Is the "smaller" Mormugao port a whopping 233% more expensive to dock for cruise vessels than more developed ports in the Mediterranean Sea?
With a dedicated cruise terminal almost ready at the Mormugao Port, concerns are now being raised by Carnival UK, which controls 42 per cent of the global cruise tourism market, about the high docking charges at Goa and other ports in the country.
According to reports, Carnival UK Chairman David Dingle flagged a slew of concerns on taxation and port charges, which he said are higher when compared to the developed world.
He was presenting the Carnival's plans for India at Dawn of Cruise Tourism in India, an international conference organized by the Shipping Ministry at Mumbai Port on Tuesday.
Dingle also said that while Mumbai Port Trust has reduced its tariffs, the transit charges are very high.
Docking at a smaller port like Goa results in charges of up to Euro 50,000 as against Euro 15,000 for developed ports in the Mediterranean Sea, he said, adding, "port costs must reduce by 50 per cent to be competitive."
Calling for a withdrawal of the GST, Dingle said, "We would not bring our ships here in any significant numbers if cruising attracts any GST."
"Anything to do with cruising in this country must not attract any GST whatsoever. Not only it is about money, (but) in principle, the cruise industry would not come to a part of the world where it has to pay GST on the ticket price and on the sales made onboard. That does not happen," Dingle said.
It can be noted that the Shipping Ministry has already moved the GST Council, the highest decision making body under the recently introduced indirect tax regime, to exempt the cruise tourism sector from GST at par with other nations.
At present, cruise tourism is not taxed and the Shipping Ministry wants to keep it out of the GST regime in order to boost the industry.
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GOA DOCKING COST
* Euro 50,000
DEVELOPED PORTS
* Euro 15,000
CALL TO CUT TARIFF
* By 50 per cent
OPPOSITION TO GST
* Operators sound warning bell
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Target of 40 lakh
cruise tourists
by 2022: Gadkari
PANAJI: Union minister Nitin Gadkari on Tuesday said the government wanted to increase the number of cruise tourists to 40 lakh in five years from last year's 1.80 lakh.
Given the right impetus, the number of tourist ships visiting India can go up from the present 158 to about 955 per year, the ports and shipping minister said at a special event on cruise tourism in Mumbai.
The government, Gadkari said, would set up cruise terminals at five ports in Mumbai, Goa, Mangalore, Kochi and Chennai.
Gadkari said the revenue benefit will shoot up to Rs 35,500 crore in 2022 from the over Rs 700 crore last year.
Earlier, estimates presented by an international consultant, which seem to have been used to fix the targets, revealed that the size of the vessels which call will also increase, with a single ship expected to carry 4,200 passengers as against the present 1,250.
