Kerala bets on basic infrastructure to drive tourism, 38% of total outlay for basics

When Finance Minister K N Balagopal presented Kerala's 77th Budget, the focus was on strengthening basic infrastructure in the tourism sector rather than on rolling out large-scale, marquee projects. The budget emphasised improving core facilities at destinations while creating an investor-friendly environment to attract new private-sector participation.

Highlighting a rebound in inbound travel, the minister said foreign tourist arrivals to Kerala saw a significant increase in 2024. Foreign tourist footfall rose to 7.40 lakh, registering an increase of nearly 90,000 visitors compared to the previous year.

Acknowledging the need to upgrade tourism destinations across the state, the budget has allocated ₹159 crore for the development and modernisation of basic infrastructure and amenities at tourism centres. This accounts for nearly 38.5 per cent of the tourism sector's total allocation.

The overall allocation for tourism has been raised to ₹413.52 crore in 2026-27 fiscal, marking an increase of ₹27 crore over the previous year. Of this, ₹85 crore has been earmarked for marketing and promotional activities, underscoring the government's focus on boosting tourist footfall.

The budget has also allocated ₹14.10 crore for various activities of the Kerala Tourism Development Corporation (KTDC). In addition, ₹13.50 crore has been set aside to continue schemes that provide subsidies and incentives to encourage private investment and entrepreneurship, including the development of tourism products and infrastructure.

Tourism circuits
An integrated 'Blue-Green Tourism Circuit' will be developed in Dharmadom, Kannur. An amount of ₹2 crore has been allocated for preliminary activities, including the Dharmadom river cruise circuit, Dharmadom Island bio-reserve, a walking museum, and a mangrove information centre.

Construction of the Kollam biodiversity circuit and the Malabar limited circuit is currently progressing.

Major projects
An allocation of ₹20 crore has been made for the development of Kalyanathandu–Anchuruli tourism, with Kattappana being developed as a tourism hub. Recognising its significance as a Marian pilgrimage centre, ₹2 crore has been allocated for upgrading facilities at the 447-year-old Kottayam Cheriya Palli under the pilgrimage tourism project.

The Budget has also earmarked ₹5 crore each for two new initiatives—the Beypore Uru Tourism Project and the Kochi Heritage Project. For Kumarakom tourism development, ₹5 crore has been allocated for the construction of a heliport, and an initial allocation of ₹1 crore has been made to assess the feasibility of developing the Peechi tourism project under a public-private partnership (PPP) model.

Additionally, ₹10.46 crore has been allocated for conducting the 'Champions Boat League' (CBL) across 14 locations in the State. The league, launched by the tourism department on the lines of the Indian Premier League, aims to promote Kerala's traditional boat races and attract more visitors.