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Kerala Allocates ₹325 Crore to Grant Industry Status to Tourism Sector

Kerala Allocates ₹325 Crore to Grant Industry Status to Tourism Sector Kerala Allocates ₹325 Crore to Grant Industry Status to Tourism Sector
The tourism sector received a significant boost in the revised Kerala Budget for 2026-27 on Friday, with an allocation of ₹325.36 crore.

The Budget introduced numerous projects aimed at enhancing hospitality, heritage tourism, eco-tourism, and medical tourism.

Presenting his first Budget, Chief Minister V D Satheesan emphasized that tourism would be prioritized in the state.
He revealed plans to grant industry status to tourism, enabling the sector to access various incentives available to industries.

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”Essential amendments to current laws will be proposed to allow more land in plantation areas for tourism purposes,” he mentioned.

Satheesan highlighted that tourism amenity centres and houseboat terminals built under the Mega Tourism Circuit Project in Alappuzha district, with support from the central government during the UPA era, would be upgraded and effectively utilized.

A waste treatment plant will be set up in Alappuzha to manage houseboat waste and other waste produced by tourism activities, he added.

The CM announced a Pilgrimage Tourism Circuit Project in Alappuzha connecting key destinations such as Arthunkal Basilica, Ambalappuzha Sree Krishna Temple, Kakkazham Mosque, Mannarasala Sree Nagaraja Temple, Krishnapuram Palace, Mata Amritanandamayi Math, and Ochira Parabrahma Temple.

”A comprehensive development project for the Pathiramanal Island Eco-Tourism Centre will be executed based on a master plan. A ropeway linking Muhamma Jetty and the island will also be established,” he stated.

The government earmarked ₹19 crore for the Muziris Tourism Project.

”The Muziris Tourism Project will be expanded and developed into India’s premier heritage tourism destination by fostering environmentally sustainable tourism while safeguarding the ancient monuments in the area,” Satheesan noted.

This project will feature a live museum, heritage museums, and boat trips through traditional waterways.

A total of ₹19 crore has been allocated for this initiative.

A pilot ’Green Marshals’ program will be launched in major tourist destinations like Fort Kochi, Munnar, Kovalam, and Alappuzha, he stated.

”Through this initiative, women will be trained and deployed as Green Marshals to promote cleanliness, responsible visitor behavior, and environmental awareness,” he said.

Satheesan indicated that the government would focus more on eco-tourism, biodiversity tourism, mangrove tourism, farm tourism, agri-tourism, and rural experiential tourism.

Additionally, community-based tourism hubs and cultural tourism hubs will be developed to create jobs while preserving Kerala’s unique heritage, culinary traditions, and cultural practices.

”The ’Brand Wayanad’ initiative will be introduced. Ashtamudi tourism will receive a boost. Women-led tourism ventures, homestays, and responsible tourism projects will be expanded statewide. Innovative tourism applications, including AI-driven advanced digital tourism platforms, will be developed,” he continued.

The Budget also announced initiatives to promote academic tourism by drawing international students to Kerala.

An International Maritime Museum, envisioned as a flagship project for Kerala’s maritime tourism sector, will be established with a budget of ₹50 crore.

The Budget proposed strategies to advance farm tourism and dam tourism initiatives throughout the state.

The Kerala Travel Mart (KTM) Society applauded the Budget proposal to grant industry status to tourism, calling it a historic move that could draw substantial investment into one of Kerala’s key economic sectors.

KTM Society president Jose Pradeep remarked that this shift would allow tourism businesses to benefit from the same incentives available to industries, including support related to electricity, water, and taxation.

”This will benefit current entrepreneurs and attract new investors to Kerala, significantly boosting the state’s GST revenue,” he added.

Pradeep welcomed the government’s proposal to revise laws allowing unused land in tea, coffee, and cardamom estates to be repurposed for tourism-related activities.

”Such steps could bring transformative changes to Kerala’s tourism landscape and create new investment opportunities in plantation tourism,” he stated.

KTM Society secretary S Swaminathan supported the decision to upgrade amenity centres and houseboat terminals under the Alappuzha Mega Tourism Circuit Project.

”The announcement of a dedicated treatment plant for houseboat waste in Vembanad Lake addresses a long-standing need in the sector and offers a permanent resolution to pollution issues,” he noted.

Swaminathan underscored the proposed master plan for the enhancement of Pathiramanal Island and the ropeway project that will connect the destination.

”The Pathiramanal project embodies a forward-thinking vision for tourism development and will enhance Kerala’s tourism offerings,” he said.

The organization highlighted that the Budget places significant importance on eco-tourism, mangrove tourism, and community-based tourism initiatives aimed at providing visitors with authentic local experiences.

While acknowledging the allocation of ₹325.36 crore for tourism development and infrastructure, KTM asserted that tourism marketing support needs to be improved.

”Marketing efforts are insufficient if Kerala is to maintain its competitiveness in the global tourism arena,” the organization concluded.

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