The state has called for an end to decades of neglect of Kerala’s tourism sector

Ahead of the FY27 budget, calls for increased allocations to the tourism sector, especially marketing, intensified. Despite contributing around a significant amount of money to the state’s economy every year, Kerala has neglected the sector for more than a decade by allocating a meager marketing budget, treating tourism as a marginal activity rather than a strategic economic driver.

A delegation led by the Confederation of Kerala Tourism Industry (CKTI), the apex body representing the state’s organized tourism and hospitality sector, recently met Chief Minister VD Satheesan and demanded that at least 1% of the total revenue generated from tourism should be reinvested in the sector for development, marketing, infrastructure, etc., in line with globally accepted practices.

According to the 2024-25 financials, the industry contributed around ₹ 45,053 crore to the state economy. If 1% of this amount is earmarked for tourism development, at least ₹450 crore could be allocated for tourism promotion activities. Currently, the state budget for tourism marketing is around ₹80 crore, a figure that was last revised during the tenure of the Oommen Chandy government.

State of the Industry

Meanwhile, states that directly compete with Kerala in the tourism industry have significantly increased their promotional spending. For example, Rajasthan, Goa, Tamil Nadu and several other states allocate more than Rs 300 crore annually for tourism marketing. Another key demand raised by the industry was the granting of industry status to tourism. According to EM Najeeb, President, CKTI, every major tourist destination around the world and most of the states in India, surpassing Kerala, have granted tourism the status of an industry.

Moreover, no other destination combines Kerala’s unique climate, rich wellness heritage and Ayurvedic traditions, including Karkidaka Panchakarma, Ayurvedic rejuvenation therapies, authentic treatment protocols and a deep pool of medical expertise. “While the monsoon season in Kerala is the world’s Ayurveda season, we are not telling this story loudly and consistently enough to the markets that crave such experiences. Kerala should launch a dedicated international campaign called ‘Kerala Monsoon – The World Ayurveda Season’ targeting markets in the GCC, CIS countries and North America, Europe and South East Asia.” Ayurveda Calling’ campaign across major Indian metros such as Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Pune through B2B and B2C programmes,” said Sajeev Kurup, General Secretary, CKTI and President, Ayurveda Promotion Society (APS). He also emphasized that adequate budgetary resources should be allocated to support such initiatives.

The industry also urged the government to take steps to restore confidence between European markets while taking advantage of emerging opportunities in the GCC and CIS markets. This assumes importance in the context of Kerala’s declining share of its traditional European source markets. The state is yet to surpass its pre-pandemic foreign tourist arrival figure of 11.89 million recorded in 2019, despite record growth in domestic tourism.

The delegation also highlighted the need to upgrade tourism infrastructure across major destinations, including road connectivity, sanitation facilities, waste management systems, signage and public amenities. Among its key demands was the establishment of a Kerala Tourism Promotion Board with private sector representation to serve as a nodal body for tourism management, policy formulation and marketing decisions in the state.

Published – 09 Jun 2026 21:02 IST