Cruise Tourism in Tri Van Drum

8/4/2019 Cruise Tourism in Tri Van Drum

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Cruise Tourism in Trivandrum – A Pilot Study onPotential and Prospects

Prepared By:

Viji Krishnan

&Ajay Prasad

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Contents

Sl. No. Topic Page No.

1 Introduction 3

2 Chapter 1: Literature Review 5

3 Section 1: Evolution 5

4 Section 2: Concepts 8

5 Section 3: Global Scenario and Market Review 21

6 Section 4: Indian Scenario 30

7 Chapter 2: Kerala Scenario 38

8 Chapter 4: Expert Survey and Analysis 43

9 Chapter 5: Conclusion 52

10 Section 1: Summary of Key Learnings 52

11 Section 2: Strategic Analysis 56

12 Section 3: Product Design and Analysis 59

13 Section 4: Potential Benefits of Cruise Tourism 62

14 Section 5: Development of Cruise Infrastructure 67

15 Section 6: Development Plan 71

16 Bibliography 72

16 Appendix 1 73

17 Appendix 2 77

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Introduction

The Cruise Tourism industry has become one of the most exciting facets of theglobal Tourism Sector with total revenues of over $ 20 billion and accounting for about 20 million passengers in 2008. It is expected to reach a figure of $ 50billion by 2015, according to industry sources.

The Cruise industry combines the traditional offerings of travel and hospitality in

one product by offering luxury accommodation and entertainment as well as theopportunity to explore new destinations. Cruise ships range is size from small,private yachts to 220,000 ton behemoths which are travelling resorts capable of accommodating several thousand passengers at a time. The duration of cruisesalso range from a minimum of typically two days to months

The cruise industry is primarily concentrated in and around North America withthe Caribbean being the most popular destination. Americans account for morethan 70% of cruise travellers worldwide. Other popular circuits include Alaska,North Europe, the Mediterranean and the Trans-Atlantic routes. An increasingnumber of cruises are going round the world or on long cruises spanning oceans.

Cruise ports have sprung up all over the world. Generally, these are major tradeports which happen to be located in tourist hot-spots. Miami has become the de-facto capital of world cruise tourism. Caribbean ports, San Diego, Stockholm,Marseille, Barcelona, Venice, Canaveral, Los Angeles, Singapore and HongKong are among the most popular cruiser ports worldwide. So far, cruise tourismhas been confined mostly to affluent markets of the developed nations. The morepopular cruise ports have dedicated cruise terminals while others handle cruiseships at general berths with make-shift arrangements.

India was a late entrant to the cruise industry. Till a few years ago, a few Indianports – mostly along the West Coast – got random visits from cruise ships which

were passing by. Today, the ports of Mumbai, Cochin and Goa receive around a100 visits each year from cruise ships, some of which have made India a regular destination. Now, the Government of India has drawn up plans to create cruisehubs in ports like Mumbai, Murmagoa, New Mangalore, Cochin and Tuticorin.

Trivandrum is the tourism hub of Kerala, which in itself is one of the most popular tourist destinations in India. Trivandrum accounted for nearly 30% of foreigntourist arrivals in Kerala in 2007-08, translating to about 150,000 tourists, as wellas around 15% of domestic tourists. Its unique combination of world-classbeaches, ayurvedic wellness treatments, cultural and architectural heritage,backwaters and ecological destinations has made it a top choice among all

segments of tourists. But what makes Trivandrum a unique proposition for cruisetourism in the region is its strategic location on the tip of the Indian peninsula.The international shipping channels approach as close as ten nautical miles tothe coast of Trivandrum making it the best choice for cruise vessels to make portin India, with the minimum deviation from their course across the Arabian Sea or Indian Ocean. The upcoming deep-water port at Vizhinjam on the outskirts of Trivandrum city and the presence of the Trivandrum International Airport alsopromote the attractiveness of the city as a premier multi-modal cruise destination.

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In addition to the traditional sort of cruises, the potential for medium-duration tripson the backwaters of Kerala also needs to be explored further. While currentbackwater activity essentially consists of nearly static excursions on lakes likeVembanad and Ashtamudi, there exists the potential for medium duration tripsalong the backwater and canal system which runs from south of Kerala till thenorth. Trivandrum is the Southern terminus of this one-of-kind network, most of which has been incorporated in the National Waterway III.

Objective

The broad objective of this study is ”A Pilot Study on Potential and Prospects of Cruise Tourism in Trivandrum”. The specific objectives are

To make an assessment of the cruise tourism industryTo examine the marine and inland cruise tourism business in KeralaTo explore the potential and prospects for developing cruise tourism in

Trivandrum.

Scope of Study

The development of the cruise tourism sector in Trivandrum will be a major addition to the growth of Kerala into a premier global tourism destination. It willhelp to improve the contribution of the sector to Kerala's economy along withother new initiatives like eco-tourism and responsible tourism. This study aims toprovide a first step in that direction.

Study Area

This study will focus on Trivandrum, in Kerala and the surrounding areas with theview of identifying the potential for developing cruise tourism and its related

activities.

Methodology

This study will make use of primary and secondary data. The primary data will becollected mainly through Delphi technique. The secondary data will be fromvarious sources such as books, journals and internet.

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Chapter 1 - Literature Review

Section 1: The Evolution of the Cruise Industry

The Cruise Industry has become so diversified and complex, that finding asimplistic definition for it is difficult. However studies and guides of the industry bythe Cruise Lines International Association (1992, 2006), Hockmann (1993) andWard (1996) define a cruise on sea as a trip on a ship which has beenpurposefully styled as a floating leisure environment.

However, when we look back at the history of the industry, it beomes evident thatits evolution was a spin-off of other trades. In fact, the earliest ocean-goingvessels were not primarily concerned with passengers, but rather with the cargothat they could carry as this was more profitable and cargo could be packed inmore tightly, making it a more profitable and efficient proposition, especially onthe small, sailing ships which sailed the seas through most of maritime history.(Lydia Boyd, Duke University,2008 )

The Black Ball Line in New York, in 1818, was the first shipping company to offer regularly scheduled service from the United States to England and to beconcerned with the comfort of their passengers. By the 1830s steamships wereintroduced and dominated the transatlantic market of passenger and mailtransport, due to their speed and ever-increasing size. The market wasdominated by English companies, led by the British and North American RoyalMail Steam Packet (later the Cunard Line). On July 4, 1840, Britannia , the firstship under the Cunard name, left Liverpool with a cow on board to supply freshmilk to the passengers on the 14-day transatlantic crossing. The advent of pleasure cruises is linked to the year 1844, and a new industry began.

During the 1850s and 1860s there was a dramatic improvement in the quality of

the voyage for passengers. Ships began to cater solely to passengers, rather than to cargo or mail contracts, and added luxuries like electric lights, more deckspace, and entertainment. In 1867, Mark Twain was a passenger on the firstcruise originating in America, documenting his adventures of the six month trip inthe book Innocents Abroad. The endorsement by the British Medical Journal of sea voyages for curative purposes in the 1880s further encouraged the public totake leisurely pleasure cruises as well as transatlantic travel. Ships also began tocarry immigrants to the United States in "steerage" class. In steerage,passengers were responsible for providing their own food and slept in whatever space was available in the hold. Progressively, different classes emerged aboardthe larger liners.

By the early 20th century the concept of the superliner was developed andGermany led the market in the development of these massive and ornate floatinghotels. The design of these liners attempted to minimize the discomfort of oceantravel, masking the fact of being at sea and the extremes in weather as much aspossible through elegant accomodations and planned activites. The Mauritaniaand the Lusitania, both owned by the Cunard Line of England, started thetradition of dressing for dinner and advertised the romance of the voyage. Speedwas still the deciding factor in the design of these ships and transportationcontinued to be the primary benefit derived from the liners. The There was nospace for large public rooms, and passengers were required to share the dining

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tables. The White Star Line, owned by American financier J.P. Morgan,introduced the most luxurious passenger ships ever seen in the Olympic (complete with swimming pool and tennis court) and Titanic . Space andpassenger comfort now took precedence over speed in the design of theseships-resulting in larger, more stable liners. The sinking of the Titanic on itsmaiden voyage in 1912 devastated the White Star Line. In 1934, Cunard boughtout White Star.

World War I interrupted the buidling of new cruise ships, and many older liners

were used as troop transports. German superliners were given to both GreatBritain and the United States as reparations at the end of the war. The yearsbetween 1920 and 1940 were considered the most glamorous years for transatlantic passenger ships. The height of the transatlantic speed competition,for the coveted Blue Riband, was a feature of this period when the speed of theliners was a prestige issue not just for their owners or passengers but for countries as well.(Wikipedia, 2009) These ships catered to the rich and famouswho were seen enjoying luxurious settings on numerous newsreels viewed bythe general public. American tourists interested in visiting Europe replacedimmigrant passengers. Advertisements promoted the fashion of ocean travel,featuring the elegant food and on-board activities.

Cruise liners again were converted into troop carriers in World War II, and alltransatlantic cruising ceased until after the war. European lines then reaped thebenefits of transporting refugees to America and Canada, and business travelersand tourists to Europe. The lack of American ocean liners at this time, and thusthe loss of profits, spurred the U.S. government to subsidize the building of cruiseliners. In addition to the luxurious amenities, ships were designed according tospecifications for possible conversion into troop carriers. Increasing air travel andthe first non-stop flight to Europe in 1958, however, marked the ending of transatlantic business for ocean liners. Passenger ships were sold and lines wentbankrupt from the lack of business.

The 1960s witnessed the beginnings of the modern cruise industry. Cruise shipcompanies concentrated on vacation trips in the Caribbean, and created a "funship" image which attracted many passengers who would have never had theopportunity to travel on the superliners of the 1930s and 1940s. However,converted liners were not ideal for cruise operations as their design favouredspeed over all else. They tended to have powerful engines and little space for thenew amenities which passengers were demanding if cruise ships were toemulated resorts.(Wigand Ritter and Christian Schaffer, 1998 ) The engines wereunneccessarily powerful and hence often uneconomical for the more leisurelycruise trips. There were relatively few outside cabins and the accomodation wasusually segmented into many classes. Thus, there was a demand for dedicated

cruise vessels.These were slower than the liners, but were purpose designed and built more tobe floating resorts than anything else. These ships have lavish accomodations,maximise the number of outside cabins, expansive interior common spaces,extensive deck area and luxurious amenities. They are modelled on internationalhotel-chains in their design, quality and amenities. While there are ships of capacities from a few dozen to several thousand passengers, the trend haspredominantly been towards bigger ships, which now carry the vast majority of cruise passengers. Extensive entertainment facilities, including water theme

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parks and theaters, are available on most large cruise ships and the itinerariesare extensive to ensure that cruisers get as much variety as possible.

The growth in the size and popularity of cruise vessels has been mirrored by thedevelopment of major cruise ports. Miami being the most successful of these,cruise ports have gone from being occasional ports of call for ships to being welllaid out home ports for dozens of giant ships. Whereas old warehouses and other existing facilities were initially used to handle cruise ships, today state-of-artpurpose designed and built cruise terminals have been developed at many major

ports. The latest trend is to combine hotels, retail and other facilities with cruiseterminals.

The contribution of the Cruise Industry to the global economy has been steadilyrising, with total revenues of over $ 20 billion and accounting for about 20million passengers in 2008. It is expected to reach a figure of $ 50 billion by2015, according to industry sources.(Cruise Lines International Association,2008 )

Evolution of Cruise Ship sizes – 1970 – 2010

Source: BEA International

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Section 2: Concepts of the Cruise Tourism Industry

2.1 Core Concepts

A cruise ship or cruise liner is a passenger ship used for pleasure voyages,where the voyage itself and the ship's amenities are part of the experience.Cruising has become a major part of the tourism industry, with millions of passengers each year.

Cruising is a unique tourism product, a blend of the 5A’s: attractions, activities,access, accommodation, amenities. The words "luxury" and "pampering" arefound in all cruise brochures, and every cruise line proudly highlights these fiveaspects to market its product. Cruising is now well established as one of the mostservice-intensive sectors in the world, with ever more incredible state-of-the-artvessels being built each year. ‘Pampered in luxury" accurately describes thecruise experience.

Cruise ships operate mostly on routes that return passengers to their originatingport. In contrast, dedicated transport oriented ocean liners do "line voyages" and

typically transport passengers from one point to another, rather than on roundtrips. Some liners also engage in longer trips which may not lead back to thesame port for many months.

Traditionally, an ocean liner for the transoceanic trade will be built to a higher standard than a typical cruise ship, including stronger plating to withstand oceanvoyages, most commonly crossing the North Atlantic.

River cruise ships are smaller than ocean-going cruise ships, typically holding90-240 passengers (though there are ships that take only 5 passengers, andothers can carry 1,000 passengers). Due to their smaller size and low draft, river

cruise ships can go where ocean cruise ships cannot, and sometimes to whereno other transport is practical: rivers are an excellent way to reach someattractions, for example in Russia and China.

2.1Types of Cruises

2.1.1 Contemporary Cruises

These are the most popular and recognized type of cruises, which serve themost popular segment, the mass market or first class cruisers. These cruiselines typically have resort-style facilities with heavy emphasis on shipboard

activities. Most of these lines have both shorter itineraries that are closer to homeand longer ones that may require international travel. These cruises tend to havenewer and larger cruise ships with lots of amenities including lavish show rooms,extensive spa facilities, expansive children's programs, televisions and in-roommovies in all cabins, double/queen beds, etc. They often have something for everybody - all age groups. These cruises are typically the best for families andkids of all ages.

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2.1.2 World Cruises

Large ships traveling the world over definitely have their appeal. In every port,spectators line up dockside to marvel at these giant ships. Big ships also havethe distinction of being out to sea for longer periods of time, circumnavigating theglobe. They take passengers to places most others can only dream about, anddo it in high style. Large cruise lines often reposition their ships according toseasons or to entice different clientele. For example, several cruise lines send

ships up to Alaska in the summer, then reposition them to the Caribbean in thewinter months. Most schedule a longer cruise trip through the Panama Canal andalong the South America coastline to the Mexican Riviera, with stops that includeports in Costa Rica, Belize, Cozumel and Cancun. Heading east from thePanama Canal, a cruise ship might make stops in Aruba, Trinidad, or Barbados.Other ships leave Alaska and cruise to the Hawaiian Islands and then to Asiabefore swinging back around to the Caribbean. Another characteristic of largecruise lines is that duties aboard big ships are more specific.

2.1.3 River and Barge Cruises

More and more people are considering river and barge cruises as an alternativeto oceangoing trips, or extending their cruise experience to include these uniquewaterway vessels. Passengers find this form of cruising to have a more informal,intimate atmosphere, especially since some of the smaller river barges limit their cruises to a dozen passengers or so. This arm of the cruise industry has seentremendous growth in the last decade. Some of these destinations include theNile, Amazon, Volga, Yangtze, Mississippi, Columbia, Danube, and Rhine rivers.The longest waterway in Europe is the newly opened Rhine-Main-Danube, whichconnects fourteen countries from Rotterdam on the North Sea to Sulina andIzmail on the Black Sea, offering passengers and crew incredible, ever-changingscenery most oceangoing cruises would be hard-pressed to match.

Barges, which cruise primarily through European canals from April throughNovember, are even smaller than their river counterparts. They serve mainly asfirst-class water hotels. Passengers go ashore on their own during the day,returning at night for a gourmet dinner. Despite their sometimes ungainlyappearances, barges are highly sophisticated and beautifully outfitted withcustom-built furniture, rich fabrics, and crystal service ware. Because of their popularity with North American passengers, European river and barge cruisecompanies have been known to employ English-speaking crews to handle avariety of duties.

During river cruises the countryside is usually in view, so they are especiallyrelaxing—and interesting—to those who prefer land nearby. River cruises usuallylast from 7 to 15 days, although some can last 3 weeks or longer. Some river ships resemble 5-star hotels, with sun decks, dining rooms, lounges, fitnessfacilities, swimming pools, casinos and other entertainment. Accommodation,meals onboard, entertainment and special events (holidays, festivals, contests,concerts, etc.) are usually included in the cruise price, while bar expenses,sauna, massage, laundry and cleaning, and phone calls are not.

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Most cruises have a variety of onboard and onshore activities. The latter includeguided tours to historic and cultural sites, visiting local attractions, museums andgalleries, and other points of interest. Guides give a running commentary whilesailing.

A river cruise is very different from an ocean cruise. For a start, you are in almostconstant sight of land and stops are far more frequent than they are at sea. Thevessels are like small, friendly, floating inns, whereas ocean-going ships tend to

be bigger, flashier, busier and livelier, the crew practised in the art of moving upto 4,000 people from one port to another and getting them on and off the ship. Incontrast, when your river cruise vessel docks you simply walk up the gangwayand into the town or city—in many cases the dock is located right at the heart of things. Despite these differences, however, most people who enjoy oceancruising and the relaxing rhythm of life afloat are attracted to river cruises aswell..

Popular river cruises include trips along the Nile, the Mississippi, the Yangtze,the Mekong, the Danube, the Rhine, the Seine, or the Volga. There are severaldozen river cruise companies each with 1 to 21 ships.

2.1.4 Destination / Expedition Cruises

Destination and expedition cruises are selected, just as river cruises, based onthe destination to be visited. Travellers are attracted by the unique, out-of-the-way, remote or exotic ports of call. These cruises offer the stimulation of exploring new territories while in the company of like-minded travellers. The shipsmost used for destination and expedition cruises are yacht-style ships, river shipsand private yachts.

2.1.5 Sailing and Yacht Cruises

Yachts and sailing ships generally have smaller crews If it is an open-water sailboat, the entire crew will likely need to know how to sail and be expected towork the riggings and lines. On such a boat, a deckhand might also servebreakfast, clean cabins, and lead tours ashore.

Because of their ability to travel to remote, secluded areas, many smaller shipshave found an appropriate niche for the environmentally aware '90s market:"eco-touring." Eco-tour itineraries typically involve some kind of nature andecology-oriented cruises to primitive wilderness areas. Tours of the NorthwestPassage along the British Columbia coast, Alaska, and numerous areas in the

South Pacific and South America have become very popular. These cruises area far cry from the luxury cruises featuring 1,200-foot ships with ballrooms andcasinos.

2.1.6 Day Cruises

Day cruises are typically a cruise experience of 15 hours or less. Passengerschoose this method of cruising, as a day's outing or combined with a longer vacation. These cruises may be geared to gambling, whale watching, dinner, etc.

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http://en.wikipedia.org/wiki/River_cruise#cite_note-InsightGuide-0

http://en.wikipedia.org/wiki/River_cruise#cite_note-InsightGuide-0



The ships most used for day cruises are cruise ships, steamboats, ferries, river ships, and private yachts.

2.2 Cruise lines

Cruise ships are operated by cruise lines, which typically own and operate one or more ships. Some of the biggest lines include Carnival Cruises, Royal CaribbeanInternational and Cunard. Cruise lines often also operate cruise terminal facilities.

Lines vary in size, from those which own single vessels to the majors who owndozens of ships. They also vary in the types of cruises they offer and thesegments of customers that they target.Despite this bewildering variety, cruiselines can broadly be classified as :

2.2.1 Mainstream cruise lines: are the ones most often associated withmodern cruising. They offer the advantage of something for everyone and nearlyevery available sports facility imaginable like ice;skating rinks,bowling alleys,golf courses etc. The mainstream lines have two basic ship sizes – large cruiseships and megaships in their fleets. These vessels have plentiful outdoor deckspaces,and many have a wraparound outdoor promenade deck that allows you

to stroll or jog the ship’s perimeter.

While they are replete with resort style innovations, they still feature cruise shipclassics-afternoon tea,complimentary room service,and lavis pampering. Thesmallest ships carry 1000 passengers or fewer .whle the largest carry 3000passengers and are filled with diversions.

These ships tend to be big and boxy. Picture windows are standard equipmentand cabins in the top categories have private verandas. From their casinos todiscos, everything is bigger and more extravagent than on other ships..

2.2.2 Premium cruise lines: They have a lot in common wth the main streamcruise lines, but offer a little more of everthing. The atmosphere is more refined,surroundings less raucous, and service more polished and attentive.

Ships tend to be newer midsize to larger vessels that carry fewer passengersthan mainstream ships and have a more spacious feel. Decor is moreglamourous and subtle. State rooms range from inside cabins with or withoutbalconies to suites with numerous amenities, including butlers on some lines.Although premium lines usually have as many extra charges as mainstream lines,the overall quality of what you receive is higher. Producton shows are moresophisticated than on mainstream lines.

2.2.3 Luxury cruise lines: Comprising only 5% of the market, the exclusiveluxury cruise lines, such as Crystal, Cunard, Seabourn, Sea Dream, Silver Seasand so on offer high staff to guest ratios for personal service, superior cuisine ina single open seating, and highly a inclusive product with few onboard charges.These small and midsize ships offer much more space per passenger ascompared to the earlier two types. Lines differ in what they emphasize on, withsome touting luxurious accommodations and entertainment and others focusingon exotic destinations and onboard enrichment. With intimate sizes,the smallluxury ships visit some of the most uncommon destinations.

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2.3 Key Cruising Terms (Glossary of Cruising Terminology, 2008)

One way cruise: they begin at a point and end at a different point..they allow youto visit a wider variety of ports and travel farther from your port of embarkation.

Loop cruise: they begin and end at the same point and often visit ports inrelatively close proximity to one another..

Cruise costs:cruise fares vary considerably by itinerary and season,as well asthe category of accomodatons selected.publised rates are higher for the mostunique and desirable itinerares and cruises during peak seasons.

Air/Sea: A comprehensive package that combines both the cruise itself and air transportation to and from the cruise's ports of embarkation and debarkation.Air/Sea programs are usually add-ons available at extra cost.

Air City: The city chosen by you to serve as the origination and termination pointfor your flights to and from the cruise.

Baggage Allowance: The amount of baggage, generally consisting of thepassenger's personal effects, permitted by the cruise line free of charge. Berth: There are two definitions: the dock or pier where you embark or debarkfrom the ship; the bed in which you sleep onboard the ship.

Cabin: it's the passenger’s personal space onboard. they may be insidecabins,outside cabins,balcony cabins and suites

Debark/debarkation: To exit, or the process of exiting the ship. The term"disembark" is also used

Embark/embarkation: To enter, or the process of entering or boarding the ship.

Fare Market Value (FMV): The Fare Market Value, or “FMV,” represents theestimated, fair market price (including port charges) for a specific cruisedeparture. This dollar amount is derived by analyzing the price history andseasonality patterns of this and other competitive cruise ships sailing similar itineraries.

Frequent Cruiser Program: All major cruise lines have them - membershipclubs for their frequent cruisers. In most cases, eligibility begins with your second

cruise with the same cruise line. Advantages may include membership pins,cruise discounts, specially-selected cruises, onboard amenities, private cocktailparties, early notification of new itineraries and newsletters or e-mails.

Homeport: A port of embarkation/debarkation where the ship is based for a longperod of time.The current trend is towards the increased use of Homeports inship itineraries.

Itinerary: A ship's schedule of port stops and days at sea. Most cruise itinerariesvary from 3 to 12 days. The 7-day itinerary remains the industry standard though

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the trend is towards shorter cruises. Seven-day cruises generally include 3-5 portstops and 2-4 days cruising at sea.

Panamax: The Panama Canal permits ships no wider than approximately 110feet - any wider and the ship just won't fit. Ships that squeak under that maximumare often referred to as "Panamax" ships.

Per Diem: The per person, per day cost of a cruise.

Port Charges: A charge levied of cruise lines by local government authorities.This charge is pass

Port-of-Call: A country, island or territory, or population center a cruise shipvisitsed on to the cruise passenger.

Shore Excursions: Shoreside tours operated by independent tour companiesspecifically for cruise passengers. An extra charge is usually applied to thepassenger’s shipboard account.

Tender (or Launch): A smaller vessel used to move passengers to and from theship and shore when the ship is at anchor. Some cruise ports, due either tolimited docking facilities or harbor depths, require ships to anchor offshore,necessitating the use of tenders to transport passengers ashore. Passengerswith certain disabilities may be restricted in their use of tenders.

Theme Cruise: Any cruise that offers or suggests a specific onboard "theme"such as sports or 70's disco music. Other themes include history, cooking, arts &crafts, or even lunar eclipses or comet watching.

Transatlantic: A cruise that crosses the Atlantic Ocean.

2.4 Associated concepts of Cruise Tourism

2.4.1 Onboard entertainment

In the early days of cruise travel,shipoard entertainment consisted of a little morethan poetry readings and passenger talent shows.(The Complete Guide toEuropean Cruises, Fodor's, 2008 ) It's very dfferent today. These days, cruisesinclude two or more original production shows, one may be a Las Vegas styleextravaganza and other a best-of-Broadway show. Other shows highlight thetalents of singers, dancers, comedians ,acrobats etc. Real treats are the folkloric

shows or other entertainment events arranged to take place when cruise shipsare in port. It’s an excellent way to get a glimpse of the cultural history of theperforming arts of the local communities. Most ships also have movie nghts, or in-cabin movies. Enrichment programs have also become a popular pastime atsea. Speakers can include destination oriented historians, authors, radio andtelevision personalities etc. Ship lounges, nightclubs and casinos form a major part of onboard entertainment.

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2.4.2 Sports and fitness

Onboard sports facilities might include a basketball court, volley ball or tenniscourts. Most of the larger ships even offer innovative and unexpected featureslike rock climbing walls,bungee trampolines, surfing pools, jogging tracks and soon. At least one swimming pool will be present.

Shipboard fitness centres have become ever more elaborate, offering state-of-

the-art machines,treadmills,weight machines, multi-gyms etc. and have trainedinstructors on board to offer assistance and guidance.

2.4.3 Spas and Wellness Centers

With all the usual pampering and service in luxurious surroundings, simply beingon a cruise can be a stress reducing experience. Spas ave become among themost popular shipboard facilities which offers facial treatments,manicures,pedicures, massages, sensual body treatments etc In fact, one of themost popular benefits cruisers have come to expect is to improve their wellness.Historically, cruises have been recommended as healthy travel and tourism

options, but modern cruise ships take this to a new extreme with the most modenfacilities including saunas, hydro-treatment pools and so on. In fact, some lineshave made USPs out of on-board wellness treatments.

2.4.4 Audience Participation

In order to give the entertainment a creative angle and a more exciting feel thereare some activities that are designed to encourage Audience Participation.(Cruise Tourism Potential & Strategy Study, CRISIL, 2005 ) Some of theseparticipatory activities may be:

Karaoke contests Trivia contests Game shows Guest talent Shows Parties like '50s and '60s Night, Masquerade Ball, Toga Party and Pirate

Theme Night Wine testing and classes Cooking demonstrations Casino and card game lessons Ice-carving instruction Jewellery seminars

Latin dance schools that teach Cha-cha, rumba, merengue, waltz, two-step, tango, swing, foxtrot, jitterbug, line dancing, country, caribbean, hula,cha-cha slide and '70s Disco.

2.4.5 Tournaments

Tournaments like Ping-pong, floating golf green, billiards, shuffleboard, ring toss,basketball, miniature-golf etc are organized specially on long cruises to bringhealthy competition

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2.4.6 Library

Reading being one of the favourite indulgences on the cruise, cruise ships arestocked with an impressive and wide range of subjects which are availablestarting from topics like travel, art, biography, fiction, non-fiction, science fiction,beauty, health and many more.

2.4.7 Other Activities and Facilities

A list of some more activities in addition to the above include: Sun soaking in the Solarium, which is basically a room, built largely of

glass to afford exposure to the sun. There are also sunbeds which is adevice emitting radiation(usually UVA, but recently also UVB) used for cosmetic reasons (to induce an artificial tanning) but also for medicalreasons.

Casinos, with games like Poker slots or blackjack. Some cruises also offer casino classes. Casinos are becoming an important component of shipsworld-wide, especially since they are not available on-shore in manycountries.

Dance floors, wine bars, night clubs/lounges for pub-goers. There aretheme pubs with live bands and shows.PREFACE2.5 Key Characteristics of cruising

While there are a wide variety of cruise types, most of them share severalcommon characteristic features:

Cruising is intensively service-oriented. Most ships provide a 24-hour Room service. New ships are adding 24-hour pizzerias. Other facilitiesinclude casino, pool, jacuzzi, sauna, gym, on-board lectures, card rooms,

an unending variety of organized games and contests, supervisedchildren's activities and entertainment including Broadway and Las Vegas-style shows, lounges, nightclubs, movies, dancing and more. Cruise shipsare more like mini cities providing most of what such a city has to offer.

Cruise ships are destinations in themselves, with features andamenities comparable or superior to land-based resorts. This can beparticularly attractive in destinations that lack high quality hotels or "creature comforts."

Modern cruise ships have state-of-the-art telecommunicationsequipment, including incabin ship-to-shore phones. Yet they enable thepassenger to feel secluded and "out of time." You have the illusion of

getting away from it all. Cruising is remarkably affordable. Contemporary cruises are oftenavailable at a price that is generally lower than a comparable land-basedvacation with many of the costs included in the fare including food, someentertainment and excursions.

Cruising offers multiple destinations, without the hassles of packingand unpacking. Itineraries include visits to three or more ports of call(depending on length of cruise).

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2.6 Niche cruise tourism markets

While the bulk of cruise tourists fall into the main categories enumerated earlier,several major niche categories have evolved to cater to different requirementsamong a diverse market. These include:

2.6.1 Cruises for the Family

This segment targets the youngest end of the market. Since families look for moderately priced holidays, most operators offer such packages with interestingcomplementary activities. Fifty per cent discounts for the under 12s and freeflights for children under 2 years of age are a common feature of such packages.Special offers are available during the school holiday season. Of the major cruiseoperators, Carnival carries the most children and is the Number One familycruise line. Though it has entered the market late in 1998, Disney is also one of the most popular cruise line amongst this segment.

2.6.2 The Senior Citizen Segment

This is the largest growing niche with senior citizens having considerablepurchasing power and a great affinity with the product. A study done by Traveland Tourism Analyst in 1996 shows that 10% of the senior citizen segment in theEuropean Union used cruise as mode of transport for international trips. Certaincruise lines like the British tour operator – Saga and Swan Hellenic cater to thisclass exclusively. Some cruise lines like Fred & Olsen, P&O also offer cruiseswith no flights involved.

2.6.3 The Conferences and Incentives Segment

With the increasing combination of business with leisure, cruise ships are wooing

the business segment with well equipped with state-of-the-art features that canhouse all delegates within a closed space facilitating the holding of conferencesand seminars with an element of novelty thrown in. Mostlarge ships have 700 to 800 capacity assembly, the largest hall being one with acapacity of 1,350 in Royal Caribbean International’s ‘Voyageur of the Seas’.Cunard estimates that 15% of its business is from incentives and conferences.Cruises organized by large companies are also widely approved of in Japan.Such cruises are generally short in duration.

2.6.4 Theme CruisesThemes are built by offering new itineraries or by adding specialized products.

The best example of such types of cruise is the Disney Cruise. Thus, Carnivalhas the Paradise ship exclusively for nonsmokers, HAL offers a Caribbean cruisewith a screening of films from the forties, there are cruises dedicated to winetasting and such other exotic themes added to exotic locales.

2.6.5 Adventure Cruises

Expedition cruises have a modest, though not insignificant, demand. Mostcompanies that operate this market do not belong to the big groups. Somenotable cruise operators in this category are The World Cruise Company and

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Abercrombie & Kent with ships like Explorer, Clipper, Marine Expeditions andQuark Expeditions with the total fleet being 63 ships and around 5,500 berths.There are also other liners like the Swan Hellenic and Orient Lines with a strongeducational element.

2.6.6 River & Canal Cruises

Canal & River cruises form a niche element of the cruise sector, arising from the

fact that most cruise ships take by and large coastal routes, whereas all of thedestination’s charm can hardly be explored within the constraint of a one-daystop at a port of call. Cruise ships take coastal routes because the rivers andcanals cannot accommodate large cruise ships, however, it would be possible toenable interested passengers to explore the charms of the destination through aflotilla of specially designed river ships and cruise barges. As a niche of cruising,river and canal voyages are an increasingly popular option, particularly for travellers who enjoy the comforts and variety of cruising, but want to see more of the heartland. The boom in river cruises started from Europe, which has exoticdestinations connected by rivers and far from coastal areas. Today, theEuropean river-cruise industry is in a major expansion mode. Nearly every corner

of the continent has navigable rivers and a selection of ships, which continue togrow increasingly comfortable and luxurious. Viking River Cruise's is recognisedas the world's largest river cruise line.

Product Design

River/canal cruise ships, are essentially smaller versions of cruise ships, rarelyholding more than 200-plus passengers, and generally carrying less. Theriver/canal barges are even smaller, carrying between six and fifty passengers.The entertainment on broad is also much simpler. Beyond mealtimes,entertainment onboard may be limited to shuffle-board or book-reading. River

cruise ships do not provide a range of experiences as happens aboard a largeship. These ships carry no casinos and offer little in the way of eveningentertainment.

River cruises range from a couple of hours cruising along a city’s shoreline for aromantic dinner to a full blown week or month-long cruise experience in some of the world’s most exotic locations. There are dining or party river cruise boats thatsail for a few hours. These offer fine dining, professional entertainment, musicand dancing while cruising up and down the city’s waterways. They often cater to romantic occasions, large parties and business dinners and itineraries that arenormally offered could be dinner cruise, lunch cruise, Christmas cruise, New

Year eve, conference & meetings, floating restaurant and cruises targeted tospecific events. Also, many of them offer special holiday packages. On the other hand, there are long river cruises that cover theme-based destinations like ruralexploration or pilgrimage destinations on holy rivers. For example, the ColumbiaRiver Cruise plies on the Columbia River running through seven states of the US,offering magnificent views of river while allowing the passenger to visit nationalparks, cities, and towns en-route. Some river cruises also offer adventuresomeactivities such as kayaking and white water rafting.

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2.7 Cruise Tourism Ports

2.7.1 Types of Cruise Ports

With respect to cruise ships, Ports may act as a ‘Port of Call’ or as a ‘Home Port’.

As a Port of Call the port would act as the transit and receiving ports to nationaland international ships that touch several destinations as part of their cruise

circuit. Travellers who disembark at the port visit destinations either close at handor may sometimes even fly to distant destinations. At times travellers whodisembark at a particular port may embark the ship at some other port closer tothe destination they have chosen to visit.

As a Home Port or Hub Port , the port would act as the base for a cruise ship,which would take passengers around a cruise circuit and then come back to thehomeport to berth. Travellers would either ‘fly in’ or ‘drive in’ to the homeports totake their cruise.2.7.2 Roles the Ports Play

Whether as a post of call or as a home port, ports play a vitally significant role incruise tourism to understand which it would be necessary to appreciate differentaspects of this role which may be set forth as follows:(Cruise Tourism Potential &Strategy Study, CRISIL, 2005 )

Infrastructure Role: Ports provide the sea based and land based coreinfrastructure for ships to arrive and berth comfortably and safely. Theyare to ships what airports are to aircrafts and, accordingly, the nature,extent and sufficiency of the port infrastructure facilities would determinethe size, frequency and type of vessels which come in.

Hospitality Role: For visiting ships, Ports provide the vital entry point and

the first exposure of the tourist to the destination. Similarly for outgoingtourists, ports would be the exit point. The manner of receiving the touristsand the tourist amenities and facilities provided would determine thetourism popularity of the concerned port.

Connectivity Role: Since ports are the transit locations for incoming aswell as outgoing tourists, the efficiency of the ports in terms of effectivelinkages to airports, railways etc and fast connectivity to popular tourismdestinations in the State and the country would be critical.

2.7.3 Infrastructure at Cruise Ports

While cruise ships can be handled at general purpose berths or even throughlighterage, it is desirable for all major cruise ports to have dedicatedinfrastructure which enables the handling of large numbers of passengers withease. Ports, dependent on an increase in cruise traffic or self phaseddevelopment plans, create these facilities for cruise activity.

2.7.3.1 Facilities for Cruise Tourists

Primary Facilities: These facilities are desirable for meeting the basicrequirements of cruise tourists coming to the shore. They include:

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Customs and Immigrations Facility Passenger Lounge Luggage Counter Tourist Information centre Public address system Drinking water Toilets / Showers / Lockers

Foreign exchange counters Bank service counters / ATM Wheel chairs for disabled, old Communication centre Cafeteria Trolleys for baggage Taxi service Excursion facility / Tour Operators / Coach transfers / shuttle

bus service Parking Space for vehicles Linkage/shuttle service to the Airport/ Railway Station

Secondary Facilities

These facilities within the terminal are desirable for creating an ambience tointernational standards. Many of these facilities being commercial, in addition tolending a class to the terminal, can also possibly act as money-spinners for theport. They include:

Terminal Map / Sign Boards Escalators / Elevators Crew lounge Air-conditioning for terminal building Duty free shopping Gift / Souvenir / Artifact & Curio shop

Restaurant Postal service Internet café Medical Clinic Ice cream Bar Magazine / Book store Florist Yacht Parking Facility/ Harbour Cruise Facility Laundromat Entertainment Centre / Gaming zone Conference Room

2.7.3.2 Facilities for Cruise Vessels

These facilities are desired by cruise vessels so that they can extend safety andconvenience for their passengers and crew. Supplies to cruise vessels aregenerally a premium activity, which enhance the commercial viability for theports.

Terminal Building Gangway / Aerobridge

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Trucks for handling baggage Baggage Conveyor system Agents Office Embarkation Balcony Ship Water Supply Fuel Bunkering Garbage disposal facility

2.7.3.3 Port & Port related infrastructural facilities

Berth Pilotage Towage Mooring Arrangements Navigation Facility Ship coordination centre Administration Office Maintenance & Repair

2.7.3.4 Facilities for entry-exit checks / clearances

Cruise tourists arriving into / departing from the port are subject to certain checksand clearance procedures by law. Officials from specific governmentdepartments are deputed to extend the clearances. Considering the short staynature of cruise vessels at the port-of-call and sensitive natureof international cruise tourists, the clearance procedure should be quick andhassle-free. The port authorities should create adequate infrastructure toenhance the efficiency of the departments. The facilities to be provisioned by theport at the cruise terminal include:

Custom clearance counter

Immigration check Security check counter

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Section 3: Global Scenario and Market Review

3.1 Global market

3.1.1 Cruising Routes

Cruising routes as of today pass through seas, rivers and canals. The openocean is not a cruise area, except the trans-atlantic link. Enroute destinations are

categorized from popular, to historical, to adventurous or experimental.(Wigand Ritter and Christian Schafer, Tourism Recreation Research Vol 23(1), 1998 ) Theactual intensity of demand ranges from the rarely visited or experimental or adventurous such as cruise areas of Antarctica and the Amazon, to the mostfrequented or popular cruise destinations of the Caribbean and theMediterranean seas. In the icebound polar zones, the high cost of icebreakingcruises prevents this last territory from be trespassed, although recently growinginterest of the public has created a demand for destinations in the northwestpassage, Northeastern passage, Greenland, Spitsbergen as well as the AntarcticPeninsula and the Ross Sea. In the meantime, there was a steady growth incruises and the most significant increase has occurred in the Indian Ocean and

the Western Pacific. This demand pattern belies the expectations about thedream –cruise of the warm and sunny tropical seas. There seems to be a lot of prospective buyers for the more austere charms of the colder areas too. Thedominating position of the Caribbean is due to the popularity of cruises in theUSA, where the cruises are short and therefore not too expensive.

3.1.2 Cruising Markets

Amusement facilities on board has become major incentives although gamblingand liquor are still off limits in some parts of the USA. Some 79% of all cruisepassengers in 1989 were Americans(Ward, 1998). for them the vessel s a self-

contained “fun-ship”.

Europeans prefer longer cruises of two or three weeks and rate comfort higher than amusement as the reason for cruising. Most of the passengers are retiredpeople wishing to see places they may peraps, never have the chance to visit intheir lifetimes. This makes the routing of the cruise the Unique Selling Propostion(USP). Many ports of call and shore excursions prolong the programmes andmake them rater expensive. The European market has however,already beentapped and the same can be said for Japan. From a geographical perspective,cruises in the Caribbean and the Mediterranean are definitely the most lucrativeoffers for the north American and the European markets for the reasons of

proximity, climatic amenity and the variety of sightseeing .In Europe, cruises skirtalong the coasts of Norway and sometimes reach Spitsbergen, whilst in for America, they follow the inland routes of British Columbia to Alaska. Some shipsare transferred for operation in the southern seas during the northern winter.

Visits to archipelagos and islands are a special type of cruise. Sometimes suchshort cruises, upto seven days duration, are run with the same ships, 50 times ayear. Such circuits are popular as a sail and stay packages with a normal bathingholiday on land,in the Caribbean and Greek islands and also around Hawaii,Tahiti, the Canaries and experimentally around Spitsbergen and even Antarctica.

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Every cruise region has a small number of main departure or embarkation ports.For instance, Genoa, Venice, Istanbul etc in the Mediterranean, the Caribbeanports such as Miami, Port Canaveral, San Juan in Puerto rico,Bridgetown/Barbados and Singapore in South-East Asia are major cruise hubs.Such ports are linked to major airports of Europe and America and enable thetourists to fly-cruise to start their cruises without delays. Main ports like thesealso serve for maintenance, bunkering, loading of supplies and discharge of

waste since the are usually, though not exclusively, sea ports with all marinefacilities.

3.2 Market Profile

As a predominantly luxury service industry, it is vital to understand the marketprofile of the cruise industry. As of today, the industry has been able to accessonly a few niches within the massive tourist market, resulting in a penetration of only about 1.5% into the overall market. A better understanding may drive better penetration as well as help to sustain current growth. In the case of developingcruise markets and hubs, market profiling is especially important.

In 2008, the Cruise Line International Association conducted a comprehensivemarket profiling exercise with leading research agency WNS conducting theactual survey.(CLIA Cruise Market Study 2008, 2008 ) The key aims of the surveywere to guage market penetration, propensity to travel, demographics, cruisepatterns and so on.

3.2.1 Market Segmentation by Income

Income is perhaps the key determinant in identifying potential cruisers as thecruise industry remains restricted to the upper income segment, wherein thereare further sub-segments like contemporary and luxury cruises which are again

based on relative affluence.

Core Market (25+/$40,000): As indicated below, the most likely scenariois that the majority of adults from this target market will cruise within thenext three years, based on stated intent to cruise. In addition to populationand cruising intent updates, these projections also include US/EuropeanRiver cruises. This segment is most likely to choose short or mediumduration contemporary.

Affluent Market (25+/$60,000+): This segment is likely to go for contemporary or luxury cruises

Very Affluent Market (25+/$80,000+): This more limited market isshowing slow growth, but cruisers from this segment will prefer the upperend of cruises

Ultra Affluent Market (25+/$150,000+): This very high-end group isshowing surprisingly quick growth and are likely to go on luxury, longduration cruise and niche cruises.

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3.2.2 Key Findings

Consumer Interest in cruising continues to be strong, despite the economyand fuel costs: 77% of past cruisers and 55% of those who have yet totake a cruise expressed interest in doing so within the next three years.

95% of cruisers rate their cruise experience as satisfying: 44% claim“extremely satisfying” making a cruise among the best in meeting andexceeding expectations.

Median age of cruisers is now 46, down from 49 in 2006; cruises continueto attract younger travelers Cruisers agree (80%) that cruise vacations are a good way to sample

destinations they may wish to visit again, which further demonstrates thatcruisers are the best prospect for travel.

Cruise line utilization and awareness of 30+ U.S. embarkation ports addsstrong inducement to future cruising: 72% cite additional “close tohome” ports as a reason they’ll be more likely to cruise. Benefitscited: added convenience (74%), ability to drive to the ship (71%), savingmoney on air travel (67%) and avoiding hassles of flying to embarkationpoints (64%).

Cruisers are the premier leisure traveler ; they take 39% more vacationsper year than non-cruisers and take more types of vacations with nearlyone in four being a cruise. They also typically spend 50% more on their vacation than a non-cruiser.

Both past cruisers (69%) and cruise prospects (56%) recognize a cruisevacation as providing very high value. Those who’ve experienced theinclusive nature and service of a cruise, rank it as the best vacationvalue.

From the survey, we can infer that the potential for cruises continues to berelatively strong despite the current economic turmoil perhaps due to the fact thatcruisers are mostly from the upper income segment which has been relativelyless hard-hit than the middle and lower income segments. Similarly, the presenceof regional cruise ports encourages the local market to go on cruises. In the other direction, incoming cruise travellers are likely to come back for a longer durationvisit if they like the destination, creating even more benefit to the local economy.

While we have made some inroads into understanding the cruise routes,destinations and the global market profile, it is vital to seek learnings from leadinginternational cruise hubs since our purpose is to study the potential of setting upa new cruise hub. This will aid in internalising and applying the best practicesused by these ports to dominate the global cruise industry for a long time. Four our purpose, we will look at Miami – the world's cruise capital – and Singapore,which is the regional cruise hub of South Asia.

3.3.1 Case Study 1 – Miami

History

The Port of Miami got its start when business tycoon Henry Flagler extended hisEast Coast Railroad to Miami in 1896.(Port of Miami Guide, 2008 ) Shortlythereafter, Flagler funded construction of the Port of Miami and began collecting

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dockage fees. The following year brought passenger cruise service to Nassau. In1915, city officials authorized plans for a public terminal, turning basin andchannel deepening project, and the Port of Miami became a primary hub for shipping to South Florida. Passenger service to Baltimore and New York beganin the 1930s, followed by inauguration of cruise service to Havana, Cuba in the1940s, and subsequent control of port operations by the U.S. Navy during WWII.

In 1956, Dodge Island was annexed for port expansion. In 1968, the Port of Miami set a record with four maiden voyages in a single month and celebrated

dedication of a $5 million cruise terminal. In 1976, Miami became the first port inhistory to log more than one million cruise passengers in a year, with that pacequickening to a record 1.5 million in 1980 when terminals 8 and 9 swung open.Other milestones include the 1992 ribbon-cutting for the elevated, five-lanebridge linking Port berths and the mainland, and the 1996 installation of decorative bridge lighting to provide a glowing nocturnal landmark for Miami’sskyline.

The development of the cruise terminal took another major step forward in 1999when terminals 3, 4 and 5 got a major facelift to accommodate RoyalCaribbean’s Voyager of the Seas, at that time the largest cruise ship ever

constructed, with first-time at-sea amenities including no less than a full-sizebasketball court, an ice-skating arena, and a rock climbing wall.

Current Status

In 2007, the Port of Miami handled 3,787,410 passengers and over 750 cruisedockings. It is the Home-Port for over 20 mega-ships and the hub port for theworld's largest cruise lines like Carnival Cruises and Royal CaribbeanInternational.

Today’s Port of Miami progress is reflected in $ 250 million of constructionprojects geared toward upgrades and modifications, including new cruiseterminals, remodeling of two existing terminals, two additional multi-level parking

garages, access road reconfiguration, and a security gateway complex. (JuanKuryla, 2006 ).

Passenger terminals D and E, are the latest additions to the Miami Cruise Port.These 105,000 square-foot ultramodern, three-story buildings will meet theneeds of the new mega cruise ships that carry up to 5,000 passengers. Eachterminal will have among its special design features and amenities a VIP lounge,a high-tech security screening facility for embarkation, airline counters, and anairport-style conveyor baggage system. Their combined cost is approximately$80 million.

As the embarking passengers enter the spacious ticketing area, they will be

standing in front of an uninterrupted 300-foot long and 85-foot high glass wallfacing the cruise ship. Disembarking passengers will go through a One StopFederal Multi-Agency Facility that brings under one roof the earlier functions of the Immigration and Naturalization Service, U.S. Customs and Border Protection,and the U.S. Department of Agriculture.

Home-Port

The Port of Miami has focused on positioning itself as a premier Home-Port aswell as being a port-of-call frequent by the majority of the world's cruise lines.

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In the case of a Home-Port, where cruises begin and end, there are multiplebenefits for the port and the community:

• Cruise passengers often spend time in the city before and after their cruises, which results in major revenues for the local economy

• Cruise ships taken on most of their supplies and fuel as well as carry outtheir repairs at the home port.

• Guaranteed cruise traffic

• Enhances the brand of the city as a premier tourism destination

To be a good Home-Port, Miami has identified five key aspects which need tobe taken up:

- Outstanding port services and an equally appealing city- Modern and efficient airport with substantial airliftModern airlift- Attractive tourist destinations and itineraries- Large population center - Accessibility to that population

As one of the most popular tourist destinations in North America, Miami (Florida)was already gifted with most of the required attributes to become a preeminenthome-port.

Under the “Cruise Miami Program”, the Port has partnered with the Greater Miami Convention and Visitors Bureau to encourage cruise vacationers to arrivein Miami either before or after their cruise vacation to enjoy our many entertainingdestinations.(Juan Kuryla, 2006 )In addtion to this, the Port of Miami encourages its port-of-call program, wherecruise lines bring their vessels mid-week and passengers can spend a day inMiami with the hope of returning for a future vacation.

Benefits to the Economy

The benefits of the Port of Miami's strategy to grow traffic have been quiteevident. Half of the Passengers extended their stay in Miami before or after their cruise. Average passenger expenditure is $89.00 per dayand overnighters spentan average of $280.00. 68% of cruisers flew on a commercial airline and 24%drove into Miami.

Being a Home-Port and a Port-of-Call benefits the seaport and several touristattractions, such attractions as Everglades tours, South Beach , Vizcaya, , ParrotJungle, the Miami Seaquarium and local shopping venues. Thousands of cruisepassengers have the opportunity to visit South Florida and contribute to the localeconomy.(Khalid A. Salahuddin, 2005 )

The Port of Miami makes the largest contribution to the cruise industry acrossFlorida which also includes such major cruise hubs as Port of Canaveral and Portof Palm Beach. Overall, Florida received nearly $4.6 billion in direct spendingand the Cruise industry generated 130,750 jobs with wages totaling over $4.6billion in income for Florida workers. Passengers and crew spent $421 million inFlorida in 2003.

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Key Learnings

Being the Cruise Capital of the World, the Port of Miami offers many keylearnings which will prove invaluable to upcoming and proposed cruise ports.

1. Emphasis on development as a Home-Port2. World-class infrastructure3. Integration of Cruise Tourism into overall Tourism strategy

4. Availability of attractive tourist destinations and itineraries in the vicinity5. Large catchment of potential cruisers6. Building strong relationships with leading cruise operators.

3.3.2 Case Study 2 - Singapore

History

While the cruise industry has historically remained concentrated around NorthAmerica and Europe, Asia has shown excellent growth in this sector since 1990.The Asia-Pacific region, which includes South Pacific, Southeast Asia, Far East

& Trans-Pacific, experienced a growth of 134% during the 1992-2001 periodreaching a figure of 2.1 million nights and a global market share of 3.5%.(CruiseTourism Potential & Strategy Study, CRISIL, 2005 )

Singapore has been the hub port of the South Asian region for centuries with itsstrategic location on the Straits of Malacca, at the meeting point of the Indian andPacific Oceans. For almost 200 years, Singapore has traditionally been a port of call for cargo and trading ships. When Sir Stamford Raffles founded Singapore in1819 and subsequently established it as a trading post for the British East IndiaCompany, passenger ships also began to call at the island. Steamers operatedmail services from India to Hong Kong via Singapore, many of them with

commercial rates for the conveyance of passengers. (Singapore Tourism, 2008)Singapore Port also was a hub for regional ferry traffic which connected tonearby destinations in Malaysia and Indonesia.

Till 1991, cruise ships were handled at the cargo berths of the Port of Singapore.In 1991 a dedicated International Passenger Terminal (IPT) was developed at acost of S$50 million by PSA at the Harbour Front Centre (formerly World TradeCentre) in conjunction with the Singapore Tourism Board to promote cruisetourism. In 1992, the regional ferry operation at Finger Pier was relocated to betogether with IPT at the upgraded facilities at HarbourFront Centre. (SingaporeCruise Center, 2008 )

In preparation for the arrival of the new generation of “Mega resort” cruise shipsto Singapore, the terminal at HarbourFront was upgraded and its berth extendedat a cost of S$22.5 million in 1998.In 2003, the Singapore Cruise Centre (SCC) as a department was divested fromPort of Singapore Authority (PSA) Corporation and became an independentcompany, Singapore Cruise Centre Pte Ltd (SCCPL) under the TemasekInvestment Group. The SCC became the operator for the IPT as well as theregional ferry terminals.

Completion of SCC's second upgrade was completed in 2005 at the cost of S$5million. In 2006, the SCC@HarbourFront (IPT) welcomed its 10 millionth cruise

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passenger since its operations in 1991. SCC@HarbourFront celebrated its 15thyear anniversary. SCCPL partnered Singapore Tourism Board & Civil AviationAuthority of Singapore to launch the S$10 Million Singapore Fly-CruiseDevelopment Fund (FCDF) to boost the cruise tourism.

In 2007, SCC became the first cruise and ferry terminal in the region to providefree wireless Internet connectivity, and set the technological platform for futurewireless IT applications. The SCC is currently undergoing a $ 7 millionrenovation.

The Singapore Cruise Center currently has two berths of 310 m and 270 mlength, 12 m draught and a 55 m height restriction.

Current Status

In 2008, Singapore handled over 1 million passengers and is the leader in theSouth Asian region.

It is a major port-of-call for ships sailing along the major shipping channel whichpasses through the Malacca Strait. Almost every round-the-world cruise line,such Cunard or Holland America, halts at Singapore. It is also the home-port for the Star Cruises line, which is far-and-away the market leader in Asia. In 2007,Royal Caribbean International started home-porting its ships in Singapore, withsome of the exotic ports of call include cities in Cambodia, Hong Kong, Malaysia,Thailand, and Vietnam. (Ravindran. N, 2007 )

Since Tourism is a major source of revenue for Singapore, it has emphasised onthe need to get cruise tourists to spend as much time and money in Singapore aspossible. Thus, it has gone out of its way to both encourage ships to use it as ahome-port as well as an extended port-of-call.

Singapore is a major civil aviation and hence efforts have been made toencourage “Fly-Cruise-Fly” packages based out of Singapore. This is criticalsince Singapore is an island city with a very limited local market. Its catchment is

from the whole of South Asia including India, Malaysia, China, Indonesia and soon, as well as international tourists who take cruises out of Singapore as part of their overall packages.

The Singapore Tourism Board (STB) has been actively promoting cruise tourismas part of its portfolio. It has set up a $ 10 million fund - Singapore Fly-CruiseDevelopment Fund (FCDF) - to support the marketing activities of cruise lineswhich call at Singapore. The SDB has been actively projecting cruises as part of its prominent and hugely successful “Visit Singapore” campaign.

The Singapore Cruise Center is part of a mixed-use development called theHarbour Front, which also includes the massive Vivocity Mall. The SCC is also

close to the CBD of Singapore and its entertainment hub – Sentosa Island, whichenables tourists to easily access all the retail and entertainment facilities of thecity.

Other than attractions in Singapore itself, cruisers are attracted by regionaldestinations like Phuket, Vietnam, Malacca, Kuala Lumpur and Cambodia.

Singapore had announced the development of the International Cruise Terminalwith a scheduled completion date in 2010. This state-of-the-art facility will be ableto accomodate the biggest cruise ships in the world, a task beyond the limitationsof the SCC. Despite the current economic scenario, Singapore is proceeding with

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the development of the ICT, although the completion date has been pushed into2011.

Key Learnings

As the leading cruise port in South Asia, Singapore offers key insights for other ports in the region to follow:

World-class infrastructure helps to attract major cruise lines and gainregional leadership

Network of local and regional tourist attractions are a key requirement

Well developed civil aviation infrastructure

Integration of cruise tourism into overall tourism strategy strategy

Strong governmental support to industry, including funding, especially inthe initial phase

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Miami Cruise Terminal

Singapore Cruise Terminal

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Section 4: The Cruise Tourism Scenario in India

Cruise tourism is still a new concept in India. The Government of India took thefirst steps in 2005. Despite constituting a cruise committee , identifying a fewpotential cruise hubs and conducting detailed studies, nothing substantial hasmoved on ground.(M K Banger, 2007 ) However, the potential for cruise tourism ismassive given the size of the domestic market, the range of possible destinations

in the region and the proximity of international shipping routes, among other factors.

In 2008, India saw about 180,000 cruise passengers, mainly at the ports of Mumbai, Goa and Cochin. (PTI, 2008 ). In 2007-08, 54 international cruise firmssought permission to dock at Indian ports. The three major Indian cruise portssaw between 30 and 40 cruise dockings each with Cochin emerging as theleader due to its relative proximity to the international shipping channels.

To understand the potential of the cruise tourism industry in India, it will beinstructive to examine the regional cruise market, the overall tourism industry inIndia as well as key cruise tourism drivers in the Indian context.

4.1 The Regional Market

While global trends in Cruise Tourism are relevant, the developments in theneighbouring regions would be much more relevant to India.

Traditionally the region is divided into four sectors: Southeast Asia (India,Malaysia, Philippines, Singapore, Vietnam, Cambodia, Thailand, etc.), SouthPacific (Australia, New Zealand, Solomon Islands, Indonesia, Papua Asia andNew Guinea, etc.), Far East (Japan, Republic of Korea, Democratic People's

Republic of Korea, China, etc.) and Trans-Pacific (Hawaii, Guam, Fiji, FrenchPolynesia, etc.).(Cruise Tourism Potential & Strategy Study, CRISIL, 2005)

According to the World Trade Organisation, the real potential for the Asianmarket lies in selling products designed by Asians for Asians. It is verydifferent from the European market, especially with regard to the demographicprofile of demand, however, increasingly young Asians are following the exampleof their US counterparts when it comes to lifestyle, which is a guarantee of success for cruise holidays.

Total cruise passenger traffic in the South Asian region is estimated at around

1.2 million in 2007 with Singapore and Hong Kong being the major hubs and anestimate of 1.5 million in 2010 and 2 million in 2015.. ( ASEAN Press Release,2007 )

4.2 The Indian Market Today

India had around 5.08 million foreign tourist arrivals and over 527 milliondomestic tourists in 2007.( Annual Report – Union Ministry of Tourism, 2008 )There were 9.78 million outbound tourists. India stands 42nd and 11th respectively

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in the World and the Asia-Pacific region for foreign tourist arrivals (FTAs). Allthese figures show impressive annual growth in excess of 15%, indicating arobust expansion in the near future.

Some of the important drivers for the growth of foreign tourist arrivals include:

Natural beauty, heritage, cultural and architectural diversity

Relatively low cost destinations

Improved international connectivity

Strengthening of India's brand across the world

Increased sophistication of promotional campaigns

Availability of better tourism infrastructure

Some of the key developments promoting domestic tourist traffic and outboundtourist traffic include: (Cruise Tourism Potential & Strategy Study, CRISIL, 2005)

Increase in disposable income across the society due to economic growth

Young population

Increased business travel, including the Meetings, Incentives,Conventions and Exibhitions segment

Increased awareness of destinations

Better domestic and global connectivity

Increased marketing by States within India and by the tourism agencies of foreign destinations

All this points to one of the largest potential domestic tourism markets in theworld with over 550 million tourists. As a very basic guess, even if 1% of this

number decide to go on cruises, the number is over 5 million!However, the actual number of cruise tourists who visited Indian ports was nomore than 50,000 in 2005-06 and an estimated 80,000 in 2007-08. While thishighlights how under-developed the industry is in India, it also points to themassive opportunity which exists in creating even a minimal level of interest incruises within India's huge tourist market.

4.3 Market Response and Estimation

In order to understand the market for cruise tourism in India, the first step is toidentify the potential segments of the tourist market from which cruisers may besourced. (Cruise Tourism Potential & Strategy Study, CRISIL, 2005)

A. Cruise Tourist arrivals in India: Dedicated cruise tourists, who have beencoming into India through various ports till date also.B. International Tourist arrivals in India: International tourists coming into Indiaprimarily through various airports. As observed globally, these tourists offer alatent demand for undertaking short exploration cruises in and around thecountry as part of their overall travel plans.

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C. Domestic Indian Tourists: India has a large percentage of domestic touristsundertaking different tourism activities. In the absence of infrastructure andfacilities, these tourists have hardly been exposed to the concept of ‘cruisetourism’. With development in infrastructure, this segment would comprise asignificant percentage of the cruise tourists, with primary interests in undertakingboth domestic and international cruise circuits.D. Indian Outbound Tourists: Recent progress in the economic indicators of the country has given rise to a category of upper class Indians visiting

international destinations regularly for leisure purposes. This category offers anattractive potential for cruising through Indian ports, with their interests primarilycentred around cruise circuits that include international destinations.

As a qualitative means of exploring the preferences of potential cruise tourists,CRISIL conducted a primary survey among 100 foreign tourists and 100domestic tourists to understand various parameters like the perception of Indiaas a cruise destination, ranking of preferred cruise ports, the facilities that theywould expect aboard cruise ships and at cruise ports, etc Some of the keyfindings include:(CRISIL - AC Nielsen ORG-MARG Survey, 2005 )

South Asian destinations like Singapore, Thailand and Malaysia werepopular both among domestic and foreign tourists Overseas travel and beach holidays were most popular among both

segments while domestic tourists rated cruises as their 3 rd option. Survey results show that 22 % of the Indian respondents had been on a

cruise while only 3 % of the foreign tourists in India had actually been on acruise.

81% of domestic and 46% of foreign tourists wanted to go on cruises Singapore and Hong Kong were among the two most attractive

destinations for domestic tourists “Being at Sea” and “Seeing many places” were among the key benefits of

cruises for both segments It is clear that for domestic tourists the food/cuisine rates on top of the list.

Accommodation, entertainment/ leisure facilities and ship liner more or less have been given the same importance while informality onboard andconvenience while disembarking hold least priority

On the other hand the foreign tourists in India give the ship liner itself toppriority followed closely by food, accommodation, informality on board andconvenience while disembarking, which hold more or less the same rating.

While domestic tourists attach relatively less importance to port facilities,both segments rated easy transit through port, positive attitude of portpersonnel and convenience as top requirements

Both segments called for creation of world-class cruise terminals, a tourist-friendly attitude and attractive destinations near ports Domestic tourists rated Mumbai-Kerala-Lakshadweep-Male as the most

preferred cruise circuit while foreign tourists preferred Kerala-Backwaters-Goa the most, and Singapore and Colombo figured as two of the mostattractive international destinations.

While the above conclusions are mostly qualitative in nature, they will be of greatuse in designing a cruise product for the Indian context.

32



To estimate the Cruise tourism potential in India, empirical analysis on variousthe tourist segments and the potential demand they can generate, can be used.We expect the growth in demand for cruise activity to follow cruise tourismgrowth observed Internationally& trends for overall growth projected for tourismin India.

As discussed earlier, the total cruise passenger demand would be the sum totalof potential demand arising from the following segments:

A. Cruise Tourist arrivals in IndiaB. International Tourist arrivals in IndiaC. Domestic Indian TouristsD. Indian Outbound Tourists

A. Cruise Tourist Arrivals in India – This figure is straightaway available.

B. International tourist arrivals in India – World-wide, about 1.5% of international tourists go on cruises. The same figure can be taken for foreigntourists arriving in India.

C. Domestic Indian Tourists – Since cruise tourism is a sophisticated and

usually expensive form of tourism, only urban, upper income tourists who travelfor leisure & holiday purposes may be considered for the market estimation. 27%of domestic tourists are from urban areas at present, while only 5% are from thehigher income segment and 8.7% travel for leisure & holiday purposes. Finally,we consider that only the same global percentage – 1.5% - of this number wouldprefer cruises. This works out to .0018% of the domestic tourist market.

D. Indian Outbound Tourists – Only tourists going for Leisure & Holidaypurposes and some of those going for business are considered to be a potentialcatchment, the latter because many cruises offer combined business-leisurepackages. 17% of outbound tourists went abroad for Leisure & Holiday purposesand 29.1% for Business purposes. 50% of the latter are taken into account.Finally, it is assumed that 10% of this total would want to go on cruises, of whichonly 20% would prefer cruises originating in India. ie. 2% of Indians going abroadon leisure purposes would go on cruises originating in India.

Segment % Traffic in 2007 (millions) Cruise traffic(millions)

Cruise Arrivals 100 0.08 0.08

Foreign Tourists 1.5 5.08 0.08

Domestic Tourists 0.0018 527 0.0093

Outbound Tourists 0.0063 9.78 .062

Total 0.2313

Hence, a potential already exists for over 231,300 cruise tourists in India as of 2007.

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4.4 Initiatives to Develop Cruise Tourism in India

The Government of India has recognised cruise tourism as a thrust area.Cabotage laws have been relaxed for a period of five years (December 2003onwards). This will allow foreign cruise ships to carry Indians from one Indianport to another, without having to touch a foreign port in between. Port tariffshave been reduced by 33%. In fact, in the National Tourism Policy, 2002, theCentral Government has proposed to develop Cochin and Andaman & Nicobar

islands as international cruise destinations. It is also exploring the concept of anintegrated Indian cruise circuit comprising of six identified ports – Mumbai,Mormugao, New Mangalore, Cochin, Tuticorin and Chennai.

To chart out a course of action in this regard, the following committees havebeen formed:

National Committee on cruise shipping constituted under Chairman,Mumbai Port Trust (MPT) – to explore potential of cruise tourism andascertain infrastructural requirements at the identified ports.

National Committee under Director General of Tourism – to address

marketing related issues. Port-level committees under respective chairmen with representatives of

all relevant service providers- to address and resolve issues at port level,monitor requirements of cruise vessels and tourists.

Standing Committee under Secretary, In-charge of Tourism of respectiveState Government with stakeholders – to develop and monitor requisitetourist related services at places of tourist interest.

Committee constituted under Chairperson, MPT - to review rules andregulations applicable to cruise tourism and recommend suitableamendments to make them tourist friendly.

Consequent to the deliberations of the National Committee, Ports have takenfollowing actions:

Each port has drawn up a status paper of existing infrastructure includingfacilities for tourist reception lounge, baggage handling, communicationcentre providing telephone, internet, fax, transport arrangements etc.

In consultation with State Govt & tour operators, each port has preparedhalf day & full day excursion tours in and around the port cities which canbe packaged as part of cruisefor the tourists. Tourist attractions easilyaccessible at other places in the country have also been identified.

Immigration facilities at ports have been discussed with immigration

authorities & to some extent procedures streamlined for speedy clearanceof passengers. Each port has appointed a nodal officer for coordination with all agencies

involved & for prompt redressal of any difficulty to tourists/ cruise liners.

Of the short-listed ports, Mumbai invited EoIs from developers in 2006, however the project has been stuck since the State Government has not agreed to thelocations proposed by the Port. Oyster Rock has been finalised as the location,as of November 22, 2008 and the project cost estimated at Rs 1800 Crores on aPPP basis.

34



Cochin has also finalised its location and gotten a detailed study done in 2007,however further progress has not happened. The project is estimated to costabout Rs 400 Crores.

The other ports are still stuck at the project report stage. Therefore, despite theCentral Government focussing on cruise tourism from 2005, cruise shipscontinue to be handled at general purpose berths across India.

5. Cruise Tourism in Kerala

Among Indian states, Kerala is relatively advanced in terms of cruise tourismdevelopment, both in the marine and river cruise segments.

5.1 Marine Cruises

In terms of marine cruises, Kerala has received the highest number of cruisevessels among Indian states. (News@Webindia, 2009) Cochin Port, which is themajor port in Kerala, receives, on average, about 35 cruise ships each year.Smaller cruise also dock at Vizhinjam, near the State's tourism hub at Kovalam

on the outskirts of Trivandrum.

In response to the Union Government's cruise promotion policy, the Cochin PortTrust appointed a consortium of consultants in May 2007 to determine how to setup an International Cruise Terminal.(V. Sajeev Kumar, 2007 ) The consultantshave recommended the development of a mixed-use Cruise Terminal in thePublic Private Partnership mode.(V. Sajeev Kumar, 2008 ) The total cost of theproject is estimated to be about Rs 375 Crores.

The consultants pointed out that cruise tourism has emerged as the fastestgrowing sector of the global tourism industry over the past decade. Among Indian

ports, Kochi has been the cruise port in India with maximum cruise calls. Theport, located close to the international trunk sea route from Europe to Far East/Australia with a deviation of only 72 nautical miles, prompts cruise liners totake advantage of the tourist attraction. The port has modern deep water facilities and further development will facilitate the handling of bigger cruisevessels with 360 metres length and beam over 40 metres.

Although the development of the terminal seems to have ground to a halt, CochinPort continues to host cruise ships, including such famous as the Queen Mary 2,at its general purpose berths. The Port also hosted a stop of the Volvo OceanRace in December 2008.

5.2 Backwater and River Cruises

Kerala is the undisputed King of backwater cruises in India, with the Vembanadand Ashtamudi lakes becoming world-famous for their houseboats in a shortperiod of time.

However, the product offering of backwater cruises have become rather stagnantover time, with few new features being offered other than larger boats with a fewextra amenities. Most of the cruises cover little distance and just circle around

35



within one area of the backwater body, offering few destinations for the cruisersto visit. In this sense, there is little variety and the cruises seldom last for morethan two days.

However, with the opening of the 205 Km long National Waterway III from Kollamto Kottapuram in November 2007, the avenue has opened for cruises coveringgreater distances, visiting more destinations and of longer duration. (The Hindu,2007 ) The waterway is being extended to Kovalam in the south and

Neeleshwaram in the north. This means a potential cruising distance of about500 Km. A cruise could start at Kovalam, pass through Kollam, Alleppey,Kottayam, Ernakulam and Kozhikode and terminate at Neeleshwaram. Suchcruises could last over five days. The National Waterway is capable of takingvessels of upto 500 tons displacement and has a width of 30 m and a depth of 2.5 m.

Thus, the potential for river cruises across most of the length of Kerala andtraversing most of its key tourist destinations will soon be available to cruisersfrom across the world.

36



Chapter 2 – The Kerala Scenario

Kerala's performance as a cruise tourism destination has been enviable amongIndian States. A combination of natural factors like its strategic location close tomajor shipping lanes and its attractiveness as a tourist destination, along with thestrong brand built up over the past few years has drawn tens of thousands of tourists to Kerala.

Backwater cruises have far and away dominated the industry in Kerala. This is

probably due to the fact that although Kerala is a maritime State, it only has onemajor port, thus limiting avenues for marine cruise tourism while its backwatershave been in use for hundreds of years and are very extensive. However, thissaid, the marine cruise industry has been steadily growing in the State as well.

Marine Cruise Tourism in Kerala

Kerala's development as a port-of-call for cruise liners is comparitively recent. Ithas only been since 2000 that significant numbers of liners started to call at theports of Kerala. This late development has been due to the fact that India hasbecome an international tourism hot-spot over the last decade or so with the

launching of highly successful international promotional campaigns like“Incredible India.”

Ports of Call

Kerala has a coastline of around 590 Km, which is probably the highest coast-to-area ration in India, making it the most maritime of all major States. Along thiscoast, there exist one major port and 17 intemediate or minor ports.

The State's lone major port is the Port of Cochin (a Major Port governed by Major Port Trusts Act, 1963). There are 3 Intermediate and 14 Minor Ports in Kerala.They are Neendakara, Alappuzha, Kozhikkode (Intermediate Ports) and

Vizhinjam, Valiyathura, Thankasserry, Kayamkulam, Manakkodam, Munambam,Ponnani, Beypore, Vadakara, Thalasserry, Manjeswaram, Neeleswaram,Kannur, Azhikkal and Kasaragode (Minor Ports). The Major Port of Kochi isunder the Ministry of Shipping, Government of India while the intermediate andminor ports are under the administration of the Government of Kerala. Most of the minor and intermediate ports in the State are seasonal in nature withinsufficient infrastructure to handle even medium and small sized vesselsthroughout the year. (Kerala Ports, Govt. Of Kerala, 2008 )

Year No. of Cruise Tourists

2000-01 41,000

2001-02 19,000

2002-03 12,000

2003-04 25,000

2004-05 22,000

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

37



The above figures are drawn from Mumbai, Goa and Cochin ports only. Over thepast few years, Cochin has rapidly risen to the top position among Indian portsby a significant margin.

In 2002-03, the Port hosted 11 cruise ships and followed it up with 18 in 2003-04.In 2004-05 it was 19, while in 2005-06 it was 22. (Thaindian Website, 2008 ) In2006-07, 38 cruise ships with 15,977 passengers visited Cochin Port while in2007-08, the figures rose to 43 ships and over 22,000 passengers respectively.

(Kerala Tourism, 2008 ) The figures for 2008-09 are likely to be similar despite theglobal economic slowdown and the overall impact on tourism in and aroundCochin. Famous ships like the Queen Mary 2 and the Queen Victoria havealready made one or more visits to the port in the last 2-3 years.

Cochin has also been rated as the best cruise port in India over a variety of parameters. (Cruise Tourism Potential & Strategy Study, CRISIL, 2005 ) Cochinhas been dominating the cruise market in India over the last few years primarilybecause of the following reasons:

• Kerala's strong international tourism brand. This makes Kerala an

attractive stop for many tourists who want to sample the attractions of Kerala during their cruise• Proximity to the international shipping route. Out of all current major

ports, Cochin is one of the closest to the major shipping channels used bymost cruise liners

• Cochin already has port facilities available to handle all sizes of cruiseships.

• The port is close to the city and tourists can make a quick visit to severaltourist attractions.

Cochin Port Trust (CPT) has recognised the importance of cruise tourism to their

overall business and has been supportive of the initiative. The same has beentrue of Kerala Tourism, who see cruise arrivals as a way of attracting largenumbers of high-spending tourists to Kerala.

The Port has decided to set up a dedicated Cruise Terminal to transform Cochininto an international cruise destination. It is estimated that as many as 150 shipsa year could call at Cochin once the terminal is commissioned. (The Hindu, K.A.Martin, 2008 )

CPT appointed a consortium of consultants to study the cruise terminal project inMay 2007. (The Hindu, V. Sajeev Kumar, 2008 ) The consultants recommended

a Public Private Partnership model for the project and an overall project cost of Rs 375 Crore. The project comprises building a world-class cruise terminal, aKerala Village as a major tourist attraction, a 238-room hotel complex, shoppingmall and office complex as well as a parking garage. The port has earmarked6.71 hectares of land for the project of which 4.24 will bring in lease income whilethe rest of the area will be developed through a special purpose vehicle (SPV).

The project was expected to be commissioned in 2010, but is yet to take off as aprivate partner to develop the terminal has not yet been identified.

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Minor Ports

While Kerala possesses 17 intermediate and minor ports, only a few have beenvisited by cruise ships. Vizhinjam, on the outskirts of Trivandrum, has been theforemost of these while Beypore, near Kozhikode, has also received anoccasional visit.

These small harbours are usually visited by small, luxury ships with no more than

a 100 passengers on board. Hebridean Spirit and Ocean Odessey are two suchships which have visited Vizhinjam over the past few years. Slightly larger shipsmay anchor offshore and bring their passengers onshore in small tender boats.For example, Vizhinjam can only handle ships of up to 80 m length and 4.5 mdraft currently.

In the case of Vizhinjam, it is the port's proximity to major tourists attractions andthe city of Trivandrum which makes it a port-of-call for many cruise ships despitethe lack of any tangible facilities. In fact, industry sources are confident that manylarger cruise ships would like to call at Vizhinjam but are discouraged from doingso due to the lack of handling facilities at the port. (The Hindu, S.A.

Radhakrishnan, 2007 )

Kerala is endowed with minor ports almost along the entire length of its coast,which makes any part of the State easily accessible from the sea. It is an idealcruise destination, where backwaters, hill-stations and cultural attractions can allbe reached within a two hour drive from the landing point. The key hurdles beingfaced in utilising these facilities include:

• Lack of draft in minor ports and fishing harbours.• Absence of passenger handling facilities• Poor access to many of the minor ports•

Lack of dedicated Customs and Immigration facilities.

While tender boats can be used to ferry passengers to the shores, this is lessideal than having the ship itself berth at the port and can be disrupted if seaconditions are less than ideal.

Thus, Kerala has unmatched potential in becoming India's marine cruise tourismhub but there is a long way to go in developing the world-class infrastructureneeded to realise that potential.

Backwaters in Kerala

Backwaters basically refers to water held or forced back due to a variety of reasons. In the parlance of tourism, backwater represents a waterbody formedby the conglomeration of different water sources like rivers, lakes, canals etc.

Kerala, a land of copious rainfall has a profuse overflow that runs into canalswhere the rolling water tumbles in a effective surge through hills and mountainpasses to join a number of odd rivers. In the state, out of 44 rivers, 41 flowtowards the West while 3 of the them make their way towards the East. The

39



Kabani, Bavani rivers flow eastwards while those which are west flowing includethe Bharathapuzha, Chaliyar, Periyar etc..Due to the abundance of water bodies, the state has been blessed with anextensive network of waterways that lace the interior coast line, from Hosdurg inthe North to Trivandrum in the South, covering a distance of 560 km (NGS of India,1990 ). The coastal lines are interspersed with backwaters that areconnected by rivers and canals. The waterways of Kerala are in a veryfavourable position and connect several minor ports and the major port of

Cochin, in addition, there are 620 km of cross canals, mostly serving thecommercial midlands in the South as well as another 840 km of navigablewaterways.

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

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

Backwater tourism

Kerala is well endowed wit tourism resources which include:

- Tropical climate

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

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

The land mass along these waterways pulsate with a different tempo, possessing

a lifestyle so unique that it attracts curiosity, giving rise to a form of tourism that isnon-existent anwhere in te country. Its greenery is unmistakably an importantcomponent of the USP of Kerala tourism. The quality of backwaters lies in their serenity , their natural beauty and their culture. The backwaters are also anexcellent alternative means of transportation through rural Kerala, one can glidethrough the calm serene backwaters flanked by the green palms to see a ruralKerala preserved through ages and completely hidden from the roads. Backwater tourism provides opportunities for various activities that are very alluring totourists. These include sight seeing, camping, rural tourism, boating, birdwatching, kayaking, fishing, canoeing, meeting and incentive tours etc As a result

40



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

Today, backwater tourism is more focused on the “stay” option rather than actual“travel” benefit of cruising. Current houseboats started of as converted cargoboats which had accomodation facilities bolted on top. Although, many of today'snewest houseboats are custom-built, they still focus on providing plushaccomodation in as many as four to six bedrooms rather than on speed or manuveurability. Houseboats usually cruise out on open lakes like Vembanad or Ashtamudi. They sail around slowly in circles, which means the passengers donot get to see much variety.

The approach needed is to introduce river/canal cruises along the canal systemwhich runs from one end of Kerala to the other. Till recently, most of these canals

were diused and almost unpassable even for big boats due to siltation andencroachments. However, this is now quickly changing.

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

With such extended cruises, tourists will have a wider variety of experiences, asthey travel through different regions and see different scenaries and sample

different cultures. Longer stays on board will also be more profitable for theoperators, thus making the proposition an attracive one for all stakeholders.

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

41



Typical Houseboat

Perspective of proposed Cruise Terminal at Cochin port

42



Chapter 3 - Expert Survey and Analysis

Objective

This study is exploratory in nature and seeks to break new ground in the tourismindustry. The methodology involves a combination of primary and secondaryresearch, followed by a strategic analysis to identify the key steps needed topromote Trivandrum as a Cruise Destination as well as to evolve a robust, time-

bound plan to operationalise this strategy.

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

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

Research Methodology

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

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

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

Survey Analysis

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

quantitative estimates.

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

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

43



Survey Results

Attractiveness of Kerala to Cruise Tourists

Questions:

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

Question 1

56%

44%

0%0%0%

Strongly Agree

Agree

Disagree

Strongly Disagree

No Answer

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

Question 2

33%

67%

0%0%0%

Strongly Agree

Agree

Disagree

Strongly DisagreeNo Answer

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

Question 3

44%

56%

0%0%0%

Strongly Agree

Agree

Disagree

Strongly Disagree

No Answer

44



Remarks

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

Key Learning

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

Lack of Infrastructure is the major barrier to the development of CruiseTourism

Question

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

Question 8

67%

11%

22%

0%

0%

Strongly Agree

Agree

Disagree

Strongly Disa gree

No Answer

Remarks

Dr. V. Venu, IAS, Secretary – Dept. Of Tourism, Government of Keralaidentified the “lack of infrastructure as a key issue facing the cruise industry inKerala. Despite its relative success in attracting cruise traffic, Cochin still lacks a

dedicated facility while Trivandrum lacks any facility at all. However, Cochin isdue to get a dedicated berth from 2010 due to an effort made by the Port Trustwith the support of Kerala Tourism. Steps can be taken for the provision of basicinfrastructure at Trivandrum.”Cecil Haidar Ali agreed that “the lack of dedicated infrastructure is the keyobstacle facing cruise tourism in India in general. The current facilities at theVizhinjam fishing harbour are not adequate to handle even small cruise ships.Transferring passengers by tender boats itself is quite risky with the currentfacilities.”

45



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

Key Learning

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

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

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

A Regional cruise circuit can be developed around Kerala/Trivandrum

Questions

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

Question 6

0%

89%

11% 0%0%

Strongly Agree

Agree

Disagree

Strongly Disagree

No Answer

46



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

Question 7

34%

33%

22%

11%0%

Strongly Agree

Agree

Disagree

Strongly Disagree

No Answer

Remarks

- Dr. Venu felt that “itineraries possible in a regional cruise circuit may notbe long enough to be financially viable or to attract premium segmenttourists. The failure of an attempt a few years ago by Star Cruises to starta regional cruise circuit out of Mumbai could be a pointer to this.”

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

Key Learning

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

Cruise tourism has not been adequately promoted

Question

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

Question 11

11%

45%

44%

0%0%

Strongly Agree

Agree

Disagree

Strongly Disagree

No Answ er

47



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

Question 120%

89%

11%

Strongly Agree

Agree

DisagreeStrongly Disagree

No Answer

Remarks

Dr Venu explained that since cruise tourists don't make up their ownitineraries, a publicity campaign aimed at individuals is almost pointless.Instead, the key stakeholders are the cruise lines and the shore agents.

Kerala Tourism is planning to work with leading agencies in both fields topromote Kerala as a major cruise destination.

Key Learning

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

Inland Cruises are yet to take off

Questions

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

Question 13

11%

67%

0%

22%

Strongly Agree

Agree

Disagree

Strongly Disagree

No Answer

48



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

Question 14

22%

45%

33%

0%

Strongly AgreeAgree

Disagree

Strongly Disagree

No Answer

Remarks

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

Key Learning

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

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

Questions

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

Question 22

30%

40%

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Agree

Disagree

Strongly Disagree

No Answ er

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23. The proximity of the port to the city and a diverse set of tourist destinationshas the potential of making Trivandrum a very exciting destination for cruisetourists

Question 23

30%

70%

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No Answer

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

Question 24

30%

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Agree

DisagreeStrongly Disagree

No Answer

Remarks

Cecil and Michael Haidar Ali, of Micato Tours, both felt that Vizhinjamhad a strong potential to become a leading cruise hub due to its strategic

location as well as the proximity of tourist destinations like Kovalam,Trivandrum City and Kanyakumari to it. In fact, the cruise tourists whohave landed in Trivandrum over the past few years have all been veryappreciative of the destination. The major factor preventing this is the lackof infrastructure. Vizhinjam lacks the facilities to handle even mid-sizedships as well amenities for passengers.

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

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

Key Learning

There is very little doubt about the potential of Vizhinjam/Trivandrum to emergeas a leading cruise tourism destination due to a variety of factors. The main

hurdle is seen as the lack of infrastructure at the Vizhinjam harbour.

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

Questions

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

Question 25

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No Answer

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

Question 26

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

Question 28

40%

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No Answer

Remarks

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

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

cruise ships. Cecil Haidar Ali expressed a concern that port operators may not give

priority to a cruise facility as it typically generates less revenue than acargo facility. Hence such a facility should be stipulated in thedevelopment agreement or supported by the Government. The overallbenefit of attracting cruise traffic may not be immediately evident to theport operator.

Key Learnings

The current facilities in Trivandrum such as the Vizhinjam Fishing Harbour can

be upgraded to accommodate cruise ships. Dedicated facilities can be developedin a phased manner so as to ensure the most effective use of capital. Thedevelopment can be done either by the Government or through a Public PrivatePartnership (PPP) model, perhaps in association with the tourism industry. TheGovernment also needs to ensure that a cruise facility can be made part of theproposed port project.

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Chapter 4 - Conclusion

Section 1: Summary of Key Learnings

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

The review of literature and industry data has enabled us to understand thestructure, key drivers and emerging trends in the global cruise industry. Thisphase of the study along with the in-depth discussion with key expertsundertaken as part of the expert survey component of the study has helped incharting the current Indian scenario as well as to understand potentialadvantages and lacunae.

Before proceeding to conduct an in-depth analysis of the potential of Trivandrumas a cruise destination, it may be instructive to re-cap the key points which haveemerged in the study so far. This will help in constructing a logical framework of

the way ahead for Trivandrum.

1.1 Cruise Industry Fundamentals

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

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

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

offered aboard the ships3. Cruises, especially round-the-world ones, tend to attract upper income-segment tourists. Contemporary and day cruises also attract mid-segmenttourists.

4. The age profile of cruisers, especially on long duration cruises, tends to bemiddle to senior age groups. Shorter cruises attract younger passengersand families.

5. There are several important cruise market segments:a) Familiesb) Senior Citizensc) Conferences and Incentives

d) Theme cruisese) Adventure cruisesf) Inland cruises

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

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

touristsb) Secondary facilities – desirable to create an international standard

ambience

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c) Facilities for cruise vessels

1.2 Global Market Scenario

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

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

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

1.3 Case Studies

1. Miami has become the cruise capital of the world due to theproliferation of cruises in the Caribbean and through continuousinvestment in infrastructure

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

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

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

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

cruises7. Key learning from Singapore include:

a) Need for strong governmental support

b) Development of world-class infrastructure in anticipation of demandc) Integration of cruise tourism into overall cruise strategy

1.4 Cruise Tourism in India

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

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

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

awareness of India and the improvement of infrastructure point to a rapidlygrowing market5. Surveys show that domestic tourists are already showing interest in the

cruise market6. Domestic tourists and foreign tourists have different priorities for the

various components of a cruise, however all of them felt that theavailability of infrastructure at and interesting destinations near the portswas important.

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

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8. It was estimated that India could generate over 230,000 cruise tourists in2007, while the actual figure was a small fraction of this.

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

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

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

1.5 Cruise Tourism in Kerala

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

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

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

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

5. Experts feel that Kerala has a winning combination of destinations,

activities and location needed to become a major cruise destination.6. The main obstacle is seen to be the lack of quality infrastructure7. Kerala already leads India in terms of inland cruises8. However, currently they are restricted to short excursions on the

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

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

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

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Section 2: Strategic Analysis

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

Strengths

Closest Indian port toDubai – Singaporeshipping route

Well established touristdestination offering a widevariety of attractions and

activities Well developed urban area Proximity of International

Airport

Weaknesses

Lack of infrastructure Lack of recognition as a

cruise destination Domestic cruise market

yet to develop No regional cruise circuit

as yet

Opportunities

Development of Vizhinjamdeepwater port

Opening of NW III Integration of cruise

tourism into overalloffering MICE and Wellness

segments Development of the “Fly –

Cruise” segment

Threats

Delay in development of infrastructure

Competition from nearbyports like Mumbai and

Cochin Downturn in global cruise

sector due to variousfactors like globalrecession

SWOT Analysis of the development of Trivandrum as a Cruise Destination

2.1 Strengths

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

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

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

2.2 Weaknesses

The most prominent obstacle in developing Trivandrum into a world-class cruisedestination is the lack of infrastructure. The only currently available point tohandle cruise vessels is the fishing harbour at Vizhinjam. It is quite shallow and

has no dedicated cargo berth till date. There is also a lack of Customs/immigration facilities and a fishing harbour is not the most pleasantplace for cruise passengers to disembark.

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

The nascent stage of the domestic and regional cruise markets make it quiteunlikely that a home-port facility can be developed in Trivandrum, or most other Indian ports, in the near future. The industry will have to depend on world-cruise

vessels passing by on the shipping route. This poses the risk of uncertainity inthe volume of business in any given period, making investment in the sector more difficult to attract.

2.3 Opportunities

The proposed development of the deep-water port and container transshipmentterminal at Vizhinjam is by far the greatest opportunity in the initiative to developcruise tourism in Trivandrum. It will be the deepest port in India and the entireIndian Ocean region with a draft of over 25 meters and will be capable of round-the-year, all-weather operations. By 2013, Vizhinjam will be capable of

accomodating the biggest cruise ships in the world.

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

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

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

Trivandrum International Airport is entering a period of rapid growth with thecommissioning of its state-of-the-art New International Terminal, sprawled over

350,000 Sq.ft. As the expansion of the Airport proceeds, its connectivity –especially International – is expected to surge and this will enable thedevelopment of the “fly-cruise” segment.

2.4 Threats

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

cruise traffic and any delay in this will also be very damaging.

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

Finally, we cannot rule out unforeseen events affecting the global and localcruise tourist markets, just as the current economic turmoil has hit the airline andhospitality industries. However, since by their very nature, such events cannot be

planned for, they can be excluded from the purview of our study.

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

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

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

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Section 3: Product Design and Promotion

3.1 Product Design

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

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

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

Trivandrum has a diverse set of attractions which can be show-cased to tourists,

but care needs to be taken not to overwhelm them with the entire range at onetime. The product design has to carefully seggregate between attractions basedon parameters like the time taken to experience each one. For example, in theshort and medium term, Trivandrum will mostly receive cruise tourists who mayalight for day excursions. Hence, activities with relatively long durations likeayurvedic wellness treatments or visits to distant locations may not be ideal for the primary packaage. For longer duration tourists, a secondary package can bedrawn up. As time progresses, and activities like “fly-cruise” or home-portingdevelop, longer itineraries can be given increasing importance.

In the initial phases, emphasis can be laid on the attractions within the city itself

with a focus on the unique cultural elements and natural attractions. Cruisepassengers typically like to sample various aspects of the destination, rather thanengage in long stays at each attraction. So, natural attractions such as beachesand lakes, as well as cultural and historical attractions such as museums,temples, historic monuments and architectural highlights are best suited for inclusion into a day package. Short cultural performances can be included insome of the itineraries as the art-forms of Kerala are unique and world-famous.

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

Palace – Tea – Kovalam Beach – Re-embark at Vizhinjam.

Specific itineraries could be planned for satellite destinations like Ponmudi –Neyyar Wildlife Sanctuary (Ecotourism), Thenmala (Adventure Tourism), Varkala

– Akathumuri (Backwater focus) or Kanyakumari – Suchindram –Padmanabhapuram. A specific itinerary could even focus on short rejuvenationtreatments.

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

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

Wellness and Rejuvenation programmes can be made a key attraction, sinceKerala enjoys the top position in these, especially in the case of natural andAyurvedic programmes. In fact, themed cruises which focus on healthy living

could be attracted on this basis, as could luxury cruises which are predominantlypatronised by senior citizens.

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

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

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

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

3.2 Promotion

The promotion strategy of any product is often as important as its attributes.However, in the case of Trivandrum as a cruise destination, the requirement isslightly more complicated. This is due to the structure of the cruise industry itself.In most other tourism segments, individual tourists or groups of tourists choosetheir itinerary from a wide choice of possible destinations and modes of travel.

However in the case of cruises, the variety of itineraries and their degree of customisability is comparitively limited. For example, in the Caribbean, anindividual tourist can choose many more options than a cruise passeger who hasto stick to the schedule set by his line. Many destinations may not be visited bycruise ships even if individual tourists are interested in them. The decision of which ports to call at and how much time is spent at each is taken by theprogram directors of the cruise lines. Individual cruise tourists just get to choosefrom the available options.

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

This means that the ordinary channels used to reach potential tourists, such asmagazines, TV advertisements, websites and emails, may not be very effective

on their own. These communication channels may not be able to reach the keydecision makers among the cruise lines or shore agents, and will definitely not beable to convey sufficient information to them to enable them to take the correctdecisions. Marketing avenues like trade shows, trade magazines and individualmeetings are critical to establish the destination as an attractive one to visitamong industry circles. To this end, it would be useful to establish a dedicatedteam to market Trivandrum and Kerala as a cruise destination. Today, this ismostly being done on an ad hoc manner by travel agents. An agressive outboundmarketing campaign has to be initiated with cruise lines and shore operators asthe target. Organisations like CLIA has to be contacted to ensure that worldcruises stop over at Trivandrum. Currently, less than 20% of cruise ships passing

by India stop at our ports. This is a sorry figure, but in it hides a massiveopportunity.

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Section 4:Potential Benefits from Cruise Tourism

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

4.1 Tangible Benefits

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

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

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

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

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

cruise tourists

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

4.2 Intangible Benefits

Many project studies and proponents of cruise terminal projects fail to take intoaccount the intangible benefits of attracting cruise traffic and thus underestimatethe total project impact, especially in the early years when direct revenues are

just beginning to build up.

Cruise traffic brings a variety of intangible or indiret benefits to the destinationand its surroundings. For example, when cruise tourists are drawn to longer stays, they tend to spend heavily into the local economy, for everything from

souvenirs to taxi rides to rejuvenation treatments. Cruise visits are also often thebest avenue for tourists to sample a destination. If it is found attractive, asignificant proportion of tourists return for a much longer visit. Cruise visits alsoboost the profile of a destination as a premium destination and in this way help toattract even non-cruise tourists as well as investments by hospitality and servicefirms.

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

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subsidies and other support wherever needed to ensure that infrastructure is inplace. Singapore and, of course, Miami have understood the effects that cruisetourism indirectly can have on the tourism sector and on the economy itself. Thishas been one main reason for their aggressive and ultimately successfulpromotion of cruises.

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Section 5: Development of Cruise Infrastructure

The primary reason for India lagging behind global cruise destinations has beenpointed out as the lack of world-class infrastructure by all stakeholders in theindustry. In the case of Trivandrum, the few cruise vessels which arrive eachyear are handled at the Vizhinjam fishing harbour. The bustling fishing harbour lacks the depth or the wharfage to safely handle even small cruise ships. Inaddition to this, there are no facilities to handle the passengers nor even to park

buses to transfer them to. Thus, the development of cruise infrastructure is thetop priority as far as the cruise industry is concerned. But this has to be plannedkeeping in view the commercial viability of each initiative. It is not advisable toinvest several hundred crores of rupees in a full-scale cruise terminal beforecruise traffic has built up. The best strategy is to utilise existing infrastructure withrelatively minor upgradation in the short term, say for the next five years, andthen start to make more significant investments as the traffic builds up.

5.1 Vizhinjam Fishing Harbour

The State Government is currently completing the construction of a 200 m cargo

berth at the Vizhinjam fishing harbour. The harbour's depth will be increased toabout 6 m. These developments will allow medium sized cruise vessels to safelyberth within the protected harbour. In addition to this, a few facilities could beprovided to enable cruise operations:

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

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

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

All these facilities combined will not cost more than Rs 1 Crore. This is arelatively minor expenditure compared with the benefits of handling cruise shipswith lengths of over 120 m and draughts of 5.5 m which could be carrying up to200 passengers. By increasing the depth of the berth to 7 m or more, ships of upto 150 m could be handled. Ships of this size account for a significant portion of the cruise traffic passing along the West – East shipping channel.

5.2 Trivandrum Port / Valiathura Pier

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

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

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

The pier is currently considered structurally damaged and will need significant

repair before it can be made operational. This involves repairing its pillars withconcrete after they are encased in caissons and the water is pumped out. Thepier's superstructure also needs to be repaired with concrete and lights installedacross its length. A gantry-like arrangement could be provided for passengers tocomfortably disembark and embark. Finally, a small transit building could be builtto accomodate Immigration and Customs checks. This could even be temporaryin nature. Since the pier is directly accessible from the main Bheemapally –Shankhumugham Road, coaches can drive right up to it. Navigational aids mayalso be needed at the pier.

The repair of the pier itself may cost several crores of rupees. The additional

facilities needed for handling cruise ships would cost less than Rs 50 Lakhs. Thepier's key advantages are that it is located just 1 Km from the InternationalAirport, 3 Km from the NH-47 and about 6 Km from the center of the city and thatit can handle cruise ships of all sizes.

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

5.3 Vizhinjam Deepwater Port and Transshipment Terminal

The project will have an initial draught of 18 m and an eventual draught of 24 mwithin its massive basin. It will be protected by a giant breakwater and thus willbe an all-weather port with over 3 Km of berths. The port is planned primarily as

a container transshipment terminal but will have one or two general berths.

If Trivandrum is to emerge as a global cruise destination, the Vizhinjam projecthas to become a reality. At this time, the earliest this could happen will be in2014, which means that this can be considered a medium term option for cruiseinfrastructure upgradation.

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

traffic.

5.3.1 Phase I

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

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

The Valiathura Pier (Image Courtesy: Ramagi.com)

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Perspective view of the proposed Vizhinjam Deepwater Container TransshipmentTerminal

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

Illustrative Design of Cruise TerminalSource: BEA International

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1

2



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

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

5.3.2 Phase II

The final phase of development of cruise infrastructure in the Vizhinjam port can

be envisaged once sufficient cruise traffic has built up at Trivandrum, perhaps by2018. Since the available quay area of the port will be taken up by container berths, it may not be possiible to easily identify a location for a dedicated cruisehandling facility.

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

As in the case of the Phase I cruise facility, this will need passenger handling

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

Type of CruiseTerminal

Cost of Facility(In US$ millions)

Size (Sq.ft.) Type of Use

Temporary 1.5 3000 – 20,000 Occasional/Seasonal

Entry-level 3 - 10 20,000 – 60,000 Seasonal

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

growing port

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

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

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

In the case of both Phase I and II facility, it may be best if the Government cansubsidise part of the cost, so that the port operator will not be discouraged by theslow payback from just the berthing revenues. Port operators can charge onlyberthing fees to cruise ships whereas cargo ships also yield cargo handlingcharges making the latter more lucrative. Thus, the Government may have to

mandate a certain availability of berth space for cruise operations in addition toproviding capital expenditure support.

5.4 Development of Inland Cruises

The primary factors hindering the development of inland cruises includeobstacles within the National Waterway III itself such as the lack of adequatelocks in the Thanneermukham Bund or due to the non-availability of vessels of asuitable design. However, there is little which prevents the commencement of limited inland cruising. Yet, the houseboat industry has taken little or no initiativeto expand into this potentially exciting segment. This may be out of sheer inertia

of modifying from a proven mode of operation.

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

Ensure complete navigability of the existing stretch of National WaterwayIII

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

Incentivise canal cruise boats by offering tax holidays on capital andoperating expenditure

Promote the idea of inland cruises to domestic and foreign cruises as amore attractive option than conventional houseboat trips Establish inland cruise terminals at Kollam and Cochin which can provide

passenger amenities such as restaurants, hotels, shopping etc as well asservice and provision the cruise vessels

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

As discussed earlier, inland cruises can bring in tourists for longer durations,offer a richer experience and distribute tourism revenues over more areas than

conventional houseboat operations which are very localised. It could also act asa trail-blazer to open the waterways for passenger and freight traffic. Hence, theGovernment needs to place a strong emphasis on its development.

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Entry-level/Temporary Cruise facility

Occasional Use Cruise Terminal

Regular Use Cruise Terminal

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Section 6: Development Plan

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

Action Step To beCompleted By:

Agency Responsible

Establishment of temporary/entry-level cruise facility at Vizhinjamfishing harbour

August 2010

Dept. Of Tourism, DistrictTourism Promotion

Council, PortsDepartment

Marketing Trivandrum to variouscruise lines and shore agents

July 2010 Dept. Of Tourism

Repair of Valiathura Pier December 2010 Ports Department

Establishment of temporary/entry-level cruise facility at Vizhinjamfishing harbour

June 2011Dept. Of Tourism, District

Tourism PromotionCouncil

Completion of Stage 1 of Vizhinjam project

January 2014 Govt. Of Kerala

Phase I Cruise Facility atVizhinjam port

December 2014Dept. Of Tourism, Port

operator

Phase II Cruise Facility atVizhinjam port

December 2018Dept. Of Tourism, Port

operator

Opening of NW III from Kollam toCochin and establishment of terminals

December 2010Dept. Of Tourism, Inland

Waterway Authority

Design and manufacture of inlandcruise vessels

December 2010Dept of Tourism, boat

operators

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

Waterway Authority

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

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

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The Authors

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

Ajay Prasad is a management professional, having completed his Post-graduation in Management from IIM Calcutta, following his graduation in

Engineering. He has five years of experience with international consulting andproperty & infrastructure firms. He is also the Vice-President of the TrivandrumDevelopment Front, an NGO aiming to promote development in the city of Trivandrum.

References

Books and Reports

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

•

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

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

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

Chandrasekhar, 2008

Media

• The Hindu Businessline• Live Mint• The Economic Times

Websites

• Wikipedia•

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

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Appendix 1

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

Sir,

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

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

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

Questions

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

Strongly Agree Agree Disagree Strongly Disagree No Answer

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


Kerala's wide variety of attractions and activities, which has been able to attract a diverse profile

of foreign and domestic tourists, strengthens the prospects of it becoming an ideal cruisedestination.


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


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


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


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


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


Cruise passengers arriving in, for example – Cochin, stay only for a short duration and do notexplore the full potential of Kerala.

Strongly Agree

Agree

Disagree

Strongly Disagree

No Answer

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


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


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


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


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


MICE tourism is being developed in Kerala and this can be extended to the cruise industry by

offering the “meetings-at-sea / meetings-on-backwaters” concept.


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


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

Strongly Agree

Agree

Disagree

Strongly Disagree

No Answer

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


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


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


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


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


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


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


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


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


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


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


Additional Comments:

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Name :

Address:

Email ID:

THANK YOU

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Appendix 2

Survey Response Sheet

(All Response figures in percentages)

Question No. Agree Disagree No Answer

1 55.56 44.44 0.00 0 0

2 33.33 66.67 0.00 0 0

3 44.44 55.56 0.00 0 04 11.11 77.78 11.11 0 0

5 0.00 88.89 11.11 0 0

6 0.00 77.78 22.22 0 0

7 33.33 33.33 22.22 11.11 0

8 66.67 11.11 22.22 0 0

9 55.56 33.33 0.00 11.11 0

10 22.22 55.56 11.11 0 11.11

11 11.11 44.44 44.44 0 0

12 0.00 88.89 11.11 0 0

13 11.11 66.67 0.00 0 22.22

14 22.22 44.44 33.33 0 0

15 0.00 88.89 11.11 0 016 22.22 66.67 11.11 0 0

17 22.22 55.56 22.22 0 0

18 22.22 55.56 11.11 0 11.11

19 0.00 66.67 22.22 11.11 0

20 11.11 77.78 11.11 0 0

21 22.22 77.78 0.00 0 0

22 30.00 40 20.00 0 10

23 30.00 70 0.00 0 0

24 30.00 60 10.00 0 0

25 20.00 70 0.00 10 0

26 40.00 60 0.00 0 0

27 10.00 50 40.00 0 028 40.00 40 20.00 0 0

StronglyAgree

StronglyDisagree

Cruise Tourism in Tri Van Drum

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