Kerala targets 20% state GDP contribution from tourism

Five years back, tourism sector contribution to the Kerala economy was 6-7%

Kerala has projected that tourism sector would contribute almost 20 per cent to the Gross State Domestic Product (GSDP) in the next five years.

Currently, tourism accounts for roughly 12 per cent of the GSDP, Kerala Tourism Deputy Director Nandakumar K P told Business Standard here.

He said that the tourism and Information Technology (IT) sectors were the two major services sectors making maximum contribution to the state economy.

About five years back, tourism sector contribution to the Kerala economy was just 6-7 per cent, he said that adding the state government had been taking several measures to boost tourism.

"The state has been acting as a catalyst in creating and expanding the vital infrastructure for tourism such as roads, power, water etc. The state provides subsidy and various other assistances, apart from quicker clearances to proposals from the private sector related to tourism," he informed.

Total tourism revenue (both direct and indirect) during 2015 was Rs 26,689 crore, showing a rise of 7.25 per cent over last year.

Uttar Pradesh accounts for about 8 per cent of the domestic tourist inflow to Kerala, which is estimated at over 12.46 million in 2015, an increase of 7.25 per cent over the previous year’s figure of 11.69 million domestic tourists.

“This year, we are targetting over 10 per cent growth in domestic tourist inflow,” Nandakumar said.

Over the last few years, Kerala tourism has been proactively holding promotional meets and events at various tier II and III towns in the country, which has paid rich dividends in the form of higher tourist inflow and revenue.

"The growth in domestic air traffic and direct and indirect air connectivity with several Kerala towns has also spurred the state tourism sector," he said.