New liquor policy dampens spirits in God’s own country

The prohibition comes at a time when 9.5% of the state’s GDP is contributed by the tourism sector, with one fourth of the state’s population (24.5%) being employed into the industry

WHATEVER be the intentions of the Kerala government, the new liquor policy announced by it recently is seriously going to dampen the spirits of the tourism sector, say industry observers. The prohibition comes at a time when 9.5% of the state's GDP is contributed by the tourism sector, with one fourth of the state's population (24.5%) being employed into the industry.

As per the new policy of the UDF government in Kerala, from next fiscal, only fivestar hotels in the state will be able to serve liquor. This puts the existing 312 bars in jeopardy as they can be closed anytime now, as the licences were given subject to the new liquor policy. The UDF government has also decided not to renew liquor licences of 418 bars, closed since April this year.

Speaking to FE, Jose Dominic, CEO, CGH Earth Group, says, “The tourism and the hospitality industry in Kerala is facing a complete collapse. All the MICE (meetings, incentives, conferencing, exhibitions) tourism groups, which earlier used to consider Kerala as one of the best destinations, will now seek alternative places like in Sri Lanka or Malaysia. This new liquor policy will only result in increase of bootleggers, drugs, criminals and mafia in the state.”

Speaking about the contradiction in the state tourism model, Dominic adds, “By allowing only the five-star hotels to serve alcohol, the Kerala government is completely contradicting its own model, which promotes experiential tourism by adopting the the state's lifestyle, architecture and stays across rural Kerala. This model has brought Kerala national as well as global fame.”

The tourism and hospitality industry of Kerala has now chalked out an alternative solution to save the tourism industry, mainly a proposal to the state government to issue tourism licences to hotels in key destinations. Abraham George, president, Kerala Travel Mart Society (KTM), says, “The new liquor policy will have a negative impact on tourism, especially in the leisure holiday segment. Tourists on holidays, especially foreigners who flock to Kerala, usually want to end their day with a relaxing glass of wine or beer. We plan to create awareness and convince the government to rethink the issue.”

“We plan to meet the chief minister. We hope something positive will come out of the meeting. One solution to the problem could be that the government should issue special tourism licences to the hotels in key tourist destinations so that they can at least serve beer and wine to their guests,” George adds.

Dominic agrees, “The tourism industry wants the government to allow beverages with less alcohol content such as beer and wine, so that tourism in the state can survive at least in some form. The government should consider this appeal so that native job seekers need not go out of the state for a livelihood.”