Cruise Tourism in Trivandrum – A Pilot Study on
            Potential and Prospects


                  Prepared By:


   ...
Contents


Sl. No.                           Topic                      Page No.
1         Introduction                   ...
Introduction

The Cruise Tourism industry has become one of the most exciting facets of the
global Tourism Sector with tot...
In addition to the traditional sort of cruises, the potential for medium-duration trips
on the backwaters of Kerala also n...
Chapter 1 - Literature Review


Section 1: The Evolution of the Cruise Industry


The Cruise Industry has become so divers...
tables. The White Star Line, owned by American financier J.P. Morgan,
introduced the most luxurious passenger ships ever s...
parks and theaters, are available on most large cruise ships and the itineraries
are extensive to ensure that cruisers get...
Section 2: Concepts of the Cruise Tourism Industry

2.1 Core Concepts

A cruise ship or cruise liner is a passenger ship u...
2.1.2 World Cruises

Large ships traveling the world over definitely have their appeal. In every port,
spectators line up ...
Most cruises have a variety of onboard and onshore activities. The latter include
guided tours to historic and cultural si...
The ships most used for day cruises are cruise ships, steamboats, ferries, river
ships, and private yachts.

2.2 Cruise li...
2.3 Key Cruising Terms (Glossary of Cruising Terminology, 2008)

One way cruise: they begin at a point and end at a differ...
the trend is towards shorter cruises. Seven-day cruises generally include 3-5 port
stops and 2-4 days cruising at sea.

Pa...
2.4.2 Sports and fitness

Onboard sports facilities might include a basketball court, volley ball or tennis
courts. Most o...
2.4.6 Library

Reading being one of the favourite indulgences on the cruise, cruise ships are
stocked with an impressive a...
2.6 Niche cruise tourism markets

While the bulk of cruise tourists fall into the main categories enumerated earlier,
seve...
Abercrombie & Kent with ships like Explorer, Clipper, Marine Expeditions and
Quark Expeditions with the total fleet being ...
2.7 Cruise Tourism Ports

2.7.1 Types of Cruise Ports

With respect to cruise ships, Ports may act as a ‘Port of Call’ or ...
   Customs and Immigrations Facility
      Passenger Lounge
      Luggage Counter
      Tourist Information centre
   ...
   Trucks for handling baggage
      Baggage Conveyor system
      Agents Office
      Embarkation Balcony
      Ship...
Section 3: Global Scenario and Market Review

3.1 Global market

3.1.1 Cruising Routes

Cruising routes as of today pass t...
Every cruise region has a small number of main departure or embarkation ports.
For instance, Genoa, Venice, Istanbul etc i...
3.2.2 Key Findings

      Consumer Interest in cruising continues to be strong, despite the economy
       and fuel costs...
dockage fees. The following year brought passenger cruise service to Nassau. In
1915, city officials authorized plans for ...
In the case of a Home-Port, where cruises begin and end, there are multiple
benefits for the port and the community:
   • ...
Key Learnings

Being the Cruise Capital of the World, the Port of Miami offers many key
learnings which will prove invalua...
passenger since its operations in 1991. SCC@HarbourFront celebrated its 15th
year anniversary. SCCPL partnered Singapore T...
the development of the ICT, although the completion date has been pushed into
2011.
Key Learnings
As the leading cruise po...
Miami Cruise Terminal




Singapore Cruise Terminal


           29
Section 4: The Cruise Tourism Scenario in India


Cruise tourism is still a new concept in India. The Government of India ...
in the World and the Asia-Pacific region for foreign tourist arrivals (FTAs). All
these figures show impressive annual gro...
C. Domestic Indian Tourists: India has a large percentage of domestic tourists
undertaking different tourism activities. I...
To estimate the Cruise tourism potential in India, empirical analysis on various
the tourist segments and the potential de...
4.4 Initiatives to Develop Cruise Tourism in India

The Government of India has recognised cruise tourism as a thrust area...
Cochin has also finalised its location and gotten a detailed study done in 2007,
however further progress has not happened...
within one area of the backwater body, offering few destinations for the cruisers
to visit. In this sense, there is little...
Chapter 2 – The Kerala Scenario

Kerala's performance as a cruise tourism destination has been enviable among
Indian State...
The above figures are drawn from Mumbai, Goa and Cochin ports only. Over the
past few years, Cochin has rapidly risen to t...
Minor Ports

While Kerala possesses 17 intermediate and minor ports, only a few have been
visited by cruise ships. Vizhinj...
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Cruise Tourism in Trivandrum

  1. 1. Cruise Tourism in Trivandrum – A Pilot Study on Potential and Prospects Prepared By: Viji Krishnan & Ajay Prasad 1
  2. 2. Contents Sl. No. Topic Page No. 1 Introduction 3 2 Chapter 1: Literature Review 5 3 Section 1: Evolution 5 4 Section 2: Concepts 8 5 Section 3: Global Scenario and Market Review 21 6 Section 4: Indian Scenario 30 7 Chapter 2: Kerala Scenario 38 8 Chapter 4: Expert Survey and Analysis 43 9 Chapter 5: Conclusion 52 10 Section 1: Summary of Key Learnings 52 11 Section 2: Strategic Analysis 56 12 Section 3: Product Design and Analysis 59 13 Section 4: Potential Benefits of Cruise Tourism 62 14 Section 5: Development of Cruise Infrastructure 67 15 Section 6: Development Plan 71 16 Bibliography 72 16 Appendix 1 73 17 Appendix 2 77 2
  3. 3. Introduction The Cruise Tourism industry has become one of the most exciting facets of the global Tourism Sector with total revenues of over $ 20 billion and accounting for about 20 million passengers in 2008. It is expected to reach a figure of $ 50 billion by 2015, according to industry sources. The Cruise industry combines the traditional offerings of travel and hospitality in one product by offering luxury accommodation and entertainment as well as the opportunity to explore new destinations. Cruise ships range is size from small, private yachts to 220,000 ton behemoths which are travelling resorts capable of accommodating several thousand passengers at a time. The duration of cruises also range from a minimum of typically two days to months The cruise industry is primarily concentrated in and around North America with the Caribbean being the most popular destination. Americans account for more than 70% of cruise travellers worldwide. Other popular circuits include Alaska, North Europe, the Mediterranean and the Trans-Atlantic routes. An increasing number of cruises are going round the world or on long cruises spanning oceans. Cruise ports have sprung up all over the world. Generally, these are major trade ports which happen to be located in tourist hot-spots. Miami has become the de- facto capital of world cruise tourism. Caribbean ports, San Diego, Stockholm, Marseille, Barcelona, Venice, Canaveral, Los Angeles, Singapore and Hong Kong are among the most popular cruiser ports worldwide. So far, cruise tourism has been confined mostly to affluent markets of the developed nations. The more popular cruise ports have dedicated cruise terminals while others handle cruise ships at general berths with make-shift arrangements. India was a late entrant to the cruise industry. Till a few years ago, a few Indian ports – mostly along the West Coast – got random visits from cruise ships which were passing by. Today, the ports of Mumbai, Cochin and Goa receive around a 100 visits each year from cruise ships, some of which have made India a regular destination. Now, the Government of India has drawn up plans to create cruise hubs in ports like Mumbai, Murmagoa, New Mangalore, Cochin and Tuticorin. Trivandrum is the tourism hub of Kerala, which in itself is one of the most popular tourist destinations in India. Trivandrum accounted for nearly 30% of foreign tourist arrivals in Kerala in 2007-08, translating to about 150,000 tourists, as well as around 15% of domestic tourists. Its unique combination of world-class beaches, ayurvedic wellness treatments, cultural and architectural heritage, backwaters and ecological destinations has made it a top choice among all segments of tourists. But what makes Trivandrum a unique proposition for cruise tourism in the region is its strategic location on the tip of the Indian peninsula. The international shipping channels approach as close as ten nautical miles to the coast of Trivandrum making it the best choice for cruise vessels to make port in India, with the minimum deviation from their course across the Arabian Sea or Indian Ocean. The upcoming deep-water port at Vizhinjam on the outskirts of Trivandrum city and the presence of the Trivandrum International Airport also promote the attractiveness of the city as a premier multi-modal cruise destination. 3
  4. 4. In addition to the traditional sort of cruises, the potential for medium-duration trips on the backwaters of Kerala also needs to be explored further. While current backwater activity essentially consists of nearly static excursions on lakes like Vembanad and Ashtamudi, there exists the potential for medium duration trips along the backwater and canal system which runs from south of Kerala till the north. Trivandrum is the Southern terminus of this one-of-kind network, most of which has been incorporated in the National Waterway III. Objective The broad objective of this study is ”A Pilot Study on Potential and Prospects of Cruise Tourism in Trivandrum”. The specific objectives are To make an assessment of the cruise tourism industry To examine the marine and inland cruise tourism business in Kerala To explore the potential and prospects for developing cruise tourism in Trivandrum. Scope of Study The development of the cruise tourism sector in Trivandrum will be a major addition to the growth of Kerala into a premier global tourism destination. It will help to improve the contribution of the sector to Kerala's economy along with other new initiatives like eco-tourism and responsible tourism. This study aims to provide a first step in that direction. Study Area This study will focus on Trivandrum, in Kerala and the surrounding areas with the view of identifying the potential for developing cruise tourism and its related activities. Methodology This study will make use of primary and secondary data. The primary data will be collected mainly through Delphi technique. The secondary data will be from various sources such as books, journals and internet. 4
  5. 5. Chapter 1 - Literature Review Section 1: The Evolution of the Cruise Industry The Cruise Industry has become so diversified and complex, that finding a simplistic definition for it is difficult. However studies and guides of the industry by the Cruise Lines International Association (1992, 2006), Hockmann (1993) and Ward (1996) define a cruise on sea as a trip on a ship which has been purposefully styled as a floating leisure environment. However, when we look back at the history of the industry, it beomes evident that its evolution was a spin-off of other trades. In fact, the earliest ocean-going vessels were not primarily concerned with passengers, but rather with the cargo that they could carry as this was more profitable and cargo could be packed in more tightly, making it a more profitable and efficient proposition, especially on the small, sailing ships which sailed the seas through most of maritime history. (Lydia Boyd, Duke University,2008) The Black Ball Line in New York, in 1818, was the first shipping company to offer regularly scheduled service from the United States to England and to be concerned with the comfort of their passengers. By the 1830s steamships were introduced and dominated the transatlantic market of passenger and mail transport, due to their speed and ever-increasing size. The market was dominated by English companies, led by the British and North American Royal Mail Steam Packet (later the Cunard Line). On July 4, 1840, Britannia , the first ship under the Cunard name, left Liverpool with a cow on board to supply fresh milk to the passengers on the 14-day transatlantic crossing. The advent of pleasure cruises is linked to the year 1844, and a new industry began. During the 1850s and 1860s there was a dramatic improvement in the quality of the voyage for passengers. Ships began to cater solely to passengers, rather than to cargo or mail contracts, and added luxuries like electric lights, more deck space, and entertainment. In 1867, Mark Twain was a passenger on the first cruise originating in America, documenting his adventures of the six month trip in the book Innocents Abroad. The endorsement by the British Medical Journal of sea voyages for curative purposes in the 1880s further encouraged the public to take leisurely pleasure cruises as well as transatlantic travel. Ships also began to carry immigrants to the United States in "steerage" class. In steerage, passengers were responsible for providing their own food and slept in whatever space was available in the hold. Progressively, different classes emerged aboard the larger liners. By the early 20th century the concept of the superliner was developed and Germany led the market in the development of these massive and ornate floating hotels. The design of these liners attempted to minimize the discomfort of ocean travel, masking the fact of being at sea and the extremes in weather as much as possible through elegant accomodations and planned activites. The Mauritania and the Lusitania, both owned by the Cunard Line of England, started the tradition of dressing for dinner and advertised the romance of the voyage. Speed was still the deciding factor in the design of these ships and transportation continued to be the primary benefit derived from the liners. The There was no space for large public rooms, and passengers were required to share the dining 5
  6. 6. tables. The White Star Line, owned by American financier J.P. Morgan, introduced the most luxurious passenger ships ever seen in the Olympic (complete with swimming pool and tennis court) and Titanic. Space and passenger comfort now took precedence over speed in the design of these ships-resulting in larger, more stable liners. The sinking of the Titanic on its maiden voyage in 1912 devastated the White Star Line. In 1934, Cunard bought out White Star. World War I interrupted the buidling of new cruise ships, and many older liners were used as troop transports. German superliners were given to both Great Britain and the United States as reparations at the end of the war. The years between 1920 and 1940 were considered the most glamorous years for transatlantic passenger ships. The height of the transatlantic speed competition, for the coveted Blue Riband, was a feature of this period when the speed of the liners was a prestige issue not just for their owners or passengers but for countries as well.(Wikipedia, 2009) These ships catered to the rich and famous who were seen enjoying luxurious settings on numerous newsreels viewed by the general public. American tourists interested in visiting Europe replaced immigrant passengers. Advertisements promoted the fashion of ocean travel, featuring the elegant food and on-board activities. Cruise liners again were converted into troop carriers in World War II, and all transatlantic cruising ceased until after the war. European lines then reaped the benefits of transporting refugees to America and Canada, and business travelers and tourists to Europe. The lack of American ocean liners at this time, and thus the loss of profits, spurred the U.S. government to subsidize the building of cruise liners. In addition to the luxurious amenities, ships were designed according to specifications for possible conversion into troop carriers. Increasing air travel and the first non-stop flight to Europe in 1958, however, marked the ending of transatlantic business for ocean liners. Passenger ships were sold and lines went bankrupt from the lack of business. The 1960s witnessed the beginnings of the modern cruise industry. Cruise ship companies concentrated on vacation trips in the Caribbean, and created a "fun ship" image which attracted many passengers who would have never had the opportunity to travel on the superliners of the 1930s and 1940s. However, converted liners were not ideal for cruise operations as their design favoured speed over all else. They tended to have powerful engines and little space for the new amenities which passengers were demanding if cruise ships were to emulated resorts.(Wigand Ritter and Christian Schaffer, 1998) The engines were unneccessarily powerful and hence often uneconomical for the more leisurely cruise trips. There were relatively few outside cabins and the accomodation was usually segmented into many classes. Thus, there was a demand for dedicated cruise vessels. These were slower than the liners, but were purpose designed and built more to be floating resorts than anything else. These ships have lavish accomodations, maximise the number of outside cabins, expansive interior common spaces, extensive deck area and luxurious amenities. They are modelled on international hotel-chains in their design, quality and amenities. While there are ships of capacities from a few dozen to several thousand passengers, the trend has predominantly been towards bigger ships, which now carry the vast majority of cruise passengers. Extensive entertainment facilities, including water theme 6
  7. 7. parks and theaters, are available on most large cruise ships and the itineraries are extensive to ensure that cruisers get as much variety as possible. The growth in the size and popularity of cruise vessels has been mirrored by the development of major cruise ports. Miami being the most successful of these, cruise ports have gone from being occasional ports of call for ships to being well laid out home ports for dozens of giant ships. Whereas old warehouses and other existing facilities were initially used to handle cruise ships, today state-of-art purpose designed and built cruise terminals have been developed at many major ports. The latest trend is to combine hotels, retail and other facilities with cruise terminals. The contribution of the Cruise Industry to the global economy has been steadily rising, with total revenues of over $ 20 billion and accounting for about 20 million passengers in 2008. It is expected to reach a figure of $ 50 billion by 2015, according to industry sources.(Cruise Lines International Association, 2008) Evolution of Cruise Ship sizes – 1970 – 2010 Source: BEA International 7
  8. 8. Section 2: Concepts of the Cruise Tourism Industry 2.1 Core Concepts A cruise ship or cruise liner is a passenger ship used for pleasure voyages, where the voyage itself and the ship's amenities are part of the experience. Cruising has become a major part of the tourism industry, with millions of passengers each year. Cruising is a unique tourism product, a blend of the 5A’s: attractions, activities, access, accommodation, amenities. The words "luxury" and "pampering" are found in all cruise brochures, and every cruise line proudly highlights these five aspects to market its product. Cruising is now well established as one of the most service-intensive sectors in the world, with ever more incredible state-of-the-art vessels being built each year. ‘Pampered in luxury" accurately describes the cruise experience. Cruise ships operate mostly on routes that return passengers to their originating port. In contrast, dedicated transport oriented ocean liners do "line voyages" and typically transport passengers from one point to another, rather than on round trips. Some liners also engage in longer trips which may not lead back to the same port for many months. Traditionally, an ocean liner for the transoceanic trade will be built to a higher standard than a typical cruise ship, including stronger plating to withstand ocean voyages, most commonly crossing the North Atlantic. River cruise ships are smaller than ocean-going cruise ships, typically holding 90-240 passengers (though there are ships that take only 5 passengers, and others can carry 1,000 passengers). Due to their smaller size and low draft, river cruise ships can go where ocean cruise ships cannot, and sometimes to where no other transport is practical: rivers are an excellent way to reach some attractions, for example in Russia and China. 2.1Types of Cruises 2.1.1 Contemporary Cruises These are the most popular and recognized type of cruises, which serve the most popular segment, the mass market or first class cruisers. These cruise lines typically have resort-style facilities with heavy emphasis on shipboard activities. Most of these lines have both shorter itineraries that are closer to home and longer ones that may require international travel. These cruises tend to have newer and larger cruise ships with lots of amenities including lavish show rooms, extensive spa facilities, expansive children's programs, televisions and in-room movies in all cabins, double/queen beds, etc. They often have something for everybody - all age groups. These cruises are typically the best for families and kids of all ages. 8
  9. 9. 2.1.2 World Cruises Large ships traveling the world over definitely have their appeal. In every port, spectators line up dockside to marvel at these giant ships. Big ships also have the distinction of being out to sea for longer periods of time, circumnavigating the globe. They take passengers to places most others can only dream about, and do it in high style. Large cruise lines often reposition their ships according to seasons or to entice different clientele. For example, several cruise lines send ships up to Alaska in the summer, then reposition them to the Caribbean in the winter months. Most schedule a longer cruise trip through the Panama Canal and along the South America coastline to the Mexican Riviera, with stops that include ports in Costa Rica, Belize, Cozumel and Cancun. Heading east from the Panama Canal, a cruise ship might make stops in Aruba, Trinidad, or Barbados. Other ships leave Alaska and cruise to the Hawaiian Islands and then to Asia before swinging back around to the Caribbean. Another characteristic of large cruise lines is that duties aboard big ships are more specific. 2.1.3 River and Barge Cruises More and more people are considering river and barge cruises as an alternative to oceangoing trips, or extending their cruise experience to include these unique waterway vessels. Passengers find this form of cruising to have a more informal, intimate atmosphere, especially since some of the smaller river barges limit their cruises to a dozen passengers or so. This arm of the cruise industry has seen tremendous growth in the last decade. Some of these destinations include the Nile, Amazon, Volga, Yangtze, Mississippi, Columbia, Danube, and Rhine rivers. The longest waterway in Europe is the newly opened Rhine-Main-Danube, which connects fourteen countries from Rotterdam on the North Sea to Sulina and Izmail on the Black Sea, offering passengers and crew incredible, ever-changing scenery most oceangoing cruises would be hard-pressed to match. Barges, which cruise primarily through European canals from April through November, are even smaller than their river counterparts. They serve mainly as first-class water hotels. Passengers go ashore on their own during the day, returning at night for a gourmet dinner. Despite their sometimes ungainly appearances, barges are highly sophisticated and beautifully outfitted with custom-built furniture, rich fabrics, and crystal service ware. Because of their popularity with North American passengers, European river and barge cruise companies have been known to employ English-speaking crews to handle a variety of duties. During river cruises the countryside is usually in view, so they are especially relaxing—and interesting—to those who prefer land nearby. River cruises usually last from 7 to 15 days, although some can last 3 weeks or longer. Some river ships resemble 5-star hotels, with sun decks, dining rooms, lounges, fitness facilities, swimming pools, casinos and other entertainment. Accommodation, meals onboard, entertainment and special events (holidays, festivals, contests, concerts, etc.) are usually included in the cruise price, while bar expenses, sauna, massage, laundry and cleaning, and phone calls are not. 9
  10. 10. Most cruises have a variety of onboard and onshore activities. The latter include guided tours to historic and cultural sites, visiting local attractions, museums and galleries, and other points of interest. Guides give a running commentary while sailing. A river cruise is very different from an ocean cruise. For a start, you are in almost constant sight of land and stops are far more frequent than they are at sea. The vessels are like small, friendly, floating inns, whereas ocean-going ships tend to be bigger, flashier, busier and livelier, the crew practised in the art of moving up to 4,000 people from one port to another and getting them on and off the ship. In contrast, when your river cruise vessel docks you simply walk up the gangway and into the town or city—in many cases the dock is located right at the heart of things. Despite these differences, however, most people who enjoy ocean cruising and the relaxing rhythm of life afloat are attracted to river cruises as well.. Popular river cruises include trips along the Nile, the Mississippi, the Yangtze, the Mekong, the Danube, the Rhine, the Seine, or the Volga. There are several dozen river cruise companies each with 1 to 21 ships. 2.1.4 Destination / Expedition Cruises Destination and expedition cruises are selected, just as river cruises, based on the destination to be visited. Travellers are attracted by the unique, out-of-the- way, remote or exotic ports of call. These cruises offer the stimulation of exploring new territories while in the company of like-minded travellers. The ships most used for destination and expedition cruises are yacht-style ships, river ships and private yachts. 2.1.5 Sailing and Yacht Cruises Yachts and sailing ships generally have smaller crews If it is an open-water sailboat, the entire crew will likely need to know how to sail and be expected to work the riggings and lines. On such a boat, a deckhand might also serve breakfast, clean cabins, and lead tours ashore. Because of their ability to travel to remote, secluded areas, many smaller ships have found an appropriate niche for the environmentally aware '90s market: "eco-touring." Eco-tour itineraries typically involve some kind of nature and ecology-oriented cruises to primitive wilderness areas. Tours of the Northwest Passage along the British Columbia coast, Alaska, and numerous areas in the South Pacific and South America have become very popular. These cruises are a far cry from the luxury cruises featuring 1,200-foot ships with ballrooms and casinos. 2.1.6 Day Cruises Day cruises are typically a cruise experience of 15 hours or less. Passengers choose this method of cruising, as a day's outing or combined with a longer vacation. These cruises may be geared to gambling, whale watching, dinner, etc. 10
  11. 11. The ships most used for day cruises are cruise ships, steamboats, ferries, river ships, and private yachts. 2.2 Cruise lines Cruise ships are operated by cruise lines, which typically own and operate one or more ships. Some of the biggest lines include Carnival Cruises, Royal Caribbean International and Cunard. Cruise lines often also operate cruise terminal facilities. Lines vary in size, from those which own single vessels to the majors who own dozens of ships. They also vary in the types of cruises they offer and the segments of customers that they target.Despite this bewildering variety, cruise lines can broadly be classified as : 2.2.1 Mainstream cruise lines: are the ones most often associated with modern cruising. They offer the advantage of something for everyone and nearly every available sports facility imaginable like ice;skating rinks,bowling alleys,golf courses etc. The mainstream lines have two basic ship sizes – large cruise ships and megaships in their fleets. These vessels have plentiful outdoor deck spaces,and many have a wraparound outdoor promenade deck that allows you to stroll or jog the ship’s perimeter. While they are replete with resort style innovations, they still feature cruise ship classics-afternoon tea,complimentary room service,and lavis pampering. The smallest ships carry 1000 passengers or fewer .whle the largest carry 3000 passengers and are filled with diversions. These ships tend to be big and boxy. Picture windows are standard equipment and cabins in the top categories have private verandas. From their casinos to discos, everything is bigger and more extravagent than on other ships. . 2.2.2 Premium cruise lines: They have a lot in common wth the main stream cruise lines, but offer a little more of everthing. The atmosphere is more refined, surroundings less raucous, and service more polished and attentive. Ships tend to be newer midsize to larger vessels that carry fewer passengers than mainstream ships and have a more spacious feel. Decor is more glamourous and subtle. State rooms range from inside cabins with or without balconies to suites with numerous amenities, including butlers on some lines. Although premium lines usually have as many extra charges as mainstream lines ,the overall quality of what you receive is higher. Producton shows are more sophisticated than on mainstream lines. 2.2.3 Luxury cruise lines: Comprising only 5% of the market, the exclusive luxury cruise lines, such as Crystal, Cunard, Seabourn, Sea Dream, Silver Seas and so on offer high staff to guest ratios for personal service, superior cuisine in a single open seating, and highly a inclusive product with few onboard charges. These small and midsize ships offer much more space per passenger as compared to the earlier two types. Lines differ in what they emphasize on, with some touting luxurious accommodations and entertainment and others focusing on exotic destinations and onboard enrichment. With intimate sizes,the small luxury ships visit some of the most uncommon destinations. 11
  12. 12. 2.3 Key Cruising Terms (Glossary of Cruising Terminology, 2008) One way cruise: they begin at a point and end at a different point..they allow you to visit a wider variety of ports and travel farther from your port of embarkation. Loop cruise: they begin and end at the same point and often visit ports in relatively close proximity to one another. . Cruise costs:cruise fares vary considerably by itinerary and season,as well as the category of accomodatons selected.publised rates are higher for the most unique and desirable itinerares and cruises during peak seasons. Air/Sea: A comprehensive package that combines both the cruise itself and air transportation to and from the cruise's ports of embarkation and debarkation. Air/Sea programs are usually add-ons available at extra cost. Air City: The city chosen by you to serve as the origination and termination point for your flights to and from the cruise. Baggage Allowance: The amount of baggage, generally consisting of the passenger's personal effects, permitted by the cruise line free of charge. Berth: There are two definitions: the dock or pier where you embark or debark from the ship; the bed in which you sleep onboard the ship. Cabin: it's the passenger’s personal space onboard. they may be inside cabins,outside cabins,balcony cabins and suites Debark/debarkation: To exit, or the process of exiting the ship. The term "disembark" is also used Embark/embarkation: To enter, or the process of entering or boarding the ship. Fare Market Value (FMV): The Fare Market Value, or “FMV,” represents the estimated, fair market price (including port charges) for a specific cruise departure. This dollar amount is derived by analyzing the price history and seasonality patterns of this and other competitive cruise ships sailing similar itineraries. Frequent Cruiser Program: All major cruise lines have them - membership clubs for their frequent cruisers. In most cases, eligibility begins with your second cruise with the same cruise line. Advantages may include membership pins, cruise discounts, specially-selected cruises, onboard amenities, private cocktail parties, early notification of new itineraries and newsletters or e-mails. Homeport: A port of embarkation/debarkation where the ship is based for a long perod of time.The current trend is towards the increased use of Homeports in ship itineraries. Itinerary: A ship's schedule of port stops and days at sea. Most cruise itineraries vary from 3 to 12 days. The 7-day itinerary remains the industry standard though 12
  13. 13. the trend is towards shorter cruises. Seven-day cruises generally include 3-5 port stops and 2-4 days cruising at sea. Panamax: The Panama Canal permits ships no wider than approximately 110 feet - any wider and the ship just won't fit. Ships that squeak under that maximum are often referred to as "Panamax" ships. Per Diem: The per person, per day cost of a cruise. Port Charges: A charge levied of cruise lines by local government authorities. This charge is pass Port-of-Call: A country, island or territory, or population center a cruise ship visitsed on to the cruise passenger. Shore Excursions: Shoreside tours operated by independent tour companies specifically for cruise passengers. An extra charge is usually applied to the passenger’s shipboard account. Tender (or Launch): A smaller vessel used to move passengers to and from the ship and shore when the ship is at anchor. Some cruise ports, due either to limited docking facilities or harbor depths, require ships to anchor offshore, necessitating the use of tenders to transport passengers ashore. Passengers with certain disabilities may be restricted in their use of tenders. Theme Cruise: Any cruise that offers or suggests a specific onboard "theme" such as sports or 70's disco music. Other themes include history, cooking, arts & crafts, or even lunar eclipses or comet watching. Transatlantic: A cruise that crosses the Atlantic Ocean. 2.4 Associated concepts of Cruise Tourism 2.4.1 Onboard entertainment In the early days of cruise travel,shipoard entertainment consisted of a little more than poetry readings and passenger talent shows.(The Complete Guide to European Cruises, Fodor's, 2008) It's very dfferent today. These days, cruises include two or more original production shows, one may be a Las Vegas style extravaganza and other a best-of-Broadway show. Other shows highlight the talents of singers, dancers, comedians ,acrobats etc. Real treats are the folkloric shows or other entertainment events arranged to take place when cruise ships are in port. It’s an excellent way to get a glimpse of the cultural history of the performing arts of the local communities. Most ships also have movie nghts, or in-cabin movies. Enrichment programs have also become a popular pastime at sea. Speakers can include destination oriented historians, authors, radio and television personalities etc. Ship lounges, nightclubs and casinos form a major part of onboard entertainment. 13
  14. 14. 2.4.2 Sports and fitness Onboard sports facilities might include a basketball court, volley ball or tennis courts. Most of the larger ships even offer innovative and unexpected features like rock climbing walls,bungee trampolines, surfing pools, jogging tracks and so on. At least one swimming pool will be present. Shipboard fitness centres have become ever more elaborate, offering state-of- the-art machines,treadmills,weight machines, multi-gyms etc. and have trained instructors on board to offer assistance and guidance. 2.4.3 Spas and Wellness Centers With all the usual pampering and service in luxurious surroundings, simply being on a cruise can be a stress reducing experience. Spas ave become among the most popular shipboard facilities which offers facial treatments, manicures,pedicures, massages, sensual body treatments etc In fact, one of the most popular benefits cruisers have come to expect is to improve their wellness. Historically, cruises have been recommended as healthy travel and tourism options, but modern cruise ships take this to a new extreme with the most moden facilities including saunas, hydro-treatment pools and so on. In fact, some lines have made USPs out of on-board wellness treatments. 2.4.4 Audience Participation In order to give the entertainment a creative angle and a more exciting feel there are some activities that are designed to encourage Audience Participation. (Cruise Tourism Potential & Strategy Study, CRISIL, 2005) Some of these participatory activities may be:  Karaoke contests  Trivia contests  Game shows  Guest talent Shows  Parties like '50s and '60s Night, Masquerade Ball, Toga Party and Pirate Theme Night  Wine testing and classes  Cooking demonstrations  Casino and card game lessons  Ice-carving instruction  Jewellery seminars  Latin dance schools that teach Cha-cha, rumba, merengue, waltz, two- step, tango, swing, foxtrot, jitterbug, line dancing, country, caribbean, hula, cha-cha slide and '70s Disco. 2.4.5 Tournaments Tournaments like Ping-pong, floating golf green, billiards, shuffleboard, ring toss, basketball, miniature-golf etc are organized specially on long cruises to bring healthy competition 14
  15. 15. 2.4.6 Library Reading being one of the favourite indulgences on the cruise, cruise ships are stocked with an impressive and wide range of subjects which are available starting from topics like travel, art, biography, fiction, non-fiction, science fiction, beauty, health and many more. 2.4.7 Other Activities and Facilities A list of some more activities in addition to the above include:  Sun soaking in the Solarium, which is basically a room, built largely of glass to afford exposure to the sun. There are also sunbeds which is a device emitting radiation(usually UVA, but recently also UVB) used for cosmetic reasons (to induce an artificial tanning) but also for medical reasons.  Casinos, with games like Poker slots or blackjack. Some cruises also offer casino classes. Casinos are becoming an important component of ships world-wide, especially since they are not available on-shore in many countries.  Dance floors, wine bars, night clubs/lounges for pub-goers. There are theme pubs with live bands and shows. PREFACE 2.5 Key Characteristics of cruising While there are a wide variety of cruise types, most of them share several common characteristic features:  Cruising is intensively service-oriented. Most ships provide a 24-hour Room service. New ships are adding 24-hour pizzerias. Other facilities include casino, pool, jacuzzi, sauna, gym, on-board lectures, card rooms, an unending variety of organized games and contests, supervised children's activities and entertainment including Broadway and Las Vegas- style shows, lounges, nightclubs, movies, dancing and more. Cruise ships are more like mini cities providing most of what such a city has to offer.  Cruise ships are destinations in themselves, with features and amenities comparable or superior to land-based resorts. This can be particularly attractive in destinations that lack high quality hotels or "creature comforts."  Modern cruise ships have state-of-the-art telecommunications equipment, including incabin ship-to-shore phones. Yet they enable the passenger to feel secluded and "out of time." You have the illusion of getting away from it all.  Cruising is remarkably affordable. Contemporary cruises are often available at a price that is generally lower than a comparable land-based vacation with many of the costs included in the fare including food, some entertainment and excursions.  Cruising offers multiple destinations, without the hassles of packing and unpacking. Itineraries include visits to three or more ports of call (depending on length of cruise). 15
  16. 16. 2.6 Niche cruise tourism markets While the bulk of cruise tourists fall into the main categories enumerated earlier, several major niche categories have evolved to cater to different requirements among a diverse market. These include: 2.6.1 Cruises for the Family This segment targets the youngest end of the market. Since families look for moderately priced holidays, most operators offer such packages with interesting complementary activities. Fifty per cent discounts for the under 12s and free flights for children under 2 years of age are a common feature of such packages. Special offers are available during the school holiday season. Of the major cruise operators, Carnival carries the most children and is the Number One family cruise line. Though it has entered the market late in 1998, Disney is also one of the most popular cruise line amongst this segment. 2.6.2 The Senior Citizen Segment This is the largest growing niche with senior citizens having considerable purchasing power and a great affinity with the product. A study done by Travel and Tourism Analyst in 1996 shows that 10% of the senior citizen segment in the European Union used cruise as mode of transport for international trips. Certain cruise lines like the British tour operator – Saga and Swan Hellenic cater to this class exclusively. Some cruise lines like Fred & Olsen, P&O also offer cruises with no flights involved. 2.6.3 The Conferences and Incentives Segment With the increasing combination of business with leisure, cruise ships are wooing the business segment with well equipped with state-of-the-art features that can house all delegates within a closed space facilitating the holding of conferences and seminars with an element of novelty thrown in. Most large ships have 700 to 800 capacity assembly, the largest hall being one with a capacity of 1,350 in Royal Caribbean International’s ‘Voyageur of the Seas’. Cunard estimates that 15% of its business is from incentives and conferences. Cruises organized by large companies are also widely approved of in Japan. Such cruises are generally short in duration. 2.6.4 Theme Cruises Themes are built by offering new itineraries or by adding specialized products. The best example of such types of cruise is the Disney Cruise. Thus, Carnival has the Paradise ship exclusively for nonsmokers, HAL offers a Caribbean cruise with a screening of films from the forties, there are cruises dedicated to wine tasting and such other exotic themes added to exotic locales. 2.6.5 Adventure Cruises Expedition cruises have a modest, though not insignificant, demand. Most companies that operate this market do not belong to the big groups. Some notable cruise operators in this category are The World Cruise Company and 16
  17. 17. Abercrombie & Kent with ships like Explorer, Clipper, Marine Expeditions and Quark Expeditions with the total fleet being 63 ships and around 5,500 berths. There are also other liners like the Swan Hellenic and Orient Lines with a strong educational element. 2.6.6 River & Canal Cruises Canal & River cruises form a niche element of the cruise sector, arising from the fact that most cruise ships take by and large coastal routes, whereas all of the destination’s charm can hardly be explored within the constraint of a one-day stop at a port of call. Cruise ships take coastal routes because the rivers and canals cannot accommodate large cruise ships, however, it would be possible to enable interested passengers to explore the charms of the destination through a flotilla of specially designed river ships and cruise barges. As a niche of cruising, river and canal voyages are an increasingly popular option, particularly for travellers who enjoy the comforts and variety of cruising, but want to see more of the heartland. The boom in river cruises started from Europe, which has exotic destinations connected by rivers and far from coastal areas. Today, the European river-cruise industry is in a major expansion mode. Nearly every corner of the continent has navigable rivers and a selection of ships, which continue to grow increasingly comfortable and luxurious. Viking River Cruise's is recognised as the world's largest river cruise line. Product Design River/canal cruise ships, are essentially smaller versions of cruise ships, rarely holding more than 200-plus passengers, and generally carrying less. The river/canal barges are even smaller, carrying between six and fifty passengers. The entertainment on broad is also much simpler. Beyond mealtimes, entertainment onboard may be limited to shuffle-board or book-reading. River cruise ships do not provide a range of experiences as happens aboard a large ship. These ships carry no casinos and offer little in the way of evening entertainment. River cruises range from a couple of hours cruising along a city’s shoreline for a romantic dinner to a full blown week or month-long cruise experience in some of the world’s most exotic locations. There are dining or party river cruise boats that sail for a few hours. These offer fine dining, professional entertainment, music and dancing while cruising up and down the city’s waterways. They often cater to romantic occasions, large parties and business dinners and itineraries that are normally offered could be dinner cruise, lunch cruise, Christmas cruise, New Year eve, conference & meetings, floating restaurant and cruises targeted to specific events. Also, many of them offer special holiday packages. On the other hand, there are long river cruises that cover theme-based destinations like rural exploration or pilgrimage destinations on holy rivers. For example, the Columbia River Cruise plies on the Columbia River running through seven states of the US, offering magnificent views of river while allowing the passenger to visit national parks, cities, and towns en-route. Some river cruises also offer adventuresome activities such as kayaking and white water rafting. 17
  18. 18. 2.7 Cruise Tourism Ports 2.7.1 Types of Cruise Ports With respect to cruise ships, Ports may act as a ‘Port of Call’ or as a ‘Home Port’. As a Port of Call the port would act as the transit and receiving ports to national and international ships that touch several destinations as part of their cruise circuit. Travellers who disembark at the port visit destinations either close at hand or may sometimes even fly to distant destinations. At times travellers who disembark at a particular port may embark the ship at some other port closer to the destination they have chosen to visit. As a Home Port or Hub Port, the port would act as the base for a cruise ship, which would take passengers around a cruise circuit and then come back to the homeport to berth. Travellers would either ‘fly in’ or ‘drive in’ to the homeports to take their cruise. 2.7.2 Roles the Ports Play Whether as a post of call or as a home port, ports play a vitally significant role in cruise tourism to understand which it would be necessary to appreciate different aspects of this role which may be set forth as follows:(Cruise Tourism Potential & Strategy Study, CRISIL, 2005)  Infrastructure Role: Ports provide the sea based and land based core infrastructure for ships to arrive and berth comfortably and safely. They are to ships what airports are to aircrafts and, accordingly, the nature, extent and sufficiency of the port infrastructure facilities would determine the size, frequency and type of vessels which come in.  Hospitality Role: For visiting ships, Ports provide the vital entry point and the first exposure of the tourist to the destination. Similarly for outgoing tourists, ports would be the exit point. The manner of receiving the tourists and the tourist amenities and facilities provided would determine the tourism popularity of the concerned port.  Connectivity Role: Since ports are the transit locations for incoming as well as outgoing tourists, the efficiency of the ports in terms of effective linkages to airports, railways etc and fast connectivity to popular tourism destinations in the State and the country would be critical. 2.7.3 Infrastructure at Cruise Ports While cruise ships can be handled at general purpose berths or even through lighterage, it is desirable for all major cruise ports to have dedicated infrastructure which enables the handling of large numbers of passengers with ease. Ports, dependent on an increase in cruise traffic or self phased development plans, create these facilities for cruise activity. 2.7.3.1 Facilities for Cruise Tourists Primary Facilities: These facilities are desirable for meeting the basic requirements of cruise tourists coming to the shore. They include: 18
  19. 19.  Customs and Immigrations Facility  Passenger Lounge  Luggage Counter  Tourist Information centre  Public address system  Drinking water  Toilets / Showers / Lockers  Foreign exchange counters  Bank service counters / ATM  Wheel chairs for disabled, old  Communication centre  Cafeteria  Trolleys for baggage  Taxi service Excursion facility / Tour Operators / Coach transfers / shuttle bus  service  Parking Space for vehicles  Linkage/shuttle service to the Airport/ Railway Station Secondary Facilities These facilities within the terminal are desirable for creating an ambience to international standards. Many of these facilities being commercial, in addition to lending a class to the terminal, can also possibly act as money-spinners for the port. They include:  Terminal Map / Sign Boards  Escalators / Elevators Crew lounge  Air-conditioning for terminal building  Duty free shopping Gift / Souvenir / Artifact & Curio shop  Restaurant  Postal service  Internet café  Medical Clinic  Ice cream Bar  Magazine / Book store  Florist  Yacht Parking Facility/ Harbour Cruise Facility  Laundromat  Entertainment Centre / Gaming zone  Conference Room 2.7.3.2 Facilities for Cruise Vessels These facilities are desired by cruise vessels so that they can extend safety and convenience for their passengers and crew. Supplies to cruise vessels are generally a premium activity, which enhance the commercial viability for the ports.  Terminal Building  Gangway / Aerobridge 19
  20. 20.  Trucks for handling baggage  Baggage Conveyor system  Agents Office  Embarkation Balcony  Ship Water Supply  Fuel Bunkering  Garbage disposal facility 2.7.3.3 Port & Port related infrastructural facilities  Berth  Pilotage  Towage  Mooring Arrangements  Navigation Facility  Ship coordination centre  Administration Office  Maintenance & Repair 2.7.3.4 Facilities for entry-exit checks / clearances Cruise tourists arriving into / departing from the port are subject to certain checks and clearance procedures by law. Officials from specific government departments are deputed to extend the clearances. Considering the short stay nature of cruise vessels at the port-of-call and sensitive nature of international cruise tourists, the clearance procedure should be quick and hassle-free. The port authorities should create adequate infrastructure to enhance the efficiency of the departments. The facilities to be provisioned by the port at the cruise terminal include:  Custom clearance counter  Immigration check  Security check counter 20
  21. 21. Section 3: Global Scenario and Market Review 3.1 Global market 3.1.1 Cruising Routes Cruising routes as of today pass through seas, rivers and canals. The open ocean is not a cruise area, except the trans-atlantic link. Enroute destinations are categorized from popular, to historical, to adventurous or experimental.(Wigand Ritter and Christian Schafer, Tourism Recreation Research Vol 23(1), 1998) The actual intensity of demand ranges from the rarely visited or experimental or adventurous such as cruise areas of Antarctica and the Amazon, to the most frequented or popular cruise destinations of the Caribbean and the Mediterranean seas. In the icebound polar zones, the high cost of icebreaking cruises prevents this last territory from be trespassed, although recently growing interest of the public has created a demand for destinations in the northwest passage, Northeastern passage, Greenland, Spitsbergen as well as the Antarctic Peninsula and the Ross Sea. In the meantime, there was a steady growth in cruises and the most significant increase has occurred in the Indian Ocean and the Western Pacific. This demand pattern belies the expectations about the dream –cruise of the warm and sunny tropical seas. There seems to be a lot of prospective buyers for the more austere charms of the colder areas too. The dominating position of the Caribbean is due to the popularity of cruises in the USA, where the cruises are short and therefore not too expensive. 3.1.2 Cruising Markets Amusement facilities on board has become major incentives although gambling and liquor are still off limits in some parts of the USA. Some 79% of all cruise passengers in 1989 were Americans(Ward, 1998). for them the vessel s a self- contained “fun-ship”. Europeans prefer longer cruises of two or three weeks and rate comfort higher than amusement as the reason for cruising. Most of the passengers are retired people wishing to see places they may peraps, never have the chance to visit in their lifetimes. This makes the routing of the cruise the Unique Selling Propostion (USP). Many ports of call and shore excursions prolong the programmes and make them rater expensive. The European market has however,already been tapped and the same can be said for Japan. From a geographical perspective, cruises in the Caribbean and the Mediterranean are definitely the most lucrative offers for the north American and the European markets for the reasons of proximity, climatic amenity and the variety of sightseeing .In Europe, cruises skirt along the coasts of Norway and sometimes reach Spitsbergen, whilst in for America, they follow the inland routes of British Columbia to Alaska. Some ships are transferred for operation in the southern seas during the northern winter. Visits to archipelagos and islands are a special type of cruise. Sometimes such short cruises, upto seven days duration, are run with the same ships, 50 times a year. Such circuits are popular as a sail and stay packages with a normal bathing holiday on land,in the Caribbean and Greek islands and also around Hawaii, Tahiti, the Canaries and experimentally around Spitsbergen and even Antarctica. 21
  22. 22. Every cruise region has a small number of main departure or embarkation ports. For instance, Genoa, Venice, Istanbul etc in the Mediterranean, the Caribbean ports such as Miami, Port Canaveral, San Juan in Puerto rico, Bridgetown/Barbados and Singapore in South-East Asia are major cruise hubs. Such ports are linked to major airports of Europe and America and enable the tourists to fly-cruise to start their cruises without delays. Main ports like these also serve for maintenance, bunkering, loading of supplies and discharge of waste since the are usually, though not exclusively, sea ports with all marine facilities. 3.2 Market Profile As a predominantly luxury service industry, it is vital to understand the market profile of the cruise industry. As of today, the industry has been able to access only a few niches within the massive tourist market, resulting in a penetration of only about 1.5% into the overall market. A better understanding may drive better penetration as well as help to sustain current growth. In the case of developing cruise markets and hubs, market profiling is especially important. In 2008, the Cruise Line International Association conducted a comprehensive market profiling exercise with leading research agency WNS conducting the actual survey.(CLIA Cruise Market Study 2008, 2008) The key aims of the survey were to guage market penetration, propensity to travel, demographics, cruise patterns and so on. 3.2.1 Market Segmentation by Income Income is perhaps the key determinant in identifying potential cruisers as the cruise industry remains restricted to the upper income segment, wherein there are further sub-segments like contemporary and luxury cruises which are again based on relative affluence.  Core Market (25+/$40,000): As indicated below, the most likely scenario is that the majority of adults from this target market will cruise within the next three years, based on stated intent to cruise. In addition to population and cruising intent updates, these projections also include US/European River cruises. This segment is most likely to choose short or medium duration contemporary.  Affluent Market (25+/$60,000+): This segment is likely to go for contemporary or luxury cruises  Very Affluent Market (25+/$80,000+): This more limited market is showing slow growth, but cruisers from this segment will prefer the upper end of cruises  Ultra Affluent Market (25+/$150,000+): This very high-end group is showing surprisingly quick growth and are likely to go on luxury, long duration cruise and niche cruises. 22
  23. 23. 3.2.2 Key Findings  Consumer Interest in cruising continues to be strong, despite the economy and fuel costs: 77% of past cruisers and 55% of those who have yet to take a cruise expressed interest in doing so within the next three years.  95% of cruisers rate their cruise experience as satisfying: 44% claim “extremely satisfying” making a cruise among the best in meeting and exceeding expectations.  Median age of cruisers is now 46, down from 49 in 2006; cruises continue to attract younger travelers  Cruisers agree (80%) that cruise vacations are a good way to sample destinations they may wish to visit again, which further demonstrates that cruisers are the best prospect for travel.  Cruise line utilization and awareness of 30+ U.S. embarkation ports adds strong inducement to future cruising: 72% cite additional “close to home” ports as a reason they’ll be more likely to cruise. Benefits cited: added convenience (74%), ability to drive to the ship (71%), saving money on air travel (67%) and avoiding hassles of flying to embarkation points (64%).  Cruisers are the premier leisure traveler; they take 39% more vacations per year than non-cruisers and take more types of vacations with nearly one in four being a cruise. They also typically spend 50% more on their vacation than a non-cruiser.  Both past cruisers (69%) and cruise prospects (56%) recognize a cruise vacation as providing very high value. Those who’ve experienced the inclusive nature and service of a cruise, rank it as the best vacation value. From the survey, we can infer that the potential for cruises continues to be relatively strong despite the current economic turmoil perhaps due to the fact that cruisers are mostly from the upper income segment which has been relatively less hard-hit than the middle and lower income segments. Similarly, the presence of regional cruise ports encourages the local market to go on cruises. In the other direction, incoming cruise travellers are likely to come back for a longer duration visit if they like the destination, creating even more benefit to the local economy. While we have made some inroads into understanding the cruise routes, destinations and the global market profile, it is vital to seek learnings from leading international cruise hubs since our purpose is to study the potential of setting up a new cruise hub. This will aid in internalising and applying the best practices used by these ports to dominate the global cruise industry for a long time. Four our purpose, we will look at Miami – the world's cruise capital – and Singapore, which is the regional cruise hub of South Asia. 3.3.1 Case Study 1 – Miami History The Port of Miami got its start when business tycoon Henry Flagler extended his East Coast Railroad to Miami in 1896.(Port of Miami Guide, 2008) Shortly thereafter, Flagler funded construction of the Port of Miami and began collecting 23
  24. 24. dockage fees. The following year brought passenger cruise service to Nassau. In 1915, city officials authorized plans for a public terminal, turning basin and channel deepening project, and the Port of Miami became a primary hub for shipping to South Florida. Passenger service to Baltimore and New York began in the 1930s, followed by inauguration of cruise service to Havana, Cuba in the 1940s, and subsequent control of port operations by the U.S. Navy during WWII. In 1956, Dodge Island was annexed for port expansion. In 1968, the Port of Miami set a record with four maiden voyages in a single month and celebrated dedication of a $5 million cruise terminal. In 1976, Miami became the first port in history to log more than one million cruise passengers in a year, with that pace quickening to a record 1.5 million in 1980 when terminals 8 and 9 swung open. Other milestones include the 1992 ribbon-cutting for the elevated, five-lane bridge linking Port berths and the mainland, and the 1996 installation of decorative bridge lighting to provide a glowing nocturnal landmark for Miami’s skyline. The development of the cruise terminal took another major step forward in 1999 when terminals 3, 4 and 5 got a major facelift to accommodate Royal Caribbean’s Voyager of the Seas, at that time the largest cruise ship ever constructed, with first-time at-sea amenities including no less than a full-size basketball court, an ice-skating arena, and a rock climbing wall. Current Status In 2007, the Port of Miami handled 3,787,410 passengers and over 750 cruise dockings. It is the Home-Port for over 20 mega-ships and the hub port for the world's largest cruise lines like Carnival Cruises and Royal Caribbean International. Today’s Port of Miami progress is reflected in $ 250 million of construction projects geared toward upgrades and modifications, including new cruise terminals, remodeling of two existing terminals, two additional multi-level parking garages, access road reconfiguration, and a security gateway complex. (Juan Kuryla, 2006). Passenger terminals D and E, are the latest additions to the Miami Cruise Port. These 105,000 square-foot ultramodern, three-story buildings will meet the needs of the new mega cruise ships that carry up to 5,000 passengers. Each terminal will have among its special design features and amenities a VIP lounge, a high-tech security screening facility for embarkation, airline counters, and an airport-style conveyor baggage system. Their combined cost is approximately $80 million. As the embarking passengers enter the spacious ticketing area, they will be standing in front of an uninterrupted 300-foot long and 85-foot high glass wall facing the cruise ship. Disembarking passengers will go through a One Stop Federal Multi-Agency Facility that brings under one roof the earlier functions of the Immigration and Naturalization Service, U.S. Customs and Border Protection, and the U.S. Department of Agriculture. Home-Port The Port of Miami has focused on positioning itself as a premier Home-Port as well as being a port-of-call frequent by the majority of the world's cruise lines. 24
  25. 25. In the case of a Home-Port, where cruises begin and end, there are multiple benefits for the port and the community: • Cruise passengers often spend time in the city before and after their cruises, which results in major revenues for the local economy • Cruise ships taken on most of their supplies and fuel as well as carry out their repairs at the home port. • Guaranteed cruise traffic • Enhances the brand of the city as a premier tourism destination To be a good Home-Port, Miami has identified five key aspects which need to be taken up: - Outstanding port services and an equally appealing city - Modern and efficient airport with substantial airliftModern airlift - Attractive tourist destinations and itineraries - Large population center - Accessibility to that population As one of the most popular tourist destinations in North America, Miami (Florida) was already gifted with most of the required attributes to become a preeminent home-port. Under the “Cruise Miami Program”, the Port has partnered with the Greater Miami Convention and Visitors Bureau to encourage cruise vacationers to arrive in Miami either before or after their cruise vacation to enjoy our many entertaining destinations.(Juan Kuryla, 2006) In addtion to this, the Port of Miami encourages its port-of-call program, where cruise lines bring their vessels mid-week and passengers can spend a day in Miami with the hope of returning for a future vacation. Benefits to the Economy The benefits of the Port of Miami's strategy to grow traffic have been quite evident. Half of the Passengers extended their stay in Miami before or after their cruise. Average passenger expenditure is $89.00 per dayand overnighters spent an average of $280.00. 68% of cruisers flew on a commercial airline and 24% drove into Miami. Being a Home-Port and a Port-of-Call benefits the seaport and several tourist attractions, such attractions as Everglades tours, South Beach , Vizcaya, , Parrot Jungle, the Miami Seaquarium and local shopping venues. Thousands of cruise passengers have the opportunity to visit South Florida and contribute to the local economy.(Khalid A. Salahuddin, 2005) The Port of Miami makes the largest contribution to the cruise industry across Florida which also includes such major cruise hubs as Port of Canaveral and Port of Palm Beach. Overall, Florida received nearly $4.6 billion in direct spending and the Cruise industry generated 130,750 jobs with wages totaling over $4.6 billion in income for Florida workers. Passengers and crew spent $421 million in Florida in 2003. 25
  26. 26. Key Learnings Being the Cruise Capital of the World, the Port of Miami offers many key learnings which will prove invaluable to upcoming and proposed cruise ports. 1. Emphasis on development as a Home-Port 2. World-class infrastructure 3. Integration of Cruise Tourism into overall Tourism strategy 4. Availability of attractive tourist destinations and itineraries in the vicinity 5. Large catchment of potential cruisers 6. Building strong relationships with leading cruise operators. 3.3.2 Case Study 2 - Singapore History While the cruise industry has historically remained concentrated around North America and Europe, Asia has shown excellent growth in this sector since 1990. The Asia-Pacific region, which includes South Pacific, Southeast Asia, Far East & Trans-Pacific, experienced a growth of 134% during the 1992-2001 period reaching a figure of 2.1 million nights and a global market share of 3.5%.(Cruise Tourism Potential & Strategy Study, CRISIL, 2005) Singapore has been the hub port of the South Asian region for centuries with its strategic location on the Straits of Malacca, at the meeting point of the Indian and Pacific Oceans. For almost 200 years, Singapore has traditionally been a port of call for cargo and trading ships. When Sir Stamford Raffles founded Singapore in 1819 and subsequently established it as a trading post for the British East India Company, passenger ships also began to call at the island. Steamers operated mail services from India to Hong Kong via Singapore, many of them with commercial rates for the conveyance of passengers. (Singapore Tourism, 2008) Singapore Port also was a hub for regional ferry traffic which connected to nearby destinations in Malaysia and Indonesia. Till 1991, cruise ships were handled at the cargo berths of the Port of Singapore. In 1991 a dedicated International Passenger Terminal (IPT) was developed at a cost of S$50 million by PSA at the Harbour Front Centre (formerly World Trade Centre) in conjunction with the Singapore Tourism Board to promote cruise tourism. In 1992, the regional ferry operation at Finger Pier was relocated to be together with IPT at the upgraded facilities at HarbourFront Centre. (Singapore Cruise Center, 2008) In preparation for the arrival of the new generation of “Mega resort” cruise ships to Singapore, the terminal at HarbourFront was upgraded and its berth extended at a cost of S$22.5 million in 1998. In 2003, the Singapore Cruise Centre (SCC) as a department was divested from Port of Singapore Authority (PSA) Corporation and became an independent company, Singapore Cruise Centre Pte Ltd (SCCPL) under the Temasek Investment Group. The SCC became the operator for the IPT as well as the regional ferry terminals. Completion of SCC's second upgrade was completed in 2005 at the cost of S$5 million. In 2006, the SCC@HarbourFront (IPT) welcomed its 10 millionth cruise 26
  27. 27. passenger since its operations in 1991. SCC@HarbourFront celebrated its 15th year anniversary. SCCPL partnered Singapore Tourism Board & Civil Aviation Authority of Singapore to launch the S$10 Million Singapore Fly-Cruise Development Fund (FCDF) to boost the cruise tourism. In 2007, SCC became the first cruise and ferry terminal in the region to provide free wireless Internet connectivity, and set the technological platform for future wireless IT applications. The SCC is currently undergoing a $ 7 million renovation. The Singapore Cruise Center currently has two berths of 310 m and 270 m length, 12 m draught and a 55 m height restriction. Current Status In 2008, Singapore handled over 1 million passengers and is the leader in the South Asian region. It is a major port-of-call for ships sailing along the major shipping channel which passes through the Malacca Strait. Almost every round-the-world cruise line, such Cunard or Holland America, halts at Singapore. It is also the home-port for the Star Cruises line, which is far-and-away the market leader in Asia. In 2007, Royal Caribbean International started home-porting its ships in Singapore, with some of the exotic ports of call include cities in Cambodia, Hong Kong, Malaysia, Thailand, and Vietnam. (Ravindran. N, 2007) Since Tourism is a major source of revenue for Singapore, it has emphasised on the need to get cruise tourists to spend as much time and money in Singapore as possible. Thus, it has gone out of its way to both encourage ships to use it as a home-port as well as an extended port-of-call. Singapore is a major civil aviation and hence efforts have been made to encourage “Fly-Cruise-Fly” packages based out of Singapore. This is critical since Singapore is an island city with a very limited local market. Its catchment is from the whole of South Asia including India, Malaysia, China, Indonesia and so on, as well as international tourists who take cruises out of Singapore as part of their overall packages. The Singapore Tourism Board (STB) has been actively promoting cruise tourism as part of its portfolio. It has set up a $ 10 million fund - Singapore Fly-Cruise Development Fund (FCDF) - to support the marketing activities of cruise lines which call at Singapore. The SDB has been actively projecting cruises as part of its prominent and hugely successful “Visit Singapore” campaign. The Singapore Cruise Center is part of a mixed-use development called the Harbour Front, which also includes the massive Vivocity Mall. The SCC is also close to the CBD of Singapore and its entertainment hub – Sentosa Island, which enables tourists to easily access all the retail and entertainment facilities of the city. Other than attractions in Singapore itself, cruisers are attracted by regional destinations like Phuket, Vietnam, Malacca, Kuala Lumpur and Cambodia. Singapore had announced the development of the International Cruise Terminal with a scheduled completion date in 2010. This state-of-the-art facility will be able to accomodate the biggest cruise ships in the world, a task beyond the limitations of the SCC. Despite the current economic scenario, Singapore is proceeding with 27
  28. 28. the development of the ICT, although the completion date has been pushed into 2011. Key Learnings As the leading cruise port in South Asia, Singapore offers key insights for other ports in the region to follow:  World-class infrastructure helps to attract major cruise lines and gain regional leadership  Network of local and regional tourist attractions are a key requirement  Well developed civil aviation infrastructure  Integration of cruise tourism into overall tourism strategy strategy  Strong governmental support to industry, including funding, especially in the initial phase 28
  29. 29. Miami Cruise Terminal Singapore Cruise Terminal 29
  30. 30. Section 4: The Cruise Tourism Scenario in India Cruise tourism is still a new concept in India. The Government of India took the first steps in 2005. Despite constituting a cruise committee , identifying a few potential cruise hubs and conducting detailed studies, nothing substantial has moved on ground.(M K Banger, 2007) However, the potential for cruise tourism is massive given the size of the domestic market, the range of possible destinations in the region and the proximity of international shipping routes, among other factors. In 2008, India saw about 180,000 cruise passengers, mainly at the ports of Mumbai, Goa and Cochin. (PTI, 2008). In 2007-08, 54 international cruise firms sought permission to dock at Indian ports. The three major Indian cruise ports saw between 30 and 40 cruise dockings each with Cochin emerging as the leader due to its relative proximity to the international shipping channels. To understand the potential of the cruise tourism industry in India, it will be instructive to examine the regional cruise market, the overall tourism industry in India as well as key cruise tourism drivers in the Indian context. 4.1 The Regional Market While global trends in Cruise Tourism are relevant, the developments in the neighbouring regions would be much more relevant to India. Traditionally the region is divided into four sectors: Southeast Asia (India, Malaysia, Philippines, Singapore, Vietnam, Cambodia, Thailand, etc.), South Pacific (Australia, New Zealand, Solomon Islands, Indonesia, Papua Asia and New Guinea, etc.), Far East (Japan, Republic of Korea, Democratic People's Republic of Korea, China, etc.) and Trans-Pacific (Hawaii, Guam, Fiji, French Polynesia, etc.).(Cruise Tourism Potential & Strategy Study, CRISIL, 2005) According to the World Trade Organisation, the real potential for the Asian market lies in selling products designed by Asians for Asians. It is very different from the European market, especially with regard to the demographic profile of demand, however, increasingly young Asians are following the example of their US counterparts when it comes to lifestyle, which is a guarantee of success for cruise holidays. Total cruise passenger traffic in the South Asian region is estimated at around 1.2 million in 2007 with Singapore and Hong Kong being the major hubs and an estimate of 1.5 million in 2010 and 2 million in 2015.. (ASEAN Press Release, 2007) 4.2 The Indian Market Today India had around 5.08 million foreign tourist arrivals and over 527 million domestic tourists in 2007.(Annual Report – Union Ministry of Tourism, 2008) There were 9.78 million outbound tourists. India stands 42nd and 11th respectively 30
  31. 31. in the World and the Asia-Pacific region for foreign tourist arrivals (FTAs). All these figures show impressive annual growth in excess of 15%, indicating a robust expansion in the near future. Some of the important drivers for the growth of foreign tourist arrivals include:  Natural beauty, heritage, cultural and architectural diversity  Relatively low cost destinations  Improved international connectivity  Strengthening of India's brand across the world  Increased sophistication of promotional campaigns  Availability of better tourism infrastructure Some of the key developments promoting domestic tourist traffic and outbound tourist traffic include: (Cruise Tourism Potential & Strategy Study, CRISIL, 2005)  Increase in disposable income across the society due to economic growth  Young population  Increased business travel, including the Meetings, Incentives, Conventions and Exibhitions segment  Increased awareness of destinations  Better domestic and global connectivity  Increased marketing by States within India and by the tourism agencies of foreign destinations All this points to one of the largest potential domestic tourism markets in the world with over 550 million tourists. As a very basic guess, even if 1% of this number decide to go on cruises, the number is over 5 million! However, the actual number of cruise tourists who visited Indian ports was no more than 50,000 in 2005-06 and an estimated 80,000 in 2007-08. While this highlights how under-developed the industry is in India, it also points to the massive opportunity which exists in creating even a minimal level of interest in cruises within India's huge tourist market. 4.3 Market Response and Estimation In order to understand the market for cruise tourism in India, the first step is to identify the potential segments of the tourist market from which cruisers may be sourced. (Cruise Tourism Potential & Strategy Study, CRISIL, 2005) A. Cruise Tourist arrivals in India: Dedicated cruise tourists, who have been coming into India through various ports till date also. B. International Tourist arrivals in India: International tourists coming into India primarily through various airports. As observed globally, these tourists offer a latent demand for undertaking short exploration cruises in and around the country as part of their overall travel plans. 31
  32. 32. C. Domestic Indian Tourists: India has a large percentage of domestic tourists undertaking different tourism activities. In the absence of infrastructure and facilities, these tourists have hardly been exposed to the concept of ‘cruise tourism’. With development in infrastructure, this segment would comprise a significant percentage of the cruise tourists, with primary interests in undertaking both domestic and international cruise circuits. D. Indian Outbound Tourists: Recent progress in the economic indicators of the country has given rise to a category of upper class Indians visiting international destinations regularly for leisure purposes. This category offers an attractive potential for cruising through Indian ports, with their interests primarily centred around cruise circuits that include international destinations. As a qualitative means of exploring the preferences of potential cruise tourists, CRISIL conducted a primary survey among 100 foreign tourists and 100 domestic tourists to understand various parameters like the perception of India as a cruise destination, ranking of preferred cruise ports, the facilities that they would expect aboard cruise ships and at cruise ports, etc Some of the key findings include:(CRISIL - AC Nielsen ORG-MARG Survey, 2005)  South Asian destinations like Singapore, Thailand and Malaysia were popular both among domestic and foreign tourists  Overseas travel and beach holidays were most popular among both segments while domestic tourists rated cruises as their 3rd option.  Survey results show that 22 % of the Indian respondents had been on a cruise while only 3 % of the foreign tourists in India had actually been on a cruise.  81% of domestic and 46% of foreign tourists wanted to go on cruises  Singapore and Hong Kong were among the two most attractive destinations for domestic tourists  “Being at Sea” and “Seeing many places” were among the key benefits of cruises for both segments  It is clear that for domestic tourists the food/cuisine rates on top of the list. Accommodation, entertainment/ leisure facilities and ship liner more or less have been given the same importance while informality onboard and convenience while disembarking hold least priority  On the other hand the foreign tourists in India give the ship liner itself top priority followed closely by food, accommodation, informality on board and convenience while disembarking, which hold more or less the same rating.  While domestic tourists attach relatively less importance to port facilities, both segments rated easy transit through port, positive attitude of port personnel and convenience as top requirements  Both segments called for creation of world-class cruise terminals, a tourist- friendly attitude and attractive destinations near ports  Domestic tourists rated Mumbai-Kerala-Lakshadweep-Male as the most preferred cruise circuit while foreign tourists preferred Kerala-Backwaters- Goa the most, and Singapore and Colombo figured as two of the most attractive international destinations. While the above conclusions are mostly qualitative in nature, they will be of great use in designing a cruise product for the Indian context. 32
  33. 33. To estimate the Cruise tourism potential in India, empirical analysis on various the tourist segments and the potential demand they can generate, can be used. We expect the growth in demand for cruise activity to follow cruise tourism growth observed Internationally& trends for overall growth projected for tourism in India. As discussed earlier, the total cruise passenger demand would be the sum total of potential demand arising from the following segments: A. Cruise Tourist arrivals in India B. International Tourist arrivals in India C. Domestic Indian Tourists D. Indian Outbound Tourists A. Cruise Tourist Arrivals in India – This figure is straightaway available. B. International tourist arrivals in India – World-wide, about 1.5% of international tourists go on cruises. The same figure can be taken for foreign tourists arriving in India. C. Domestic Indian Tourists – Since cruise tourism is a sophisticated and usually expensive form of tourism, only urban, upper income tourists who travel for leisure & holiday purposes may be considered for the market estimation. 27% of domestic tourists are from urban areas at present, while only 5% are from the higher income segment and 8.7% travel for leisure & holiday purposes. Finally, we consider that only the same global percentage – 1.5% - of this number would prefer cruises. This works out to .0018% of the domestic tourist market. D. Indian Outbound Tourists – Only tourists going for Leisure & Holiday purposes and some of those going for business are considered to be a potential catchment, the latter because many cruises offer combined business-leisure packages. 17% of outbound tourists went abroad for Leisure & Holiday purposes and 29.1% for Business purposes. 50% of the latter are taken into account. Finally, it is assumed that 10% of this total would want to go on cruises, of which only 20% would prefer cruises originating in India. ie. 2% of Indians going abroad on leisure purposes would go on cruises originating in India. Segment % Traffic in 2007 (millions) Cruise traffic(millions) Cruise Arrivals 100 0.08 0.08 Foreign Tourists 1.5 5.08 0.08 Domestic Tourists 0.0018 527 0.0093 Outbound Tourists 0.0063 9.78 .062 Total 0.2313 Hence, a potential already exists for over 231,300 cruise tourists in India as of 2007. 33
  34. 34. 4.4 Initiatives to Develop Cruise Tourism in India The Government of India has recognised cruise tourism as a thrust area. Cabotage laws have been relaxed for a period of five years (December 2003 onwards). This will allow foreign cruise ships to carry Indians from one Indian port to another, without having to touch a foreign port in between. Port tariffs have been reduced by 33%. In fact, in the National Tourism Policy, 2002, the Central Government has proposed to develop Cochin and Andaman & Nicobar islands as international cruise destinations. It is also exploring the concept of an integrated Indian cruise circuit comprising of six identified ports – Mumbai, Mormugao, New Mangalore, Cochin, Tuticorin and Chennai. To chart out a course of action in this regard, the following committees have been formed:  National Committee on cruise shipping constituted under Chairman, Mumbai Port Trust (MPT) – to explore potential of cruise tourism and ascertain infrastructural requirements at the identified ports.  National Committee under Director General of Tourism – to address marketing related issues.  Port-level committees under respective chairmen with representatives of all relevant service providers- to address and resolve issues at port level, monitor requirements of cruise vessels and tourists.  Standing Committee under Secretary, In-charge of Tourism of respective State Government with stakeholders – to develop and monitor requisite tourist related services at places of tourist interest.  Committee constituted under Chairperson, MPT - to review rules and regulations applicable to cruise tourism and recommend suitable amendments to make them tourist friendly. Consequent to the deliberations of the National Committee, Ports have taken following actions:  Each port has drawn up a status paper of existing infrastructure including facilities for tourist reception lounge, baggage handling, communication centre providing telephone, internet, fax, transport arrangements etc.  In consultation with State Govt & tour operators, each port has prepared half day & full day excursion tours in and around the port cities which can be packaged as part of cruisefor the tourists. Tourist attractions easily accessible at other places in the country have also been identified.  Immigration facilities at ports have been discussed with immigration authorities & to some extent procedures streamlined for speedy clearance of passengers.  Each port has appointed a nodal officer for coordination with all agencies involved & for prompt redressal of any difficulty to tourists/ cruise liners. Of the short-listed ports, Mumbai invited EoIs from developers in 2006, however the project has been stuck since the State Government has not agreed to the locations proposed by the Port. Oyster Rock has been finalised as the location, as of November 22, 2008 and the project cost estimated at Rs 1800 Crores on a PPP basis. 34
  35. 35. Cochin has also finalised its location and gotten a detailed study done in 2007, however further progress has not happened. The project is estimated to cost about Rs 400 Crores. The other ports are still stuck at the project report stage. Therefore, despite the Central Government focussing on cruise tourism from 2005, cruise ships continue to be handled at general purpose berths across India. 5. Cruise Tourism in Kerala Among Indian states, Kerala is relatively advanced in terms of cruise tourism development, both in the marine and river cruise segments. 5.1 Marine Cruises In terms of marine cruises, Kerala has received the highest number of cruise vessels among Indian states. (News@Webindia, 2009) Cochin Port, which is the major port in Kerala, receives, on average, about 35 cruise ships each year. Smaller cruise also dock at Vizhinjam, near the State's tourism hub at Kovalam on the outskirts of Trivandrum. In response to the Union Government's cruise promotion policy, the Cochin Port Trust appointed a consortium of consultants in May 2007 to determine how to set up an International Cruise Terminal.(V. Sajeev Kumar, 2007) The consultants have recommended the development of a mixed-use Cruise Terminal in the Public Private Partnership mode.(V. Sajeev Kumar, 2008) The total cost of the project is estimated to be about Rs 375 Crores. The consultants pointed out that cruise tourism has emerged as the fastest growing sector of the global tourism industry over the past decade. Among Indian ports, Kochi has been the cruise port in India with maximum cruise calls. The port, located close to the international trunk sea route from Europe to Far East/Australia with a deviation of only 72 nautical miles, prompts cruise liners to take advantage of the tourist attraction. The port has modern deep water facilities and further development will facilitate the handling of bigger cruise vessels with 360 metres length and beam over 40 metres. Although the development of the terminal seems to have ground to a halt, Cochin Port continues to host cruise ships, including such famous as the Queen Mary 2, at its general purpose berths. The Port also hosted a stop of the Volvo Ocean Race in December 2008. 5.2 Backwater and River Cruises Kerala is the undisputed King of backwater cruises in India, with the Vembanad and Ashtamudi lakes becoming world-famous for their houseboats in a short period of time. However, the product offering of backwater cruises have become rather stagnant over time, with few new features being offered other than larger boats with a few extra amenities. Most of the cruises cover little distance and just circle around 35
  36. 36. within one area of the backwater body, offering few destinations for the cruisers to visit. In this sense, there is little variety and the cruises seldom last for more than two days. However, with the opening of the 205 Km long National Waterway III from Kollam to Kottapuram in November 2007, the avenue has opened for cruises covering greater distances, visiting more destinations and of longer duration. (The Hindu, 2007) The waterway is being extended to Kovalam in the south and Neeleshwaram in the north. This means a potential cruising distance of about 500 Km. A cruise could start at Kovalam, pass through Kollam, Alleppey, Kottayam, Ernakulam and Kozhikode and terminate at Neeleshwaram. Such cruises could last over five days. The National Waterway is capable of taking vessels of upto 500 tons displacement and has a width of 30 m and a depth of 2.5 m. Thus, the potential for river cruises across most of the length of Kerala and traversing most of its key tourist destinations will soon be available to cruisers from across the world. 36
  37. 37. Chapter 2 – The Kerala Scenario Kerala's performance as a cruise tourism destination has been enviable among Indian States. A combination of natural factors like its strategic location close to major shipping lanes and its attractiveness as a tourist destination, along with the strong brand built up over the past few years has drawn tens of thousands of tourists to Kerala. Backwater cruises have far and away dominated the industry in Kerala. This is probably due to the fact that although Kerala is a maritime State, it only has one major port, thus limiting avenues for marine cruise tourism while its backwaters have been in use for hundreds of years and are very extensive. However, this said, the marine cruise industry has been steadily growing in the State as well. Marine Cruise Tourism in Kerala Kerala's development as a port-of-call for cruise liners is comparitively recent. It has only been since 2000 that significant numbers of liners started to call at the ports of Kerala. This late development has been due to the fact that India has become an international tourism hot-spot over the last decade or so with the launching of highly successful international promotional campaigns like “Incredible India.” Ports of Call Kerala has a coastline of around 590 Km, which is probably the highest coast-to- area ration in India, making it the most maritime of all major States. Along this coast, there exist one major port and 17 intemediate or minor ports. The State's lone major port is the Port of Cochin (a Major Port governed by Major Port Trusts Act, 1963). There are 3 Intermediate and 14 Minor Ports in Kerala. They are Neendakara, Alappuzha, Kozhikkode (Intermediate Ports) and Vizhinjam, Valiyathura, Thankasserry, Kayamkulam, Manakkodam, Munambam, Ponnani, Beypore, Vadakara, Thalasserry, Manjeswaram, Neeleswaram, Kannur, Azhikkal and Kasaragode (Minor Ports). The Major Port of Kochi is under the Ministry of Shipping, Government of India while the intermediate and minor ports are under the administration of the Government of Kerala. Most of the minor and intermediate ports in the State are seasonal in nature with insufficient infrastructure to handle even medium and small sized vessels throughout the year. (Kerala Ports, Govt. Of Kerala, 2008) Year No. of Cruise Tourists 2000-01 41,000 2001-02 19,000 2002-03 12,000 2003-04 25,000 2004-05 22,000 Cruise Tourist Arrivals in India (Cruise Tourism Potential & Strategy Study, CRISIL, 2005) 37
  38. 38. The above figures are drawn from Mumbai, Goa and Cochin ports only. Over the past few years, Cochin has rapidly risen to the top position among Indian ports by a significant margin. In 2002-03, the Port hosted 11 cruise ships and followed it up with 18 in 2003-04. In 2004-05 it was 19, while in 2005-06 it was 22. (Thaindian Website, 2008) In 2006-07, 38 cruise ships with 15,977 passengers visited Cochin Port while in 2007-08, the figures rose to 43 ships and over 22,000 passengers respectively. (Kerala Tourism, 2008) The figures for 2008-09 are likely to be similar despite the global economic slowdown and the overall impact on tourism in and around Cochin. Famous ships like the Queen Mary 2 and the Queen Victoria have already made one or more visits to the port in the last 2-3 years. Cochin has also been rated as the best cruise port in India over a variety of parameters. (Cruise Tourism Potential & Strategy Study, CRISIL, 2005) Cochin has been dominating the cruise market in India over the last few years primarily because of the following reasons: • Kerala's strong international tourism brand. This makes Kerala an attractive stop for many tourists who want to sample the attractions of Kerala during their cruise • Proximity to the international shipping route. Out of all current major ports, Cochin is one of the closest to the major shipping channels used by most cruise liners • Cochin already has port facilities available to handle all sizes of cruise ships. • The port is close to the city and tourists can make a quick visit to several tourist attractions. Cochin Port Trust (CPT) has recognised the importance of cruise tourism to their overall business and has been supportive of the initiative. The same has been true of Kerala Tourism, who see cruise arrivals as a way of attracting large numbers of high-spending tourists to Kerala. The Port has decided to set up a dedicated Cruise Terminal to transform Cochin into an international cruise destination. It is estimated that as many as 150 ships a year could call at Cochin once the terminal is commissioned. (The Hindu, K.A. Martin, 2008) CPT appointed a consortium of consultants to study the cruise terminal project in May 2007. (The Hindu, V. Sajeev Kumar, 2008) The consultants recommended a Public Private Partnership model for the project and an overall project cost of Rs 375 Crore. The project comprises building a world-class cruise terminal, a Kerala Village as a major tourist attraction, a 238-room hotel complex, shopping mall and office complex as well as a parking garage. The port has earmarked 6.71 hectares of land for the project of which 4.24 will bring in lease income while the rest of the area will be developed through a special purpose vehicle (SPV). The project was expected to be commissioned in 2010, but is yet to take off as a private partner to develop the terminal has not yet been identified. 38
  39. 39. Minor Ports While Kerala possesses 17 intermediate and minor ports, only a few have been visited by cruise ships. Vizhinjam, on the outskirts of Trivandrum, has been the foremost of these while Beypore, near Kozhikode, has also received an occasional visit. These small harbours are usually visited by small, luxury ships with no more than a 100 passengers on board. Hebridean Spirit and Ocean Odessey are two such ships which have visited Vizhinjam over the past few years. Slightly larger ships may anchor offshore and bring their passengers onshore in small tender boats. For example, Vizhinjam can only handle ships of up to 80 m length and 4.5 m draft currently. In the case of Vizhinjam, it is the port's proximity to major tourists attractions and the city of Trivandrum which makes it a port-of-call for many cruise ships despite the lack of any tangible facilities. In fact, industry sources are confident that many larger cruise ships would like to call at Vizhinjam but are discouraged from doing so due to the lack of handling facilities at the port. (The Hindu, S.A. Radhakrishnan, 2007) Kerala is endowed with minor ports almost along the entire length of its coast, which makes any part of the State easily accessible from the sea. It is an ideal cruise destination, where backwaters, hill-stations and cultural attractions can all be reached within a two hour drive from the landing point. The key hurdles being faced in utilising these facilities include: • Lack of draft in minor ports and fishing harbours. • Absence of passenger handling facilities • Poor access to many of the minor ports • Lack of dedicated Customs and Immigration facilities. While tender boats can be used to ferry passengers to the shores, this is less ideal than having the ship itself berth at the port and can be disrupted if sea conditions are less than ideal. Thus, Kerala has unmatched potential in becoming India's marine cruise tourism hub but there is a long way to go in developing the world-class infrastructure needed to realise that potential. Backwaters in Kerala Backwaters basically refers to water held or forced back due to a variety of reasons. In the parlance of tourism, backwater represents a waterbody formed by the conglomeration of different water sources like rivers, lakes, canals etc. Kerala, a land of copious rainfall has a profuse overflow that runs into canals where the rolling water tumbles in a effective surge through hills and mountain passes to join a number of odd rivers. In the state, out of 44 rivers, 41 flow towards the West while 3 of the them make their way towards the East. The 39

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