50-hubs list beckons Kerala’s attractions

This has created an explosive new demand for domestic tourism in the country, along with the need to boost foreign arrivals.
The income-tax cuts proposed in the budget stand to lead to increased domestic spending. And this could further boost domestic tourism.
The income-tax cuts proposed in the budget stand to lead to increased domestic spending. And this could further boost domestic tourism.
Updated on
2 min read

KOCHI: Several tourist destinations in Kerala like Kumarakom, Kochi, Munnar, and Kovalam are likely to benefit from the Union budget’s focus on travel and tourism, with the document’s mention of “50 tourist destinations that will be selected through challenge mode to be developed as tourism hubs.”

The country’s tourism sector has been slow to get back on its feet after being hit hard by Covid. The number of foreign tourists visiting India has dropped from pre-Covid levels of nearly 11 million to around 5 million post-pandemic. Moreover, the number of domestic tourists on foreign holidays has declined from 22 million to less than 5 million over the same period because of high airfares and increased visa restrictions.

This has created an explosive new demand for domestic tourism in the country, along with the need to boost foreign arrivals.

The income-tax cuts proposed in the budget stand to lead to increased domestic spending. And this could further boost domestic tourism. Although the budget does not mention any destinations, industry experts say Kumarakom, Kochi, Munnar, Varkala, Thekkady, Alappuzha, and Kovalam are among the destinations in Kerala with the potential to make it to the list.

“We expect Kerala to have one or two destinations among the 50 proposed,” says Jose Dominic, tourism expert and former chairperson of CGH Earth. “Kumarakom, which was earlier identified as an iconic destination, and Kochi’s Kumbalangi, which has been identified as a special-promotion destination, have failed to rise beyond their promise.

These could be considered for development. Connectivity is an issue in Munnar, which witnesses heavy road congestion, especially during tourist season. Improvements on this front must be seriously considered. Reduced tax provisions also mean that people may spend more on travel, boosting the industry,” he added.

“We can only hope that destinations from Kerala would be included,” said Jose Pradeep, president of Kerala Travel Mart. “Key destinations in focus from the state could be Kovalam, Varkala and Fort Kochi, and, of these, Fort Kochi is in dire need of good investments,” he added.

Global capability centres

The budget mentions that “A national framework will be formulated as guidance to states for promoting Global Capability Centres in emerging tier 2 cities. This will suggest measures for enhancing availability of talent and infrastructure, building bye law reforms, and mechanisms for collaboration with industry.”

Cities like Thiruvananthapuram and Kochi stand to gain, say industry experts. “Thiruvananthapuram and Kochi are well positioned to take advantage of the global capability centres planned in tier II cities,” says Ajay George Varghese, CEO and managing director, Bipha Drug Laboratories (Pvt) Ltd.

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