Govt reduces port tariff for cruise ships in bid to boost domestic cruise tourism

To promote domestic cruise tourism, the government on Friday reduced cruise shops port tariff rates ranging from 60% to 70%.

"Decision will support the cruise industry and domestic cruise tourism from the adverse economic impacts due to Covid-19 pandemic," said Union Shipping Minister Mansukh Mandaviya.

"It will provide the opportunity to earn huge amount of foreign exchange and generate sizable direct and indirect onshore employment in cruise tourism sector of India”, the Minister added.

"The port charges for a Cruise Ship to be charged at $0.085 per GRT (Gross Registered Tonnage) instead of $0.35 of current rate, for first 12 hours stay ('Fixed Rate') and $5 per passenger (‘Head Tax’). The Ports will not charge any other rate like berth hire, port dues, pilotage, passenger fee, etc. For the period exceeding 12 hours stay, the fixed charges on cruise ships will be equal to the Berth Hire Charges payable as per SOR (Schedule of Rates) (with 40% discount as applicable for cruise ships)," said a statement.

Further, cruise ships making 1-50 calls per year will get a 10% rebate, 51-100 calls per year will get a 20% rebate, and ships making more than 100 calls per year will get a 30% rebate. These tariffs shall be immediately effective for a period of one year, said a statement.

Due to policy support by Shipping Ministry since 2014, the number of call made by Cruise Ships in India has increased from 128 in 2015-16 to 593 in 2019-20. This rationalisation would also help ensure that cruise calls at Indian Ports do not dry up completely, the statement said.