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The tourism sector received a major boost in the revised Kerala Budget for 2026-27 on Friday, with an allocation of ₹325.36 crore.
The Budget announced a series of projects aimed at strengthening hospitality, heritage tourism, eco-tourism and medical tourism.
Presenting his maiden Budget, Chief Minister V D Satheesan said steps would be taken to make tourism a priority sector in the state.
He announced that steps would be taken to grant industry status to tourism so that the sector could avail itself of all incentives available to industries.
”Necessary amendments to existing laws will be introduced to allow more land in plantation areas to be used for tourism purposes,” he said.
Satheesan said tourism amenity centres and houseboat terminals constructed under the Mega Tourism Circuit Project in Alappuzha district with central assistance during the UPA government’s tenure would be renovated and put to effective use.
A waste treatment plant would be established in Alappuzha to treat houseboat waste and other waste generated by tourism activities, he said.
The CM announced a Pilgrimage Tourism Circuit Project in Alappuzha connecting destinations such as Arthunkal Basilica, Ambalappuzha Sree Krishna Temple, Kakkazham Mosque, Mannarasala Sree Nagaraja Temple, Krishnapuram Palace, Mata Amritanandamayi Math and Ochira Parabrahma Temple.
”A master plan-based project will be implemented for the comprehensive development of the Pathiramanal Island Eco-Tourism Centre. A ropeway connecting Muhamma Jetty and the island will also be introduced,” he added.
The government allocated ₹19 crore for the Muziris Tourism Project.
”The Muziris Tourism Project will be expanded and transformed into India’s foremost heritage tourism destination by promoting environmentally sustainable tourism while preserving the ancient monuments in the project area,” Satheesan said.
It will include a live museum, heritage museums and boat journeys through traditional waterways.
A total allocation of ₹19 crore has been made for this project.
A pilot ’Green Marshals’ scheme will be introduced in major tourist destinations across Fort Kochi, Munnar, Kovalam and Alappuzha, he said.
”Under the programme, women will be trained and deployed as Green Marshals to promote cleanliness, responsible visitor behaviour and environmental awareness,” he said.
Satheesan said the government would place greater emphasis on eco-tourism, biodiversity tourism, mangrove tourism, farm tourism, agri-tourism and rural experiential tourism.
In addition, community-based tourism hubs and cultural tourism hubs will be established to generate employment while preserving Kerala’s unique heritage, food culture and cultural traditions.
”The ’Brand Wayanad’ initiative will be launched. Ashtamudi tourism will be promoted. Women-led tourism enterprises, homestays and responsible tourism projects will be expanded across the state. Smart tourism applications, including AI-enabled advanced digital tourism platforms, will be developed,” he said.
The Budget announced schemes to promote academic tourism by attracting international students to Kerala.
An International Maritime Museum, envisioned as a flagship project for Kerala’s maritime tourism sector, will be established with an allocation of ₹50 crore.
The Budget proposed measures to promote farm tourism and dam tourism initiatives across the state.
The Kerala Travel Mart (KTM) Society welcomed the Budget proposal to grant industry status to tourism, describing it as a historic milestone that could attract substantial investment into one of Kerala’s most important economic sectors.
KTM Society president Jose Pradeep, in a statement, said the move would enable tourism enterprises to avail themselves of the same benefits and concessions available to industries, including support 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 said.
Pradeep welcomed the government’s proposal to amend laws to allow unused land in plantation sectors such as tea, coffee and cardamom estates to be utilised for tourism-related activities.
”Such a measure can bring transformative changes to Kerala’s tourism industry and open up new investment opportunities in plantation tourism,” he said.
KTM Society secretary S Swaminathan welcomed the decision to upgrade amenity centres and houseboat terminals under the Alappuzha Mega Tourism Circuit Project.
”The announcement of a dedicated treatment plant for houseboat waste in Vembanad Lake addresses a long-standing demand of the sector and provides a permanent solution to pollution concerns,” he said.
Swaminathan highlighted the proposed master plan for the development of Pathiramanal Island and the ropeway project connecting the destination.
”The Pathiramanal project reflects a progressive vision for tourism development and will add a new dimension to Kerala’s tourism offerings,” he said.
The organisation noted that the Budget places considerable emphasis on eco-tourism, mangrove tourism and community-based tourism initiatives aimed at providing visitors with authentic local experiences.
While welcoming the allocation of ₹325.36 crore for tourism development and infrastructure, KTM said the allocation for tourism marketing should be enhanced.
”Marketing support remains inadequate if Kerala is to maintain its competitiveness in the global tourism marketplace,” the organisation said.
The Budget announced a series of projects aimed at strengthening hospitality, heritage tourism, eco-tourism and medical tourism.
Presenting his maiden Budget, Chief Minister V D Satheesan said steps would be taken to make tourism a priority sector in the state.
He announced that steps would be taken to grant industry status to tourism so that the sector could avail itself of all incentives available to industries.
”Necessary amendments to existing laws will be introduced to allow more land in plantation areas to be used for tourism purposes,” he said.
Satheesan said tourism amenity centres and houseboat terminals constructed under the Mega Tourism Circuit Project in Alappuzha district with central assistance during the UPA government’s tenure would be renovated and put to effective use.
A waste treatment plant would be established in Alappuzha to treat houseboat waste and other waste generated by tourism activities, he said.
The CM announced a Pilgrimage Tourism Circuit Project in Alappuzha connecting destinations such as Arthunkal Basilica, Ambalappuzha Sree Krishna Temple, Kakkazham Mosque, Mannarasala Sree Nagaraja Temple, Krishnapuram Palace, Mata Amritanandamayi Math and Ochira Parabrahma Temple.
”A master plan-based project will be implemented for the comprehensive development of the Pathiramanal Island Eco-Tourism Centre. A ropeway connecting Muhamma Jetty and the island will also be introduced,” he added.
The government allocated ₹19 crore for the Muziris Tourism Project.
”The Muziris Tourism Project will be expanded and transformed into India’s foremost heritage tourism destination by promoting environmentally sustainable tourism while preserving the ancient monuments in the project area,” Satheesan said.
It will include a live museum, heritage museums and boat journeys through traditional waterways.
A total allocation of ₹19 crore has been made for this project.
A pilot ’Green Marshals’ scheme will be introduced in major tourist destinations across Fort Kochi, Munnar, Kovalam and Alappuzha, he said.
”Under the programme, women will be trained and deployed as Green Marshals to promote cleanliness, responsible visitor behaviour and environmental awareness,” he said.
Satheesan said the government would place greater emphasis on eco-tourism, biodiversity tourism, mangrove tourism, farm tourism, agri-tourism and rural experiential tourism.
In addition, community-based tourism hubs and cultural tourism hubs will be established to generate employment while preserving Kerala’s unique heritage, food culture and cultural traditions.
”The ’Brand Wayanad’ initiative will be launched. Ashtamudi tourism will be promoted. Women-led tourism enterprises, homestays and responsible tourism projects will be expanded across the state. Smart tourism applications, including AI-enabled advanced digital tourism platforms, will be developed,” he said.
The Budget announced schemes to promote academic tourism by attracting international students to Kerala.
An International Maritime Museum, envisioned as a flagship project for Kerala’s maritime tourism sector, will be established with an allocation of ₹50 crore.
The Budget proposed measures to promote farm tourism and dam tourism initiatives across the state.
The Kerala Travel Mart (KTM) Society welcomed the Budget proposal to grant industry status to tourism, describing it as a historic milestone that could attract substantial investment into one of Kerala’s most important economic sectors.
KTM Society president Jose Pradeep, in a statement, said the move would enable tourism enterprises to avail themselves of the same benefits and concessions available to industries, including support 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 said.
Pradeep welcomed the government’s proposal to amend laws to allow unused land in plantation sectors such as tea, coffee and cardamom estates to be utilised for tourism-related activities.
”Such a measure can bring transformative changes to Kerala’s tourism industry and open up new investment opportunities in plantation tourism,” he said.
KTM Society secretary S Swaminathan welcomed the decision to upgrade amenity centres and houseboat terminals under the Alappuzha Mega Tourism Circuit Project.
”The announcement of a dedicated treatment plant for houseboat waste in Vembanad Lake addresses a long-standing demand of the sector and provides a permanent solution to pollution concerns,” he said.
Swaminathan highlighted the proposed master plan for the development of Pathiramanal Island and the ropeway project connecting the destination.
”The Pathiramanal project reflects a progressive vision for tourism development and will add a new dimension to Kerala’s tourism offerings,” he said.
The organisation noted that the Budget places considerable emphasis on eco-tourism, mangrove tourism and community-based tourism initiatives aimed at providing visitors with authentic local experiences.
While welcoming the allocation of ₹325.36 crore for tourism development and infrastructure, KTM said the allocation for tourism marketing should be enhanced.
”Marketing support remains inadequate if Kerala is to maintain its competitiveness in the global tourism marketplace,” the organisation said.
