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India’s New Cruise Initiative – India Report

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    The new initiative aims to harness India’s coastline and growing domestic demand for cruise tourism. However, operational challenges, including infrastructure and taxes, need to be addressed.

    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:

    • Phase 1 (October 1, 2024 – September 30, 2025): The focus will remain on conducting studies, master planning, and forming cruise alliances with neighboring countries. During this phase, existing cruise terminals, marinas, and destinations will also be modernized.
    • Phase 2 (October 1, 2025 – March 31, 2027): New cruise terminals, marinas, and destinations will be developed “to activate cruise locations and circuits.”
    • Phase 3 (April 1, 2027 – March 31, 2029): All cruise circuits across the Indian Subcontinent will be integrated during this phase, while the development of cruise-related infrastructure will continue. 

    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 opportunity to develop new cruise routes across the country’s coastline.

    Asian Development Bank To Lend $162 Mn for Himachal Tourism

    The Asian Development Bank (ADB) has approved a loan of $162 million to support the development of tourism projects in the northern state of Himachal Pradesh. According to ADB senior project officer Vivek Vishal, the loan would help in upgrading and preserving heritage and cultural sites in the state, along with establishing new facilities. 

    ADB’s loan would be used to support sustainable and inclusive tourism development projects: promotion of heritage and cultural centers in Mandi and Hamirpur, restoration of Naggar Castle in Kullu, installation of modern tourist facilities and construction of convention center in Kangra, improvement of roadside amenities in Kullu, Hamirpur, and Kangra. Solar lighting and electric vehicles would be incorporated into the projects. 

    “In addition, the project will develop wellness centers, tourist recreation facilities, adventure sports center and waterpark complex, and biking trails,” the ADB said.

    Travel Tech Startup Holiday Tribe Raises $643,000

    Travel tech startup Holiday Tribe has raised INR 54 million (over $643,000) in seed funding. The investment, led by Powerhouse Ventures and GSF, will be used to strengthen the company’s technological capabilities, supply network, and brand building initiatives. The startup was founded last year by Anshu Sharma and Chirag Goyal, former executives of online travel company MakeMyTrip. 

    Speaking about the idea behind the startup, the co-founders said, “Holiday Tribe was established to meet the growing demand for travel while addressing a key market gap – the lack of accuracy and agility in curating customized solutions for customers.”

    Indian Travelers’ Plans for Diwali Holidays

    Online travel company Booking.com has shared the travel trends among Indian travelers for the upcoming Diwali festive season. According to the company’s accommodation search data, Udaipur is the leading domestic destination, with a 220% increase in searches between October 31 and November 3. This was followed by Puducherry with a 200% increase in search, and Mumbai by 35%. Goa and Jaipur rounded up the top five domestic locations. 

    Apart from this, hill stations are also favored destinations for the Diwali season in India, with Ooty, Kodaikanal, and Lonavala also being among most-searched destinations. 

    Internationally, short-haul destinations led the trends. Dubai remained the leading destination, followed by Singapore, Bangkok, London, and Makkah. Among long haul destinations, Tokyo and Paris were the preferred destinations. 

    Representational image: Diwali celebrations in India

    Cygnett Hotels Opens Cozzet Bindal in Jamshedpur

    Indian hospitality chain Cygnett Hotels and Resorts has announced the opening of Cozzet Bindal, Jamshedpur. The 46-key property is a part of the company’s plan to grow its portfolio in the mid-market segment. 

    After 10 years of operation, the company is set to take its portfolio to a total of 45 hotels, including the pipeline, by the end of 2024. Over the long term, it aims to add more than 6,000 keys to its portfolio by 2026. 

    Travomint Renews Long-term Contract with ITQ

    Online travel agency Travomint has renewed its contract with UK-based Travelport’s Indian distributor ITQ. Through this contract, Travomint will be able to access Travelport’s travel technology solutions, it said in a statement. 

    Travomint will also be able to access Travelport’s travel content and technology solutions, including real-time access to airlines. 

    “With this partnership, Travomint will be able to offer a broader selection of flights and other travel services,” it said.

    Photo Credit: Photo credit: Onboard a ship operated by Cordelia Cruises
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