Three persons testing positive for COVID-19 and declaration of the epidemic a “State calamity’ by the government have come as a bolt from the blue for the tourism industry. It came when the industry was on the recovery path after Cyclone Ockhi, Nipah outbreak, and floods in the past three years.
Though the government withdrew the calamity warning within five days and the scare that gripped the State is gradually dying down, tourism, one of the fast-growing sectors in Kerala, is at the crossroads.
With COVID-19 spreading to Europe, Middle East, and Latin America, holidayers, both domestic and international, have preferred to keep away from the destination and leisure tourism has almost been wiped off. There has been no recovery from the mass cancellations that poured into the reservation desks of hotels and resorts in the first week of February as soon as reports of positive cases came in.
The holidayers spotted at the destinations were mainly free independent travellers, Europeans who had prior bookings and preferred to fly down ignoring travel advisories, and those who came for wellness therapies.
Checks at airports
“Leisure tourism has been hit and it is one of the worst crisis faced by the tourism industry. Checking at the three international airports is creating panic. There is a feeling among both domestic and international tourists that Kerala is not safe to travel and holiday. Our occupancy that was 65% in March last year has gone down to 30% this year,” says Rajgopal Iyer H., CEO, UDS Hotels.
COVID-19 has taken its toll on the vibrant hospitality industry. Tourist arrivals have seen a sharp decline and the industry has faced job cuts and low margins. With holidayers preferring not to travel, online portals have been badly hit.
“Even domestic tourists are preferring to play it safe as the virus outbreak is spreading fast. Hoteliers are the worst hit as the operational cost has gone up and the tariff has not been hiked after the Nipah outbreak in 2018. There is retrenchment even in online portals.
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Holidayers need assurance that the destination is safe to travel, which is missing,” sources in an online portal said.
The downturn has hit all categories of the hospitality industry, including hotels of the Kerala Tourism Development Corporation (KTDC), homestays, and MICE (meeting, incentive, cConvention, exhibition). Even prime properties of the KTDC, such as Tea County and Bolghatty, have been hit, with the dip in occupancy during the January 15-February period hovering at 25 to 30%. However, Samudra property in Kovalam has bucked the trend.
“The situation is alarming as no further enquiries are reaching the reservation desks. The booking window is 30 to 45 days. March and April are going to be worse going by the feedback from hotels, resorts, and tour operators. The outbreak in the Middle East is also a concern as the airports in Dubai, Abu Dhabi, Doha are hub for travelling to Europe and the U.S,” says Dillep Kumar P.I., CEO, Intimice Hospitalities.
The peak season for foreign tourists is from November to February and for domestic guests from April-May, August-September (Onam festival), and December-January.
Minister positive
Tourism Minister Kadakampally Surendran admits that there have been more cancellations after reports of COVID-19 than in the case of the Nipah outbreak. Braving odds, the tourism sector registered 70% growth in the past four years. The revenue has gone up from ₹26,689.63 crore in 2015 to ₹45,242.74 crore in 2019.
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Mr. Iyer said the State should have avoided the ‘calamity’ tag as it triggered panic and negatively impacted the industry. “It will take time to bounce back. The government should spread the message that Kerala is safe. Local media in other States should be used to promote the destination . Reduction in room tariff is not a solution,” he added.
However, senior vice president, Indian Association of Tour Operators, and chairperson, Confederation of Tourism Industry, Kerala, E.M. Najeeb says the State calamity declaration helped to prevent the infection from spreading and confine it to those who returned from Wuhan.
New marketing strategy
“It is a serious situation and people will avoid India and Kerala like other places where positive cases have been reported. The government should take steps to instil confidence among travellers that Kerala is safe for holidaying. Marketing strategy needs a shift and new source markets need to be tapped for Kerala,” Mr. Najeeb said.
Marketing of Kerala Tourism should focus on domestic tourists as there is no point in promoting the destination abroad as the virus outbreak is spreading fast. Instead of concentrating on tour operators and travel agents, Mr. Dileep says domestic roadshows should concentrate on corporate clients as they will help incentive tours and MICE tourism. “Kerala Tourism has been able to overcome challenges over the years through marketing strategies and this will be resorted to overcome the present crisis as well,” Mr. Surendran said.
