India’s New Cruise Initiative - India Report

09.10.2024 - 10:47 / skift.com / Bulbul Dhawan

India wants to double cruise passenger traffic by 2029, and Indian Minister of Ports, Shipping and Waterways, Sarbananda Sonowal, has launched the ‘Cruise Bharat Mission.’

The mission to position India as a cruise tourism hub is being implemented in three phases between October 1, 2024 and March 31, 2029:

Last month, we reported that Goa is developing a new cruise terminal at the Mormugao Port. This was in response to a 40% increase in cruise passengers during the 2024 fiscal year and a 15% increase in calls by cruise vessels.

India does not have many international cruises, with most sea cruises operated by Cordelia Cruises. Some Cordelia Cruises operate between India and Sri Lanka. The tourism segment is gaining popularity among Indian travelers, with India recording its highest-ever cruise tourism footfall of 470,000 in the 2023-24 fiscal. Domestic tourists accounted for nearly 80% of this. 

Compared to 2019-20, domestic tourists have increased by nearly 85%. Due to this rising demand, Indian tourists are key for the cruise industry in countries such as Singapore, while Abu Dhabi is also seeking to attract Indian tourists to its cruise offerings. 

Key Performance Targets: The ministry has set key performance targets, including that sea cruise passengers will increase from 500,000 in Phase 1 to 1 million by Phase 3. The sea cruise calls, meanwhile, are expected to increase from 125 to 500. River cruise passengers, on the other hand, are expected to increase from 500,000 in Phase 1 to 1.5 million by Phase 3. 

International cruise terminals in the country are expected to increase from 2 in Phase 1 to 10 by Phase 3. 

Major Challenges: “The cruise industry in India holds incredible promise, with its vast coastline, rich cultural heritage, and untapped waterways. The ‘Cruise Bharat Mission,’ is a game-changer for our sector. By addressing key infrastructure gaps, fostering technological integration, and promoting world-class destinations, this initiative will propel India as a global cruise hub,” said Jurgen Bailom, President and CEO of Cordelia Cruises. 

However, he also told Skift about the challenges that the Indian cruise tourism industry faces. 

“The Indian cruise industry has made considerable progress in the last few years. However, it faces certain operational challenges. Infrastructure at ports, though improving, requires further upgrades to accommodate larger vessels and enhance passenger experiences. Similarly, while the current tax structure can be demanding for domestic operators, there is growing dialogue around reforms that could make the industry more competitive globally,” he said. 

Apart from this, he added that destinations within India are currently limited. There is, however, an