India reduces port tariff to encourage domestic cruise tourism

The Indian government on Friday reduced port tariff by 60% to 70%, to promote domestic cruise tourism.

“The decision will support the cruise industry and protect it from the adverse economic impacts due to the Covid-19 pandemic,” said Union Shipping Minister Mansukh Mandaviya. “It will provide an opportunity for the country to earn huge amounts of foreign exchange and generate sizable direct and indirect onshore employment in cruise tourism,” the Minister added.

The port charges for a cruise ship will be $0.085 per GRT (Gross Registered Tonnage) instead of the present rate of $0.35, for the first 12 hours stay (‘Fixed Rate’) and $5 per passenger (‘Head Tax’).

The Ports will not charge any other rate like berth hire, port dues, pilotage, passenger fee etc. For the period exceeding 12 hours of stay, the fixed charges on cruise ships will be equal to the berth hire charges payable as per SOR (Schedule of Rates) with 40% discount as applicable for cruise ships,” said a statement.

Further, cruise ships making 1-50 calls per year will get a 10% rebate, 51-100 calls per year will get a 20% rebate, and ships making more than 100 calls per year will get a 30% rebate. These tariffs shall be immediately effective for a period of one year, said the statement.

This rationalisation would also help ensure that cruise calls at Indian Ports do not dry up completely, the statement said.