Tourism, one of the largest revenue generating industries in Kerala, has suffered a loss of around Rs 25,000 crore due to the COVID-19 pandemic, said state Tourism Minister Kadakampally Surendran. The state government has announced a relief package to aid the struggling stakeholders.
It was on Tuesday that the Minister said that the industry has suffered one of its worst ever disasters.
“The loss suffered is Rs 25,000 crore and it has hit thousands of people working in the industry very badly. The state government has now announced a package of Rs 455 crore for the industry,” Minister Kadakampally said.
“This package consists of new infusion of funds up to a maximum of Rs 25 lakh to tourism entrepreneurs and 50% of the interest would be borne by the state government. Likewise, workers in the industry will get a loan of Rs 30,000 from the Kerala Bank, which will come at an interest rate of 3% and repayment starts only after six months,” the Minister added.
TNM had earlier reported how the houseboat industry in the Alappuzha-Kottayam region had come to a shuddering halt. All the 2,300 houseboats here are lying idle, affecting the livelihoods of 5,000 employees and 20,000 families. This crisis has also directly impacted the local allied industries and workers, with the sector suffering an estimated Rs 2 crore loss daily.
Speaking to TNM, Vancheeswaran, President of the Wayanad Tourism Organisation (WTO), had earlier said, “The COVID-19 virus has come as the last straw that broke the camel’s back. We are the second largest employer in the district with over 30,000 direct and indirect workers, and tourism makes up 25% of the district’s GDP. We generated over Rs 1,500 crore in GST and Income Tax over the past 3 years, not to mention significantly more as indirect taxes.” WTO had submitted a request to the state government for an assistance package and urgent assistance in primary areas.
A record 1.96 crore tourists, both domestic and foreign, had arrived in Kerala in the 2019 calendar year. Tourism had also registered a 17.2% growth as compared to the 2018 calendar year.
This rate of growth is a record of sorts as it’s the first time since 1996 that such a rate has been achieved. The total earnings from tourism stood at Rs 45,010.69 crore, notching a robust 24.14% growth.
The total number of tourists was pegged at 1,95,74,004, of whom there were 1,83,84,233 domestic tourists and 11,89,771 visitors from abroad.
In 2018, the number of tourists visiting Kerala was 1,67,01,068 (domestic tourists comprised 1,56,04,661 and foreign tourists 10,96,407). The growth rate in the inflow of domestic tourists was 17.81% while for the foreign tourist arrivals, it was 8.52%.
With Kerala now witnessing a daily spike in new COVID-19 cases, the presently estimated loss in the tourism industry is expected to further surge as Kerala’s peak tourism season is from the end of September till January.
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