reducing tax burdens, and establishing an institutional framework for holistic development of cruise shipping.

The Ports are earmarking funds from their own resources for development of Cruise related Infrastructure. Dedicated cruise vessel facility is currently available at Chennai, New Mangalore, Kochi, Mumbai and VOC Port at Tuticorin. The port infrastructure is improving. Cruise Terminals are also being developed at other ports like Murmagao and Kolkata.

There are river cruises on National Waterways also which are in the nature of city cruises, day cruises and long distance cruises. Presently, regular river cruises are operative on Kolkata-Varanasi, Kolkata-Murshidabd, Kolkata-Semaria and Sunderbans.

The Ministry of Tourism operates a scheme for Large Revenue Generating Projects to remove shortcomings of budgetary resources for projects involving higher degree of investments for creation of tourism infrastructure. The subsidy under the scheme upto Rs.50 crores subject to maximum of 25% of total project cost or 50% of equity contribution of the promoter, whichever is lower is being provided. Under this scheme, projects at Mormugao Port and Cochin Port are being examined for approval for grant of assistance by Ministry of Tourism.

The number of cruise ships which called at Indian port was 129 in the year 2010-11 as compared to 55 in the year 2003-04 and the number of cruise passengers rose from 34,372 in 2003-04 to about 1 lakh in 2010-11.

With the initiatives of the Ministry of Shipping, incentives from the Ministry of Tourism and the support of honourable Members of this august Committee, I am sure, cruise shipping as a money spinner for our economy will grow from strength to strength.

I am thankful to have the presence of the Hon’ble Members of the Consultative Committee today in Cochin where our meeting is conducted on board a cruise ship to provide firsthand experience of sailing in a cruise ship. I am sure this will be a memorable meeting for all of us”.