While Ratna Chadha, chairperson and co-founder, Tirun, talks about the status of the cruise industry, Apple Woo, director of Asia, Celebrity Cruises, shares about India’s contribution in the overall market. By Sakshi Sharma
What would you say about the status of cruise tourism in India?
Ratna: I with my husband pioneered the concept of tourism in 1993. There were only 200 people then, who had sailed on any cruise ship with an Indian address. Things were very different then, not only in India but in the international scenario as well. We might think that we have come a long way now but it’s not in terms of the number of passengers that have cruised until now. Only 2,20,000 passengers have cruised out for vacations. It is quite evident that the industry is very nascent and underdeveloped. We haven’t even scratched the tip of the iceberg. But having said that, we understand that there’s a huge potential. Indians have a high standard of living, we have the ability to pay higher rates and want to experience the best, especially during travelling.
The cruise industry hasn’t yet flourished in India. Why do you think so?
Ratna: This is because international brands are not represented well in our country. When you see a Mercedes on an Indian road, you would want to buy that. When you have a four season hotel, a Sheraton or the Hyatts all over the world, you will want to stay in the same hotels because there is membership, royalty programmes and you are familiar with the brands. It is very important for people to get familiar with the cruise lines. The industry want to come to India but is not able to because it has its own issues. This is the biggest challenge.
We have a vast coastline, if we clear the waters for international cruise lines to come why wouldn’t they come? They can’t keep plying in the same area. How much can North America or Europe allow? Those destinations are already covered. They have to move the equipment because these are mobile assets. And the cruise lines can move them to different parts of the world on the basis on seasonality. But we are too occupied with our own challenges to let them in.
What steps need to be taken to help the industry grow?
Ratna: The only way to up the quotient or bring India on the tourism map is to welcome the international cruise lines into the country because we don’t have the capacity to build our own ships at the moment. These are already readymade ships. All we have to do is to include India as a part of their itinerary. The business environment also has to be such that it’s viable for them to come.
What are your expectations from the Government of India?
Ratna: The government is positive. They have understood the potential of the industry. They need to use the 7,600 km of our coastline. If the ocean cruising transportation develops then the internal waters and river cruising will also develop. Our own heritage sites will gain an impetus.
How is India’s economic decline affecting the industry?
Ratna: As various businesses and exports are down, it is impacting the industry largely. For tourism industry or hotels, it is very important for the environment to facilitate their business. After all, tourism works on disposable income. And ours is such a small market. If the share market is down and people don’t have a disposable income, we won’t be able to do well. It is quite obvious that when onions are Rs 100 a kg then how will people think about planning a holiday. Even the upper segment is holding back. It is high time we get India up and going. The sooner we do it, the better it is for us as more cruise lines will invest.
How can the cruise industry generate employment opportunities?
Ratna: It is a matter of concern that there are lot of young people graduating every year. Where are they going to go? The cruise industry will have a multiplier effect on the economy as the employment will increase and hotels will make money. Heritage sites and domestic tourism will also get a huge impetus as we offer multi destinations. I was also on the task force instituted by the Ministry of Tourism and shipping to bring India on the tourism map.
We also need to focus on the fact that it is a mobile industry, our equipment can be moved. This acts as an advantage for us. You can’t move a hotel or a brick and mortar thing but a cruise can be. This feature helps us to switch to a different destination if there are any unfavourable conditions in any destination, which in turn will always facilitate employment opportunities in different locations.
What is the overall growth of celebrity cruises?
Apple: We have seen a significant growth over the past three years. Even now we see huge potential because of our new ship. We expect a 35 per cent growth in the sector, especially where the ship is sailing in, the Euro as well as in the Western and Eastern Mediterranean.
What are the emerging industry trends for 2020?
Ratna: There will be newer destination and ships, very high on design. There will also be more of variety, something to suit everybody’s budget. Entertainment, spa, wine is open for everybody. The broadway shows are not ordinary ones and they are even cost effective. Now there are even no language barrier or food issues on a new ship, Indian foods are there on the ship. The only challenge is that India has many states and each state has its own requirement. We are hopefully going to personalise that too as more Indians start travelling. At the moment, we have common Indian selection as Indian cuisine is getting popular, especially the vegetarian food. I see other nationalities pouncing on our palate. Infact, 60 per cent of our staff are Indian because we have trained professionals.
Now the cruise lines are also investing huge amount of money to build newer ships. We have got a ship making a debut this year in April — Celebrity Apex. We have also planned to introduce new ships, atleast for the next two years.
What was the overall scenario of the industry in 2019? What is India’s contribution in the overall market?
Ratna: It was not a very good year because there were a lot of challenges in the country. Elections took place, couple of airlines crippled, economy slowed down, automobile industry was hit adversely. However, the previous year was a rocking one. And that’s what we would base ourselves on.
Apple: Overall contribution for Asia Pacific stands at 10 per cent. India would stand a good five per cent for it.