By Richa Sharma
Onboard MV Aquamarine, Jan 17 (IANS) Louis Cruises, which operates the first international cruise liner in India, Sunday announced that it will be curtailing its services in the country after suffering losses of about $3.5 million (over Rs.160 million) due to “high taxation” and “poor government policies”.

“We announce the completion of Louis Cruises operations out of the port on Cochin (Kochi) in India for the 2009-10 season. We have signed a five-year operational contract with the Kerala government and we are reconsidering it,” Yogesh Gupta, general manager (corporate affairs) of Louis Cruises, said onboard the ship off the coast of Kochi in Kerala.

“The company has suffered near about $3.5 million loss in the last 45 days of operation and we cannot continue it this way,” Gupta said.

Tourism Minister Kumari Selja flagged off the cruise on its first journey from Kochi to Maldives Dec 2, 2009. But within 45 days of its operations, the company decided to stop its services in India.

Apart from rooms and suites, Aquamarine offered several restaurants, a swimming pool, a fitness centre, massage and sauna centre, a casino and duty-free shopping.

Aquamarine is operating its final one-day high seas itinerary from Kochi Jan 16-17 and two days later will sail for her return trip to Europe. The company was supposed to operate for five months till April.

The company also announced its decision to lay-off and relocate 200 crew members hired especially for the cruise operations in India.

Excessive port charges, refuelling tax, sub-par port infrastructure and uncoordinated embarkation procedures are some of the reasons stated by the company for withdrawing from India.

“When we started discussing with the Indian government, they assured us of all possible tax rebate for operating here. But the slow bureaucratic process and poor government policies have left us with no option but to withdraw,” a disappointed Gupta said.

“India doesn’t have a cruise policy and we are taxed equivalent to a cargo ship, which is really unfair. For one port call we have to pay $24,000 as port charges, which is the highest in the world. Even docking in Maldives cost us $3,000,” he said.

The company said it might return to the region later this year provided the aforementioned impediments are resolved.

According to company, the government in 2007 had formed a coordination committee of experts from the Defence Ministry, Finance Ministry, Shipping Ministry and Tourism Ministry to formulate a cruising policy in India, but the cabinet is yet to give its nod to it.

“The committee made a policy for cruises in India and submitted its recommendation to the central government but nothing has happened since then. The administrative process in India is quite slow and we are used to the European system of working. These things are adversely affecting the quality of our service,” Gupta said.

The operational cost of the vessel with a capacity of 1,200 passengers and 350 crew members is Rs.6 million per day. Aquamarine makes three journeys from the Indian shore - Kochi to Maldives, Kochi high seas and Kochi to Colombo - in a week.

“We included Colombo in our itinerary so that we can get the fuel at cheaper rates as in India we have to pay 33 percent extra charges on fuel. So we go to Colombo get the tank full without paying any extra taxes,” he said.

In 2004, Star Cruises had pulled out of India facing similar problems. The Association of Domestic Tour Operators of India (ADTOI) has called it a big setback for the tourism industry in the country.

“Cruising is a very popular form of tourism in the world and Louis Cruises introduced it in India. It was a unique concept for Indian people but unfortunately they are calling it off. I think the government should have looked into their problems and sorted it out. We will be taking up the matter with the government,” said Rakesh Lamba, president of ADTOI.

All the pre-bookings till April have been cancelled and the money has been refunded to the customers, the firm said.