Kerala: Dry day, time restrictions drying up state’s MICE, destination wedding revenue

In the past two years, the state has lost Rs 1,975 crore in MICE (Meetings, incentives, conferences and exhibitions) revenue!

A recent survey conducted by those in the hospitality industry showed that the revenue loss suffered last month by the top five five-star hotels in the state stood at Rs 120 crore. Photo | Express

KOCHI: Expectations were high of Kerala turning into a destination wedding hub. But if the experiences shared by five-star hotels are anything to go by, it is a different picture altogether.

Last month, thanks to the rule that every first day of the month has to be a dry day and that bars should close by 11pm, Crowne Plaza -- a five-star hotel in Kochi -- lost a client who had enquired about a destination wedding package. The hotel lost Rs 3 crore in revenue after the party cancelled the booking and opted for Goa, which has a liberal liquor policy.

According to those in the hospitality industry, in just the past two years, the state has lost Rs 1,975 crore in MICE (Meetings, incentives, conferences and exhibitions) revenue!

Jose Pradeep, the president of Kerala Travel Mart (KTM) Society, says it is not just the destination wedding events that have been affected. “We are losing out on MICE events too. That’s a huge amount and it isn’t something which benefits us alone. The state government also benefits through taxes like the GST,” he says.

Dinesh Rai, the general manager of Crowne Plaza, says, “People want to come down to Kerala for events, especially to hold weddings. But how to explain the unheard-of rule of the first day of every month being a dry day?.”

These weddings happen over three to four days and alcohol is a part of the celebrations, he adds. A recent survey conducted by those in the hospitality industry showed that the revenue loss suffered last month by the top five five-star hotels in the state stood at Rs 120 crore.

According to Jose, it is said in the Foreign Liquor Rule 1953 that the bar licence is issued in the interest of tourism promotion.

“Further, the rule that bars in hotels should close by 11pm is terrible for business and explaining the rule to foreign clients and those from other parts of the country is taxing,” Jose says.

Why not allow the extension of the closing time of the bars to midnight, asks S Swaminathan, managing director of Dravidian Trails Holidays. The state has the facility to host big MICE events, he says.

“Take, for example, Kochi which has enough infrastructure to host a huge MICE event. But the one thing that stands in the way is the liquor policy. The time limit can be extended, as is done in Goa, by charging an extra fee. The deputy excise commissioner can be empowered to do so on a case-to-case basis,” Swaminathan says.

According to Dinesh, if the liquor policy is amended, the state will see the revenue generated through MICE events increase by around 10 to 15%. “The bars in-star hotels are frequented by well-heeled people. So, relaxing the rule won’t affect the government’s agenda of preventing men from splurging on their salaries,” he adds.

While other states are getting aggressive in marketing their destinations, our state has gone many steps backwards and is fast losing out though we have all the pluses when it comes to tourism, Swaminathan says.

Loss of MICE revenue in the past two years

2022-23: K825 crore

2023-24: K1,150 crore

Places losing out on destination weddings: Kovalam, Kollam, Alappuzha, Mararikulam, Kochi, Kumarakom, Kozhikode, Bekal, Wayanad