Anchors Away, A Malabar Sunrise!

Passengers soaking up the tropical sun, jamming jacuzzis, sampling rainbow-coloured drinks and exotic fare, jostling in a conga line to tunes from the land of oriental mysticism. A routine Caribbean adventure on the high seas? Not really. This is a floating slice of India in the alluring turquoise blue waters of the Indian Ocean rim. The 10,400-tonne Ocean Majesty, which will start operations this fall, will be the first such venture from the Indian shores aiming to grab a slice of the country’s five million annual outbound tourists. And helping the nation, in the process, join the exalted league of cruise operators like Norway, Singapore, the UK and the US.

The Indian Ocean Cruise Lines Limited (iocll) is the result of a consortium formed by a handful of non-resident Indians like the New York-based McKinsey ceo Rajat Gupta, Citibank chairman and ceo Victor Menezes, London-based Stanchart head Rana Talwar, British industrialist G.K. Noon and a few home-grown business magnates. The group has also roped in Jaswant Lalwani, seasoned hotelier and former marketing chief of the UK-based Cunard Lines, the world’s most recognised brand name in luxury cruising, to head the operations of the fledgling venture.

But how does the Indian venture tackle the pressures from global competitors in the luxury liners business? Lalwani, who set up the Asian operations of Cunard, has a unique gameplan to keep the sharks at bay: offer competitive rates and market vacation packages in the Indian Ocean rim (Mumbai, Pondicherry, Goa, Cochin, Lakshwadeep, Colombo, Athens, Dubai, MalŽ, Kuala Lumpur, Penang and Singapore). This, the promoters hope, will help divert a significant bulk of the cruise traffic to this part of the world.

"A cruise is undoubtedly one of the best ways to enjoy a holiday. But our difference is that we are the first and only cruise which offers dedicated trips in the Indian Ocean. Besides, we have an all-European crew and a special arrangement for vegetarians. Then, all our rates are inclusive of tips (which is a major plus because Indians on cruise often get into trouble over issues like how much of tipping they need to do)," Lalwani told Outlook. He added that the consortium had done an exhaustive due diligence exercise for nearly a year before plunging into the top-end business. "Globally, cruise is a lucrative but high-value affair and we did some meticulous planning and our studies show the business will grow manifold from India. And if you are talking of the risk, it’s worth taking," adds the marketing ace.

Lalwani should know. Over the years, various Indian companies have tried their hand at this lucrative business but failed. A few years ago, the Chennai-based Sterling Resorts group announced its intentions to get into the cruise business, only to shelve the plan. London-based Ravi Tikkoo, synonymous in the ‘60s and early ‘70s with big-time shipping, has also been long contemplating a foray into the cruise business. Tikkoo even announced plans to construct what he claimed would be the world’s classiest liner even though experts doubted his financial capacity to realise it.

Why then is iocll so optimistic? Independent studies show the Indian cruise business is booming, with a significant portion of outbound travellers opting for this exotic travel option. Last year, more than 1.5 lakh people went on cruises from India and this year the figure has already crossed the 65,000 mark. And it could only explode, so to speak, with the onset of the festive season towards late autumn. "We would be happy if we can pick up around 40,000-50,000 travellers every year," says Lalwani, whose first sail (the Suez Canal cruise) will start on November 14 from Greek capital Athens.

And the crowds have already started pouring in for the first swadeshi venture. Not relying solely on independent travellers booking through Travel Corporation of India (tci) offices, iocll has tied up with the Taj Group of Hotels for providing onshore hospitality to its passengers. The Taj Group has also reserved an option to pick up an equity stake in the venture at a later date. Realising this could bring lucrative foreign exchange, the Department of Tourism recently instructed some of its offices in Europe and the US to extend all help to the nri mega venture. And why not? Studies conducted by the department and top travel agencies like Sita and Thomas Cook show an increasing preference among homebound nris for such luxury liners.

"This is one of the best things to have happened to the maritime industry. Cruising is the future of global leisure business, especially from Asia, and anyone offering competitive fares and new destinations will be able to make a mark. This will also benefit Indian tourism because out of the 5 million outbound tourists, two million are purely in the leisure category and a significant portion of that crowd is for cruises," remarks Subhas Goyal, president of the Indian Association of Tour Operators (iato). "Business during winter is good because that’s when global cruising is going through a lull and European and American cruise companies anyway offer destinations in the Far Eastern sector."

Agrees Narendra Taneja, South Asian bureau chief of Trade Winds, the renowned shipping journal: "The global cruise industry may not take notice of this small venture but for India, it’s an interesting development because Indians are known globally for their long tradition of classy hospitality. Also, Indian seafarers are the best bet, both for global cargo vessels and backroom boys for cruiseliners." Great Eastern Shipping director Sudhir Mulji echoes these sentiments: "Indians are increasingly taking to cruising as it’s (now) seen as a symbol of both leisure and class. And the potential is immense."

Besides, industry observers claim the move will also create many more jobs in the ports of call. For example, the Caribbean countries had received $2.3 billion in cruise-related expenditure in 1995 - the most recent figures available - and the industry generated more than 48,000 jobs in the region. "We can have a similar situation here if more companies get into this business. Besides, the European and American liners anyway have saturated their markets and currently depend on a significant section of Asians every year for their business. If Ocean Majesty can run full house for at least three years, then they do not have to look back. And honestly, it should not be a problem to get tourists interested in the Indian Ocean circuit... After all, anything new sells," claims a cruise tour operator.

According to observers, some of the benefits Ocean Majesty is likely to enjoy include personalised service (because of the vessel’s size and accommodation of less than 700 people) and destinations in a completely new sector.

So, does this mean a new beginning for Indians in an area traditionally dominated by the developed countries? Perhaps yes. But, as Ratna Chadha, director (sales), Royal Carribbean Cruise, cautions, it’s equally important to offer round-the-year trips and have own vessels to sustain business in luxury liners. Once that target is fulfilled, it could be bon voyage for Indian maritime business.