Thiruvananthapuram: Kerala’s famed tourism sector that has enjoyed nearly a quarter of a century of steady growth, is for the first time under pressure to keep the growth story going.
The tourism sector’s engines slowed down twice recently, when the former United Democratic Front government in the state set its sights on total prohibition in the state and shut liquor bars in all hotels except five-star properties, and later when the federal Bharatiya Janata Party government recalled high-value currency notes.
According to tourism industry statistics, there has been a drop of 8.7 per cent in international tourists and a decline of 17.7 per cent in domestic tourists visiting Kerala. All of that cannot be blamed on demonetisation or the liquor ban, but tourism industry players say that the fact that the steady growth of the previous years has been replaced with stagnant performance is not a healthy sign for the sector.
Kerala tourism principal secretary, V. Venu has been quoted as saying that among the different solutions for an improved performance of the state’s tourism sector is the Kochi-Muziris Biennale which will run till the end of March.
The Biennale has become a regular feature on the state tourism calendar, and attracts art and heritage tourism enthusiasts who typically spend significantly higher than regular domestic and international tourists.
One bright spot for the state has been the entry of the international hotel chain, Accor into the state this month. The group opened its first property under the Ibis brand at Kochi. Accor Hotels vice president, Jean-Michel Casse said the Kochi property took the number of Ibis hotels in India to 15.
Kerala has not been an exception in sluggish tourism growth, with tourism-focused Goa also reporting a similar situation after the demonetisation.
National industry body, Associated Chambers of Commerce (Assocham) said in late December that popular destinations in different parts of India were witnessing bookings cancellations to the tune of 65 per cent.
The tourism sector is now faced with another setback, with the Supreme Court of India’s recent ruling that there should be no liquor bars in hotels on national and state highways. Once that rule kicks in, almost all major hotels will have to shut their bars, leading to a further decline in business.
