August 8, 2017 TnH Global

Cruise market may sail faster on shipping ministry push

If it happens, the government may earn Rs 35,500 crore from direct taxes levied on cruise liners that enter Indian ports.

Ministry of Shipping is formulating major plans to boost cruise tourism in India. If it happens, the government may earn Rs 35,500 crore from direct taxes levied on cruise liners that enter Indian ports, according to consultancy firm B&A. Currently, government mops up Rs 712 crore from the same.

According to the consultancy firm, India has potential to surpass China’s cruise tourism market. A formal announcement on the rationalisation of port charges only for cruises is likely to be made today by shipping minister Nitin Gadkari in Mumbai.

If the entire potential is unlocked, as many as 955 passenger cruises may sail to India’s ports as against the present 158 passenger liners on country’s eastern and western coasts. Ministry of Shipping had appointed B&A as consultant, who in its report suggested that India has the potential to do better than China’s cruise tourism market, “if right eco-system is developed”.

In the last ten years, China has grown substantially to a passenger base of 20,00,000. Under ideal conditions, India may attract more passenger base of 40,00,000 from the existing around 2,00,000. Sources within the ministry told a daily that some of the consultant recommendations accepted by the government pertain to various aspects of cruise port operations, namely, security, immigration, customs and ports.

Now, the government will have to start working towards implementation of ‘Standard Operating Procedures’ or ‘SOPs’ at various ports. One of the policies that has been implemented is transparent cruise berthing policy. The policy has been finalised and formal training will be imparted to all the port authorities before the cruising season commences later this year.

For the terminals of Mumbai and Cochin, which are turnaround operation ports, there is a need for better and simpler cruise terminal to allow easy flow of passengers between ship, terminal and transportation area. Even a proper system to handle luggage is needed so that passenger baggage can be transferred directly to the airport. Apart from giving priority to cruise ships for berthing, henceforth, a separate entrance to the port will be provided for cruise traffic.

For immigration procedure, starting this November, cruise terminals will have the facility for e-visa and e-landing card along with bio-metric application, which will help in improved and faster passenger clearance. Till the time this isn’t in place, bulk stamping of passports will happen at the ports. Also, visitors will have to go through a custom procedure similar at the airports, which is having green and red lanes along with random custom checks. Such a facility does not exist at all the cruise terminals in India.

Cruise shipping industry, too, has been in discussion with the government for easier policies so that their cost of operations reduces and can maximise revenues. As sailing itineraries are prepared two years before the actual sailing, industry players believe that it will take at least a couple of years for them to start realising the actual benefits from the new policy measures, however, it is likely to gain from some of the benefits in the short term.

News Source: www.dnaindia.com