State urged to end a decade of neglect towards tourism sector in Kerala

Published 9 June 2026 · india

Ahead of the Budget for the FY27, calls for increased allocations to the tourism sector, particularly for marketing, have grown louder. Despite contributing around a

Ahead of the Budget for the FY27, calls for increased allocations to the tourism sector, particularly for marketing, have grown louder. Despite contributing around a good amount of money annually to the State’s economy, Kerala has been neglecting the sector for over a decade by earmarking a modest marketing budget, treating tourism as a peripheral 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 organised tourism and hospitality sector, recently met Chief Minister V.D. Satheesan and demanded that at least 1% of the total revenue generated by tourism be reinvested in the sector for development, marketing, infrastructure, etc, in line with globally accepted practices. According to the 2024-25 financial figures, the sector 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. At present, the State’s tourism marketing budget stands at around ₹80 crore, a figure that was last revised during the tenure of the Oommen Chandy government. Industry status Meanwhile, States competing directly with Kerala in the tourism sector have significantly scaled up their promotional spending. For instance, Rajasthan, Goa, Tamil Nadu and several other States have been allotting more than Rs 300 crore annually for tourism marketing. Another key demand raised by the industry was the granting of industry status to the tourism sector. According to E.M. Najeeb, President of CKTI, every major tourism destination across the world and most Indian States that outperform Kerala have accorded industry status to tourism. Additionally, no other destination combines Kerala’s unique climate, rich wellness heritage, and Ayurveda traditions, including Karkidaka Panchakarma, Ayurvedic rejuvenation therapies, authentic treatment protocols, and a deep pool of practitioner expertise.

“While Kerala’s monsoon season is the world’s Ayurveda season, we are not telling that story loudly or consistently enough to markets that are eager for such experiences. Kerala should launch a dedicated international campaign titled ‘Kerala Monsoon – World’s Ayurveda Season’, targeting markets in the GCC, CIS countries, Europe, Southeast Asia and North America. This should be complemented by a ‘Kerala Ayurveda Calling’ campaign across major Indian metros such as Delhi, Mumbai, Kolkata, Chennai, Hyderabad and Pune through B2B and B2C outreach programmes,” said Sajeev Kurup, general secretary of CKTI and president of the Ayurveda Promotion Society (APS). He also stressed the need for adequate budgetary allocations to support such initiatives. The industry also urged the government to take steps to restore confidence among European markets while capitalising on emerging opportunities in GCC and CIS markets.