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Detailed Project Report
DETAILED PROJECT REPORT
GOVERNMENT OF KARNATAKA INITIATIVE
CRUISE TOURISM, KARNATAKA
TOURISM PROJECTS FOR INVESTMENT
OPPORTUNITIES
INVEST KARNATAKA 2016
January 2016
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Table of contents
1. Introduction ....................................................................................................... 6
1.1 Background ............................................................................................................................. 6
1.2 Objectives................................................................................................................................ 7
1.3 Approach and Methodology ................................................................................................... 7
2. Regional Profile ................................................................................................. 9
3. Cruise Tourism in India ................................................................................ 10
2.1 Features of Cruise Tourism ................................................................................................... 10
2.2 Cruise Tourism Industry of India ........................................................................................... 10
2.3 Cruise Tourism in Karnataka ................................................................................................. 12
2.4 Need of the Project ............................................................................................................... 14
4. Status of ports in Karnataka ....................................................................... 15
4.1 Ports in Karnataka ................................................................................................................. 15
4.2 Details of Karnataka Ports ..................................................................................................... 16
4.3 Inference ............................................................................................................................... 25
5. Proposed Cruise Circuits for Coastal Karnataka ................................. 26
5.1 Development Options ........................................................................................................... 26
5.2 Proposed Tourist Circuit ....................................................................................................... 27
6. Traffic Estimations ......................................................................................... 31
6.1 Karnataka Potential ............................................................................................................... 31
8. Project Cost ....................................................................................................... 39
8.1 Financial Model ..................................................................................................................... 39
9. Implementation Framework ...................................................................... 46
9.1 Project Structure ................................................................................................................... 46
10. Inference ........................................................................................................... 51
10.1 SWOT Analysis ....................................................................................................................... 51
10.2 Issues and concerns .............................................................................................................. 53
10.3 Guidelines ............................................................................................................................. 55
11. Annexure 1: Cruise circuits for option 1 – phase I .............................. 56
12. Annexure 2: Proposed Cruise Ship Specifications............................... 62
13. Annexure: 3 Cruise Circuits (Phase II) .................................................... 72
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14. Annexure: 4 Activities related to Port Call and Ships at Berth ....... 75
15. Annexure: 5 Operational Issues with Louis Cruise Lines ................. 77
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List of Tables
Table 1: Name of the Ports in Karnataka ................................................................................................ 9
Table 2: Climate profile of Chickmagalur and Shimoga districts ............................................................ 9
Table 4: Cruise tourists in India over the years ..................................................................................... 10
Table 5: Cruise circuits in India ............................................................................................................. 11
Table 6: Total tourist arrivals in India and new Mangalore Port .......................................................... 12
Table 7: Cruise accommodating capacity in Karnataka Ports ............................................................... 15
Table 8: Facilities at Mangalore Port .................................................................................................... 17
Table 9: Facilities at New Mangalore Port ............................................................................................ 18
Table 10: Facilities at Malpe Port .......................................................................................................... 19
Table 11: Facilities available in Karwar Port ......................................................................................... 20
Table 12: Facilities at Tadri Port ............................................................................................................ 23
Table 13: Facilities in Belekeri Port ....................................................................................................... 25
Table 14: Inputs for traffic estimations ................................................................................................. 31
Table 15: Karnataka cruise potential from International arrivals ......................................................... 31
Table 16: Karnataka cruise tourism potential from domestic tourist footfalls .................................... 32
Table 17: Comparison of some of the new tourism concept ................................................................ 33
Table 18: Analysis of the comparison of similar luxury tourism projects ............................................. 36
Table 19: Estimating the capacity ......................................................................................................... 36
Table 20: Options for operating cruise circuits ..................................................................................... 37
Table 21: Details of a cruise ship under consideration for a project .................................................... 40
Table 22: Revenue Estimation .............................................................................................................. 41
Table 23: Number of trips of cruise ship in the initial years ................................................................. 41
Table 24: Expected number of passengers from the trips of cruise ship in the initial years ............... 42
Table 25: Estimated revenue for the cruise ship .................................................................................. 42
Table 26: NMPT charges for the cruise ................................................................................................. 43
Table 27: O & M expenses for initial years ........................................................................................... 44
Table 28: Key financial indicators ......................................................................................................... 45
Table 29: SWOT analysis for cruise tourism in Karnataka .................................................................... 51
Table 30: Previous International Cruise line operators in India ........................................................... 53
Table 31: Details of Cruise .................................................................................................................... 68
Table 32: Proposed National Cruise Circuit in Phase II ......................................................................... 72
Table 33: Itinerary for Mangalore-Cochin- Male- Lakshadweep-Mangalore Circuit ............................ 72
Table 34: Circuit Itinerary for Mangalore- Goa- Lakshdweep- Mangalore Circuit ................................ 73
Table 35: Proposed International Cruise Circuits in Phase II ................................................................ 73
Table 36: Circuit Itinerary for Mangalore-Goa-Mumbai-Dubai Circuit ................................................. 73
Table 37: Circuit Itinerary for Mangalore-Cochin-Colombo-Mangalore Circuit ................................... 74
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List of Figures
Figure 1: Approach to the project ........................................................................................................... 8
Figure 2: Coastal Karnataka .................................................................................................................... 9
Figure 5: View of a luxury cruise ship operational in India ................................................................... 12
Figure 6: Luxury cruise vessel AIDA Cara .............................................................................................. 13
Figure 7: New Mangalore Fort (Source: www.newmangalore-port.com ............................................. 17
Figure 8: Malpe Port ............................................................................................................................. 19
Figure 9: Karwar port ............................................................................................................................ 20
Figure 10: Hangarkatta Port .................................................................................................................. 21
Figure 11: Kundapur Port ...................................................................................................................... 22
Figure 12: Honawar Port ....................................................................................................................... 22
Figure 13: Tadri Port ............................................................................................................................. 23
Figure 14: Belekeri Port......................................................................................................................... 24
Figure 15: Cruise circuit in coastal Karnataka (Option 1) ...................................................................... 28
Figure 16: Proposed cruise circuit in Coastal Karnataka (Option 2) ..................................................... 30
Figure 17: Financial model for operation a cruise ship ......................................................................... 39
Figure 18: Sharing of responsibilities between GoK and Private Operator ......................................... 47
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1. Introduction
1.1 Background
Department of Tourism (DoT) Government of Karnataka (GoK) is determined to boost
the tourism industry in the state. The Tourism Sector has been identified as one of the
key sectors propelling the country’s economic growth. Karnataka State has been
ranked as the 3rd preferred destination among domestic tourists in the tourism sector.
Karnataka’s thriving economy has created many opportunities across the State in the
last decade.
For GoK, the tourism sector constitutes a real priority because it is an important sector
for the generation of employment, therefore various initiatives are been undertaken
with the involvement of all stakeholders, both public and private, that will foster a
more favourable environment for the development and consolidation of the tourism
sector. One of the initiatives in this direction is the formulation of Karnataka Tourism
Policy for 2015-20.
GoK intends to encourage the investors to invest in the tourism sector. A host of
incentives and concessions are provided to the investors in tourism sector, in the New
Tourism Policy for 2015-20. A large emphasize has been laid on enhancing hospitality
services and standards, promoting innovative developments and rejuvenation of older
tourist attractions, with the aim of offering visitors the experience that will
commensurate with higher expectations.
With this background, DoT has prepared a shelf of Detailed Project Reports (DPRs) of
potential tourism projects which could be undertaken for development along with
collaboration with the Private sector. Cruise Tourism in Karnataka is one of the
projects identified for development.
Cruise Tourism is a fast growing sector globally, both in terms of fleet and passengers
carried. The consumer trends indicate that the number of Indians opting for
international cruises is also increasing. The number of outbound travelers, who are
visiting South-East Asia and the Far-East, is also rising. Experience in the Caribbean,
Latin American and South-East Asian countries indicates that huge amount of foreign
exchange can be earned by providing the right policy environment and infrastructure
for the growth of cruise tourism.
Karnataka, with its vast and beautiful coastline, virgin forests and undisturbed idyllic
islands, long historical and cultural tradition of architecture, theatre and performing
arts, could be a high potential tourist destination for cruise tourists. The promotion of
cruise tourism in Karnataka may require focus on developing the necessary physical
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infrastructure at the identified ports as well as developing the itineraries and tourist
circuits to maximize the potential of coastal Karnataka as a tourist destination. The
exotic tourist locales, improved port connectivity and Government support are the key
growth drivers that are likely to promote Karnataka as an attractive cruise destination.
With this background, the Department of Tourism, Government of Karnataka intends to develop cruise tourism in Karnataka along its coastal belt and wants to explore the possibility of doing the same on a Public Private Partnership framework.
1.2 Objectives
GoK intends to develop cruise tourism in Karnataka to:
i. Attract more footfalls, and provide a unique and wholesome experience to the
tourists.
ii. Encourage entrepreneurship and livelihood opportunities for the locals.
iii. Encourage and promote Private Sector Participation in the development of
tourism sector.
1.3 Approach and Methodology
The Approach to the entire assignment is depicted in the flow chart below. The
detailed analysis and inferences drawn at each stage have been covered in detail in
the each of the following sections.
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Figure 1: Approach to the project
The trends as presented in this report are based on rapid market survey and interactions with key players namely government stakeholders and cruise operators. These are indicative of the situations prevalent at the time of conducting the study.
Development of Cruise Tourism in
Karnataka
Study of:
• Present status of port linkages, port infrastructure.
• Traffic Analysis and comparison with other tourism concepts
Study of:
• Stakeholder’s involved and Implementation Framework
• PPP in Cruise Tourism
Viability of development of cruise tourism
under a PPP Framework including
assessment of investments and means of
financing
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2. Regional Profile
Karnataka's coastline called Karavali,
stretches 320 km in length and 48 – 64 km
wide between Mangalore in Dakshina Kannada
district and Karwar in Uttara Kannada district.
The coastline of Karnataka has been along the
eastern shore of Arabian Sea. Kanara coast is
located between 12o 27’ to 15o 32’ N latitude and
74o05’ to 75o45’ E longitude, its approximate
geographic area is 18,732 km2. Amongst these,
North Kanara has 160 km of coastline while 98
km is in Udupi and the rest in South Kanara.
Karnataka has one major and ten minor ports in
this coastal belt. The names of the ports are
enlisted in table 1 below:
The table below highlights the names of the ports in coastal Karnataka: Table 1: Name of the Ports in Karnataka
The Tropical Monsoon climate covers the entire coastal belt and adjoining areas. The
climate in this region is hot with excessive rainfall during the monsoon season i.e.,
June to September. The following table highlights the climate profile of the region:
Table 2: Climate profile of Chickmagalur and Shimoga districts
Sl. No. Name of the ports
1. Old Mangalore Port
2. Belekeri Port
3. Tadri Port
4. Honnavar port
5. Bhatkal Port
6. Kundapura Port
7. Hangarakatta Port
8. Maple Port
9. Padubidri Port
Climate Duration Temperatures
Summer Late March – June 30⁰ C to 35⁰ C
Rainy Early July – September 28⁰ C to 22⁰C
Winter October – Late February 20⁰ C to 15⁰ C
Figure 2: Coastal Karnataka
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3. Cruise Tourism in India
2.1 Features of Cruise Tourism
Cruise Tourism is a distinctive tourism experience which is an amalgamation of luxury,
comfort with state-of-the art facilities on and off board a cruise liner. The unique
features of cruise tourism can be summarized as follows:
Superior service quality: Cruises provide exclusive hospitality services and facilities
which include pool, Jacuzzi, sauna, gym, on-board lectures, card rooms, an unending
variety of organized games and contests, lounges, nightclubs, movies, dancing and
more.
Home away from Home feel: state-of-the-art well furnished rooms well equipped
with telecommunications equipment, including in cabin ship-to-shore phones.
Multiple Destination visits: Cruising offers multiple destinations, without the hassles
of packing and unpacking. Itineraries include visits to one or more ports of call
(depending on length of cruise).
This feature of offering visits to various destinations by traveling through sea-route
makes cruise tourism attractive and fascinating. In Indian Scenario, the experience of
the ship travel is unique and attractive than the land destination. Hence for a cruise to
be successful and attract the local as well as foreign tourists, the complete package
should include a floating resort feel on the ship combined with the array of exotic
destinations.
2.2 Cruise Tourism Industry of India
While the Cruise Tourism in India has been growing, over the past decade, there have been concerns on the absence of an affordable cruise along the Indian coastline, high costs; fewer choices meant that the cruise tourism is still not the favorite of the masses. Table 3: Cruise tourists in India over the years
Year Cruise Tourists
(in millions)
Increase in Cruise
Tourists (%)
International
Arrivals (in
millions)
Cruise Tourists as a
% of International
Arrivals
2000-01 0.041 70.83 2.54 1.61
2001-02 0.019 -53.66 2.38 0.8
2002-03 0.012 -36.84 2.73 0.44
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Year Cruise Tourists
(in millions)
Increase in Cruise
Tourists (%)
International
Arrivals (in
millions)
Cruise Tourists as a
% of International
Arrivals
2003-04 0.025 108.33 3.36 0.74
2004-05 0.022 -12 3.73 0.59
Indian ports have been able to attract substantial number of cruise vessels and tourists in recent years.
A percentage of International tourists arriving into a country are generally interested in undertaking short exploration cruises in and around the country as part of their overall travel plans. However, due to practically non-availability of facilities for cruise activity in India, this segment has been untapped as yet.
India has over 7,500 km of coastline with places of great interest for the cruise guest. Government of India, as part of its Cruise Tourism development initiatives has identified 6 Indian ports to be developed as ‘world class cruise terminals’ and to be promoted as ‘integrated Indian cruise circuit.’ These identified Ports include Mumbai, Goa, Cochin, New Mangalore, Tuticorin and Chennai. Mangalore port lies in Karnataka with Goa and Cochin in the vicinity.
The table below highlights the existing cruise circuits in India:
Table 4: Cruise circuits in India
Domestic Cruise Circuits Days
Goa-Lakshadweep-Cochin-Colombo-Trivandrum-Lakshadweep-Goa 14
Cochin-Colombo-Trivandrum-Lakshadweep-Goa 8
Mumbai - Kadmat - Goa - Mumbai 4
Mumbai - Kochi - Goa - Mumbai 4
Cochin-Male-Cochin 3
Mumbai - Goa - Mumbai (SuperStar Libra Tour Package & Rates) 2
Cochin-Lakshdweep 2
Goa-Lakshadweep-Cochin 3
Cochin-Colombo-Cochin 3
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2.3 Cruise Tourism in Karnataka
Presently Mangalore port shares a small portion of cruise tourists compared to other ports as cruise tourism has not been promoted in Karnataka. At the same time, Mangalore port has the technical competence, locational advantage as well as good inland and air connectivity to be showcased as a call port for Karnataka.
In the past couple of years, Luxury cruise vessels like M.V. Nautica with more than 600
passengers on board and M.V. Astoria, a German passenger ship with 299 passengers
on board, have been calling at Mangalore port.
The following table summarises the features of the project site:
Table 5: Total tourist arrivals in India and new Mangalore Port
Period Total Tourists NEW MANGLORE
Vessels Tourists
1996-97 20871 - -
1997-98 20871 - -
1998-99 16854 - -
1999-2000 23992 - -
2000-01 40827 14 3639
Figure 3: View of a luxury cruise ship operational in India
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Period Total Tourists NEW MANGLORE
2001-02 19318 5 1032
2002-03 12424 1 291
2003-04 24908 n/a n/a
2004-05 21824 n/a n/a
In October 2009, the luxury cruise vessel AIDA Cara, with 1,135 passengers and 376
crew on board, called at the New Mangalore Port.
Figure 4: Luxury cruise vessel AIDA Cara
Presently the domestic cruises do not capture the coastal Karnataka. Most of the
cruises visiting Mangalore port are from Goa or Kochi.
There is a potential in creating a circuit for coastal Karnataka which can attract local
as well as foreign tourists. The circuit can be of shorter duration and affordable to
capture the Indian market. This circuit can be extended to other states as a second
phase. The subsequent chapters explore the possibility of designing shorter circuits
for coastal Karnataka and the possibility of implementing the same on the PPP
framework.
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2.4 Need of the Project
Cruise Tourism is not promoted in Karnataka to its maximum potential.
Ports with technical competence, locational advantage & good air and inland
connectivity.
Need to boost up the Tourism Industry in Karnataka.
Increased Affordability & quest for experiencing new things.
Expected Increase in Tourist Footfalls through developing world class tourist
attractions.
Encourage livelihood opportunities for the local population in various ways.
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4. Status of ports in Karnataka
4.1 Ports in Karnataka
The 320-kms long coastline of Karnataka has 10 minor ports and a major port. There
are several beaches along the coastline which are gradually becoming hot tourist
destinations.
This chapter covers analysis on the connectivity of ports/ beaches along the coastline
of Karnataka, and study of existing infrastructure at these ports and beaches for the
development of cruise tourism.
Karnataka has ten minor ports including Karwar in the north and old Mangalore in the
south. Out of these ten minor ports, Karwar is the only all weather port while the
other nine are the riverine anchorage lighterage ports. The state also has all weather
New Mangalore Port which is a major port of India. The maximum draft of ships and
the maximum length of cruise ships that can be accommodated at these ports are
furnished in the following table:
Table 6: Cruise accommodating capacity in Karnataka Ports
No Minor Ports Maximum Length of Cruise
Ship possible to
accommodate (m)
Maximum Draft of Ship
possible (m)
1 Karwar Port 355 5.5
2 Belekeri Port 20 2.5
3 Tadri Port 8 (Jetty) 1.5
4 Honnavar Port Not possible to anchor ship 1 to 2 m depending on wave
height
5 Bhatkal Port Not possible to anchor ship Nil
6 Kundapur Port Not possible to anchor ship Nil
7 Hangarkatta Port Not possible to anchor ship Nil
8 Malpe Port 20 2
9 Padubidri Port Not possible to anchor ship Nil
10 Old Mangalore Port 30 3
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No Minor Ports Maximum Length of Cruise
Ship possible to
accommodate (m)
Maximum Draft of Ship
possible (m)
11 New Mangalore
Port
Can accommodate ships of big
size
14
4.2 Details of Karnataka Ports
4.2.1 Mangalore Port
The Old Mangalore port is a minor port situated on the left bank of the Gurupur river
and is approximately 10 Km south of the New Mangalore Port (Latitude 120 52’ N
and longitude 700 51’ E). The Port is functional only during the fair weather season
from September to May.
New Mangalore Port is a modern all-
weather port situated at Panambur,
Mangalore. The New Mangalore Port
was declared as the 9th Major Port on
4th May 1974.
Connectivity:
The Port is served by Broad Gauge
Railway line and is well connected
with Southern region of the country
through Mangalore. The Konkan
Railway linking Mangalore with
Mumbai is well connected to the
Northern region of the country. The
Broad Gauge conversion between
Hassan - Mangalore is expected to be
completed within a few years, which directly connects Mangalore to Bangalore and
other major places of Karnataka. The port, known by the name of New Mangalore
Port Trust (NMPT), is well equipped to handle bulk, liquid chemical, POL, crude and
POL products, LPG containers etc.
The details of infrastructure facilities available in the port are furnished in the
following table:
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Table 7: Facilities at Mangalore Port
Old Mangalore Port
Fuel Bunkering Available near Fisheries Wharf
Berth 210 m Commercial wharf
Pilotage Local Pilots are available
Towage Local fishing vessels are available on hire basis
Mooring Arrangements Local Shipping Agents available
Navigation Facility 1). 3.5 m draft at channel
2). 3 m draft at Berth
3). 3 m draft at Sea mouth
Ship Coordination Centre Private agency available
Maintenance & Repair 30 m length dry dock available
4.2.2 New Mangalore Port
The New Mangalore Port is situated on the West Coast of India in the state of
Karnatka almost midway between the major Ports of Mormugao and Kochi. The port
is 170 nautical miles south of Mormugao Port and 191 nautical miles north of Kochi
Port. , the only Major Port of Karnataka was declared as the 9th Major Port on 4th
May 1974 since it has the deepest inner harbour on the west coast.
Figure 5: New Mangalore Fort (Source: www.newmangalore-port.com
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Connectivity:
The Port is served by a Broad Guage Railway line and is well connected with Mangalore, Kerala State and Chennai. The Konkan linking Mangalore with Mumbai is already operational. The Arsikere + Hassan line to the hinterland is being converted as a broad gauge line and is expected to be completed during 1998-99. The Port is provided with Railway sidings connected to the Trunk Railway with adequate storage space and facilities.
The National Highway 17 passes just outside the port, thus making the Port. There are daily flights to Mumbai, Bangalore and Chennai. The port provides a railway siding to Mangalore. The railway links spread into the neighbouring states of Maharashtra, Kerala and Tamilnadu besides the hinterland. The rail network extends to major industrial cities like Chennai, Bangalore Coimbatore and Mumbai in addition to numerous other commercially important cities.
Table 8: Facilities at New Mangalore Port
New Mangalore Port
Fuel Bunkering bunkering facility alongside berths
Berth Total of 14 berths,
length range 125-350 m,
Max draft 14 m
Pilotage Round the clock pilotage,
land and marine secutity.
Towage Locally available
Mooring Arrangements Locally available
Navigation Facility Available 24 hours.
Ship Coordination Centre Private agency available
Maintenance & Repair Private Agency Available
4.2.3 Malpe Port
The port of Malpe is located at the mouth of Malpe river in Udupi District. It is
located south of Hangarkatta Port and north of Mangalore Port. Malpe is a major
fishing harbor which has been provided with the break- water for guiding the river
flow and is working as an efficient harbor.
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Connectivity:
The port is connected by Konkan Railway line and National Highway17. The details of
infrastructure facilities available at Malpe port are furnished in the following table:
Table 9: Facilities at Malpe Port
Malpe Port
Fuel Bunkering Available
Berth 35 m Length Concrete Jetty
Pilotage Local Pilotage available
Towage Local fishing launches available
Mooring Arrangements Local agents available
Navigation Facility 1). 4 m draft at channel
Ship Coordination Centre Private agency available
Maintenance & Repair Tebma Shipyard available
Figure 6: Malpe Port
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4.2.4 Karwar Port
Karwar is situated at the northern extremity of Karnataka coast 64 Kilometers south
of Marmugoa Port on the Southern side of the Kali River and caters to the
requirement of 2.00 lakh square Kms. of hinter land. It caters to vessels with a draft
of 8.25 meters only due to under water physical obstructions in front of berths. It
has capacity to accommodate simultaneous berthing of two ships.
Connectivity:
It is connected to coastal part through Konkan Railway line, and N.H 17 passes close
to it. The linkage of Hubli-Ankola Railway line is under progress which would improve
the rail connectivity.
The infrastructure facilities available at Karwar port can be summarized as follows:
Table 10: Facilities available in Karwar Port
Karwar Port
Fuel Bunkering Available near Fisheries Wharf
Berth 355 m Commercial wharf, 90 m Lightrage wharf
Pilotage Port Officer
Towage Tug of 30 T Bollard pull
Mooring Arrangements Available
Figure 7: Karwar port
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Karwar Port
Navigation Facility 1). Channel 8 m Draft
2). Turning Circle 6 m
3). Commercial wharf 5.5 m
4). Lightrage wharf 3.5 m
Ship Coordination Centre Available
Maintenance & Repair Nearest at Goa Port
4.2.5 Hangarkatta Port
This port is located on the bank of Sita and Swarra River with a large potential for
development as a fishing harbor. At present, the navigation of this port is through
sand bar. By construction of suitable break-water and river training walls, it is
possible to develop this port into a regular all weather port.
Connectivity:
The port is connected by Konkan Railway line and National Highway17. Presently
there are no significant facilities in Hangarkatta port.
4.2.6 Kundapur Port
This port is located on the Right Bank of the Pancha Gangoli Rivers. The estuary
formed by these groups of rivers has got a vast water spread. The main restriction is
the sand bar at the mouth of the river. By providing suitable Breakwater and
dredging, there is a good potential for the development of this port.
Figure 8: Hangarkatta Port
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Connectivity:
The port is connected by Konkan Railway line and National Highway17. There are no
significant facilities at Kundapur port.
4.2.7 Padubidri Port
This is a new port situated in the North of Mulki river open to the sea, facilities have
to be created. This port was proposed to serve Nandikur thermal power project and
is also suitable for import of coal and export of iron ore. Infrastructure facilities are
proposed to be developed through interested private participation.
4.2.8 Honawar Port
This port is located on the right bank of
the Sharavathi River and at present is
functioning as a fair weather lighterage
port. The main bottleneck in the
development of the port is the sand bar
at the entrance of the river. It is
surrounded by hills and forests.
Connectivity:
The port is connected by Konkan
Railway line and National Highway 17.
Figure 9: Kundapur Port
Figure 10: Honawar Port
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4.2.9 Tadri Port
This port is situated in the estuary of the Aghanashini River. The backwaters of the
river Aghanashini has got, vast water front at this port and there is a good scope to
develop this port with modern infrastructural facilities. This port has been projected
for development under BOOST (Build-Own-Operate-Share and Transfer) concept
through private participation.
Connectivity:
The connectivity of this port is better in comparison with some of the other minor
ports. Konkan Railway line and National Highway 17 are passing very close to the
port area. Also National Highway 63 and proposed Hubli - Ankola Railway line and
Honnavar - Tumkur National Highway 206 are added connectivity of the port. The
infrastructure facilities available at Tadri port can be summarized as follows:
Table 11: Facilities at Tadri Port
Tadri Port
Fuel Bunkering Available near Fisheries Wharf
Berth 8 m R.C.C. Jetty
Pilotage Not available
Towage Local fishing launches available
Mooring Arrangements Local fishing agents available
Navigation Facility 1). 5 to 6 m draft at channel
2). 2.5 to 2 m at Sea Mouth
Figure 11: Tadri Port
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Tadri Port
3). 1.5 m Alongside wharf
Ship Coordination Centre Not Available
Maintenance & Repair Not Available
4.2.10 Belekeri Port
This port is located 26 Kms. south of Karwar on the bank of Hattikeri river and is a fair weather lighterage port and is open to traffic for about 8 fair weather months. There has been much investment made for developing the cargo handling infrastructure of the port.
Connectivity:
It is connected by Konkan Railway Broad gauge line to coastal part, and National Highway 17, National Highway 63 passes very close to it, linkage of Ankola – Hubli railway line is expected to improve the rail connectivity to other parts of Karnataka. The infrastructure facilities available at Belekeri port can be summarized as follows:
Figure 12: Belekeri Port
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Table 12: Facilities in Belekeri Port
Belekeri Port
Fuel Bunkering Local bunkers available
Berth 60 m Length
Pilotage Not available
Towage Local towage available
Mooring Arrangements Local arrangements by agents
Navigation Facility 1). 3 m draft at channel
2). 2.5 m near wharf
Ship Coordination Centre Local agents available
Maintenance & Repair Nearest at Goa Port
4.3 Inference
It can be inferred from the above information that New Mangalore Port and Karwar port would be the appropriate ports for operating the cruise circuit as they have ship anchoring facilities and off-board facilities at the port could be augmented. Mangalore has an advantage of having an airport whereas Karwar is in close proximity of Goa. These ports have the potential of capturing tourists both directions. Also the coastal strip between the two short-listed locations has number of places of tourist interest. An intermediate halt can be planned at Malpe port through motor boats to capture surrounding tourist locations. The three shortlisted ports for operating the cruise circuit in Karnataka are proposed to be:
New Mangalore Port
Karwar Port
Malpe Port (only for access by Motor boats)
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5. Proposed Cruise Circuits for Coastal Karnataka
The project site’s characteristics, location, and existing/potential catchment available
in the region are the factors that have been considered to arrive at the product mix.
Further sections elaborate upon the feasibility of each type of development.
5.1 Development Options
In Cruise Tourism, it’s the destinations in the itinerary which attract tourists and liners. It is important to include attractive, varied and exotic destinations in the State that can be linked to the cruise ports and highlighted as cruise offerings. While this would be essential to position the ports as effective ‘ports of call’ it would be equally important for creating a market for the home ports where domestic and foreign tourists visiting the destinations would build the cruise into their itinerary and suitable packages may be offered.
Market competition demands that itineraries be developed that satisfy a number of key passenger requirements, including the following:
Accessibility: Market requirements are for short term (4-7 day) cruises to accommodate the relatively short vacation period. Time and ease of access to and from the port of embarkation/disembarkation is therefore an important factor.
Season: An important aspect of the cruise sector is the seasonality, which is determining factor.
New Products: Cruise lines are continuously seeking new and innovative products to satisfy a high proportion of repeat travelers. Also with growing competition from other cruise lines the unique selling point lies essentially in the products offered.
Multiple Destinations: Visiting different ports of destination is an important experience sought on 7-10 day cruises. This new concept emphasizes on the “region being the destination” rather than the port.
High Quality Port Visit: The quality of ‘port experience’ specially in terms of basic facilities like quick and easy clearances, transport facilities, baggage handling facilities and some basic amenities like telephone booths etc from the perspective of both passenger and the ship, is an important determinant.
Market Size/ Proximity: The local/regional market must be of sufficient size to support the presence of high cost cruise ships.
Shore Excursions: The shore excursions comprise one of the major sources of total cruise-line revenue. This implies that the itinerary should offer destinations with range of attractions to induce a high passenger take up.
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The coastline of Karnataka offers scenic palm-fringed beaches which have an
immense potential for holiday destinations. It is proposed to integrate cruise circuit
with coastal circuit to create an overall experience for the tourists. For this purpose,
the cruise circuit is proposed to be combined with three important coastal circuits.
This shall offer an integrated experience of the coastal Karnataka as well as high seas
to the tourists. For this purpose, three coastal circuits have been identified and
elaborated upon subsequently in this chapter. These three circuits are Mangalore
Circuit, Udupi Circuit and Karwar Circuit.
5.2 Proposed Tourist Circuit
The proposed circuits are covered under the following two options:
5.2.1 Option 1: Coastal Karnataka Circuit: -
This is proposed to be a three days four nights circuit where the land destinations have been combined with the coastal circuit of Karnataka. This circuit has been designed to give the inclusive experience of cruise as well as coastal Karnataka to the tourist.
The cruise shall commence from Mangalore Port on day-I evening with on board activities. On day-II morning, the cruise shall berth at Karwar and the tourists shall be taken around to visit the locations in Karwar circuit. The tourists shall be brought back to the cruise by early evening for on-board activities. On day 3, the passengers would be taken through motor boats to Malpe port to visit locations short-listed in Udupi circuit. On the same evening the cruise shall be moved towards high-seas where if permits are available, casino facilities shall be opened to the tourists. On day-IV the cruise shall start the backward journey to Mangalore and reach the port by evening. The Mangalore circuit can be incorporated either at the beginning of day–I or could be opted for Scenario II where the cruise commences from Karwar. In such scenario, Karwar circuit could be replaced by Mangalore circuit. The following table summarizes the components of the cruise combined with coastal circuit. The details of the locations visited in each circuit are furnished in Annexure 1.
The following map gives a pictographic representation of the circuit selected as option 1 (Coastal Karnataka Circuit).
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NIGHT 1
DAY 2: COVERS KARWAR CIRCUIT
THROUGH KARWAR PORT
NIGHT 2
NIGHT 3
TO HIGH
SEAS
Figure 13: Cruise circuit in coastal Karnataka (Option 1)
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5.2.2 Option 2: High Seas: -
In this option the cruise shall be permanently parked in the high seas and the tourists would be transported through motor boats from the port to the cruise. The cruise is proposed to be a floating resort where the tourists can enjoy the facilities on board. This option is proposed to be an overnight stay package. The facilities on board shall be decided under the government policies and other prevailing laws. The distance of the cruise from the port shall be based on the prevailing navigation laws and sea conditions. The services to the parked cruise shall be provided through motor boats.
The major difference in the above two options is that in option 1, the cruise is moving to different locations whereas in option 2 the cruise is stationary and the visitors are transported to the cruise through motor boats. The specifications of the cruise ships that can be considered for this purpose are provided in Annexure2.
The following map gives a pictographic representation of the circuit selected as option 2 (High seas Circuit).
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The details of the circuits which could be taken up as Phase II are furnished in
Annexure 3.
Cruise ship parked permanently
in high seas as a floating resort.
Tourists transported to the cruise ship
through motor boats.
Figure 14: Proposed cruise circuit in Coastal Karnataka (Option 2)
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6. Traffic Estimations
6.1 Karnataka Potential
The viability of the project is directly linked to the level of tourist traffic. The traffic
estimations would lead to the decision on the capacity of the ship required, the cost
centers and the revenue centers to have a financially viable project. The following
aspects have been studied to arrive at the financial analysis of operating cruise
tourism in Karnataka
Traffic projections
Cost Centres
Revenue Assumptions
Viability Analysis
6.1.1 Traffic estimations from macro trends
The following table presents the number of international tourists visiting Karnataka:
Table 13: Inputs for traffic estimations
Particulars International Arrivals
International Tourists visits in Karnataka in 2007 5,34,563
% increase in Foreign Tourist Arrivals in India in year 2008 5.6%
Karnataka Domestic Tourists in year 2007 3,78,25,953
% increase in Domestic Tourists in India in year 2008 6.9%
Source: www.indiastat.com
As the data on number of tourist visiting Karnataka is available till 2007, the same is
increased in proportion to the increase in the number of visitors visiting India to
arrive at estimated numbers in the year 2009. The potential cruise tourists can be
estimated be arriving at a percentage of the total tourists visiting Karnataka either
from other foreign countries or from other parts of the country.
WTO Report: Tourism Vision 2020 indicates that averages of 1.4% of all international
arrivals across the world are cruise tourists. Considering the same proportion once
cruise facilities are developed in Karnataka, the potential market for cruise tourism
in Karnataka has been arrived.
Table 14: Karnataka cruise potential from International arrivals
Particulars International Arrivals
International Tourists visits in Karnataka in 2007 5,34,563
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Particulars International Arrivals
% increase in Foreign Tourist Arrivals in India 5.6%
Estimated number of International arrivals in Karnataka in 2009 5,97,240
Average Cruise Tourists as % of all international arrivals 1.4%
Expected International Tourists 8361
The following table elaborates the cruise potential through the details of domestic
tourist footfalls:
Table 15: Karnataka cruise tourism potential from domestic tourist footfalls
Particulars Domestic Tourists
Karnataka Domestic Tourists in year 2007 3,78,25,953
% increase in Domestic Tourists in India 6.9%
Estimated number of Domestic Tourists in Karnataka in 2009 4,32,26,024
Urban Tourists 27.0%
Higher Income Group 5.0%
Travel for Leisure and Holiday 8.7%
Cruise Tourists as % of Leisure and Holiday Travelers 1.4%
Expected Domestic Tourists 711
From the above tables, the total tourists that are likely to travel through cruise in
Karnataka are around 9,000. Considering the seasons for cruises in Karnataka,
maximum of 28 trips could be expected in a year.
6.1.2 Comparison with other luxury tourism modes:
Various new modes to promote tourism have been adopted in the past few years
and each concept has exhibited a certain level of acceptance among the travelers for
various reasons. These concepts are luxury train concepts like Palace on Wheels in
Rajasthan and Golden Chariot in Karnataka, Vaishnodevi Heli Tourism and Cruise
tourism in Kerala. These concepts are compared with each other on fixed
parameters to understand the acceptance of these concepts among the tourists and
to arrive at the comparative traffic numbers which could be considered for cruise
tourism in Karnataka.
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Table 16: Comparison of some of the new tourism concept
Golden Chariot Palace on Wheels Vaishnodevi Heli Tourism Cruise Kerala
No of days of operation
in a year
189 days (27 trips) 300 days (43 trips) Operates 365 days but the
number of flights a day varies
across year.
Operates 365 days
but the number of
trips a month varies
across year.
Tariff Rs. 15,520 per person per night
Rs.1,08,640 per person for
package of 7 nights
Rs. 30,150 per person per night
Rs. 2,11,050 per person for
package of 7 days
Rs. 3,200/- per person for Katra-
Sanjichhat-Katra flight
Rs. 8, 666 per person for
complete Package with one
night stay
Rs.5,500 per person
per day
Rs. 20,000 for a
three-night tour
package
Circuit Bangalore - Srirangapatnam -
Mysore - Kabini -
Shravanabelagola - Belur -
Halebid - Hampi - Badami - Aihole
- Pattadakal - Goa - Bangalore.
New Delhi - Jaipur - Jaisalmer -
Jodhpur - Sawai Madhopur -
Chittaurgarh - Udaipur -
Bharatpur - Agra - Delhi
Katra to Vaishnodevi Kochi-Maldives-Kochi
Kochi-Colombo-Kochi
one-night high sea
sailing
Circuit Time 7 Nights / 8 Days 7 Nights / 8 Days Covered in a day 3 days
Capacity per day 87 112 50 (5-6 passengers is the
capacity and 10 flights per day
1,200
Actual Passengers
(annual)
825 4350 580 (approximately) Not Available
(potential was
estimated to be
60,000)
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Golden Chariot Palace on Wheels Vaishnodevi Heli Tourism Cruise Kerala
Seasons All year except 2 months of
maintenance
It runs throughout a year The flights operate everyday operational in 6 to 8
months
Marketing Method "Luxury Trains, New Delhi" is
appointed as worldwide
marketing partner for all
marketing activities related to
the train. Offices strategically
located all around the world.
From the website, all information
is available.
All the marketing, sales, and
facilities are managed by
Rajasthan Tourism. Marketing is
done by authorized Marketing
Agents. It has its own website
and is marketed with "Incredible
India" campaign.
The details of the facilities are
given on the website of
Vaishnodevi Temple and also on
all the major tourist and holiday
related websites
Kerala Tourism has
tied up with Louise
Cruise to market and
promote cruise
tourism from Kochi.
Ticketing The Tourism Department handles
complete control over online
ticket booking. The General Sales
Agents (GSA) or Preferred Sales
Agents (PSA) would have to
report to DoT to book seats or
sell tickets.
Rajasthan Tourism Development
Corporation (RTDC) does
ticketing through its travel agents
Ticketing is done by the private
operators
Louise Cruises
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Golden Chariot Palace on Wheels Vaishnodevi Heli Tourism Cruise Kerala
Services Offered travel/all meals/Conducted Sight-
seeing Tours/Entrance fees at
Monuments/Parks/Palaces and
Cultural Programs
07 Nights accommodation on
board Royal Rajasthan Palace on
Wheels
All meals (morning tea,
breakfast, lunch, evening tea,
and dinner)
Tea/coffee/bottled water
Guided sightseeing tours in
deluxe coaches
Entrance fees and still camera
fees for monuments and palaces
as specified in the itinerary
Cultural entertainment
Government taxes
Tour Packages also available
apart from the trip of Katra-
Sanjichhat-Katra.
1 Dining room,
Buffet,
Entertainment
Lounge, Bars and
Disco, Pub, Children
Club, Casino, Beauty
Salon, Fitness Center,
Basketball & Volley
Court, Sauna /
Massage, Swimming
pool, Internet
Corner, Fully air-
conditioned,
Telephone Fax,
Satellite, Telephone,
Doctor on board,
Duty Free & Travel
Value Shop
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The numbers of tourists traveling annually in the above mentioned concepts varies
from 580 to 60000 and also depending on the mode of travel. The Kerala cruise is
expected the annual traffic as about 60,000.
Based on the above comparison, the following analysis has been done to arrive at the
number of total passengers for which the facility has been designed to the actual
number of passengers who traveled since the initiation of the project.
Table 17: Analysis of the comparison of similar luxury tourism projects
Table 18: Estimating the capacity
It has been observed that the ratio of actual passengers to total capacity lies between
3% - 21%. Also the 21% figure is based on projected numbers for the year and not the
actual number. Hence to be more precise, the ratio could be considered between 3% -
11%. The numbers for cruise in Karnataka is 10.7% which falls between the ranges.
Hence the number of visitors assumed for the viability of the project seems to be of
Parameters Golden
Chariot
Palace on
Wheels
Vaishnodevi
Heli Tourism
Cruise Kerala
Capacity per day 87 112 50 1,200
Operating period
(Days)
300 360 360 240
Total Capacity
(annual)
26100 40320 18000 288000
Actual Passengers
(annual)
825 4350 580 60,000*
Ratio of Actual
Passengers to Total
Capacity
3.2% 10.8% 3.2% 20.8%
Parameters Cruise Karnataka
Capacity per day 350
Operating period (Days) 240
Total Capacity 84000
Estimated Passengers (annual) 9000
Ratio of Estimated Passengers to Total capacity 10.7%
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acceptable order. With this comparison the annual number of 9,000 tourists for cruise
tourism in Karnataka seems to be reasonable.
Based on the above the numbers, the following two options can be considered for
operating cruises in Karnataka. Option – I is to have one day one night short cruise to
the high seas. The other option is to have a 3-4 days trip as discussed earlier.
Table 19: Options for operating cruise circuits
Parameter Cruise Tourism- Option 1
(One day & one Night Trip)
Cruise Tourism- Option 2
(3-4days Trip)
No. of days of operation
in a year
260 73
Tariff (in Rs.) 4500/3000 4500/3000
Circuits Proposed :
Within Karnataka
Coastal region
Mangalore-Karwar-Malpe-
Udupi- Mangalore
Cruise Within India Mangalore-Cochin-Male-
Lakshadweep- Mangalore
Mangalore- Goa-
Lakshdweep- Mangalore
Mangalore-Cochin-Male-
Mangalore
International Cruises Mangalore-Goa-Mumbai-Dubai
Mangalore-Cochin-Colombo
Capacity Per Day 350 350
Seasons Throughout the year except in
monsoon season.
Throughout the year except in
monsoon season.
Marketing Methods To be promoted by the Tourism Dept of Karnataka and private investor.
Could employ an authorized marketing agency, websites and ad
To be promoted by the
Tourism Dept of Karnataka
and private investor.
Could employ an authorized
marketing agency, websites
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Parameter Cruise Tourism- Option 1
(One day & one Night Trip)
Cruise Tourism- Option 2
(3-4days Trip)
campaigns. and ad campaigns.
Ticketing The private investor could
standardize the procedure and
Govt get their share as
income/concession paid.
The private investor could
standardize the procedure and
Govt get their share as
income/concession paid.
Services Offered Medical facilities,
communication facilities,
Restaurant, Casinos, Swimming
Pool, Children play area, Dance
floor, Games, Stand up shows,
port visits(optional) and local
tours, shopping facilities
Medical facilities,
communication facilities,
Restaurant, Casinos, Swimming
Pool, Children play area, Dance
floor, Games, Stand up shows,
port visits(optional) and local
tours, shopping facilities
The subsequent chapter indicates the costing for operating the options discussed n the
possible cruise circuits.
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Financial Model for Operating
Cruise Ship
Capital Costs O&M Heads Revenue Heads
Port Charges
Passenger Handling Charges
Crew Charges
Fuel Charges
Maintenance and Insurance
Entertainment Charges
Off-board Charges
Casino license fees
Cost of Cruise Ship
Boat Charges
Pre-operative expenses like expenses towards marketing, office set-up, approvals, Ship procurement
Tickets Price
Restaurant Revenues
Bar Revenues
Casino Revenues
Shop Revenues
8. Project Cost
8.1 Financial Model
This chapter covers the financial estimations for the private player to run the cruise ship on the Karnataka circuit. Based on the estimations for the costs, number of trips and revenues viability of the project is analyzed.
The Financial Model for the operation of the cruise ship can be represented as per following.
The cost estimates do not include the cost involved for the development of dedicated cruise terminals.
8.1.1 Project cost estimations
The project is analyzed for two options.
Option 1: Private Player operates a cruise of 3 to 4 days
Option 2: Private Player operates a cruise of one day and one night
Figure 15: Financial model for operation a cruise ship
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The cruise ship requirement for both cases would be different to a certain extent. Estimations have been made on the specifications of the cruise ships, their cost and a detailed analysis is carried out to know the viability of each of the options.
The Private Player may choose to purchase a new ship or a second hand ship. Both this options would have a considerable impact on viability. The cost of the ships and other assumptions are given in the table below.
Table 20: Details of a cruise ship under consideration for a project
Particulars Option 1 Option 2 Units
Cost of a new ship 125.0 85.5 Rs. Crore
Cost of a second hand ship 74.0 57.0 Rs. Crore
Total Seating Capacity 350 100 passengers
Crew Members 140 40 Numbers
Gross Tons of the Ship 10000 8500 Tons
No of Passenger boats required for circuit 2 2 Numbers
The cost of a cruise ship for Option 1 is arrived from the comparison with the similar ships manufactured in India. The Initial Cost and other details pertaining to it are as listed in the table below.
Particulars Option 1 Option 1 Option 2 Option 2
New Ship Second
Hand Ship
New Ship Second Hand
Ship
Cost of new Cruise Ship 125.0 74.1 85.5 57
Cost of Passenger Boats 8.5 8.55 8.55 8.55
Pre-Operative Expenses 6.75 6.73 4.67 4.67
Contingency Charges 2.2 1.4 1.5 1.03
Interest During Construction 7.7 4.9 5.36 3.9
Total Project Cost 150.15 95.65 105.56 75.13
The estimations for all four scenarios presented above are made to check the financial viability of the project.
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8.1.2 Revenue Estimates
The inputs for estimating the revenues from cruise operation are listed below.
Table 21: Revenue Estimation
No Assumptions for estimating Ticket Revenues Value
1 Types of berths on the cruise ship (Premium & Standard) 2
2 Percentage of total accommodation capacity is of premium type 40%
3 Percentage of total accommodation capacity is of standard type 60%
4 Price of premium type berths for 3-4 days trip (Rs. per person) 24,000
5 Price of standard type berths for 3 days trip (Rs. per person) 15,000
6 Price of premium type berths for single day trip (Rs. per person) 8000
7 Price of standard type berths for single day trip (Rs. per person) 5000
It is to be noted that the operation of cruises would be seasonal. A cruise operating on a circuit of a single day and night (option II) is assumed to make around 120 trips a year gradually increasing to 176 trips a year over the period of 6 years. The number of trips considered for calculation for each circuit is as listed below. Similarly for a circuit of 3-4 days (Option 1), a Cruise ship would make 30 trips a year gradually increasing to 40 trips a year.
Table 22: Number of trips of cruise ship in the initial years
Particulars Year 1 Year 2 Year 5 Year 8 Year 10
Total numbers of trips for 3-4
days circuit in a year (Option 1) 120 130 163 176 176
Total numbers of trips for 1 day
circuit in a year (Option 2) 35 40 61 93 107
Occupancy (% of capacity) 75% 75% 80% 80% 80%
In the idle time the ships are generally given on rent for organizing party, for private tours etc. For calculation purpose, it is assumed that the ship would be lying idle on the port.
The total numbers of passengers expected from the above mentioned number of trips are as listed below.
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Table 23: Expected number of passengers from the trips of cruise ship in the initial years
Year 1 Year 2 Year 3 Year 4 Year 5
No of Passengers for 3-4 days
circuit (Option 1) 7875 8663 10080 11200 11200
No of Passengers for single
day circuit (Option 2) 9000 9750 11200 12080 13040
Revenues from the project:
The Revenues from the project from both the options are estimated and presented in the table below.
Table 24: Estimated revenue for the cruise ship
Revenue Heads Year 1 Year 2 Year 5 Year 8 Year 10
Option 1 Rs. (Cr) Rs. (Cr) Rs. (Cr) Rs. (Cr) Rs. (Cr)
Tickets revenues 14.6 16.6 23.4 25.6 27.2
Restaurant revenues 1.6 3.6 3.3 3.6 6.9
Bar revenues 0.9 2.2 1.8 2.2 4.2
Casino revenues 1.5 1.6 0.1 1.6 2.4
Shop revenues 0.1 0.1 5.4 0.1 0.1
Total Revenues (Option 1) 18.7 24.1 34.1 37.9 40.8
Option 2
Tickets of 1 day trip 5.6 6.2 9.1 10.1 10.4
Restaurant licenses 1.8 4.1 6.3 7.9 8.7
Bar Licenses 1.1 2.5 3.8 4.8 5.2
Casino Licenses 1.7 1.8 2.1 2.4 2.7
Shop Licenses 0.1 0.1 0.1 0.1 0.1
Total Revenues (Option 2) 10.3 14.7 21.4 25.9 28.2
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The revenues from operating casino are estimated after comparison with the similar off-board casino, being operated on a cruise ship in Goa, and adjusting the revenues by the number of tourists on board.
8.1.3 Operation and Maintenance Expenses:
The inputs for calculating O&M of the cruise operations are listed in the table below.
Table 25: NMPT charges for the cruise
No Particulars Value Source
1 NMPT Port Charges
Port Dues 2.32 Rs. Per GRT NMPT Website
Pilotage 8.55 Rs. Per GRT NMPT Website
Berth Hire charges 0.045 Rs. Per GRT per
hour NMPT Website
2 Type of Fuels used
for the ship
Diesel Oil/ 180 cst
Heavy Oil
From the quotation of second hand
cruise ship under consideration
3 Fuel Consumption 18 kg/km From an article of Economic and
Political Weekly and after
discussion with cruise ship
operators
4 Annual Maintenance
and insurance costs*
5 % of the ship cost After discussion with stakeholders
5 Idle time ship fuel
costs
25% to 35 % of the
running fuel costs After discussion with stakeholders
6 Casino license fees Rs. 50 lakhs per year Kerala State Government collects Rs
5 crore as license fees. The concept
being new in Karnataka, the same is
assumed much lower for the state.
*Note: These expenses are the average of the yearly maintenance costs.
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The estimated O&M expenses are as presented below:
Table 26: O & M expenses for initial years
Sl
No.
Cost Head Year 1 Year 2 Year 5 Year 8 Year 10
1. Port Charges 1.0 1.2 1.5 1.7 1.8
2. Fuel Charges 1.3 1.5 2.1 2.4 2.6
3. Entertainment Charges 0.2 0.2 0.2 0.2 0.3
4. Crew Charges 1.3 1.4 1.6 1.9 2.1
5. Maintenance and Insurance 5.5 5.7 6.2 6.8 7.2
6. Staff for running ship 0.3 0.3 0.3 0.4 0.4
7. O & M in idle time 3.4 3.4 3.5 4.1 4.5
8. License fees for Casino 0.5 0.5 0.6 0.6 0.7
9. O & M for facilities 1.2 2.2 3.2 3.7 4.1
10. Off board expenses 0.3 0.3 0.4 0.5 0.5
Total O & M Expenses 15.0 16.6 19.6 22.2 24.0
It can be observed from the Revenues and O&M estimations that for the initial years of operation, the revenues may not be able to cover the costs and the private operate may have to bring the contingent equity to cover the loss.
8.1.4 Viability Analysis:
The life of a cruise ship is around 25 years if any major refurbishment is not done. With proper maintenance and periodic refurbishment, the ship can be operational for a considerably higher period. The second hand ship under consideration is around 35 years old and has gone through four refurbishments. The life of 10 years could be expected from this ship. The tenure for the financial model for a new cruise ship is considered as 25 years and the same for a second hand ship is considered as 10 years. The key financial indicators are summarized as follows:
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Table 27: Key financial indicators
Sl
No.
Particulars Option 1 &
new ship
Option 1 &
second
hand ship
Option 2 &
new ship
Option 2 &
second hand
ship
1. Estimated Project Cost 150 95.65 105.6 75.13
2. Debt to Equity Ratio 60:40 60:40 60:40 60:40
3. Interest rate on Debt 15% 15% 15% 15%
4. Project IRR for 10
years NA 8% NA
Negative
Return
5. Project NPV for 10
years NA (16.1) NA (30.2)
6. Project IRR for 25
years 11% NA 6% NA
7. Project NPV for 25
years (23.4) NA (36.9) NA
The project is not viable financially for a Private Player. At the same time, It is to be noted that this viability is extremely sensitive to critical aspects such as project cost and revenue accruals arising from tourist arrivals and tourist spend. A fluctuation in any of these factors would seriously impact on the project financial performance and viability.
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9. Implementation Framework
9.1 Project Structure
The itinerary for each circuit shall depend on the option selected. In case of option I (coastal Karnataka circuit) the itinerary shall consist of the travel in cruise ship, off board guided tours to tourism destinations and provision for local cuisine. All these activities would be the responsibility of the Private Operator.
The Private Operator would be allowed to charge tariff from users of cruise. The ticket system would be developed, operated and managed by the Operator. The Operator would pay charges to Department of Tourism for operating the cruise.
The project structure would largely depend on the total number of trips required for the Private Operator to break even in a particular season which would in turn depend up on the length of the circuit (option I or option II) and the type of off-board activities (in option I) or on-board activities (in option II) that the operator would have to take up to make the circuit appealing for increased occupancy.
9.1.1 Implementation Options
The options for implementation are based on the type of risk incurred by either of the two parties; Department of Tourism and the Private Operator. The implementation options would vary on the basis of the following factors:
Deployment, operation and maintenance of Cruises.
Marketing and Promotion of the concept.
Commercial risk
Sale of Tickets
Revenue sharing
Off board activities
Tie up with tour operators for other modes of transport
Coastal circuits – water sports, guided tours to destinations, local cuisine, guided tours of heritage sites, cultural programs, local cuisine, etc.
The following figure indicates the sharing of responsibilities between the Private Operator and the DoT based on which the project structure will follow.
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The merits of the above mentioned structure is that the procurement costs, crew, operation, maintenance and insurance costs of the cruise ships would be borne by the Private Operator. The marketing and promotion would be the responsibility of the Private Operator also which could lead to increase in revenues. In the event of the project breaking even, the Department would also be given a percentage share in the revenues.
The demerits would be that there would be no revenue share in the formative years, so in the event of the Project earning huge revenues, the payment to Department of Tourism would be constant percentage in later years(no matter any hike in the revenue). Department of Tourism would have to pay towards the assured number of trips.
The demand for cruise tourism in the State is nascent and the market for the same is unpredictable. The objective for introducing cruise tourism in Karnataka is to cater to that segment of tourists who wish to seek a unique experience by traveling in a cruise.
The Department of Tourism, therefore, could consider incentivizing the Private Operators to invest in the Project. One of the incentives could be assuring the number of trips to the Private Operator per circuit per season.
Private
Operator
(PO)
Cruise – Deployment and O&M
Terminals – Development and O&M
Other basic infrastructure
Off board services
Commercial Risk
Marketing and Promotion
Government
of
Karnataka
Private
Operator
(PO)
Government
of
Karnataka
Private
Operator
(PO)
GoK and
Private
Operator
Private
Operator
(PO)
Figure 16: Sharing of responsibilities between GoK and Private Operator
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9.1.2 Options for project structuring
There are various options under which the development of cruise tourism can be undertaken under a PPP framework Each model varies depending upon the extent of sharing of risk and returns along with ownership rights as defined in the ‘concession agreement’ entered into between the Government and the operator.
Generally in most of these structures, financing and construction is the sole responsibility of the private partner. Equally all these structures pre-supposes the charging of ‘user fee’ by the private partner as return for his investment.
Joint Venture
In a ‘JV’ structure, the project could be implemented by a Joint Venture Company, (JVC), in which both the private player and the Government would have shareholding. The Government would invest in the project and, as shareholder, would be part owner and consequently bear all the related commercial and marketing risk arising out of the project. The financial returns to the Government would accrue in the form of ‘dividends’ and exit option would be available only through the divesting of Government shareholding in the JVC.
Concession contract
Other option is offering the project to private player for undertaking development & operations of the cruise tourism on Concession framework. In this structure, the Bidder paying the highest concession payment is the preferred Bidder, after going through a transparent bid process.
The private operator is responsible for financing new investment over the life of the contract. The assets are nominally owned by the public entity; however, the private operator takes over responsibility of managing assets, creating new assets where required, raising finance for the new investments, providing the service, operations and maintenance, levy fees and collection of charges. The private operator would pay an annual fee or may receive an annual subsidy depending on the financial circumstances.
Generally port projects undertaken through private sector participation involve a 30-year concession period, during which the private operator is able to recover his investments, with adequate returns. Investments made in developing infrastructure for the cruise industry require a longer time period for adequate returns to be generated. Hence, the period of 30 years is expected to be short for generating requisite returns on the investment to be made by the operators. To make the project viable and feasible independently, the concession / lease period may be suitably increased.
While creating a robust PSP framework, Government has to ensure that the privatization structure is bankable (i.e. acceptable to financiers and bankers) wherein the concerns and risks of all the parties – The Government, the private sector & the
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lenders – are suitably addressed. The private partner should be able to deliver the expected requirements of the concession agreement.
Revenue sharing
Government would need to specify sharing of revenue based on a certain minimum number of passenger/ ship movements. In this scenario the bidder will define a base amount payable to the DoT for a specified number of tourist movements through the terminal. If there is an increase in the number of tourist movements, the DoT receives a higher share of the revenue and if there is a lower movement the port receives a specified ‘floor’ payment or alternatively shares in the loss.
Viability Gap Funding
It is envisaged that traditional revenue sources may not support the entire project investment; hence it is pertinent that the project has to be appropriately phased and packaged to attract investors and lenders. The viability gap funding support could be provided to the project to enhance viability of the project / package, which may not be financially viable in the absence of such support. The ‘viability gap funding’ would essentially refer to the financial support through ‘capital subsidy’ that would be required to ensure the desired level of returns to the investor within a stipulated period. Bidder who requests the lowest (or highest negative) Project Support from the DoT would be the preferred Bidder.
Service Contract
An operation and management of Cruise line could be contracted out by the DoT to a private operator. The services contracted out could include purchasing of cruise ships, operations and management and administrative tasks. Payment could be on fee per task basis. Service contracts are subject to frequent competition and usually last for one year. It is also possible to give out separate contracts for different operators thereby enabling comparative competition.
Management Contract
Under this arrangement, the private sector assumes the responsibility for core activities such as operations and maintenance of production units in a specific geographical sector or at a defined level of responsibility. Public entities legally remain the owners of the assets and bills are collected on the behalf of public entities. A private company may agree to take over the responsibility for managing a service to specified standards but using the staff, equipment, vehicles and buildings of the public entity. In such a situation the private company would bring in its management expertise.
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9.1.3 Identifying possible private sector partners
The role and the responsibilities of the Private Agencies would arise from their close understanding of the cruise tourism sector and their ability to successfully fund and manage the cruise terminal while taking the necessary investment risk. The possible private players who could be interested in the development of cruise tourism in Karnataka are:
Cruise Lines/Cruise Operators: The most potential private sector player who would be interested in developing and operating cruise terminals would be the cruise lines themselves. Some of these players are Star Cruises, Royal Carribbean International (RCI), Princess Group and Louis Group.
Port Operators: Operators of private sector ports in India could also be keen to explore the synergy of having a cruise terminal.
Hoteliers/hospitality players: Big groups engaged in hotels/ hospitality business, like the Taj Group, the Oberoi Group, Leela Palaces and Resorts etc. would explore the synergies of building cruise terminals in Karnataka in which there presence is the strongest.
Large entrepreneurs in Tourism/other businesses: Large entrepreneurs also interested in the tourism business would also like to consider investment in a cruise terminal especially close to their tourism projects.
Private Airlines: There are a large number of private airlines in India operating in many regions. Each of these may be interested in exploring the potential of cruise tourism and using their position in the cruise ports as terminal operators to create backward integration & captive passenger base for their suitably positioned airlines operations.
Other private stakeholders: Smaller stakeholders like tour operators, travels agents, shipping services agent etc would also be interested in participating in cruise terminal development, however, they may not have the finance to take it up independently. Accordingly, their participation must be explored in a consortium model where they tie up with the larger player in the investment while gaining special privileges in the development.
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10. Inference
10.1 SWOT Analysis
After the analysis in the previous chapters, the strengths, weaknesses, opportunities
and threats in developing cruise tourism in Karnataka can be arrived at for the better
understanding of the issues in the project.
Table 28: SWOT analysis for cruise tourism in Karnataka
Strengths Weakness
As per a study conducted by Ministry of Tourism in 2003, Karnataka accounts for 3.6% (11175292) of Domestic tourist visits and 3.7% (249908) of foreign tourist visits as a proportion of national measure.
A 320 kms long coastline with 10 minor ports and 1 major port.
The ports have locations that are already hot tourist destinations. The coastal region can attract tourists looking for scenic spots and also adventurous nature sport locations (Malpe Beach, St. Mary’s island & Yana).
It also has destinations that are famous for the heritage and cultural history (Udupi Sri Krishna Temple, Gokarna, Murudeshwara etc).
Karnataka also has well developed infrastructure like good transportation facility, airport network, hospitality and hotel industry etc.
There has been an increase in the number of people from all over the country coming to Karnataka to work and study. This increases the
It is a new segment to be developed; hence it will involve considerable set up costs.
There is competition from the other tourism activities in Karnataka.
There could be a possible non co-operation from locals due to cultural threats posed and fear of identity loss.
The Cruise and Port coordination in the sector is extremely critical.
There is a limited access to international tourists due to under developed air networks and transport facility.
Poor promotional activities could lead to loss in business opportunities.
Non availability of basic amenities and necessary infrastructure at the ports.
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potential for domestic tourism.
Stable weather during the post monsoon season of October to March that is ideal for traveling.
Opportunities Threats
Since it a govt. initiative, necessary regulatory and policies on cruise tourism like duty structure, custom check, immigration procedure, taxes, development of airports etc can be suitably amended or formulated.
The demographics of the local market is undergoing a change and people are more open to the idea of weekly and monthly vacations as compared to the traditional once-a-year vacation.
The recent trends of corporate holidays sponsored by the companies offer tremendous opportunity that can be exploited by cruise tourism.
Through appropriate promotional activities, tourists who frequent Mumbai, Goa and Kerala can be lured to experience something new.
The Tourism Policy 2007-08 to 2011-12 drafted by the Govt. of Karnataka aims at aggressive development of tourism in the state and make it Karnataka’s principal and largest economic activity. These measures in turn improve the success potential of cruise tourism.
The rich culture and customs of Karnataka can be incorporated into the onboard themes and activities
Inadequate waste disposal measures resulting in protests from environmental activists.
Low return on environment from the Cruise Business.
Competition from Mumbai, Goa and Kerala cruise networks could pose a threat.
Competition from macro players in other tourism segments, national as well as international.
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to give a unique experience.
Circuits that include international destinations like Dubai and Colombo will attract more domestic tourists who frequent international cruise networks.
It will result in the economic development of port region and increase the area’s overall income through commercialization.
Cruise tourism will increase the employment rates in the state. As per the Tourism Policy of Govt of Karnataka, This sector has a potential to generate 28.88 to 41.25 lakh jobs in Karnataka.
10.2 Issues and concerns
The concept of cruise tourism in India has not been very successful. The following table highlights the various cruise liner operators who ventured into the business and exited in a very short time. The reasons for the same could be poor infrastructure at the ports and poor traffic. Please refer to Annexure 5.
Table 29: Previous International Cruise line operators in India
Cruise Liners Location Operating Period
Louise Cruise
(Aquamarine)
Kerala (Kochi) to Srilanka
and Maldives
Two months
Star Cruises
(Superstar Libra)
Mumbai Two seasons 2006-07
Cruise Line Limited
(Ocean Odessey)
Goa One season
The other important issue is the provision of physical infrastructure on the ports. This may include the following:
Development of Cruise Terminals:
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Joint meeting with NMPT and other Port Authorities need to be held to sort out issues of construction and subsequent operation and maintenance of cruise terminals.
User charges to be prescribed by Cruise Operator for calling at Port.
Construction of other facilities required for cruise tourism at the terminals
Tourist Information Centre
Aerobridge
Crew Lounge
Tourism infrastructure at destinations
Road connectivity from Port.
Terminal Map/ Signboard.
Enhanced facilities at the destination itself.
Operations
Operator given the flexibility of itinerary
Would DoT commit minimum Cruise tourists.
Defining lean periods – monsoons (June to September)
Best Season – October to May (Summers)
Allocation (seats per year) for DoT
Ticketing to be done by Operator.
Should the operator necessarily tie up with JLR/KSTDC wherever available.
Performance targets
Minimum occupancy
Coverage of circuits
Ensure all destinations are promoted and reached atleast once in season.
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10.3 Guidelines
The guidelines for the development of cruise tourism are:
Encourage home porting as a means of increasing the benefits from cruise tourism while reducing congestion both in the port and on island.
Determine, monitor and evaluate the impact of cruise tourism on the natural, social and cultural environment in order to ensure the conservation of our resource base.
Continuously assess the carrying capacity of the existing attractions and services used by the cruise visitor, and develop mechanisms for the management of these sites on a sustainable basis.
Encourage the enhancement of existing attractions and facilities and the development of new ones.
Establish and manage strong relationships with the cruise industry to ensure mutually beneficial outcomes.
Develop appropriate programmes which effectively convert cruise passengers to long stay visitors.
Create a more congenial and beneficial environment for the complimentary.
Streamline immigration and customs check.
Build collaborative networks between destinations.
Dedicated terminals would need to address security concerns and facilitation as Cruises demand heightened levels of security.
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11. Annexure 1: Cruise circuits for option 1 – phase I
The details of short-listed coastal circuits are summarized as follows:
Mangalore Circuit
Mangalore is a business and commercial centre and Karnataka’s major port for the export of iron ore, coffee, spices and cashew. The important places of heritage and cultural value include the following:
Kadri Manjunath Temple
Kadri is an ancient historic spot in Mangalore dating back to about 1068 A.D. The temple of Manjunatheshwara on the hills of Kadri is a very beautiful and popular temple in Mangalore. The temple has nine tanks at the foot of the hills. It draws hundreds of visitors annually. The Lokeshwara bronze statue of the Kadri Manjunatha Temple is one among the well - known statues in India. Several festivals are celebrated with devotion and joy at Kadri throughout the year. Special Pujas are performed during Kadiruthsava on the bhadrapada shuddha thadige, Ganesha chathurthi, Navarathri and in the Karthika Maasa.
Mangaladevi Temple
Mangalore owes its origin to the temple of Mangaladevi. Situated in Bolar about 3 kms from Hampankatta (the heart of the city), the temple was built in 9th century. Various pujas and rituals are performed here during festivals. In addition special pujas are also performed on
Mangalore
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the 7th, 8th and 9th day of the Navarathri Festival.
St.Aloysius Church
St. Aloysius College Chapel is situated in the heart of the city on the Lighthouse Hill about a 1km away from the Nehru Maidan Bus stand.
The Church was built in the year 1899-1900. The special beauty of the chapel is the wonderful series of paintings executed by Bro. Moscheni that cover every inch of the interior walls and of the chapel. The central row of paintings on the ceiling depicts the life of Aloysius Gonzaga to whom the College and Chapel is dedicated. The Chapel is comparable with the Sistine chapel in Rome.
Pilikula Nisarga Dhama
The Pilikula Nisarga Dhama is located at about 12kms from Mangalore in Moodushedde Village and is spread over an area of 370 acres. The park houses boating facilities, a wildlife safari, a mini aquarium, and a science centre and is an ideal place for nature enthusiasts. It is being developed to educate the local people and tourists visiting the place on the uniqueness of the flora and fauna of the Western Ghats. The culture and heritage of Dakshina Kannada is also exhibited here for tourists.
Kaup Beach
Kaup Beach is situated 12km south of Udupi, on the West Coast National Highway. Apart from this the beach there is a ruined fort and an old 100ft high lighthouse. There are two temples of Goddess Mariamma in Kaup. The Jain basadis which are in ruins here are also worth visiting.
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Udupi Circuit
Udupi, an important coastal town in Karnataka is located 381 kms from Bangalore and 60kms from Mangalore. Udupi is an open square surrounded by temples and mutts. Udupi is the birth place of the 12th century saint Madhava, who set up eight sanyasi mutts in the town and is one of Karnataka's most revered pilgrimage sites. The colorful Paryaya festival at Udupi beckons thousands of devotees from all over the country. Udupi District also offers beautiful beaches and back waters for the leisure tourists.
Srikrishna Temple
The famous Krishna temple is located on the north side of the temple square in the heart of the town. It is a celebrated place of pilgrimage especially during the Paraya festival held in the month of January. There is a legend that the Lord Krishna gave darshan to a lower caste devotee Kanakadasa through a small window known as 'Kanakana Kindi'. The temple is set around a large tank, the Madhava Sarovar.
Malpe Beach
Malpe is a natural harbour and an important fishing centre on the Karnataka's coastline. It is Located at about 6 kms to the west of Udupi.
Udupi
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St. Mary's Island
St. Mary's Island can be approached through a boat-ride across the Malpe Harbour. It has a unique formation of volcanic rocks, crystallized into columns and split into vertical hexagonal blocks. This is neither a swimming nor a strolling beach. Legend has it that Vasco da Gama landed here in 1498 on one of these islands.
Marawanthe Beach
Marawanthe is located about 50 Kms from Udupi town. The National Highway (NH – 7) passing through Marawanthe is bordered by the Arabian Sea on one side and the Souparnika River on the other. The beach lies in the backdrop of the Kodachadri Hills. The sky turns crimson and the golden rays of the sun are reflected in the sea as well as the river during sunset. Baindur, a hamlet 45 kms from Marawanthe has a beach too. Ottinane near Baindur is an overhanging cliff and is an ideal place for viewing the sunset.
Karwar Circuit
Karwar located 519 kms north-west of Bangalore is the district headquarters of Uttara Kannada. It is one of the most secluded beaches along Karnataka's 320 km long coastline. The town lies about 15 kms south of the Karnataka-Goa border.
Karwar was an ancient site of sea trade visited by the Arabs, Dutch, Portuguese, French & the British. The British made this place their district headquarters in 1862.
Karwar
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The port is actually a hill which forms five islands, Anjidiv, Kurmagad, Devbagh, Mogral and Shamshigudda. These five islands protect the port from heavy winds. Karwar is rich in flora and fauna as it lies between the sea on one side and Western Ghats on the other. The island has a history of Portuguese occupation and has an old church and ruins of Portuguese settlements.
The important tourist places include:
Gokarna – Om Beach
Narrow streets, traditional houses and temples of Gokarna have become the favourite destinations of many Hindu pilgrims. Locals believe that Gokarna derives its name from a legend in which Lord Shiva emerged from the ear of a cow. Literally meaning ‘cow’s ear,’ this village is formed by the ear-shaped confluence of two rivers.
Adventurous travellers love to visit this coastal town. Om beach, one of Gokarna’s five famed beaches takes the shape of an ‘Om,’ a spiritual Hindu symbol. The other beaches, wedged between gigantic cliffs that protrude like delicate fingers into the sea, are Gokarna, Kudle, Half Moon, and Paradise. Gokarna is a scenic delight with Rocky Mountains and the Western Ghats on one side and the Arabian Sea on the other.
Murudeshwar
The sea is an intrinsic part of the temple scape at Murudeshwar. Surrounding the temple on three sides is a small hill called Kanduka Giri. A huge 15 mts statue of Shiva towers over the town. The statue, which is only a couple of years old, is in a complex which encompasses the 500-year-old Shiva temple.
Murudeshwar has the roaring sea on the west, the towering hills on the east and the coconut and areca groves nearby; the temple attracts a lot of devotees. The temple is covered with Chalukya and Kadamba sculptures in the Dravidian style. There is also a huge fort behind the temple.
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Devbagh
Devbagh is a gentle, secluded island. .From the Karwar coast one can reach the casuarina-whispering island through a speedboat. It’s a place to walk around, laze in a casuarina grove, lie in a hammock, play beach volleyball and swim in the waters.
Kurumgad
Kurumgad Island is a tourist delight located 4km into the Arabian Sea from Karwar and 1km from Devbagh. This tortoise-shaped island, offers a breath taking view of the Arabian Sea. Tourists can enjoy exotic beach walks, nature walks, swimming, fishing, bonfires and barbecues, dolphin spotting, boating rides and snorkeling on this island.
Kurumgad Island can also be reached by traveling in ferry from the Shadhashivgad Boat Jetty located on the backwaters of the River Kali.
Yana
The gigantic rock formations of Yana stand tall among the evergreen forests of the Western Ghats in Uttara Kannada district. It is located 25km from the coastal town of Kumta and 40km from Sirsi near the Chandrika River. Yana is an ideal destination for pilgrims, trekkers, and nature-lovers.A 16km trek through the cool and breezy hills brings tourists to the foot of the mountain where the rock formations begins. A cave temple dedicated to Lord Shiva lies below these shikharas.
The Bhairaveshwara Shikhara and Mohini Shikhara are the ones which make Yana distinct from other regions in the Sahyadri. The taller one, Bhairaveshwara Shikhara is 120 mts and the slightly smaller one Mohini Shikhara is 90 meters from its base. They are of a solid composition of black, crystalline limestone.
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12. Annexure 2: Proposed Cruise Ship Specifications
Detailed list of various specifications related to Cruise Tourism
The technical specifications of the ship are standard and specific to the ship size and
capacity. These should be reviewed by experts and approved by the respective
authorities.
Gross tonnage
Length
Breadth
Draught/ Draft
Passenger capacity
Passenger staterooms
Passenger staterooms, with balconies
Crew capacity
Propulsion
Max. Output power
Speed range
Propellers
Bow thrusters
Fin stabilizer
Fresh water
Steam plant
Waste management
Tender and lifeboats
Infrastructural Facilities at the Port
Tourist Information Centre: Counter for imparting information or providing assistance
to cruise tourist on their arrival to the port. The counter is generally manned by the
State / Central tourism officials
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Excursion facility /Tour operator: City sightseeing and excursion trips to tourist centres
around ports form an integral part of the cruising experience. Provisioning of facility
for organizing these day trips through authorized tour operators
Coach transfer /Shuttle bus service: Coaches or buses dedicated to the cruise terminal.
Used by cruise tourists for specific point transfers from port or for excursions
Trolleys for baggage: Self service trolleys, similar to those available at airports, for
carting heavy luggage from terminal building to taxi / shuttle buses
Terminal Map / Sign Board: A map giving the location details of different facilities
within & outside the terminal building within the port area
Crew Lounge: Resting & comfort area specifically dedicated for crew members of the
cruise
Artifact & Curio Shop: Shop selling antique and local art & handicraft items
Yacht Parking facility: Parking for sail boats & small motor boats for leisure travel
within the harbour area
Laundromat: Self-service laundry facility
Postal service: Cruise tourists prefer to send letters, gifts and specifically picture
postcards (depicting landmark sights of the port / city) to friends & family
Entertainment centre/ Gaming zone: Area for leisure and fun activity provisioned for
cruise tourists during their stay within the port
Gangway: Stairway used between cruise ship and berth for embarkation &
disembarkation
Aerobridge: Bridge extending between the terminal building and the cruise ship to
enable cruise tourists to embark & disembark conveniently
Baggage conveyor system: Automatic conveyor belt within the terminal for luggage
movement from clearance counter to collection by tourists after disembarkation,
similar to airports.
Embarkation Balcony: Public viewing gallery for seeing off embarking passenger or
receiving disembarking passenger.
Ship Chandlering: Activity of provisioning food, water & other supplies on commercial
terms for a ship during its stay at a port.
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Fuel Bunkering: Activity of provisioning fuel & other related supplies on commercial
terms for a ship during its stay at a port.
Pilotage: Pilots are generally called upon, to guide ships from their entry in a harbour
to the berth. They also provide assistance to the ship when it is exiting the port.
Towage: Activity of providing directional assistance to the ship through tug boats,
when it is in the port’s harbour area.
Mooring arrangements: Wire ropes or chains used to hold the ship in place besides
the berth.
Ship Coordination Centre: Command Centre for coordinating with ship from their
arrival to departure and stay within the harbour area at the port.
Information on ships with capacity similar to the proposed capacity in this project
“Easy Cruise Life”
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Name of the Ship Easy Cruise Life
Registered Owner: Easy Cruise Life Ltd. 171, Old Bakery Street.
Valletta, Malta - Reg. No. C-42336
Ship Manager: The management of the ship is contracted to
V Ships (Monaco)
Registry: Malta
Built (place / year): Stocznia Szczecin Shipyard, Poland / 1981
Classification
Society: Lloyds Register
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Name of the Ship Easy Cruise Life
Cost $380-$675 ( 3-4nights trip)
Passenger Capacity: 462/574
Capacity type:
Qty Cabin Type
1 Premium Suite PS
14 Panoramic Suite RS
6 Suite S
14 Junior Suite SA
28 Deluxe Outside TA, SC, SB
21 Superior Outside TB
36 Standard Outside A
16 Compact Outside B
8 Compact Outside C
46 Premium Inside DA
Capacity
classification
Total 231
Balcony 0
Ocean
View 156
Inside 75
Single 0
Fitness and Leisure:
Pools
Out/In 1/0
Jacuzzis 3
Fitness
Centre Yes
Sauna Yes
Steam No
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Name of the Ship Easy Cruise Life
Room
Deck
Space Limited
Restaurants:
Main
Dining
Rooms 1
Sittings 0
Non
Smoking Yes
Alternative
Dining 0
Entertainment:
Show
Lounges 1
Cinema No
Library No
Casino Yes
Facilities for
Disabled:
Wheelchair
cabins 2
Lifts 2
Facilities for Children None for children below 14years of age
Crew 120
Technical Specifications
Gross Registered
Tons: 12,711
Net Registered
Tonnage: 4,291
Displacement: 9914
Cruising (service)
Speed: 15.5 Knots
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Name of the Ship Easy Cruise Life
Maximum Speed: 17.5 Knots
Overall Length: 137.10m
Cruising Range: 5,500 nautical miles
Decks: 9
Passenger Decks: 5
Meeting Room: 140 m²
Easy Cruise One
Table 30: Details of Cruise
Name of the Ship Easy Cruise One
Registered Owner: Easy Cruise (2005-2008) 171, Old Bakery Street.
Valletta, Malta - Reg. No. C-42336
Ship Manager: No Current Operator
Registry: Malta
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Name of the Ship Easy Cruise One
Classification Society: Lloyds Register
Completed: 1990
Cost $100-$300
Passenger Capacity: 232
Cabins 86
Restaurants
Main Dining Room 1
Café 1
Bars 2
Fitness and Leisure
Gym 1
Hot Tub 1
Sauna 1
Spa 1
Computer Room 1
Facilities for Children None
Crew 55
Gross Registered Tons: 4,077
Cruising (service)
Speed: 15.5kts
Overall Length: 289 ft (88 m)
Width 50ft
Decks: 6
Passenger Decks: 5
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13. Annexure: 3 Cruise Circuits (Phase II)
Apart from the above mentioned local circuits, DoT can also consider the National Circuit and International Circuit in cruises as a Phase II development.
National Circuit: The proposed circuits limited to Indian coasts are mentioned below in the table.
Table 31: Proposed National Cruise Circuit in Phase II
Type Circuits
Cruise within India Circuit A: Mangalore-Cochin-Male- Lakshadweep-
Mangalore
Circuit B : Mangalore- Goa- Lakshadweep- Mangalore
Circuit C: Mangalore-Cochin-Male-Mangalore
Circuit A would be a 5-6 days trip. The first port of call Cochin has many attractions like Chinese Fishing Nets, Fort Kochi, St. Francis Church, Fort Kochi, Santa Cruz Basilica, Fort Kochi, backwaters etc. The next destination Male, which is the capital of Maldives, is famous as tourist can shop for handcrafts and visit the national museum. The third destination Lakshadweep is a nature lover’s destination is an ideal retreat for water sports and beaches.
Table 32: Itinerary for Mangalore-Cochin- Male- Lakshadweep-Mangalore Circuit
Day Destination Arrival Departure
First Mangalore - 7:00 PM
Second Cochin 6:00 AM 10:00 PM
Third Male 1:00 PM 10:00 PM
Fourth Lakshadweep 10:00 AM 11:00 PM
Fifth Mangalore 9:00 AM
Circuit B would ideally be a 4-5 days trip and is again rich in attractions suitable for nature lovers. The major tourist attractions of Goa are its beaches which could be combined with Lakshadweep beaches.
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Table 33: Circuit Itinerary for Mangalore- Goa- Lakshdweep- Mangalore Circuit
Day Destination Arrival Departure
First Mangalore - 10:00 PM
Second Goa 6:00 AM 9:00 PM
Third Lakshdweep 12 noon -
Fourth Lakshdweep - 9:00 PM
Fifth Mangalore 7:00 AM -
Circuit C would be a 4-5 days trip and the itinerary for the trip would include visit to Cochin and Male excluding Lakshadweep.
International Circuit
The other category of circuits in Phase II of the project is the international route and will be spread over 8-9 days.
Table 34: Proposed International Cruise Circuits in Phase II
Type Circuits
International Cruise A Mangalore-Goa-Mumbai-Dubai-Mangalore
B Mangalore – Cochin – Colombo – Mangalore
Circuit A is designed to cater to both natural scenic locations and shopping needs of the passengers. Goa as mentioned above has all the beautiful beaches and Dubai is known as the “shopping capital” of the Middle East. Shopping districts known locally as Souks are located adjacent to the docks allowing tourists easy access to shopping for the cruise tourists. The entire city is considered one big shopping mall and hence this circuit termed as Shopping Bonanza.
Table 35: Circuit Itinerary for Mangalore-Goa-Mumbai-Dubai Circuit
Day Destination Arrival Departure
First Mangalore - 9:00 AM
Second Goa 5:00 PM 9:00 PM
Third Mumbai 8:00 AM 12 noon
Fourth Dubai 9:00 PM -
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Day Destination Arrival Departure
Fifth - - -
Sixth - - 10:00 PM
Seventh - - -
Eighth Mumbai 7:00 AM 9:00 AM
Goa 8:00 PM 10:00 PM
Ninth 6:00 AM -
Circuit B offers another great combination of destinations. The attractions of Cochin have been mentioned before. The weather conditions that prevail in Colombo are ideal for the leisure traveler, with many opportunities for shopping and leisure. From Museums, art galleries and Libraries to shopping districts, parks and religious sites, Colombo features a real plethora of tourist attractions.
Table 36: Circuit Itinerary for Mangalore-Cochin-Colombo-Mangalore Circuit
Day Destination Arrival Departure
First Mangalore - 8:00 AM
Second Cochin 6:00 PM -
Third - - 8:00 PM
Fourth Colombo 10:00 PM -
Fifth - - -
Sixth - - -
Seventh - - 10:00 PM
Eighth Mangalore 10:00 PM
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14. Annexure: 4 Activities related to Port Call and Ships at Berth
Tourists disembarking for sight seeing / day trip at a port require Shore Passes
Tourists disembarking for longer tours intending to region at another Indian Port require Transit Passes
Immigration Official issue passes to single tourists or as a group on fulfillment of conditions
Baggage clearance of disembarking tourists and declaration of bond stores
Customs formalities may be completed at port or enroute during ships voyage from previous port of call
After tourists receive the Shore pass / Transit pass; the ship agents, tour operators, taxi and coach service providers act to transport the tourists for day trips / to airport / to hotel etc
The DG Shipping Office undertakes check on cruise vessels as with other vessels calling at the port to ensure that the vessel is not in contravention of any international law
Ship chandlers and provision suppliers obtain clearance and meet requirements of vessel
Clearance is given by customs official for supply of provisions
Cruise vessels may collect large amount of garbage during a trip. Ports may cater to the requirement of vessels as a value added service
Cruise tourists embarking into the ship from the port are required to obtain Customs clearance for their baggage
Issue of Shore Pass / Transit
Pass
Customs Clearance of
Baggage / Bond
Ground handling and support
Port State Control Check
Supplies and stores
Disposal of garbage
Baggage clearance of
embarking tourists
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Cruise tourists are required to undergo security checks prior to boarding to ensure overall security of cruise passengers
Local Police / Security agency provides the clearance
After all cruise tourists and crew have boarded the vessel, clearance from customs and port authority is required before the ship can sail
The Pilot finally boards the cruise vessel to escort it safely to deep waters at channel entrance
Security clearance of tourists
Clearance for Sailing
Pilotage and Towage for
berthing