Jurgen Bailom, president and CEO of Cordelia Cruises, expressed optimism about the 2024 budget’s potential benefits for the cruise industry, suggesting measures that could help drive the cruise industry in India.

In a written statement, Bailom suggests that reducing the GST rate on cruise ticket sales and onboard services or introducing a tax holiday, similar to that for the IT industry, would make cruising more accessible and enhance the overall travel and tourism sector.

“As we approach the 2024 budget, 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,” said Bailom.

“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.”

Additionally, Bailom emphasized the need to exclude cruise services from the Overseas Tour Program Packages (OTPP) designation, which requires the collection of Tax Collected at Source (TCS) from customers. He pointed out that airlines are exempt from TCS for international flights, and adding TCS on top of the 18 percent GST significantly raises the cost of cruise tickets, which is unfavorable for passengers. Bailom believes that removing this additional tax burden will boost bookings and stimulate growth in India’s cruise industry.