Tourism industry in Kerala suffers huge loss due to the pandemic
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Tourism industry in Kerala suffers huge loss due to the pandemic

News  
02-09-2021
 

The COVID-19 pandemic had brought the business of all tourism stakeholders to a standstill affecting the livelihood of entrepreneurs as well as employees in the tourism industry in India. In the South Indian state of Kerala, tourism is one of the sectors which has been deeply hit by the pandemic, according to the economic review report.

During the pandemic, the sector incurred huge loss and the government had announced a COVID-19 loss assistance scheme to support the stakeholders in the tourism industry for the revival of the sector. As per industry feedback, this situation may extend for six more months.

Kerala, anticipating a 10% growth over 2019, the number of foreign tourists’ arrival estimated for the period from January to September 2020, was 9,01, 971. However, as per the data from the department, after the onset of the pandemic, the figures for the same period stood at 3,49,575, showing a 61% decline in arrivals.

Similarly, assuming a 20% growth in the domestic front, the projected number of tourists arrival between January to September 2020, was 1,58,21,071. However, only 39,31,591 had arrived during the period. The decline in numbers was almost 75%. The total loss the sector had incurred between January and September 2020 was $3753.49 mn. While the loss in earnings from the decline in foreign tourist arrivals is estimated to be $792.755 mn, in the domestic front it is estimated to be $2960.731 mn. 

The tourism sector had rebounded strongly in 2019 after the 2018 floods and witnessed 8.52% growth in arrival of foreigners and 17.81% growth in domestic tourist arrivals. The domestic and foreign exchange earnings from the tourism sector in 2019 were $3725.62 mn and $1543.882 mn, respectively. Total earnings, including direct and indirect means, in 2019 was $6765.727 mn, 24.13% over 2018.


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