Nipah cast shadow on Kerala's tourism industry during peak season

To contain the outbreak, the government has declared seven village panchayats in Kozhikode district as containment zones

Kerala’s tourism industry is staring at significant losses ahead of the peak season as a result of the fresh outbreak of Nipah virus in the state.

Last-minute trip cancellations in the affected areas have already shot up to 30 per cent. If the situation worsens and foreign countries impose travel restrictions and tighter visa regulations, it may deal a bigger blow to the state that has a diaspora of over four million living overseas.

The tourism industry expects a short-term impact, as it is counting on the state’s proven expertise in managing such crises. So far, two people lost their lives due to the virus in Kozhikode district. On Tuesday, a dental college student was admitted to the Government Medical College Hospital in Thiruvananthapuram.

Teams from National Institute of Virology, Pune, would arrive in Kerala to set up a mobile lab at Kozhikode Medical College to test individuals and carry out a survey of bats, the state government said in the Assembly on Wednesday. The move comes after four persons in the district were confirmed to be infected. Responding to a query in the Assembly, Health Minister Veena George said the virus seen in Kerala was a Bangladesh variant that spreads from human to human and has a high mortality rate, though it isn’t highly infectious.

Kerala’s tourism sector has been on a steady path to recovery this year after the decline in the pandemic years. In the first half of 2023, Kerala welcomed around 10.68 million domestic tourists, marking a 20 per cent increase compared to the 8.89 million in 2022, according to data released by the state government. In 2023, the number of foreign tourists also witnessed a 172 per cent surge with a total of 287,730. In 2022, the state enjoyed a 186 per cent boost in tourism revenue, raking in Rs 35,168 crore, as compared to Rs 12,286 crore in 2021.

Hotels in Kozhikode have already reported a 30 per cent jump in booking cancellations, said Santhosh Kumar U S, district secretary, Kerala Hotel and Restaurant Association. He, however, added that the figure was much lower than the 80-90 per cent cancellation witnessed during the 2018 outbreak of the zoonotic virus, which impacted the industry for nearly a month.

“Given the ability of the government’s health infrastructure to manage this crisis and the global and domestic awareness after the Covid-19 pandemic, we are confident of navigating through this challenging period,” he told Business Standard.

According to the Ministry of Tourism, Kerala hosted only 350,000 or around 4 per cent of the overall number of foreigners who visited India in 2022, comparing poorly against states such as Gujarat (21 per cent), Maharashtra (18 per cent) and West Bengal (12 per cent).

Other states that are ahead of Kerala in attracting foreign tourists are Delhi, Uttar Pradesh, Tamil Nadu and Rajasthan. Domestic tourists flocking to Kerala in the upcoming festival season was expected to boost the sector.

“We are not expecting any major impact on the industry and manufacturing sector. It may be limited to Kozhikode, unless the Thiruvananthapuram case also gets confirmed,” said Raja Sethunath, chairman of the Associated Chambers of Commerce and Industry of India’s Kerala state development council.

The state government has declared seven village panchayats — Atanchery, Maruthonkara, Tiruvallur, Kuttiyadi, Kayakkodi, Villyapalli, and Kavilumpara — in Kozhikode district as containment zones. So far, around 130 people have been tested for the virus, while more than 200 people who came in contact with suspected patients are being monitored closely.

“We are expecting some last-minute cancellations. However, there is no panic among travellers so far. The state government is taking all the precautions and we are following them,” said Abdul Nazir M M, a member of the Tour Operators Association in Kerala.