KOCHI: With the govern - ment deciding to phase out bars and liquor outlets in the state, the tourism industry in the state fears a collapse of one third of the total rev - enue - Rs 8,000 crore - this financial year. The total revenue of Ker - ala on account of tourism during 2013-14 fiscal was Rs22,926.55 crore compared to Rs 21,125 crore in 2012-13. The foreign exchange earn - ings alone stood at Rs 5,660.77 crore in the last financial year. Jose Dominic, managing director, CGH Earth, said that annually the growth in tourism industry in the state is about 5 to 10 per cent. “This year there will be a total collapse and we are expecting a revenue loss of more than 25 per cent,” he said. According to him, the tourism industry was ex - pecting a revenue of nearly Rs 25,000 crore this year and the government decision will result in a negative growth. “The tourism industry in neighbouring states would now try to attract more peo - ple to their destinations. Though the consumption of liquor is not the main agen - da of tourists arriving in Kerala, it is also part of the leisure they want to enjoy,” Jose Dominic said.
The spokesperson of Con - federation of Kerala Tour - ism Industries said that the travel operators in New Delhi have started receiving queries from their European offices regarding the pro - posal to ban liquor. The tour operators fear that their cli - ents may opt for other states, if such amenities are taken off. “The tourism industry in Kerala is expecting a reve - nue loss of 40 to 50 per cent because of cancellations. The liquor ban will also force the entrepreneurs to look for investment destinations other than Kerala,” the spokesperson said. Jose Dominic pointed out that according to a national survey, employment gen - eration in tourism sector is next after farm and agricul - ture.
Around 24.5 per cent of the employment in Kera - la is in the tourism sector and 9.5 per cent of the GDP is also from tourism. Kerala Travel Mart presi - dent Abraham George said that a negative message had already gone to the tour op - erators and in the long run Kerala will cease to be a tourist attraction. “Many big investors who are planning to start their ventures will retract their decision,” he said. “A beer, wine or a drink is a diet for foreigners and if it is denied for those who ar - rive here, tour operators would be forced to take their clients to other states. It is going to badly affect the growth of Kerala in various sectors,” he said.