While a cruise terminal may come up in Chennai, Kochi and Mangalore are to be upgraded
Enthused by encouraging signs with the setting up of a cruise terminal in Mumbai, another such terminal may come up in Chennai, which is considered as a gateway to promoting tourism in South India.
This follows a strong recommendation by a parliamentary standing committee, which said "Chennai port should follow the example of the Mumbai Port Trust and redesign and develop cruise terminals for tourists and passengers in the country.
Tamil Nadu attracts the largest number of the one crore foreign tourist arrivals annually. It is followed by Maharashtra, Delhi, Rajasthan and Kerala. Basically, Chennai, Mumbai and Delhi attract the major chunk of foreign tourist arrivals in the country.
Trinamool Congress leader Derek O'Brien, who heads the parliamentary standing committee on Transport, Tourism and Culture, said after submitting the report in Rajya Sabha that the committee also favoured modernisation of existing cruise terminals in Kochi and Mangalore ports.
Considering the rapid urbanisation of Chennai city, O'Brien said the committee wanted a satellite port to be developed in Puducherry to decongest cargo handling in one of the oldest ports in the country. Chennai already has two large satellite ports in the north of the city at Ennore and Kattupalli.
Regarding Cochin port, O'brien said a new passenger terminal is to be constructed at Ernakulam Wharf at an estimated cost of Rs 25 crore with capacity for ships up to 420 m LOA.
The new terminal will be spread over 2,285 sq meters floor area with 3,000-6,000 passenger capacity.
The terminal will be equipped with 30 immigration counters and also a set of scanners and buggies. The terminal will be financed by tourism ministry.
The Cochin port is already equipped with a dedicated terminal at Mattancherry for cruise ships with 160 m length overall (LOA) with just 2,000 passenger capacity.
On the efforts being made by New Mangalore port to augment the cruise tourism facilities, the standing committee chairman said more must be done to fulfill the cruise tourism potential in Mangalore. With its beautiful coast and pristine beaches, Mangalore is considered ideal as a cruise destination.
With government taking serious steps to promote cruise tourism, full-fledged cruise terminal is ready with facilities for customs, immigration, port health, banking services, facilitation centres, duty-free shops and boutiques.
Anticipating the growth in cruise traffic, the Mangalore Port has constructed modern cruise passenger lounge near the berth with an area of 2,150 sq meters.
The committee wanted ministries of shipping and tourism to work with state governments and tour operators to promote cruise tourism in peninsular India, which has a huge untapped potential.
The reason for pushing cruise tourism through Mumbai and Chennai ports is that world over major city ports like Singapore, Miami, Vancouver, Busan and Barcelona have slowly reduced their cargo handling activities and shifted towards placing emphasis on cruise tourism.
These global ports have one thing in common with Mumbai or Chennai ports. They are all city ports that are centered around the economic and commercial hub of the region and they have since realigned their USP on cruise.
An official study said that Mumbai has a potential of handling 32 lakh passengers and 700 ships could call on the port if the correct infrastructure for cruise tourism is provided.
For Mumbai port, the study suggested construction of four cruise terminals.
The Mumbai port authorities have already started moving towards setting up of cruise terminals due to their capacity constraints in cargo handling. Chennai port is likely to follow suit.
The parliamentary committee wanted shipping ministry to take steps to ensure that process related to immigration, ease of doing business in terms of cruise shipping and licenses are simplified. It also wanted ministries of finance and home too to cooperate in the efforts of tourism and shipping ministries to modernise and expand the cruise terminals across various ports in the country.
Satyajeet Rajan, director-general of tourism, told DNA Money that the main issue that came in the way of promoting cruise tourism in India is high rate of taxes. The Goods and Service Tax has added to the woes.
He said foreign tourists love to come to India for a long holiday. Firstly, the country is vast and there are so many historical heritage sites, sanctuaries, mountains and beaches.
Foreign tourists, particularly those from Europe and United States, want to stay for a longer period. In India tax system is such that if one is on board a ship, he does not pay taxes on liquor and several other products and services. However, the same person, once he step into the land as tourist, pays heavy taxes as most of the items he consumes fall under sin good attracting 28% GST plus cess.
Rajan said the tourism ministry has prepared a report in collaboration with shipping ministry to deal with such issues in order to tap the huge potential for promoting cruise tourism.
SMOOTH SAILING
- 32 lakh – passengers Mumbai port can handle
- 3,000-6,000 – passenger capacity estimated at a new terminal at Ernakulam Wharf
- 28% – GST plus cess on items under sin goods
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 "Cruise tourism")
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