Kerala Budget 2026-27 gives tourism Rs 325 crore, industry status push

Published 19 June 2026 · india

Kerala’s revised Budget for 2026-27 has given a major push to tourism, with an allocation of Rs 325.36 crore and a range of projects covering

Kerala’s revised Budget for 2026-27 has given a major push to tourism, with an allocation of Rs 325.36 crore and a range of projects covering hospitality, heritage, eco-tourism and medical tourism. Presenting his maiden budget on Friday, Chief Minister V D Satheesan said the government would take steps to make tourism a priority sector in the state. He said measures would be initiated to declare tourism as an industry so that incentives available to industries could also be extended to the sector. Satheesan also said, "Necessary amendments to existing laws would be brought in to enable the use of more land in plantation areas for tourism purposes." Read Full Story The budget announced several projects in Alappuzha district. Satheesan said tourism amenity centres and houseboat terminals built under the Mega Tourism Circuit Project with central assistance during the UPA government period would be renovated and put to effective use.

A waste treatment plant would also be set up in Alappuzha to process houseboat waste and other waste generated by tourism activities. He also announced a Pilgrimage Tourism Circuit Project in Alappuzha linking Arthunkal Basilica, Ambalappuzha Temple, Kakkazham Mosque, Mannarasala, Krishnapuram Palace, Mata Amritanandamayi Math and Ochira Temple. He said a master plan-based project would be implemented for the comprehensive development of the Pathiramanal Island Eco-Tourism Centre, and ropeway facilities connecting Muhamma Jetty and the island would be introduced. The government also allocated Rs 19 crore for the Muziris Tourism Project. Satheesan said, "The Muziris Tourism Project will be expanded and transformed into India’s foremost heritage tourism destination by promoting environmentally sustainable tourism while preserving the ancient monuments in the project area. The project will include a live museum, heritage museums and boat journeys through traditional waterways." A pilot ‘Green Marshals’ scheme will be introduced in major tourist destinations, including Fort Kochi, Munnar, Kovalam and Alappuzha.

Satheesan said, "Under the programme, women will be trained and deployed as Green Marshals to promote cleanliness, responsible visitor behaviour and environmental awareness." He added that the government would place greater emphasis on eco-tourism, biodiversity tourism, mangrove tourism, farm tourism, agri-tourism and rural experiential tourism. Community-based tourism hubs and cultural tourism hubs will also be set up to generate employment while preserving Kerala’s heritage, food culture and cultural traditions. The budget further said, "The ‘Brand Wayanad’ concept will be introduced. Ashtamudi tourism will be. Women-led tourism enterprises, homestays and responsible tourism projects will be expanded across the state. Smart tourism applications, including AI-enabled advanced digital tourism platforms, will be developed." It also announced schemes to promote academic tourism by attracting students from abroad to Kerala.