Budget declaration granting industry status to tourism historic; expected to trigger major investment surge: KTM

Kochi / June 19, 2026

Kochi, June 19: The Kerala Travel Mart (KTM) Society today hailed the state budget's announcement granting industry status to the tourism sector as ‘a historic milestone’, saying it will facilitate influx of significant investments in this vital sector.

KTM Society President Jose Pradeep said granting industry status to tourism will enable businesses in the sector to access the same subsidies and benefits available to industries, including concessions related to electricity, water and taxation.

“This will not only provide relief to existing entrepreneurs but also attract new investors to Kerala and significantly increase the state's GST revenue,” he pointed out.

Shri Pradeep said the government's announcement to introduce suitable legal amendments allowing unused land in plantation sectors, such as coffee, cardamom and tea estates, to be utilised for tourism purposes, could lead to transformative changes in the industry.

KTM Society Secretary S. Swaminathan said the decision to upgrade amenity centres and houseboat terminals in the Alappuzha Mega Tourism Circuit would provide a major boost to tourism.

He noted that the announcement of a dedicated treatment plant for houseboat waste in Vembanad Lake addresses a longstanding demand and offers a permanent solution to pollution concerns in the lake.

He also highlighted the proposed master plan for the development of Pathiramanal Island, along with a ropeway facility to the destination, saying it reflects a progressive vision for tourism development.

The new pilgrimage tourism circuit connecting Arthunkal Basilica, Ambalappuzha Temple, Mannarasala, Krishnapuram Palace, Mata Amritanandamayi Math, and Oachira Temple, along with the introduction of the Green Marshals programme involving women at major tourism destinations such as Fort Kochi, Munnar, Kovalam and Alappuzha, demonstrates a comprehensive approach that includes enhancing women's safety.

The KTM also pointed out that the budget places considerable emphasis on offering visitors authentic local experiences through initiatives such as biodiversity-rich mangrove farms and eco-tourism projects.

Overall, the budget has allocated more than Rs 325 crore for the tourism sector, with a strong focus on infrastructure development. However, it noted that the current allocation for marketing is insufficient to ensure Kerala's tourism sector remains competitive in the global marketplace.

ENDS