Cruising to a million bon voyages

The Centre’s aim to double cruise passenger traffic to one million by FY 2029 remains on course with the development of terminals and addition of new vessels.

While foreign ships are making fewer port calls this season due to the ongoing tensions in the Red Sea, domestic business is gaining ground.

Cordelia Cruises inducted its second vessel, Cordelia Sky, in late October and is due to receive its third vessel next year. The company is eyeing more additions.

“While it’s too early to provide specific details at this point, our direction remains clear. Progressively build capacity in line with the growth of the Indian cruise market,” Jurgen Bailom, CEO of Cordelia Cruises, said during the second quarter conference call.

“Demand is not an issue. With Cordelia’s three cruise ships, we should be able to meet our target of one million annual passengers by FY29,” said Rajiv Jalota, former Chairman of the Indian Ports Association.

He urged cruise operators and tourism departments to develop tourist circuits to attract more foreign visitors. “This will make up for the shortfall as fewer foreign cruise liners are calling at Indian ports. Another opportunity is to develop cruise itineraries covering South India and Southeast Asia, and between India and West Asia,” he added.

Retail, F&B offerings

Port authorities are expanding facilities and introducing new offerings to attract more passengers and grow revenue. While Chennai, Mumbai and Visakhapatnam added modern cruise terminals in the past three years, work is underway for one at Mormugao port in Goa.

Developed at a cost of ₹185 crore, the 13-acre cruise terminal in Goa will have check-in counters, lounges, retail stores and food courts. It can berth four vessels simultaneously and provide Ro-Ro services too.

“While the domestic cruise terminal is targeted for completion by June 2027, the entire project is expected to be completed by December 2027,” the Mormugao Port Authority said.

Cochin Port, now a home port for Cordelia Empress, plans to build a mega cruise terminal and has appointed a consultant to prepare a detailed project report.

Meanwhile, the cruise terminal in Mumbai has added an experience centre offering dining, shopping, lifestyle and entertainment options to attract passengers and local residents alike. Perched two levels above the terminal, it will open in phases over the next two months with a curated list of brands.

Aditi Kotak, Director of Ballard Pier Private Limited, the company developing the experience centre, said, “Our coastline can become one of the country’s most distinctive tourism assets, but that takes more than infrastructure; it calls for experiences that draw people to the sea.”

In FY 2026 the country’s nine ports handled 212 ship calls and 4.62 lakh passengers. Domestic cruises contributed to 78 per cent of ships calls and over 90 per cent of the traffic.

Mumbai handled 45 per cent of the ship calls and 52 per cent of all passengers in FY26.

From eight international ship calls last season, Mumbai port is seeing just five this year, as geopolitical tensions drive up fuel and insurance costs.

Tax reforms

Global cruise operators remain bullish on the Indian market as they see a strong demand for trips within Asia, the Caribbean and Europe.

“We have no plans to homeport vessels in India at this time. Our focus is on serving Indian guests through our international itineraries. We will keep reviewing the market as conditions evolve,” said Norbert Stiekma, Executive Director, Global Sales, MSC Cruises.

Foreign companies are holding back from deploying their ships in India, and the reason is not the regional tensions alone. Companies want tax reforms as well. “We are in discussions with a few cruise lines (to deploy their vessels in India), but there is a lot of groundwork to be done before we can make this happen. It requires the right infrastructure, clear policies and a commercially viable environment,” said Nalini Gupta, Managing Director at ClickMyCruise & Lotus Destinations, which represents global cruise operators.

“The single most important reform would be a tax framework for cruises in Indian waters that is competitive with international cruising and comparable to other tourism and transport sectors,” Stiekma added.

Government officials said steps are underway not only to expand facilities but also ease regulations, thereby addressing the concerns of the industry.

“The Cruise Bharat Mission has given India’s cruise sector a clear direction, a strong institutional framework and measurable targets. With the expansion of facilities and homeporting of more ships, the sector is poised for growth,” said M Angamuthu, Chairman, Mumbai Port Authority. “Reforms such as e-group visit visas, simplified shore leave passes, QR code-based immigration clearance and digitised customs will address the concerns raised by global cruise lines and strengthen India’s competitiveness,” he added.