Reduction in GST for cruise ticket sales and onboard services would make cruising more accessible

Jurgen Bailom, President and CEO of Cordelia Cruises, shares his comments on what the FM can do to help develop the cruise tourism industry in India. He says, “We at Cordelia Cruises are optimistic about the positive changes it could bring to our industry. The government’s support has been instrumental in fostering growth and development within the cruise sector. We believe that a reduction in the GST rate for cruise ticket sales and onboard services, or the introduction of a tax holiday similar to what was done for the IT industry, would not only make cruising more accessible to a broader audience but also boost the overall travel and tourism sector.”

“Continued investment in port infrastructure development is crucial to support the growth of the cruise industry and improve connectivity. We believe these measures will significantly contribute to positioning India as a premier cruising destination, benefiting both the economy and tourism. We are confident that the government’s continued support will drive the industry forward.”

“Furthermore, we request that cruise services should not qualify as providers of Overseas Tour Program Packages (OTPP), which mandates the collection of TCS from customers purchasing cruise packages. Unlike airlines, which are exempt from TCS for international flights, adding TCS over and above the 18% GST increases the overall cost of a cruise ticket and is not favourable for passengers. This change will significantly increase bookings and contribute to the growth of the cruise industry in India.”