Island Tourism

‘Who does not love islands? To be surrounded by the sea, lapped by the tide and shaded by palm
trees and sandy outcrops of rocks and grass. How lovely! And to be safe behind moat which
separates us from our neighbours. Who does not feel comforted by the security of an island home?
The Maldives, an island nation in the Indian Ocean, attracts over 900,000 tourists annually from
all over the world. In Anadman and Nicobar Islands total tourist arrival is 3,50,000 in 2013.Hawaii
Island receives a total of 8.3 Million tourist in 2014. A total of 3.71 million Foreign tourist visited
Bali in 2014.
Island tourism is not a recent phenomenon; the Romans used the Isle of Capri as a holiday
destination two thousand years ago. Islands, be they in the Mediterranean, the Atlantic or the
Pacific, as places where people go for relaxation and rejuvenation has a long tradition which
continues unabated’. Small islands are attractive for tourists to visit as they create feelings of
remoteness and isolation, peace and quiet and sense of timelessness.
Smallness has an important effect on the structure of tourism on islands. In particular, a small
island usually implies a less diverse natural resource base. The lack of diversity of resources to
attract a broad range of international tourists has as a consequence the development of seasonal
movements of visitors on the island destinations
For island states that have very few resources, virtually the only resources where may be some
comparative advantage in favour of are clean beaches, unpolluted seas and warm weather and
water, and at least vestiges of distinctive cultures’. Indeed, since their ecosystems and natural and
scenic beauty are some of their main advantages, islands need to preserve them in order to remain
competitive in the tourism industry. This may require that islands place further constraints on
travellers, in that they may not be able to do all of the activities that they could do at some other
destination. However, protecting the ecosystem makes it potentially more difficult to satisfy the
traveller’s sense of value
Main impacts of tourism on islands
Tourism has been instrumental in the development of peripheral, remote, and insular regions, like
islands, which are commonly characterised by peripherallity, isolations, fragility, scarcity of
resources, limited labour force and transportation cost, all being competitive disadvantages. Due
to the popularity of island destinations, their development is an important and inevitable matter
and thus, many islands are using tourism as their major economic growth tool.
Taking into consideration the importance of tourism, identified some main issues regarding the
development of tourism on islands. ‘These are,
 first the question of tourist demand versus protection of the environment;
 second, determining the role of government and its agencies;
 third, sustaining the economic health and supporting infrastructure;
  fourth, the problem of material supplies and the implications for imports;
 fifth, the important issue of population increase or decline and
 Finally there is the question of sustaining the indigenous population’.
Despite its necessity or not, the development of tourism has positive and negative economic, socio-
cultural and environmental impacts that need to be further analysed.
Main Island Countries in the world: Australia, Iceland, Singapore, Taiwan, Ireland, Cuba,
Jamaica, Madagascar, Srilanka, Barbados, Seychelles, Mauritius
World’s major destination for Island Tourism in 2015
 Providenciales, Turks and Caicos
 Maui, Hawaii
 Roatan, Bay Islands,Honduras
 Santorini, Cyclades, Greece
 Ko Tao, Surat Thani Province, Thailand
 Madeira, Madeira Islands, Portugal
 Bali, Indonesia
 Mauritius
 Bora Bora, Society Islands, French Polynesia
 Fernando de Noronha, Brazil
 The Mamanucas, Fiji
Asia's 15 Most Beautiful Paradise Islands To Visit In 2015
 Similan Islands, Thailand
 Pom Pom Island, Malaysia
 Macleod Island, Burma
 Koh Rong, Cambodia
 Cat Ba Island, Vietnam
 Komodo, Indonesia
 Palawan, The Philippines
 Perhentian Islands, Malaysia
 Cebu Island, The Philippines
 Havelock Island, Andaman Islands, India
 Akajima, Japan
 Jeju Island, South Korea
 Raja Ampat, Indonesia
 Mentawai Islands, Indonesia
 Baros Island, Maldives
Major Activities for Tourist on an Island: water sports and adventure tourism such as trekking,
island camping, snorkeling and scuba diving, sea aquarium, water theme park, wave surfing,
Marina yatch, convention centre, health resorts, sanctuaries / National Park, Inter Island cruise
liner etc.
Scope of Island Tourism in India
Many of the over 700 uninhabited islands across India will be developed for tourism, filmmaking,
entertainment activities, as honeymoon destinations, maritime security and also for generating
non-conventional energy - both wind and solar.
This scheme will be part of the ambitious Sagarmala project. India has a total of 1,208 islands
including the uninhabited ones and there are 185 lighthouses. These will be developed as hub of
tourist activity. The plan to develop these islands, particularly the uninhabited ones, came up
keeping in mind the need to protect these islands from any unauthorized occupation and for
security reasons.
However, before coming out with any such plan, the government would have to consider the
environmental impact, rich and fragile ecology of those islands and in some cases the adverse
impact on the vulnerable tribal populations living in the nearby islands.
India has drawn up an ambitious, Rs.10,000 crore plan to transform the Andaman and Nicobar
Islands into the country's first maritime hub, taking advantage of its strategic location and making
it the base for infrastructure that will include an expanded dry dock and ship repair industry in the
capital Port Blair. This region has huge potential for us as the international trading route that
originates from Singapore and connects with the east-west corridor is hardly 15 nautical miles
from Indira point.
List of Famous Island in India:
 Andaman and Nicobar Islands
 Munroe Islands, Kerala
 Lakshadweep
 Rameshwaram
 Cochin Island (Wellington)
 Islands of the Cauvery River
 Chorao, Goa
 Elephanta Island
 Diu Island
 Majuli Island,Assam
 Cruise Tourism
A cruise ship or cruise liner is a passenger ship used for pleasure voyages, where the voyage itself
and the ship's amenities are a part of the experience, as well as the different destinations along the
way. Transportation is not the prime purpose, as cruise ships operate mostly on routes that return
passengers to their originating port, so the ports of call are usually in a specified region of a
continent. There are even "cruises to nowhere" or "nowhere voyages" where the ship makes 2–3
night round trips without any ports of call
The cruise ship industry has been the fastest growing segment in the travel industry around the
world, and since 1980, the average annual growth rate in the number of cruise passengers
worldwide has been 8.4%. The cruise industry has the potential to provide economic benefits to a
Island country. These economic benefits arise from five principal sources:
1) spending by cruise passengers and crew;
2) the shore side staffing by the cruise lines for their headquarters, marketing and tour operations
3) expenditures by the cruise lines for goods and services necessary for cruise operations;
4) spending by the cruise lines for port services; and
5) expenditures by cruise lines for the maintenance.
The global cruise industry generated revenues of 36.27 billion U.S. dollars in 2013, a figure which
was expected to increase to approximately 37 billion by the end of 2014. The industry made
significant recovery after revenue fell below 25 billion during the 2009 global recession. The
number of passengers carried by the cruise industry has grown year-on-year and is expected to
exceed 24 million in 2018. The average cruise passenger brought a revenue of 1,728 U.S. dollars,
but, with expenses per passenger also high, the average profit was only 185 dollars in 2013. The
Caribbean region, continue being the most preferred cruise destination; according to FCCA
statistics, accounting for 41.02% of all itineraries.
Source: www.cruisemarketwatch.com/growth/
Revenue of the cruise industry worldwide from 2008 to 2015 (in billion U.S. dollars)
This statistic shows the revenue of the cruise industry worldwide from 2008 to 2015.

Source:www.statista.com/statistics/204572/revenue-of-the-cruise-line-industry-worldwide-since-2008/

Average cruise revenue, expense and profit per passenger worldwide from 2011 to 2015
(in U.S. dollars)
This statistic shows the average cruise revenue, expense and profit per passenger worldwide from
2011 to 2015. An average of 184 U.S. dollars in profit was made per cruise passenger in 2014.
Leading cruise line companies worldwide in 2014, by revenue (in billion
U.S. dollars)
A record 23 million passengers are expected to sail this year, with 61 percent of North American
CLIA-certified travel agents reporting an increase in 2015 travel bookings over this time last year.
Cruise lines are enticing travelers with nearly 1,000 ports of call in new, exotic locations, especially
in the fast-growing Asian market. CLIA also revealed that member cruise lines are scheduled to
debut 22 new ocean, river and specialty ships in 2015 for a total investment of more than $4 billion.

The cruise industry this year will have major economic impact globally. In 2013, the global
economic output of the cruise industry was more than $117 billion; the industry supported nearly
900,000 jobs and contributed to $38 billion in wages.
Using several research studies, CLIA identified seven 2015 cruise industry outlooks:
1. Travelers Will Continue to Set Sail – Cruise travelers intend to continue to set sail and are
highly satisfied with prior cruise experiences. In fact, 62 percent are return cruisers and 69
percent ranked cruising as a better value than a land-based vacation. Overall, CLIA
member ocean passenger volume is projected to increase to 23 million in 2015, a four-
percent increase over 2014 estimates of 22.1 million.
2. Size Doesn't Matter – Five years ago, the largest cruise ship in the world was introduced
with a 6,300-passenger capacity. With 22 new ocean, river and specialty cruise ships
scheduled for debut this year, the focus is less on size and more on unique design and
amenities.
3. Specialty Cruises Continue to Thrive – CLIA's specialty segments, which includes
sophisticated ships, luxury yachts, elegant ocean liners and the newest river cruises,
continue to experience double digit passenger growth. In fact, specialty cruises grew by 21
percent annually from 2009 to 2014 estimates.
4. Caribbean Continues to Be Queen – The Caribbean remains queen for the cruise industry
with more than a third of the global deployment capacity market share in 2015. At the
 same time, cruise travelers are expanding horizons. The Mediterranean continues to grow
as a destination, as well as other regions including Asia and Australia. In 2015, 52 ships
will provide 1,065 Asian cruises with capacity for 2.17 million passengers.
5. Oh, the New Places We Will Go – The cruise industry is seeing an increase in passengers
looking for global experiences. As a result, cruising has made the world more accessible
than ever. CLIA's member cruise lines offer nearly 1,000 ports around the globe, including
many areas that fall within a UNESCO World Heritage Site.
6. Travel Agents Are Key to Cruise Travel – While the Internet and mobile devices have
overtaken how consumers make purchases, travel agents continue to be the most popular
and best way to book a cruise. In fact, seven out of ten cruise travelers (70 percent) use a
travel agent to plan and book cruise vacations.
7. Passengers Are at the Helm – When it comes to travel, consumers are in control more than
ever before. The cruise industry is excited, motivated and responding with key innovations
that are meeting the needs of today's passengers, such as bow-to-stern Wi-Fi and phone
connectivity, multigenerational appeal, themed cruises and "foodcations".
8. Top 3 cruise companies for 2014 are Carnival Corporation, Royal Caribbean Cruises, and
NCL Norwegian Cruise Line – they account for nearly 80% of worldwide passengers’
share and 72% of worldwide revenues’ share.
9. The top two cruise ports are: for embarkation – Miami, FL; as port destination – Nassau,
Bahamas. Half of all passengers on major lines begin voyage in one of the following three
Florida ports: Port Canaveral, Fort Lauderdale and Miami.NYC New York cruise port
(Manhattan and Brooklyn terminals).
The World's largest cruise ship 2015- Allure of the Seas (Royal Caribbean International)
Staterooms -2706, Total Passenger Capacity-6,29

Asia
Overall, the opportunity to host passengers in Asia grew 20 percent in this timeframe, from a
passenger capacity of 1.51 million in 2013 and exceeding the two million mark in 2015 (2.17
million).Among the nearly 1.5 million cruise passengers from Asia, China accounted for nearly
half of the regional passenger volume in 2014.
•An estimated 679,000 passengers came from mainland China compared to 700,000 sourced from
the rest of Asia.
•Other leading source markets include Singapore (163,000), Taiwan (137,000), and Japan
(119,000).
•Asia cruise passengers travel close with short sailings. The majority (91 percent) of Asian cruisers
sailed within the region in 2014.
•Europe (60 percent) was the leading destination among the long-haul cruisers that sailed outside
of Asia, followed by Alaska/Canada/New England (20 percent) and Caribbean/Western
U.S./Hawaii (14 percent) destinations.
•The majority (84 percent) sailed on the Contemporary ship segment followed by the
Premium/Upscale segment (15 percent).
•Shorter sailings were more likely, with the greatest share of passengers sailing 4 to 6 nights (48
percent) followed by 2 to 3 nights (38 percent).
•The cruise industry will have a potential to bring 7 million passenger destination days across local
communities in the region.
•With nearly 4,000 port calls scheduled, itineraries will touch 168 destinations across 19 markets.
•Japan and Malaysia will welcome the most port calls, 646 and 580 respectively.
•Top ports with over 200 total calls in 2015 include Singapore (374), Jeju Island, South Korea
(217), and Hong Kong (200).
•In terms of potential for tourist visits, Japan and Korea will host the most passenger destination
days with approximately 1.2 million passengers scheduled in each market.
India

Strategically positioned in South Asia and with a coastline of more than 7,500km ,India’s potential
to emerge as a global cruise destination is indubitable. However, easing port taxes and improving
port taxes and improving port infrastructure, developing river cruising and cruise circuits among
others is the need of hour.
In the tourism 2020 vision document, WTO Forecasts that India has the potential to reach nearly
8.9 million international arrival by 2020.A WTO study indicates that averages of 1.4 percent of all
international arrivals across the world are cruise tourist.
According to a 2015 report titled “Market Potential for Cruise Tourism in India” brought by
International Research Journal of Business and Management, India rank 9th most popular tourist
destination in the world and is today considered as a preferred cruise destination.
The government of India, as part of its cruise tourism development initiatives, has identifies six
Indian Ports to be developed as ‘world class cruise terminals’ and to be promoted as ‘integrated
Indian cruise circuit’. These port include Mumbai, Goa, Cochin. New Mangalore, Tuticorin and
Chennai. It is to be noted that these cruise ports selected for development are also strong tourism
states of India especially Kerala, Goa and Chennai thereby providing a ready platform for cruise
tourism to take off. Port infrastructure need to be developed in India with good cruise tourism
policy.

Cruise Passenger Source Market: India

In 2014, over 91K Indians took a cruise vacation, growing 36 percent annually since 2012. Indian
cruisers predominantly selected contemporary cruise lines, 95 percent, and were also likely to take
a local Asian cruise, 76 percent. Other key characteristics include:
•Were more likely to take a long-haul fly cruise outside of Asia, versus Asian passengers overall,
20 percent versus 9 percent, respectively
•The average length of cruise was 3.6 nights
•The average age of the Indian cruise passenger was 36 years
Source: Asia Cruise Trends 2014 Edition

Rising Potential
Although India lacks basic cruise –related infrastructure, Indian ports have been able to attract a
substantial number of cruise vessels and tourist in recent years. For Example, MSC Orchestra was
the first ship of MSC cruises to sail through Indian waters in February this year,en-route its grand
voyage starting from Dubai to Australia. As for Royal Caribbean International, its cruises have
been doing call at Indian Ports enroute to/from Europe to Asia and Vice Versa.
Outbound Cruise Tourism:
According to a study by the Union Ministry of Tourism (MoT), it is estimated that by 2030-31,
India will have 1.2 million cruise tourists. Outbound cruising from India, which is increasing by
30-35% annually, is gaining momentum with a mix of Indian cuisine, halts at prime destinations,
and a range of entertainment options offered by cruise lines.
According to travel agents, over the years queries for cruise vacations from India have seen a rise
from 5 per cent to 30 per cent. The Indian customer’s mindset is more evolved today and he is
aware of the options available before booking a cruise holiday with a travel agent. Looking beyond
Hong Kong and Singapore, travellers have shifted their focus to Bahamas, Caribbean, Alaska,
Europe (including Scandinavia and Mediterranean), Greece, USA, Mexico and Dubai on a three-
to seven- night cruise journey.
International cruise lines have realised the potential of the Indian market and have started offering
several Indian cuisines such as Jain and Gujarati food onboard. This has undoubtedly increased
the customer satisfaction level to over 95 per cent.
Today cruise liners are wooing younger travellers with a number of activities such as casinos, top
notch food outlets, indoor golf, better entertainment and more relaxed approach to cruising,” he
added. The number of Indians who cruise every year is still about a lakh as compared to the size
of the outbound market, which is over 14 million per year. This indicates that there is a huge
potential and it is up to the cruise liners to customise their products to suit Indian tastes. The Indian
traveller views cruising as an extension of a land holiday and do not specifically opt for a cruise-
only vacation. “They prefer three- to four-night itineraries. The Indian cruise market is growing at
approximately 30 per cent year-on-year and the total potential of the cruise market from India is
close to 1.25 lakh per year.
Several cruise companies such as Costa Cruises and Star Cruises have introduced elements of
Bollywood and Indian cuisine which signify that India is an important market for Cruise Tourism.
Major Cruise presently operational in India
 Seabourn Odyssey-32 Days (INDIA, MYANMAR AND MALAYSIA)
 MV Kavaratti -Leaving from Kochi and reaching Lakshadweep for a five-day cruise
package, Samudram Cruise Packages
 The Oberoi motor vessel Vrinda, Kerala- two and three night itineraries on the luxurious
Oberoi Motor Vessel Vrinda take guests through the largest backwater stretch: Vembanad
Lake, the vibrant waterways of Allepey: “Venice of the East”, and include nightly,
traditional, cultural performances.

Sources:
http://www.statista.com/topics/1004/cruise-industry/

http://www.prnewswire.com/news-releases/state-of-the-cruise-industry-2015-to-see-robust-growth-
300032243.html

http://www.repositioncruises.com/cruise-industry/

http://www.cruiseindustrynews.com/cruise-industry-stats.html

FCCA Cruise Industry Overview – 2014

Asia Cruise Trends 2014 Edition