Cruise tourism should get 5-yr GST holiday: Kannanthanam

Union tourism minister Alphons Kannanthanam today demanded a five-year holiday on the good and services tax (GST) for cruise tourism in the country.

The minister said cruise tourism globally generated 26 million cruisers last year, while India had only 1.73 lakh, which accounts for a meagure 0.3 per cent.

"We need to increase the numbers dramatically. I would like to suggest that GST should be abolished in cruise tourism at least for the first five years," Kannanthanam said at an interactive industry event which was also attended by Union shipping minister Nitin Gadkari.

He said the suggestion was based on the discussions that he had with the industry stakeholders.

The tourism ministry has invested Rs 100 crore for developing cruise terminals in various parts of the country to promote the sector.

Speaking at the event, Gadkari urged cruise tourist companies to bring ships from abroad and refurbish them in the country as it will be cost-effective.

He said, the government will give Rs 500 crore to the Shipping Corporation of India (SCI) to lease out cruises.

"The government is ready to co-operate with the industry to give filip to the domestic cruise tourism and work on innovative ideas," the minister added.