The Indian government has implemented a series of comprehensive incentives to entice international cruise lines and foster cruise tourism in the country, as per Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal. These incentives aim to create a conducive environment for international cruise vessels while promoting India as an attractive cruise destination.
Among the various measures, the government has accorded priority to cruise vessels over cargo vessels for berthing, signaling a commitment to facilitate smoother operations for cruise liners, said Sonowal. Additionally, a rationalized cruise tariff structure has been introduced to ensure more favorable pricing for cruise companies. Port charges are now calculated at a fixed rate of USD0.085 per Gross Registered Tonne (GRT), while a nominal passenger head tax of USD 6 is levied for the initial 12 hours of a vessel’s berth stay.
In a strategic move to promote tourism, conditional Integrated Goods and Services Tax (IGST) exemption has been sanctioned for foreign-flagged, foreign-going vessels when they convert to coastal runs, subject to their reconversion to foreign-going status within six months.
During the Global Maritime India Summit in 2023, sessions such as ‘Embark on a voyage to attract 50 million Cruise Passengers in India by 2047′ and a ‘Roundtable with Cruise lines’ were also organised, drawing the active participation of stakeholders from the industry, the minister recalled.
To further incentivise cruise liners, discounts ranging from 10 per cent to 30 per cent have been offered based on the volume of calls made by these vessels. Additionally, charges related to ousting have been eliminated, aiming to attract more cruise ships to Indian ports. Further, the extension of E-Visa and on-arrival visa facilities, alongside the introduction of a single e-Landing Card valid for all ports in a cruise itinerary, simplifies entry procedures for international visitors.
The panel’s discourse painted a comprehensive picture of India’s outbound travel industry, highlighting successful strategies, emerging trends, and challenges. The consensus was that despite the hurdles posed by the pandemic and geopolitical tensions, opportunities abound for businesses to cater to India’s evolving travel market by prioritising unique and priceless experiences.
Sonowal, in his Rajya Sabha reply, also mentioned that the significant efforts have been directed toward infrastructure development, with completed upgrades and modernization of Cruise Terminals at prominent ports such as New Mangalore, Cochin, Chennai, Mormugao, and Visakhapatnam. This enhancement of facilities aims to provide a seamless and enjoyable experience for both passengers and operators.Additionally, a notable policy change involves the waiver of cabotage for foreign cruise vessels, enabling them to transport Indian nationals from one Indian Port to another during their domestic leg. Sonowal emphasized that this relaxation serves as a significant boon for international cruise ships operating in Indian waters.
The impact of these initiatives is also evident from the increased number of port calls made by international cruise liners. In the fiscal year 2022-23, there were 60 port calls, while up to October 31, 2023, there were already 29 port calls at various Indian ports including Mumbai, Mormugao, New Mangalore, Cochin, Chennai, and Tuticorin, showcasing the growing interest and engagement of international cruise companies with Indian destinations.
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Tamil Nadu has set the ball rolling to attract investments of `20,000 crore in tourism in the next five years. Its first policy on tourism, unveiled a fortnight ago, declared tourism an ‘industry’ to ease the way for investments. While the move to leverage tourism to help achieve Tamil Nadu’s target of being a $1 trillion economy by 2030 has cheered industry, stakeholders underscore a slew of initiatives the government needs to focus on to make this a reality. These range from marketing the state’s diverse tourism offerings to roping in national and international tour operators to developing infrastructure.Shankar Vanavarayar, chairman, CII Tamil Nadu, says, coastal, cultural, medical and wellness, religious, and MICE (meetings, incentives, conferences and exhibitions) tourism are the key sectors the policy should target to bring investments into the state. “And for this, tier-2 cities such as Madurai, Coimbatore and Trichy should also be considered,” he says.
Medical and wellness tourism, among the 12 focused themes in the policy, is expected to further boom. Revenue from medical tourism is projected to hit $13 billion by 2026 in the country, and Tamil Nadu has a 40% share, according to industry estimates. The state’s multi-speciality and super-speciality hospitals attracted 1.5 million patients globally for medical diagnosis and treatment last year and this is expected to grow, says CII’s Tamil Nadu chapter. Patients from Kenya, Nigeria, Tanzania, Iraq, Afghanistan, Oman, Maldives and Bangladesh choose Tamil Nadu for medical treatment and surgeries. And there is a steady flow in from other states.
FICCI Tamil Nadu state council chairperson G S K Velu says the thrust should be on promoting made-in-Tamil Nadu products. “The government should work closely with private institutions and reputable industrialists to position Tamil Nadu as the numero uno tourist destination with clean infrastructure and 100% safety,” he says. Tourism benefits several ancillary industries and generates employment in various sectors, he says on the benefits of `20,000 crore in investments over the next five years.
Tamil Nadu topped the country five times in attracting the highest number of overseas travellers between 2014 and 2020, while securing second position in the other two years. It had 17% to 21% of the total number of foreign tourists visiting India. While Tamil Nadu came second in the domestic tourism segment with 218.6 million visitors to the state in 2022, it went down to the sixth position in foreign tourist arrivals last year.
The decision to designate Manama as the capital of Gulf tourism for 2024 underscores Bahrain’s contributions to the growth of the Gulf tourism sector. Bahrain Tourism and Exhibitions Authority works closely with its partners to achieve the tourism goals outlined in the 2022-2026 strategy. In the previous year, the Kingdom welcomed 10 million tourists, showing a 20 per cent increase.
M K Ajit Kumar, president, Asia Pacific Tours, says Tamil Nadu’s tourism policy can help replicate Kerala’s success. “To attract both foreign and domestic investments for the tourism industry and allied activities, TN should focus on creating an investor-friendly environment through streamlined regulations, incentives and infrastructure development. Moreover, a substantial part of the investment should be used for creating world class convention centres to tap into the cycle of large international conferences, which are organised worldwide,” he says. The presence of corporate giants in Chennai provides a solid foundation for hosting large-scale conventions and conferences, attracting global participants, he adds. State director of tourism and TTDC managing director Sandeep Nanduri says for the first time, private tourism projects will be eligible for incentives under the industrial and MSME policies of the government. “Three categories depending on the quantum of investments — under `50 crore, `50-200 crore and above `200 crore — have been created for providing incentives,” he says.
The policy recognizes the value of private sector investment and expertise and aims to strengthen public-private partnerships to further Tamil Nadu’s tourism development.
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A high-level Parliamentary panel has suggested this to the culture ministry in a recently released report.
Referring to footfalls at Centrally protected monuments, the committee on transport, tourism and culture recommended that the culture ministry “should make an assessment of the cumulative impact of all the ASI efforts towards attracting more number of visitors to ASI monuments and examine these efforts vis-a-vis the best global practices”.
It has further suggested that state-of-the-art technologies being adopted by other countries in promotion of culture also need to be studied so that the same could be replicated in India as well.
The Rajya Sabha panel further sought to know about the fate of 50 missing Centrally protected monuments and recommended the ministry to direct ASI to initiate an urgent survey of such monuments in light of the lack of physical security instead of making it “as and when” matter based on the inputs of ASI field officers.
While appreciating ASI’s efforts towards retrieving antiquities, the committee sought to be briefed about the Standard Operating Procedures (SOPs) being followed in this regard, especially the responsibility of upkeep and preservation of the repatriated antiquities including the role of respective states and the involvement of museum authorities.
Expressing concern over the fact, a high-level Parliamentary panel has sought to know the number of Indian villages which were nominated for the selection by the United Nations World Tourism Organisation (UNWTO), in its best tourism villages list and the impact of such selection on village tourism. The committee also sought to know the efforts being taken for development of Khonoma after its inclusion in the upgrade list of the UNWTO.
The committee also suggested that the culture ministry should put in all efforts to allocate adequate funds to North eastern states.The ministry should strive make an effort for 100 per cent utilisation of the budget grants available for promotion and awareness of it’s varied schemes being implemented in North eastern areas, it said.
The committee further reiterated that there is a consistent decrease in the funds allocated to the North eastern states and it felt that the 10 per cent mandatory allotment should be revised as per the demands raised by individual states in North eastern areas.
The ministry must increase the said amount as per the requirements of states and cultural organisations for proper promotion of the programmes and activities to be undertaken in Northeastern areas, it stated further.
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Expressing confidence in India‘s booming tourism industry, Peter Semone, Chairman of the Pacific Asia Travel Association (PATA), spoke about the vision for India’s burgeoning tourism sector. Semone disclosed that India is steadfastly aiming to attract 20 billion domestic tourists and 100 million foreign tourists by 2046, adding that the country has immense potential in the tourism space.
Semone expressed optimism regarding India’s rapid expansion in the tourism sector, stating, “Tourism in India is big now and going forward, it is going to be even bigger. The ambition of 20 billion domestic visitors seems massive, given the size of India,” he told ETTravelWorld.
In recent years, the domestic tourism market in India has undergone significant expansion, with a remarkable surge in spending. In the aftermath of the pandemic and the subsequent lockdowns, domestic travel played a pivotal role in the recovery of the tourism industry. This upward trend is expected to continue, with domestic spending projected to account for nearly 90 per cent of the sector’s revenue by 2028, surpassing international tourism, according to a latest survey.
“The country has also set the vision of welcoming 100 million foreign tourists which seems realistic too, as people start to discover Incredible India, more will want to travel,” Semone added.
While foreign tourists contribute to the India tourism sector’s growth, their share remains relatively limited when compared to leading global destinations. To increase the share in that space, Semone emphasised the need to showcase India’s diversity to the world. “For the people who still don’t know India well, there is actually a need to understand its vast diversity. But as the lure of India’s tourism catches on, the inbound market will continue to increase as well,” he shared.
Slated to be held on October 16-17, The Iconic Experiences Show (TIES) 2023, will witness participation from corporates, wedding and conference planners, among others. The show will focus on wedding and wellness, leisure, conferencing, and sustainability. A session by leading women from the tourism and hospitality sector discussing sustainability are also planned.
In the wake of the pandemic, Semone also shed light on the evolving preferences of Indian travellers, particularly the increasing spending power of the country’s burgeoning middle class. “Only about 4 per cent of Indians actually travel domestically and internationally. This 4 per cent of 1.6 billion is a lot. But imagine if it gets up to 50 per cent or 60 per cent, India’s ambition to get target footfalls will be an easy-to-achieve goal,” he commented. Speaking about Indian tourists’ interactions with the Indonesian tourism sector, Semone, who resides in Bali, noted that Indians love to come to Indonesia but are a bit demanding. “I spoke to my Balinese friends in the industry about what it’s like dealing with Indian visitors. I got mixed reactions. Even though Indians are pleasant, sometimes their expectations are too high for what people are able to deliver.”
While expressing his unwavering trust in the Indian market, Semone urged Indian travellers to exhibit patience and responsibility towards both the destination and the locals. “Now that Indians are going all out and about and also taking up serious sustainability talks, there is a need for them to become responsible travelers,” he said.
Additionally, Semone recognised the challenges of catering to Indian travellers, such as dietary restrictions, and urged destinations to adapt to these needs, given the fact that the Indian market is predicted to dominate the outbound travel space in the coming years.
Semone was speaking on the sidelines of the 46th edition of PATA Travel Mart in Delhi where he also praised the Travel for Life programme, describing it as a great initiative worth replicating worldwide. He emphasised how India’s culture resonates across Asia, making this initiative timely and advantageous.
In the context of marketing tourism products, Semone emphasised the need for Ministries of Tourism, both in India and across the Asia Pacific region, to adapt to changing travel segmentation trends and employ more nuanced marketing strategies.
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