Cruise Industry: Future is Bright

With the Government's announcement to open up the emerging cruise sector to foreign direct investment (FDI), several international cruise liners have lined up to set up base on Indian shores. To promote tourism in the country the Government is also formulating a policy for cruise tourism which is likely to specify the FDI details, besides suggesting measures to upgrade infrastructure.

"Over 16 international cruise liners have confirmed their visit to Mumbai Port between November 2005 and May 2006. Cruise major Star Libra has already chosen Mumbai as its home port and will make 110 calls up to May 2006," said a senior Mumbai Port official. The cruise liners of global majors including P&O, Hapag Lloyd, Silver Lines, Tranocean, Holland USA, Radisson, Cunard Lines, Seaborn Cruises and Renaissance Cruises would call at Indian ports.

Speaking on the government's decision, Keiki Master, VP, JM Baxi, said, "The global cruise majors are keen on investing in the cruise infrastructure at Indian ports. As Star Cruises has already selected Mumbai Port as home port, the international airports are adopting wait and watch approach."

Currently, JM Baxi handle over 80 per cent of the cruise vessel operations at Indian ports including Cunard Group of Companies and Royal Carribean.

Earlier the Government had considered amending the Merchant Shipping Act to allow FDI in cruise sector. The government may also consider relaxing FDI norms so as to ease the registration process for the foreign cruise companies. But this announcement has elicited negative response from industry analysts who feel poor infrastructure and irregular traffic will serve as a major hindrance. "The government could not attract even a single penny in last eight years after opening up the shipping sector to FDI," said an analyst.