The excise policy of the previous United Democratic Front government and increased competition from neighbouring destinations have been identified as the two major factors affecting tourist arrivals to the State.
The tourism industry “seems to be stifled by the current excise policy” and it has “dented the fortunes and scope of MICE industry in a major way,” a study by Kerala Tourism, to assess the response of the industry in the wake of the negative trend, has found.
Big events cancelled
Big events at hotels and resorts have been cancelled owing to curbs imposed by the excise policy. Lack of insufficient air connectivity is also preventing the growth of MICE industry.
The growth rate of MICE industry, which was 9.1 per cent in 2013, slipped to 4.8 in 2014 and dipped to 0.6 per cent in 2015.
Lack of marketing, high rates, and poor connectivity have been found to be the other factors adversely affecting tourist arrivals. The revenue has fallen considerably after a steady growth for four years till 2014.
The growth rate of foreign tourist arrivals in 2015 slipped to 5.9 per cent and 6.6 in the case of domestic tourists. The close to 20 per cent growth rate in foreign tourist arrivals in Sri Lanka shows that Kerala is losing the “competitive battle”.
As much as 60 per cent of the properties are dependent on domestic travellers. Almost 40 per cent of the properties have more than 30 per cent international travellers.
Top four markets
The U.K., U.S., and France continue to be the top four markets for Kerala. Saudi Arabia seems to be a new entrant in the top five followed by the United Arab Emirates at sixth.
Pointing out that room occupancy has fallen from 54.70 per cent in 2014 to 53.70 in 2015, it concluded that the steady growth in occupancy has been arrested and “a slide has begun”. A relook at the excise policy, improvements in destination infrastructure, and a ban on hartals have been suggested to tide over the situation. The findings of Kerala Tourism Trends, Trade Survey figured in a presentation made to Chief Minister Pinarayi Vijayan the other day.
Principal Secretary, Tourism, V. Venu told The Hindu that a strategy focussing on new experiences, visitor segments, and products would be rolled out soon to bring the excitement and desirability back to the brand.
An amendment to the present restrictive excise regime into a more liberal and permissive policy was also being looked into, Mr. Venu added.
