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

Prepared By:

Viji Krishnan&

Ajay Prasad

1

Contents

Sl. No. Topic Page No.1 Introduction 32 Chapter 1: Literature Review 53 Section 1: Evolution 54 Section 2: Concepts 85 Section 3: Global Scenario and Market Review 216 Section 4: Indian Scenario 307 Chapter 2: Kerala Scenario 388 Chapter 4: Expert Survey and Analysis 439 Chapter 5: Conclusion 5210 Section 1: Summary of Key Learnings 5211 Section 2: Strategic Analysis 5612 Section 3: Product Design and Analysis 5913 Section 4: Potential Benefits of Cruise Tourism 6214 Section 5: Development of Cruise Infrastructure 6715 Section 6: Development Plan 7116 Bibliography 7216 Appendix 1 7317 Appendix 2 77

2

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

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 industryTo examine the marine and inland cruise tourism business in KeralaTo 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

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

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

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 – 2010Source: BEA International

7

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

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

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 shipsand 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

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

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

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

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

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.

PREFACE2.5 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

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. Mostlarge 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 CruisesThemes 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

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 togrow 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 caterto 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 ruralexploration 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

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

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

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 natureof 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

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

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

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

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 StatusIn 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-PortThe 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

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 destinationTo 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

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-Port2. World-class infrastructure3. Integration of Cruise Tourism into overall Tourism strategy4. Availability of attractive tourist destinations and itineraries in the vicinity5. Large catchment of potential cruisers6. 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

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

the development of the ICT, although the completion date has been pushed into 2011.Key LearningsAs 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

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 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

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 destinationsAll 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

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

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 IndiaB. International Tourist arrivals in IndiaC. Domestic Indian TouristsD. 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 0.08Foreign Tourists 1.5 5.08 0.08Domestic Tourists 0.0018 527 0.0093Outbound 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

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

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

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

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 Tourists2000-01 41,000

2001-02 19,0002002-03 12,0002003-04 25,0002004-05 22,000

Cruise Tourist Arrivals in India (Cruise Tourism Potential & Strategy Study, CRISIL, 2005)

37

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

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

Kabani, Bavani rivers flow eastwards while those which are west flowing include the Bharathapuzha, Chaliyar, Periyar etc..Due to the abundance of water bodies, the state has been blessed with an extensive network of waterways that lace the interior coast line, from Hosdurg in the North to Trivandrum in the South, covering a distance of 560 km (NGS of India,1990). The coastal lines are interspersed with backwaters that are connected by rivers and canals. The waterways of Kerala are in a very favourable position and connect several minor ports and the major port of Cochin, in addition, there are 620 km of cross canals, mostly serving the commercial midlands in the South as well as another 840 km of navigable waterways.

Kerala, rich with water bodies of different forms, is also featured with a long chain lagoons and waterbodies, running almost parallel to the seacoast ,reserves water from numerous rivers and streams. Vembanad lake is the most important. It is 84 km in length and stretches from Alapuzha to Cochin. The important lakes in North Kerala are Kumbla, Kalnad, Bekal etc and in South Kerala are Ashtamudi, Sasthancottah and Kayamkulam .

The Vembanad lake is the most important element of the west coast canal system wich has a length of 84 km and an average breadt of 3.1 km.it covers an area of 204 sq km. The vast stretch of brackish lakes that exists all along the coastal belt of the state constitute nearly 70% of the inland water resources of the state.

Backwater tourism

Kerala is well endowed wit tourism resources which include:

- Tropical climate- Beautiful,lush and varied nature- Wild-life areas- Long palm fringed coastline- Hill stations- Well-educated hospitable people- Rich cultural and historical people

Among these, one of the most truly unique and peculiar features of Kerala is undoubtedly the backwaters.

The land mass along these waterways pulsate with a different tempo, possessing a lifestyle so unique that it attracts curiosity, giving rise to a form of tourism that is non-existent anwhere in te country. Its greenery is unmistakably an important component of the USP of Kerala tourism. The quality of backwaters lies in their serenity , their natural beauty and their culture. The backwaters are also an excellent alternative means of transportation through rural Kerala, one can glide through the calm serene backwaters flanked by the green palms to see a rural Kerala preserved through ages and completely hidden from the roads. Backwater tourism provides opportunities for various activities that are very alluring to tourists. These include sight seeing, camping, rural tourism, boating, bird watching, kayaking, fishing, canoeing, meeting and incentive tours etc As a result

40

of tourist influx, backwater tour operators have mushroomed all through the state. Backwater toursm has become an important component of any tour package in Kerala. A range of backwater tourism options are available, which range from short cruises costing a couple of hundred Rupees to package holidays on houseboats costing 15000 Rupees or more.(Incentives and Support to Backwater Tourism: A study on Houseboats in Allepey and Kumarakom, Dr B Vijayakumar,2008)

Today, backwater tourism is more focused on the “stay” option rather than actual “travel” benefit of cruising. Current houseboats started of as converted cargo boats which had accomodation facilities bolted on top. Although, many of today's newest houseboats are custom-built, they still focus on providing plush accomodation in as many as four to six bedrooms rather than on speed or manuveurability. Houseboats usually cruise out on open lakes like Vembanad or Ashtamudi. They sail around slowly in circles, which means the passengers do not get to see much variety.

The approach needed is to introduce river/canal cruises along the canal system which runs from one end of Kerala to the other. Till recently, most of these canals were diused and almost unpassable even for big boats due to siltation and encroachments. However, this is now quickly changing.

The National Waterway III, between Kollam in the South and Kottapuram has already been commissioned, opening up almost 200 Km of route for large vessels to travel. Soon this will be extended further to Neeleshwaram in the North and Kovalam in the South. This extension will bring in additional attractions like the famous tunnels at Varkala, near Trivandrum, into the cruise circuit.

With such extended cruises, tourists will have a wider variety of experiences, as they travel through different regions and see different scenaries and sample different cultures. Longer stays on board will also be more profitable for the operators, thus making the proposition an attracive one for all stakeholders.

As as the undisputed hub of backwater tourism and the current leader in marine cruise tourism, Kerala has possibly a unique opportunity to integrate the two modes and provide tourism products without comparison across the world.

41

Typical Houseboat

Perspective of proposed Cruise Terminal at Cochin port

42

Chapter 3 - Expert Survey and Analysis

Objective

This study is exploratory in nature and seeks to break new ground in the tourism industry. The methodology involves a combination of primary and secondary research, followed by a strategic analysis to identify the key steps needed to promote Trivandrum as a Cruise Destination as well as to evolve a robust, time-bound plan to operationalise this strategy.

While the secondary research for this study has been mostly sourced through an extensive review of existing literature and industry information, primary data gathering was found to be indispensable as very little information exists about the local market itself and its potential, since Trivandrum has not been a focus of the cruise industry so far.

The objective of the primary research is therefore to obtain specific information about the tourism market in and around Trivandrum, the potential for cruise tourism in the area and the key steps to achieve this.

Research Methodology

Being an exploratory study focusing on a top-down policy approach, it was deemed best to talk to experts in the tourism, cruise tourism and shipping fields. While every effort was made to interact with as many experts as possible, the focused nature of the study restricted the total number of relevant experts to 10.

Interviews were conducted individually, in person where possible or over the telephone.

A 28 item questionnaire (Appendix 1) was prepared based on the Likert Scale with 5 response options in each item. Each respondent was also asked to give additional comments and were asked qualitative questions on a case-to-case basis.

Survey Analysis

All responses were tabulated to obtain the item-wise results. The limited number if respondents restrict the possibility of quantitative analysis of the results, however the emphasis of the survey is to understand the broad trends as the aim of the study itself is to explore possibilities rather than to come up with quantitative estimates.

To this end, the approach chosen in analysing the outcome of the survey is to look at a few key items, study the trend of the responses for that item and to associate any relevant quantitative response with that item. The latter will enable us to gain a more detailed insight into each item and its associated issues.

A tabular analysis of all the items of the questionnaire is included in Appendix 2.

43

Survey Results

Attractiveness of Kerala to Cruise Tourists

Questions:

1. Kerala's 600 Kms of coastline and about 800 Kms of inland waterways give it high potential to attract international and regional cruise tourists.

Question 1

56%

44%

0%0%0%

Strongly AgreeAgreeDisagreeStrongly DisagreeNo Answer

2. The proximity to the main International East-West shipping lane makes Kerala an attractive destination for cruise ships to make calls.

Question 2

33%

67%

0%0%0%

Strongly AgreeAgreeDisagreeStrongly DisagreeNo Answer

3. Kerala's wide variety of attractions and activities, which has been able to attract a diverse profile of foreign and domestic tourists, strengthens the prospects of it becoming an ideal cruise destination.

Question 3

44%

56%

0%0%0%

Strongly AgreeAgreeDisagreeStrongly DisagreeNo Answer

44

Remarks

Cecil Haidar Ali and his son Michael, who own Micato Tours & Travels – India's leading shore operator for cruises, both felt that “Kerala had excellent potential to attract cruise tourists due to its location and the wide variety of attractions it is able to offer.” Cecil emphasised that “Trivandrum had a great combination of city-based attractions, a world-class beach as well as beautiful backwaters, which together form a top-class destination for cruise tourists.”

Key Learning

The responses clearly emphasise the fact that Kerala possesses all the key natural factors to emerge as a major cruise destination. This supports our primary hypothesis that Trivandrum has the clear potential to be a cruise tourism hub and paves the way for the rest of this study.

Lack of Infrastructure is the major barrier to the development of Cruise Tourism

Question

8. The lack of dedicated infrastructure for cruise tourism has been a significant factor in limiting the number of vessel arrivals in major and minor ports

Question 8

67%

11%

22%

0%

0%

Strongly AgreeAgreeDisagreeStrongly DisagreeNo Answer

Remarks

Dr. V. Venu, IAS, Secretary – Dept. Of Tourism, Government of Kerala identified the “lack of infrastructure as a key issue facing the cruise industry in Kerala. Despite its relative success in attracting cruise traffic, Cochin still lacks a dedicated facility while Trivandrum lacks any facility at all. However, Cochin is due to get a dedicated berth from 2010 due to an effort made by the Port Trust with the support of Kerala Tourism. Steps can be taken for the provision of basic infrastructure at Trivandrum.”Cecil Haidar Ali agreed that “the lack of dedicated infrastructure is the key obstacle facing cruise tourism in India in general. The current facilities at the Vizhinjam fishing harbour are not adequate to handle even small cruise ships. Transferring passengers by tender boats itself is quite risky with the current facilities.”

45

Michael Haidar Ali felt that “even in established ports with adequate infrastructure, there is a competition for space and the port operators find that handling a cruise ship is less profitable than handling a cargo ship at the same berth. Only when the overall benefits of the tourists on the tourism and related industries are taken into account does the case for attracting cruise tourism become clear. However, ports on their own may not take this view. Often, cruise tourists are landed in the middle of cargo docks and there have been instances in Vizag and Cochin when the cruise traffic has not been accorded top priority.”

Key Learning

The lack of suitable infrastructure is a key lacuna being seen across Indian ports. The basic requirements including passenger transfer facilities, customs and immigration facility and convenient access.

At present, the Vizhinjam fishing harbour is not a viable facility for handling cruise ships since it does not have the above. Also, it was felt that landing passengers in the middle of a fishing harbour was less than ideal.

The infrastructure in Cochin is receiving a major fill-up with the commissioning of the dedicated cruise/passenger berth. However, steps need to be urgently taken at Vizhinjam. The bright side of this key point is that infrastructure is a relatively easy issue to address, provided supportive policies are in place.

A Regional cruise circuit can be developed around Kerala/Trivandrum

Questions

6. Regional cruises can be formulated with itineraries covering Kerala, Lakshadweep, Sri Lanka etc

Question 6

0%

89%

11% 0%0%

Strongly AgreeAgreeDisagreeStrongly DisagreeNo Answer

46

7. Kerala can eventually emerge as the center of a cruise circuit covering the entire Indian Ocean region due to its central location.

Question 7

34%

33%

22%

11% 0%

Strongly AgreeAgreeDisagreeStrongly DisagreeNo Answer

Remarks

- Dr. Venu felt that “itineraries possible in a regional cruise circuit may not be long enough to be financially viable or to attract premium segment tourists. The failure of an attempt a few years ago by Star Cruises to start a regional cruise circuit out of Mumbai could be a pointer to this.”

- Michael Haidar Ali was of the opinion that “domestic tourists may prefer to sail to Dubai or Singapore rather than to other Indian ports or even to the Maldives or Andamans. Thus, a first step would be to start a Mumbai – Dubai or Mumbai – Singapore route. A few cruise lines are examining this possibility. Eventually, once the domestic market has picked up, regional cruises can be looked at.”

Key Learning

The experts felt that a regional cruise circuit based out of Trivandrum/Kerala was a concept for the long-term, perhaps in five or more years from now. In the short and medium term, destinations like Trivandrum and Cochin will have to depend on long-duration cruise traffic transiting from Dubai to Singapore.

Cruise tourism has not been adequately promoted

Question

11. Cruise tourism is yet to receive a major focus in the overall tourism promotion campaign.

Question 1111%

45%

44%

0%0%

Strongly Agree

Agree

Disagree

Strongly Disagree

No Answ er

47

12. Increasing awareness among current short-haul cruise tourists through information centres, presentations etc can promote longer repeat visits.

Question 120%

89%

11%

Strongly AgreeAgreeDisagreeStrongly DisagreeNo Answer

Remarks

Dr Venu explained that since cruise tourists don't make up their own itineraries, a publicity campaign aimed at individuals is almost pointless. Instead, the key stakeholders are the cruise lines and the shore agents. Kerala Tourism is planning to work with leading agencies in both fields to promote Kerala as a major cruise destination.

Key Learning

A focused campaign to address and educate key stakeholders is needed, a B-2-B initiative rather than the conventional B-2-C model followed with conventional tourists.

Inland Cruises are yet to take off

Questions

13. Despite the partial opening of National Waterway III, it is yet to pick up as an inland cruise route.

Question 13

11%

67%

0%

22%

Strongly AgreeAgreeDisagreeStrongly DisagreeNo Answer

48

14. The short duration of current inland cruises has limited the segment's revenue generation potential.

Question 14

22%

45%

33%

0%

Strongly AgreeAgreeDisagreeStrongly DisagreeNo Answer

Remarks

Dr Venu felt that the opportunity for inland cruises already exists with the opening of the National Waterway III from Kollam to Cochin. However, operators have not taken the initiative to develop such itineraries.

Key Learning

Inland cruises have failed to take off on their own. The reasons for this could be manifold, ranging from the non-availability of proper boat designs to the absence of cruise facilities along the waterway.

Vizhinjam has the strong potential to emerge as a major cruise hub

Questions

22. Vizhinjam being the closest port in India to the international shipping lanes and its deep draft will make it most attractive to major cruise vessels

Question 22

30%

40%

20%

0%10%

Strongly Agree

Agree

Disagree

Strongly Disagree

No Answ er

49

23. The proximity of the port to the city and a diverse set of tourist destinations has the potential of making Trivandrum a very exciting destination for cruise tourists

Question 23

30%

70%

0%0%0%

Strongly AgreeAgreeDisagreeStrongly DisagreeNo Answer

24. The presence of multiple transport hubs like the International Airport and railway terminal close to the Port creates the possibility of a multi-modal cruise terminal in Trivandrum.

Question 24

30%

60%

10% 0%

Strongly AgreeAgreeDisagreeStrongly DisagreeNo Answer

Remarks

Cecil and Michael Haidar Ali, of Micato Tours, both felt that Vizhinjam had a strong potential to become a leading cruise hub due to its strategic location as well as the proximity of tourist destinations like Kovalam, Trivandrum City and Kanyakumari to it. In fact, the cruise tourists who have landed in Trivandrum over the past few years have all been very appreciative of the destination. The major factor preventing this is the lack of infrastructure. Vizhinjam lacks the facilities to handle even mid-sized ships as well amenities for passengers.

Dr. Santosh, Assistant General Manager at Vizhinjam International Seaport Limited, felt that the port has very strong potential to attract cruise traffic due to its location on the international shipping lane.

50

Mr. Sadiq, Senior Manager - Inbound, Thomas Cook has the strong view that Vizhinjam can be developed into a major cruise destination if adequate infrastructure is created.

Key Learning

There is very little doubt about the potential of Vizhinjam/Trivandrum to emerge as a leading cruise tourism destination due to a variety of factors. The main hurdle is seen as the lack of infrastructure at the Vizhinjam harbour.

Vizhinjam can be developed into a full-fledged cruise destination in a phased manner.

Questions

25. A temporary cruise facility, including a part-time/dismantlable passenger handling facility, can be used for the initial phase of development of the Vizhinjam port.

Question 25

20%

70%

0%10% 0%

Strongly AgreeAgreeDisagreeStrongly DisagreeNo Answer

26. The provision for a full-scale cruise terminal can be made in the master plan of the Vizhinjam port.

Question 26

40%

60%

0%

Strongly AgreeAgreeDisagreeStrongly DisagreeNo Answer

51

28. With a proper development strategy, Trivandrum can be developed into a global cruise hub in the next five to eight years

Question 28

40%

40%

20%

0%

Strongly AgreeAgreeDisagreeStrongly DisagreeNo Answer

Remarks

Dr. Santosh explained that while there is no dedicated cruise facility proposed in the current Master Plan for the port, cruise ships can be handled at the general purpose berth which is included in the plan. Later on, once the traffic has built up, a dedicated cruise terminal can be developed. One possible location for this facility is on the main breakwater for which no utilisation plan has been made till date.

Ajay Prasad, Manager – Business Development for Emaar MGF felt that global models of developing cruise terminals can be followed in Trivandrum as well. Even Miami, the cruise capital of the world, went through a phased growth in line with traffic growth. He also felt that until the Vizhinjam Deepwater Port is developed, it will be prudent to develop existing facilities in Trivandrum to accommodate small and mid-sized cruise ships.

Cecil Haidar Ali expressed a concern that port operators may not give priority to a cruise facility as it typically generates less revenue than a cargo facility. Hence such a facility should be stipulated in the development agreement or supported by the Government. The overall benefit of attracting cruise traffic may not be immediately evident to the port operator.

Key Learnings

The current facilities in Trivandrum such as the Vizhinjam Fishing Harbour can be upgraded to accommodate cruise ships. Dedicated facilities can be developed in a phased manner so as to ensure the most effective use of capital. The development can be done either by the Government or through a Public Private Partnership (PPP) model, perhaps in association with the tourism industry. The Government also needs to ensure that a cruise facility can be made part of the proposed port project.

52

Chapter 4 - Conclusion

Section 1: Summary of Key Learnings

From the very beginning of this study, the emphasis has been to gain insights into the global cruise industry as well as the current scenario in India and Kerala, and then to combine these into a comprehensive strategy to develop Trivandrum as a major cruise destination.

The review of literature and industry data has enabled us to understand the structure, key drivers and emerging trends in the global cruise industry. This phase of the study along with the in-depth discussion with key experts undertaken as part of the expert survey component of the study has helped in charting the current Indian scenario as well as to understand potential advantages and lacunae.

Before proceeding to conduct an in-depth analysis of the potential of Trivandrum as a cruise destination, it may be instructive to re-cap the key points which have emerged in the study so far. This will help in constructing a logical framework of the way ahead for Trivandrum.

1.1 Cruise Industry Fundamentals

1. There are a variety of cruise ship and cruise types. The most relevant to the Trivandrum context would be:a) Ships – All ranges of ocean going ships and small inland cruise

vesselsb) Cruise Modes – World cruises, destination cruises, inland cruises and

day cruises.2. Cruising has become similar to resort holidays with all luxuries being

offered aboard the ships3. Cruises, especially round-the-world ones, tend to attract upper income-

segment tourists. Contemporary and day cruises also attract mid-segment tourists.

4. The age profile of cruisers, especially on long duration cruises, tends to be middle to senior age groups. Shorter cruises attract younger passengers and families.

5. There are several important cruise market segments:a) Familiesb) Senior Citizensc) Conferences and Incentivesd) Theme cruisese) Adventure cruises f) Inland cruises

6. Cruise ports can either be home-ports, where cruise ships are based, or ports-of-call, which are merely visted by vessels based at other ports.

7. The facilities needed at cruise ports can be classified as:a) Primary facilities – needed to meet the basic requirements of cruise

touristsb) Secondary facilities – desirable to create an international standard

ambience

53

c) Facilities for cruise vessels

1.2 Global Market Scenario

1. The industry is concentrated around North America and Europe at present with Asia, especially South-East Asia being a rapidly growing market.

2. Cruises currently penetrat only 1.5% of the overall tourism market3. Cruises are often ranked as vacations which offer the best value as the

best way to sample new destinations for further travel.4. Despite the economic downturn, there continues to be a strong interest in

cruises

1.3 Case Studies

1. Miami has become the cruise capital of the world due to the proliferation of cruises in the Caribbean and through continuous investment in infrastructure

2. It has positioned itself as the world's premier home-port3. Key learnings from Miami include:

a) Close integration of cruise tourism into overall tourism strategyb) Development of local attractions and itinerariesc) The need for quality infrastructured) Development of close relationships with cruise lines and shore agents

4. Singapore has become the cruise capital of Asia5. A long term policy of Public Private Partnership and governmental policy

support has been behind Singapore's rise6. Singapore has successfully promised “Fly-Cruise” tourism and regional

cruises7. Key learning from Singapore include:

a) Need for strong governmental supportb) Development of world-class infrastructure in anticipation of demandc) Integration of cruise tourism into overall cruise strategy

1.4 Cruise Tourism in India

1. India has developed a vibrant inbound, domestic and outbound tourism sector

2. It has a market potential of over 550 million tourists3. Cruise tourism is a miniscule part of the overall sector at present; this

presents a massive opportunities but also hints at major challenges4. Factors like economic growth, a young population, increased global

awareness of India and the improvement of infrastructure point to a rapidly growing market

5. Surveys show that domestic tourists are already showing interest in the cruise market

6. Domestic tourists and foreign tourists have different priorities for the various components of a cruise, however all of them felt that the availability of infrastructure at and interesting destinations near the ports was important.

7. Both domestic and foreign tourists already rate Kerala as a top potential destination.

54

8. It was estimated that India could generate over 230,000 cruise tourists in 2007, while the actual figure was a small fraction of this.

9. Government of India has placed major emphasis on cruise tourism10.Six existing ports have been identified as potentialc cruise hubs –

Mumbai, Goa, Cochin, New Mangalore, Tuticorin and Chennai11.Funds have been allocated for setting up cruise facilities at these ports,

however only Cochin has made any progress in this regard so far.

1.5 Cruise Tourism in Kerala

1. Cochin has already emerged as the leading cruise port in India. It has handled about 40 cruise vessels in the last year

2. Cochin's prominence has been mostly due to its position close to the international shipping lanes used by most world cruise lines.

3. Vizhinjam harbour, near Trivandrum, has also been receiving a few smaller vessels.

4. Cochin Port Trust is planning to commission a dedicated passenger berth in 2010 while a Cruise Terminal is also planned.

5. Experts feel that Kerala has a winning combination of destinations, activities and location needed to become a major cruise destination.

6. The main obstacle is seen to be the lack of quality infrastructure7. Kerala already leads India in terms of inland cruises8. However, currently they are restricted to short excursions on the

Vembanad and Ashtamudi lakes9. The opening of the National Waterway III has paved the way for true

inland cruises but the private sector is yet to grab the opportunity10.The Waterway will eventually be extended across the length of Kerala, but

the experts feel this will take a lot of time and money.

55

Section 2: Strategic Analysis

The development of Trivandrum into a major cruise destination is, for all means and purposes, a green-field project, despite the sporadic calls by small and medium ships to the Vizhinjam fishing harbour in the past. To understand the opportunities and challenges facing this intiative, it will be instructive to conduct a strategic analysis based on the well-known Strengths-Weaknesses-Opportunities-Threats (SWOT) management framework.

Strengths

Closest Indian port to Dubai – Singapore shipping route

Well established tourist destination offering a wide variety of attractions and activities

Well developed urban area Proximity of International

Airport

Weaknesses

Lack of infrastructure Lack of recognition as a

cruise destination Domestic cruise market

yet to develop No regional cruise circuit

as yet

Opportunities

Development of Vizhinjam deepwater port

Opening of NW III Integration of cruise

tourism into overall offering

MICE and Wellness segments

Development of the “Fly – Cruise” segment

Threats

Delay in development of infrastructure

Competition from nearby ports like Mumbai and Cochin

Downturn in global cruise sector due to various factors like global recession

SWOT Analysis of the development of Trivandrum as a Cruise Destination

2.1 Strengths

It has clearly emerged during the course of this study that Trivandrum's close proximity to the international shipping route from Dubai (Suez Canal/Persian Gulf) to Singapore (Malacca) is its most important strength as a potential cruise destination. In the absence of a domestic cruise market or a regional cruise circuit, which is likely to be the case at least for the next 5 – 6 years, a destination like Trivandrum will have to depend on passing cruise vessels. Hence, the fact that the main shipping lanes pass by just ten nautical miles from the coast of Trivandrum is a strategic advantage.

56

Trivandrum has developed into a globally known, multi-faceted tourist destination. It attracted about 30% of the foreign tourists who visited Kerala last year as well as over 1.5 million domestic tourists. It is also the hub for medical-value and wellness tourism in Kerala. The city and its surroundings offer a rich variety of itineraries featuring cultural and architectural attractions, beaches, backwater, eco-tourism destinations and hill stations. This makes it ideal for day excursions as well as longer stop-overs.

Trivandrum is Kerala's largest city and offers all modern urban amenities. Its airport is one of the ten busiest in India and offers extensive domestic and international connectivity. This opens up the possibility of the “fly-cruise-fly” mode of operation. Trivandrum is the only airport to receive regular charter flights from the UK and Europe, along with Goa.

2.2 Weaknesses

The most prominent obstacle in developing Trivandrum into a world-class cruise destination is the lack of infrastructure. The only currently available point to handle cruise vessels is the fishing harbour at Vizhinjam. It is quite shallow and has no dedicated cargo berth till date. There is also a lack of Customs/immigration facilities and a fishing harbour is not the most pleasant place for cruise passengers to disembark.

While a few small and medium vessels have sporadically called at Vizhinjam, Trivandrum has not found a place on the global cruise map yet. This will make it an uphill battle to market it as a stop to the cruise lines.

The nascent stage of the domestic and regional cruise markets make it quite unlikely that a home-port facility can be developed in Trivandrum, or most other Indian ports, in the near future. The industry will have to depend on world-cruise vessels passing by on the shipping route. This poses the risk of uncertainity in the volume of business in any given period, making investment in the sector more difficult to attract.

2.3 Opportunities

The proposed development of the deep-water port and container transshipment terminal at Vizhinjam is by far the greatest opportunity in the initiative to develop cruise tourism in Trivandrum. It will be the deepest port in India and the entire Indian Ocean region with a draft of over 25 meters and will be capable of round-the-year, all-weather operations. By 2013, Vizhinjam will be capable of accomodating the biggest cruise ships in the world.

In parallel to this, the opening of the National Waterway III till Kovalam will open the inland/backwater cruise circuit to Trivandrum. This is expected in the next 3 – 5 years and will enable the establishment of an inland cruise circuit extending from end of Kerala to the other.

Cruise tourism has the potential of bring a significant influx of upper-segment tourists to Trivandrum which could be effectively utilised to boost the overall tourism and hospitality sector by effectively integrating cruises into the overall

57

offering. As Trivandrum develops into a major business hub, on the back of sectors like IT/ITES, R&D, biotechnology and logistics, the Corporate/Incentive segments can be developed, especially once small/medium vessels are available for regional cruises. Similarly, the wellness aspirations of cruise tourists, especially senior-citizens, can be channeled into the local wellness industry.

Trivandrum International Airport is entering a period of rapid growth with the commissioning of its state-of-the-art New International Terminal, sprawled over 350,000 Sq.ft. As the expansion of the Airport proceeds, its connectivity – especially International – is expected to surge and this will enable the development of the “fly-cruise” segment.

2.4 Threats

Any delay in the development of adequate infrastructure remains the biggest threat to the entire idea. Already, the Vizhinjam project has been delayed for nearly a year due to legal wrangles. Further delays will make it more difficult for Trivandrum to catch up with its competitors. In the short term, establishment of make-shift infrastructure at the Vizhinjam fishing harbour could begin to attract cruise traffic and any delay in this will also be very damaging.

Trivandrum is already lagging behind ports like Mumbai and Cochin, which are already attracting significant cruise traffic over the last few years. Moreover, these being major ports, are receiving significant support from the Union Government. So, while Trivandrum has its advantages, the competition from other ports is already very intense.

Finally, we cannot rule out unforeseen events affecting the global and local cruise tourist markets, just as the current economic turmoil has hit the airline and hospitality industries. However, since by their very nature, such events cannot be planned for, they can be excluded from the purview of our study.

The strategic framework study forms the basis for the development strategy for Trivandrum as a global cruise destination. The strategy should build on the identified strengths, plan to overcome obstacles, target key opportunities and anticipate potential threats. The strategy itself will consist of several elements:

Product Design Product Promotion Strategy Value Proposition for various Stakeholders Time-based Development Plan

As this study moves into an actionable phase, we will now focus in turn on each of these elements.

58

Section 3: Product Design and Promotion

3.1 Product Design

The very first question in the case of any product design exercise is “what is the product?” In the case of this study, the product is a “cruise destination in Trivandrum.” This product is a composite, a sort of chimera, of many elements which are in turn focused towards many stakeholders.

For example, as a pure tourism product, the focus is on the cruise tourists themselves whereas in terms of an infrastructural facility, the stakeholders are the cruise lines and operators.

The key aim of the product design is to create a package of attractions and activities which attract cruise lines and their passengers, together with the financial and infrastructural enables to make it viable for the lines and their agents.

Trivandrum has a diverse set of attractions which can be show-cased to tourists, but care needs to be taken not to overwhelm them with the entire range at one time. The product design has to carefully seggregate between attractions based on parameters like the time taken to experience each one. For example, in the short and medium term, Trivandrum will mostly receive cruise tourists who may alight for day excursions. Hence, activities with relatively long durations like ayurvedic wellness treatments or visits to distant locations may not be ideal for the primary packaage. For longer duration tourists, a secondary package can be drawn up. As time progresses, and activities like “fly-cruise” or home-porting develop, longer itineraries can be given increasing importance.

In the initial phases, emphasis can be laid on the attractions within the city itself with a focus on the unique cultural elements and natural attractions. Cruise passengers typically like to sample various aspects of the destination, rather than engage in long stays at each attraction. So, natural attractions such as beaches and lakes, as well as cultural and historical attractions such as museums, temples, historic monuments and architectural highlights are best suited for inclusion into a day package. Short cultural performances can be included in some of the itineraries as the art-forms of Kerala are unique and world-famous.

A sample 12-hour itinerary could be Disembarkation at Vizhinjam – Backwater trip to Veli Lake – Space Museum - Vettukad Church – Fort area – Shopping – Secretariat – Lunch – Museum Complex – Cultural performance – Kowdiar Palace – Tea – Kovalam Beach – Re-embark at Vizhinjam.

Specific itineraries could be planned for satellite destinations like Ponmudi – Neyyar Wildlife Sanctuary (Ecotourism), Thenmala (Adventure Tourism), Varkala – Akathumuri (Backwater focus) or Kanyakumari – Suchindram – Padmanabhapuram. A specific itinerary could even focus on short rejuvenation treatments.

As the destination evolves to receive longer duration visits, more exotic and intensive itineraries can be added. Even in the inititial phase, there may be takes

59

for these. For example, many smaller cruise ships allow their pasengers the flexibility of staying longer at destinations they like and then rejoining the ship at a later destination. For example, passengers could stay in Trivandrum for a few days and rejoin their ship by air at Singapore.

Wellness and Rejuvenation programmes can be made a key attraction, since Kerala enjoys the top position in these, especially in the case of natural and Ayurvedic programmes. In fact, themed cruises which focus on healthy living could be attracted on this basis, as could luxury cruises which are predominantly patronised by senior citizens.

While keeping passengers is essential, it is important to ensure that the lines and operators are also a satisfied lot because in the end, they determine whether a ship calls or skips at any port. The product elements most important to them would include the ease with which a ship can be handled at Trivandrum and the financial equation of each visit. Hence it is critical to project the infrastructural and policy support for cruise tourism as well as ensure that the Total Cost of making a call is minimised by providing incentives and building linkages with local vendors.

In short, the product to be offered would include, among others, the following key features:

A wealth of natural attractions Rich culture and heritage; exotic architecture. Range of activities from adventure sports to rejuvenation therapies A modern urban ambience which ensures convenience and safety World-class infrastructure High-quality vendors

Packaged effectively, this product could well be unbeatable – offering a combination of what is available at Singapore, Phuket and Bali, for comparison's sake.

3.2 Promotion

The promotion strategy of any product is often as important as its attributes. However, in the case of Trivandrum as a cruise destination, the requirement is slightly more complicated. This is due to the structure of the cruise industry itself. In most other tourism segments, individual tourists or groups of tourists choose their itinerary from a wide choice of possible destinations and modes of travel. However in the case of cruises, the variety of itineraries and their degree of customisability is comparitively limited. For example, in the Caribbean, an individual tourist can choose many more options than a cruise passeger who has to stick to the schedule set by his line. Many destinations may not be visited by cruise ships even if individual tourists are interested in them. The decision of which ports to call at and how much time is spent at each is taken by the program directors of the cruise lines. Individual cruise tourists just get to choose from the available options.

60

Hence, to promote Trivandrum as a cruise destination, it is critical to target cruise operators and their shore agents as well as potential tourists themselves. This point is underlined by Cecil and Michael Haidar Ali of India's leading cruise handlers - Micato Tours. Thus, we are looking at Business-to-Business (B2B) marketing as much as Business-to-Consumer (B2C) communication.

This means that the ordinary channels used to reach potential tourists, such as magazines, TV advertisements, websites and emails, may not be very effective on their own. These communication channels may not be able to reach the key decision makers among the cruise lines or shore agents, and will definitely not be able to convey sufficient information to them to enable them to take the correct decisions. Marketing avenues like trade shows, trade magazines and individual meetings are critical to establish the destination as an attractive one to visit among industry circles. To this end, it would be useful to establish a dedicated team to market Trivandrum and Kerala as a cruise destination. Today, this is mostly being done on an ad hoc manner by travel agents. An agressive outbound marketing campaign has to be initiated with cruise lines and shore operators as the target. Organisations like CLIA has to be contacted to ensure that world cruises stop over at Trivandrum. Currently, less than 20% of cruise ships passing by India stop at our ports. This is a sorry figure, but in it hides a massive opportunity.

61

Section 4:Potential Benefits from Cruise Tourism

The first piece of information needed to drive an initiative to promote cruise tourism is, of course, the potential benefits it will have on the tourism sector in particular, and the economy in general. Reviewing the global experience, it is evident that the benefits that accrue from the cruise tourism industry can be both tangible and intangible in nature.

4.1 Tangible Benefits

Cruise traffic can bring many clearly defined benefits to the local economy:

Tourists expenditure in the local economy – estimated at US$ 90 per day

Revenue to local tour operators who handle the passengers for shore excursions

Purchase of provisions/fuel for the cruise ship Berthing and handling charges at the port facility Revenue to local hotels in case of longer stays by cruise tourists –

estimated at US$ 300 per night Revenue to airlines/railways/bus operators in case of longer trips by

cruise tourists

While these are the main tangible revenue streams for the economy of the cruise destination, there are many other avenues by which revenue is generated. The tangible revenue from the cruise traffic is spread across the economy with everyone from the port itself to local vendors and taxi drivers benefiting from the inflow. On average, we can assume a tourist will bring in about US$ 150 per day in overall economic contribution. Thus, 100,000 tourist-days a year could yield over $ 15 million (Rs 60 Crores) in directly attributable revenues.

4.2 Intangible Benefits

Many project studies and proponents of cruise terminal projects fail to take into account the intangible benefits of attracting cruise traffic and thus underestimate the total project impact, especially in the early years when direct revenues are just beginning to build up.

Cruise traffic brings a variety of intangible or indiret benefits to the destination and its surroundings. For example, when cruise tourists are drawn to longer stays, they tend to spend heavily into the local economy, for everything from souvenirs to taxi rides to rejuvenation treatments. Cruise visits are also often the best avenue for tourists to sample a destination. If it is found attractive, a significant proportion of tourists return for a much longer visit. Cruise visits also boost the profile of a destination as a premium destination and in this way help to attract even non-cruise tourists as well as investments by hospitality and service firms.

Experts feel that by overlooking such benefits, many stakeholders like the ports fail to give sufficient emphasis on developing facilities for cruise tourists. It is often up to the Government to take a holistic view of the benefits and provide

62

subsidies and other support wherever needed to ensure that infrastructure is in place. Singapore and, of course, Miami have understood the effects that cruise tourism indirectly can have on the tourism sector and on the economy itself. This has been one main reason for their aggressive and ultimately successful promotion of cruises.

63

Section 5: Development of Cruise Infrastructure

The primary reason for India lagging behind global cruise destinations has been pointed out as the lack of world-class infrastructure by all stakeholders in the industry. In the case of Trivandrum, the few cruise vessels which arrive each year are handled at the Vizhinjam fishing harbour. The bustling fishing harbour lacks the depth or the wharfage to safely handle even small cruise ships. In addition to this, there are no facilities to handle the passengers nor even to park buses to transfer them to. Thus, the development of cruise infrastructure is the top priority as far as the cruise industry is concerned. But this has to be planned keeping in view the commercial viability of each initiative. It is not advisable to invest several hundred crores of rupees in a full-scale cruise terminal before cruise traffic has built up. The best strategy is to utilise existing infrastructure with relatively minor upgradation in the short term, say for the next five years, and then start to make more significant investments as the traffic builds up.

5.1 Vizhinjam Fishing Harbour

The State Government is currently completing the construction of a 200 m cargo berth at the Vizhinjam fishing harbour. The harbour's depth will be increased to about 6 m. These developments will allow medium sized cruise vessels to safely berth within the protected harbour. In addition to this, a few facilities could be provided to enable cruise operations:

A small passenger transit facility to permit Immigration/Customs checks. It can be used as an office building/amenity center when cruise operations are not in progress. Or it could be a dismantlable structure, similar to the “hangar” type exhibition tents, which can be used in all weather conditions and are air-conditioned.

Widening of road access to the berth to allow rapid access to tourist coaches

Adequate lighting of the entire area Posting of adequate personnel for the duration of the main cruise season

All these facilities combined will not cost more than Rs 1 Crore. This is a relatively minor expenditure compared with the benefits of handling cruise ships with lengths of over 120 m and draughts of 5.5 m which could be carrying up to 200 passengers. By increasing the depth of the berth to 7 m or more, ships of up to 150 m could be handled. Ships of this size account for a significant portion of the cruise traffic passing along the West – East shipping channel.

5.2 Trivandrum Port / Valiathura Pier

Surprisingly, one of the most attractive short-term options for attracting cruise traffic hides in plain site, the 240 m long pier at Valiathura near the Trivandrum International Airport. Built in 1956, this pier was once the only cargo port in South Kerala. It has been disused for the last twenty years or so and has been moth-balled. The structure has suffered damage from sea action.

The Valiathura sea pier offers up to 18 m of draught at its tip and 6 m alongside, according to official estimates (Ports Department website). This presents an

64

opportunity to handle even large cruise ships . The downside is that it is a fair-weather port since it lacks any protection from wave-action. The pier could possibly be used for handling cruise ships during fair weather, which is the case across the year except for the monsoon season when the sea becomes quite rough. Thus the pier could be operational for six to eight months of the year – December to May and August to September.

The pier is currently considered structurally damaged and will need significant repair before it can be made operational. This involves repairing its pillars with concrete after they are encased in caissons and the water is pumped out. The pier's superstructure also needs to be repaired with concrete and lights installed across its length. A gantry-like arrangement could be provided for passengers to comfortably disembark and embark. Finally, a small transit building could be built to accomodate Immigration and Customs checks. This could even be temporary in nature. Since the pier is directly accessible from the main Bheemapally – Shankhumugham Road, coaches can drive right up to it. Navigational aids may also be needed at the pier.

The repair of the pier itself may cost several crores of rupees. The additional facilities needed for handling cruise ships would cost less than Rs 50 Lakhs. The pier's key advantages are that it is located just 1 Km from the International Airport, 3 Km from the NH-47 and about 6 Km from the center of the city and that it can handle cruise ships of all sizes.

A second lease of life for this historic structure is well worth considering.

5.3 Vizhinjam Deepwater Port and Transshipment Terminal

The project will have an initial draught of 18 m and an eventual draught of 24 m within its massive basin. It will be protected by a giant breakwater and thus will be an all-weather port with over 3 Km of berths. The port is planned primarily as a container transshipment terminal but will have one or two general berths.

If Trivandrum is to emerge as a global cruise destination, the Vizhinjam project has to become a reality. At this time, the earliest this could happen will be in 2014, which means that this can be considered a medium term option for cruise infrastructure upgradation.

As of today, the port's masterplan does not include a provision for a dedicated cruise berth or terminal. The project's overwhelming focus is on the transshipment of shipping containers. This means the development of cruise infrastructure has to be carried out in phases in line with the growth of cruise traffic.

5.3.1 Phase I

The general berth which will be part of the container transshipment facility can be used to handle cruise ships. The berth is likely to be under-used for cargo alone as almost all the cargo traffic at the port will be container ships. The berth will have no problems in terms of draught in accomodating any cruise ship. The challenge in handling the biggest ships which can be as long as 330 m would be the length of available quay.

65

A Cruise liner at the Vizhinjam fishing harbour in January 2007(Image courtesy: Ajay Prasad)

The Valiathura Pier(Image Courtesy: Ramagi.com)

66

Perspective view of the proposed Vizhinjam Deepwater Container Transshipment Terminal

1 – General Purpose Berth ; 2 – Possible terminal location on breakwater(Courtesy: www.tvmrising.blogspot.com)

Illustrative Design of Cruise TerminalSource: BEA International

67

1

2

The only additional facilities needed would be a passenger transit facility capable of handling 2000 or more people over a 2-3 hour period. It can have provisions for air-conditioning as well as for conducting Immigration/Customs/Security checks. When not in use for handling passengers, the building can be used to store clean cargo items. It should also have amenities for passengers such as washrooms and toilets, as well as provision for shopping. Finally, a removable gangway can be provided to allow cruisers to disembark and embark.

While container operations may be going on close to the berth, the fact that Vizhinjam will be a clean cargo port means that cruise tourists may not object to this fact. The quays will also have sufficient space to accomodate the dozens of coaches needed to accomodate the passengers of a big cruise ship. The port authorities only need to provide a distinct route for the buses to come in, pick up their passengers and exit the port without getting entangled in container operations.

5.3.2 Phase II

The final phase of development of cruise infrastructure in the Vizhinjam port can be envisaged once sufficient cruise traffic has built up at Trivandrum, perhaps by 2018. Since the available quay area of the port will be taken up by container berths, it may not be possiible to easily identify a location for a dedicated cruise handling facility.

However, from expert interviews, one possibility that emerges is to use the breakwater itself as an avenue for expansion of the port. Berths which need little or no back-up area such as a liquid cargo terminal or a cruise facility could be built along it.

As in the case of the Phase I cruise facility, this will need passenger handling facilities. A building of about 60,000 to 70,000 Sq.ft would prove sufficient for the purpose and will provide all passenger amenities as well as limited shopping and office space. At this stage, some passengers would be on long-stays while there is the possibility for home-porting to emerge. The Phase II facility may need baggage handling and check-in/check-out facilities. It will also need handling facilities to manage provisions and supplies for the ships which home-port at the facility.

Type of Cruise Terminal

Cost of Facility (In US$ millions)

Size (Sq.ft.) Type of Use

Temporary 1.5 3000 – 20,000 Occasional/SeasonalEntry-level 3 - 10 20,000 – 60,000 Seasonal

Medium Use 7 - 14 50,000 – 80,000 Year-round in a growing port

Regular Use 12 - 35 80,000 – 120,000 Homeport

Cost and Size of Cruise Facilities Source: American Assocation of Port Authorities

68

Adjusting for cost differences between the US and Indian markets, a full-time cruise terminal could end up costing around Rs 20 Crores.

In the case of both Phase I and II facility, it may be best if the Government can subsidise part of the cost, so that the port operator will not be discouraged by the slow payback from just the berthing revenues. Port operators can charge only berthing fees to cruise ships whereas cargo ships also yield cargo handling charges making the latter more lucrative. Thus, the Government may have to mandate a certain availability of berth space for cruise operations in addition to providing capital expenditure support.

5.4 Development of Inland Cruises

The primary factors hindering the development of inland cruises include obstacles within the National Waterway III itself such as the lack of adequate locks in the Thanneermukham Bund or due to the non-availability of vessels of a suitable design. However, there is little which prevents the commencement of limited inland cruising. Yet, the houseboat industry has taken little or no initiative to expand into this potentially exciting segment. This may be out of sheer inertia of modifying from a proven mode of operation.

In order to promote inland cruises, the Government can take the following immediate steps:

Ensure complete navigability of the existing stretch of National Waterway III

Work with the boat operators and shipyards to develop canal cruisers which may need a different design from current houseboats

Incentivise canal cruise boats by offering tax holidays on capital and operating expenditure

Promote the idea of inland cruises to domestic and foreign cruises as a more attractive option than conventional houseboat trips

Establish inland cruise terminals at Kollam and Cochin which can provide passenger amenities such as restaurants, hotels, shopping etc as well as service and provision the cruise vessels

In the meantime, the waterway between Kovalam and Kollam can be opened up by removing encroachments, dredging and repairing the Varkala tunnels. A cruise terminal can be set up at Kovalam.

As discussed earlier, inland cruises can bring in tourists for longer durations, offer a richer experience and distribute tourism revenues over more areas than conventional houseboat operations which are very localised. It could also act as a trail-blazer to open the waterways for passenger and freight traffic. Hence, the Government needs to place a strong emphasis on its development.

69

Entry-level/Temporary Cruise facility

Occasional Use Cruise Terminal

Regular Use Cruise Terminal

70

Section 6: Development Plan

To summarise this study, it is clear that Trivandrum has a strong potential to emerge as a world-class cruise destination over the next few years. There are clear strategic advantages which promote Trivandrum's chances and the opportunity to create a whole new tourist segment is clear. To seize the golden chance, a clear and time-bound action plan has to be followed. As the key deliverable of this study, the following action steps and time-line is proposed.

Action Step To be Completed By:

Agency Responsible

Establishment of temporary/entry-level cruise facility at Vizhinjam fishing harbour

August 2010

Dept. Of Tourism, District Tourism Promotion

Council, Ports Department

Marketing Trivandrum to various cruise lines and shore agents July 2010 Dept. Of Tourism

Repair of Valiathura Pier December 2010 Ports DepartmentEstablishment of temporary/entry-level cruise facility at Vizhinjam fishing harbour

June 2011Dept. Of Tourism, District

Tourism Promotion Council

Completion of Stage 1 of Vizhinjam project January 2014 Govt. Of Kerala

Phase I Cruise Facility at Vizhinjam port December 2014 Dept. Of Tourism, Port

operatorPhase II Cruise Facility at Vizhinjam port December 2018 Dept. Of Tourism, Port

operatorOpening of NW III from Kollam to Cochin and establishment of terminals

December 2010 Dept. Of Tourism, Inland Waterway Authority

Design and manufacture of inland cruise vessels December 2010 Dept of Tourism, boat

operators

Opening of NW III till Kovalam December 2011 Dept. Of Tourism, Inland Waterway Authority

Indicative Action Steps, Time-line and Authorities Involved in the Development of the Cruise Industry in Trivandrum

With adequate Government focus and support, the close cooperation of the tourist industry and by adhering to a time-bound action plan, it is well within the realms of possibility to develop Trivandrum into a world-class cruise tourism destination by 2015.

71

The Authors

Viji Krishnan is a tourism professional, having completed her Post-graduation in Management in Travel & Tourism, following her graduation in Engineering. She is keenly interested in emerging segments of tourism such as cruises.

Ajay Prasad is a management professional, having completed his Post-graduation in Management from IIM Calcutta, following his graduation in Engineering. He has five years of experience with international consulting and property & infrastructure firms. He is also the Vice-President of the Trivandrum Development Front, an NGO aiming to promote development in the city of Trivandrum.

References

Books and Reports

• Cruises – Tourist Conquest of the Seas, Wigand Ritter and Christian Schaffer, 1998

• Cruise Line International Association Reports; 2002 – 2008• Cruise Tourism Potential & Strategy Study, CRISIL, 2005• The Complete Guide to European Cruises, 2008• The Miami Port Guide, 2008• The Glossary of Cruising Terminology, 2008• Planning for Cruise Terminals, Larry Levis, BEA International, 2007• Port of Miami – Strategic Planning for the 21st Century, Khalid A.

Salahuddin, 2007• Cruise Terminal Development – The True Story, Bermello, Ajamil &

Partners, 2006• Cruise Terminal Financing – Public Private Partnership, Manju

Chandrasekhar, 2008

Media

• The Hindu Businessline• Live Mint• The Economic Times

Websites

• Wikipedia• Port of Miami website• Visit Singapore website• Cruiseasean.com• Duke University Library• Entrepreneur.com

72

Appendix 1

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

Sir,

I am carrying out a pilot study on the potential and prospects of Cruise Tourism in Trivandrum as a part of my Post-Graduate studies in Travel & Tourism.

As you know, the Cruise Tourism segment has been growing steadily across the world and has become a $ 20 billion industry. While the industry is concentrated in the US and Europe, it has been steadily growing in the South Asia region. India has been receiving an increasing number of cruise vessels over the past few years and, with its strong positioning in the overall tourist market, has significant potential to emerge as a regional cruise tourism hub. This study aims to identify the potential of Trivandrum for both sea-based and inland cruises and to suggest a clear strategy to develop cruise tourism in the area.

You have been identified as an expert in this area and I request you to kindly spare a few minutes of your time to respond to the following statements by putting a tick mark on the most appropriate option.

Questions

Kerala's 600 Kms of coastline and about 800 Kms of inland waterways give it high potential to attract international and regional cruise tourists.

Strongly Agree Agree Disagree Strongly Disagree No Answer

The proximity to the main International East-West shipping lane makes Kerala an attractive destination for cruise ships to make calls.

Strongly Agree Agree Disagree Strongly Disagree No Answer

Kerala's wide variety of attractions and activities, which has been able to attract a diverse profile of foreign and domestic tourists, strengthens the prospects of it becoming an ideal cruise destination.

Strongly Agree Agree Disagree Strongly Disagree No Answer

Currently, calls by cruise vessels are a result of the existing international brand identity of Kerala as a tourism destination.

Strongly Agree Agree Disagree Strongly Disagree No Answer

Kerala's existing strengths in backwater tourism can be synergised with marine cruise tourism by offering combined itineraries.

Strongly Agree Agree Disagree Strongly Disagree No Answer

Regional cruises can be formulated with intineraries covering Kerala, Lakshadweep, Sri Lanka etc

Strongly Agree Agree Disagree Strongly Disagree No Answer

Kerala can eventually emerge as the center of a cruise circuit covering the entire Indian Ocean region due to its central location.

Strongly Agree Agree Disagree Strongly Disagree No Answer

73

The lack of dedicated infrastructure for cruise tourism has been a signififcant factor in limiting the number of vessel arrivals in major and minor ports

Strongly Agree Agree Disagree Strongly Disagree No Answer

Cruise passengers arriving in, for example – Cochin, stay only for a short duration and do not explore the full potential of Kerala.

Strongly Agree Agree Disagree Strongly Disagree No Answer

Kerala has not yet managed to develop the fly-cruise market or any other strategy to encourage long duration stay by cruise tourists

Strongly Agree Agree Disagree Strongly Disagree No Answer

Cruise tourism is yet to receive a major focus in the overall tourism promotion campaign.

Strongly Agree Agree Disagree Strongly Disagree No Answer

Increasing awareness among current short-haul cruise tourists through information centres ,presentations etc can promote longer repeat visits.

Strongly Agree Agree Disagree Strongly Disagree No Answer

Despite the partial opening of National Waterway III, it is yet to pick up as an inland cruise route.

Strongly Agree Agree Disagree Strongly Disagree No Answer

The short duration of current inland cruises has limited the segment's revenue generation potential.

Strongly Agree Agree Disagree Strongly Disagree No Answer

MICE tourism is being developed in Kerala and this can be extended to the cruise industry by offering the “meetings-at-sea / meetings-on-backwaters” concept.

Strongly Agree Agree Disagree Strongly Disagree No Answer

Thematic conventions/meetings which include a component at sea or on the backwaters can be developed.

Strongly Agree Agree Disagree Strongly Disagree No Answer

The Medical/Health tourists arrivining in Kerala can be provided value-addition by offering cruise tourism facilities in the backwaters through creating suitable packages.

Strongly Agree Agree Disagree Strongly Disagree No Answer

High spending cruise arrivals may be encouraged to engage with both the traditional and modern trade retail sectors.

Strongly Agree Agree Disagree Strongly Disagree No Answer

The peak cruise tourist season may either be aligned with either the existing Grand Kerala Shopping Festival or a dedicated shopping event.

Strongly Agree Agree Disagree Strongly Disagree No Answer

74

Local Tax holiday can be offered as an incentive to cruise tourists for the next five years.

Strongly Agree Agree Disagree Strongly Disagree No Answer

The fast growing IT/ITES/Corporate segment can be tapped by offering small conferences or retreats on board marine/inland cruise vessels

Strongly Agree Agree Disagree Strongly Disagree No Answer

Vizhinjam being the closest port in India to the international shipping lanes and its deep draft will make it most attractive to major cruise vessels

Strongly Agree Agree Disagree Strongly Disagree No Answer

The proximity of the port to the city and a diverse set of tourist destinations has the potential of making Trivandrum a very exciting destination for cruise tourists

Strongly Agree Agree Disagree Strongly Disagree No Answer

The presence of multiple transport hubs like the International Airport and railway terminal close to the Port creates the possibility of a multi-modal cruise terminal in Trivandrum.

Strongly Agree Agree Disagree Strongly Disagree No Answer

A temporary cruise facility, including a part-time/dismantalble passenger handling facility, can be used for the initial phase of development of the Vizhinjam port.

Strongly Agree Agree Disagree Strongly Disagree No Answer

The provision for a full-scale cruise terminal can be made in the masterplan of the Vizhinjam port.

Strongly Agree Agree Disagree Strongly Disagree No Answer

The presence of a canal and lake system within and close to the city area and proximity to the International Airport and Port create a strong potential to develop Trivandrum as a center for the Inland cruise circuit.

Strongly Agree Agree Disagree Strongly Disagree No Answer

With a proper development strategy, Trivandrum can be developed into a global cruise hub in the next five to eight years.

Strongly Agree Agree Disagree Strongly Disagree No Answer

Additional Comments:

75

Name :

Address:

Email ID:

THANK YOU

76

Appendix 2

Survey Response Sheet

(All Response figures in percentages)

77

Question No. Agree Disagree No Answer

1 55.56 44.44 0.00 0 02 33.33 66.67 0.00 0 03 44.44 55.56 0.00 0 04 11.11 77.78 11.11 0 05 0.00 88.89 11.11 0 06 0.00 77.78 22.22 0 07 33.33 33.33 22.22 11.11 08 66.67 11.11 22.22 0 09 55.56 33.33 0.00 11.11 010 22.22 55.56 11.11 0 11.1111 11.11 44.44 44.44 0 012 0.00 88.89 11.11 0 013 11.11 66.67 0.00 0 22.2214 22.22 44.44 33.33 0 015 0.00 88.89 11.11 0 016 22.22 66.67 11.11 0 017 22.22 55.56 22.22 0 018 22.22 55.56 11.11 0 11.1119 0.00 66.67 22.22 11.11 020 11.11 77.78 11.11 0 021 22.22 77.78 0.00 0 022 30.00 40 20.00 0 1023 30.00 70 0.00 0 024 30.00 60 10.00 0 025 20.00 70 0.00 10 026 40.00 60 0.00 0 027 10.00 50 40.00 0 028 40.00 40 20.00 0 0

Strongly Agree

Strongly Disagree