Industrial status for tourism sector should not be delayed

Kerala's tourism sector is growing by generating more revenue every year. There has been a huge increase in tourist arrivals after the Covid period. The number of domestic and foreign tourists who visited Kerala in 2023 is 2.25 crore. Of this, the majority are domestic tourists. As time changes, people's lifestyles and ways of spending money change. In the old days, no one would have allocated money in their family budget for tourism. Now, even average families spend the most money annually on foreign and domestic trips. The biggest proof of this is the increasing number of tour agents and tour companies in the state.

More than five lakh agencies have been registered in Kerala to provide tourism services. The tourism sector is likely to evolve into the highest-earning 'industry' for Kerala in the future. Therefore, granting industry status to tourism will definitely help nurture the growth of this sector. Finance Minister KN Balagopal said in the budget debate in the assembly that the Kerala government is considering that course. Tourism getting industry status will pave the way for attracting more investments to this sector. Already, 10 percent of the state's total domestic revenue comes from tourism. Industry status will help double this in the coming years.

Moreover, about five lakh people directly and about 20 lakh indirectly depend on the tourism sector for their livelihood. The two floods and the Covid period had bankrupted our tourism sector. The landslide that claimed 254 lives in Wayanad was also an incident that had a negative impact on tourism, albeit temporarily. It can be assumed that the industrial status will create a favorable environment to take the tourism sector, which is emerging from all this, to greater heights. This will also be beneficial to address the decline in the arrival of foreign tourists. Such a move will also help in the growth of medical tourism, which emphasizes Ayurvedic treatments. The implementation of the K-Homes project without delay will not only revive the tourism sector but also open up the possibility of income through houses that remain uninhabited.

Tourism projects will receive many benefits when they get industrial status. The tourism sector will be able to get electricity, water, land tax, etc. at industrial rates which are lower than normal rates once it gets industrial status. Currently, restaurants, hotels, and other tourism-related establishments operating in the tourism sector have to pay commercial rates for their services. A change in this will naturally pave the way for attracting more investors. The government should formulate special schemes to attract investment in the tourism sector from expatriates and provide jobs to eligible expatriates returning to the country.