Revise liquor policy to boost tourism
The existing excise policy has been a dampener for Kerala’s tourism sector, resulting in a slow year particularly for MICE. However, the new government has shown interest in reviewing the policy and easing regulations.
Tourism in Kerala has suffered a blow as a result of the state’s excise policy which seeks to prohibit the sale and service of alcohol in all public places, except bars and restaurants in fivestar hotels. This is apparent from the decline in tourists arrivals in the state, recording an increase of mere 54,000 foreign tourists between 2014-15 (9,77,479 FTAs in 2015 in comparison to 9,23,366 FTA in 2014). Playing spoilt-sport
As per a survey conducted by the Department of Tourism, Kerala, titled ‘Kerala Tourism Trends, Trade Survey 2016,’ one of the reasons for the decline has been attributed to the liquor ban while high rates and stiff competition from neighbouring countries have also played a role in the decrease. Close to 20 per cent growth in foreign tourist arrivals in Sri Lanka suggests that Kerala is losing the competitive battle.
Sarath Aravind from Kochi-based Say Tours agrees to the fact that business has indeed been on a downward spiral the past year and adds, “Inbound has been slow for us mainly because of the liquor ban. The MICE segment in Kerala used to be strong but it has considerably slowed down – there have been instances where many events have been cancelled.” Although 70 per cent of hotels in the state have conference facilities, the growth rate in the MICE sector dropped from 9.1 per cent in 2013 to a low of -0.6 per cent in 2015.
However, Aravind mentions that wellness tourism, which has always been Kerala’s strong point, has been the bright spot for the state. “We’ve been getting a good number of tourists from the Middle Eastern countries that fly down for Ayurveda treatments,” he informs. Saving grace?
The new state government seems to have understood the depth of the situation for signs of easing the policy were revealed last month by Kerala Tourism Minister A.C. Moideen at a press conference in Thiruvanathapuram. He suggested a relook on closure of liquor bars at tourist hotspots in the state and said, “With hotels not serving liquor, conferences have come down and the state is losing out,” he said, adding, liquor should be made available in bars at tourist hotspots. According to various reports, Excise Minister T.P. Ramakrishnan has said the state would review the existing policy as it did not have the de- sired effect of reducing alcohol consumption in the state.
While the revision is definitely a positive sign for the state, Vikas Abbott, Managing Director, Vasco Travels opines that other bottlenecks have had an equal hand in tourism’s slowdown in Kerala. “Yes, the policy did have an impact in tourist arrivals but factors like the global economic slowdown and poor infrastructure also have a hand. These roadblocks need to be resolved for the sector to really flourish and to achieve unprecedented growth.”