A cruise vacation is often considered the epitome of luxury, especially those that are all-inclusive, and allow guests to visit multiple destinations without the hassles of planning complicated travel arrangements. The cruise ships have everything onboard, from luxurious accommodations and a wide selection of dining options to entertainment and thrilling activities that make these journeys an unparalleled memorable experience for the traveler. Although the pandemic had negatively impacted the industry, it is once again on a steady rise, with key players like Disney Cruise Line, MSC Cruises, and Carnival Cruise Line, among others, continuously adding new, bigger ships to their fleet to meet the rising demand and evolving traveler preferences. As a result, the Global Cruise Tourism Market, which was valued at more than US$5 billion in 2022, is expected to grow at a CAGR of nearly 12% to surpass US$17 billion by 2032.

Despite having a significant natural advantage of a vast 7,500 km coastline, which is home to 12 major and over 200 minor ports, India has not yet been able to leverage the full potential of cruise tourism in the country. Reports indicate that the Indian cruise industry was valued at only US$ 100 million in 2022, which is minuscule compared to the global market. However, recognizing the potential of cruise tourism, the Government is now increasing its focus on this niche segment and taking steps to accelerate its development, with an aim to increase cruise passengers 10-fold from 0.4 mn to 4 mn by 2041. There are currently 208 cruise ships operating in the country and the government aims to increase this number to 500 by 2030. Further, three new international cruise terminals are also expected to be operational by 2024. Moreover, the tourism ministry released the Draft National Strategy for Cruise Tourism recently, with key proposals that can facilitate the segment’s growth.

International players have also recognized the massive potential in India and are showing a keen interest. Leading players like the Royal Caribbean and Costa Cruises already have cruises that stop in the country and are also starting sails exclusively for India. Costa Cruises recently announced that it will operate 23 domestic cruises visiting Mumbai, Kochi, Goa, and Lakshadweep Islands from November 2023 to January 2024. Moreover, India’s first international cruise ship, MV Empress by Cordelia, from Chennai to Sri Lanka was also launched in June this year. The potential is so high that the company aims to host 50,000 passengers in the next four months.

Besides the coastal regions, India is also blessed with more than 400 rivers giving an enormous opportunity to explore the mainland. In January this year, the world’s longest river cruise, the Ganga Vilas, was flagged off in the country. The 51-day cruise starts in Varanasi and after covering a distance of 3,200 km and nearly 50 destinations through 27 river systems in five states and two countries, anchors down at Dibrugarh in Assam. The Mahabaahu Cruise is another popular Luxury River Cruise in India traveling down the magnificent Brahmaputra, which is popular amongst foreign and domestic tourists.

Post the pandemic, people have been eager to explore new travel experiences and cross things off their travel bucket lists, which will help the cruise industry as well. In fact, Antara Luxury River Cruise has reported that post the pandemic nearly 20% of their passengers are Indian nationals as opposed to zero earlier. Studies have also shown that 6 in 10 people revisit the destinations they touched upon during a cruise, so promoting cruises can be beneficial for the entire tourism industry and economy.

The Indian government has taken several initiatives to promote cruise tourism including, e-visa facilities for cruise passengers, rationalization of port fees, and priority berthing for cruise ships. The government has also extended the relaxation of cabotage restrictions for foreign cruise ships by an additional five years, through February 2029, enabling these vessels to call at multiple ports in India without obtaining a license from the Directorate General of Shipping (DGS). Furthermore, the government is also upgrading and modernizing the port infrastructure and developing cruise terminals in the country.

Enhancing last-mile connectivity to the ports, launching a successful marketing campaign to raise awareness among domestic and international tourists, and resolving issues with GST and other taxes, as recommended by the national policy, will soon help India become a top cruise destination.