Kerala Budget gives Tourism sector major push with Rs 325 crore allocation

The revised Kerala Budget 2026-27 has placed strong emphasis on boosting the tourism sector, allocating ₹325.36 crore along with a series of new initiatives aimed at strengthening heritage, eco-tourism, hospitality and medical tourism across the state.

Presenting his maiden budget, Chief Minister V D Satheesan said tourism would be treated as a priority sector, with steps being taken to formally declare it an industry so that it can benefit from incentives available to other industrial sectors. He also announced proposals to amend existing laws to allow greater use of plantation land for tourism development.

The budget outlines key infrastructure upgrades, including the renovation of tourism amenity centres and houseboat terminals under the Mega Tourism Circuit Project in Alappuzha, along with the establishment of a waste treatment facility to manage tourism-related waste.

A new Pilgrimage Tourism Circuit in Alappuzha will connect major religious and cultural destinations, while Pathiramanal Island will be developed as a model eco-tourism centre with improved connectivity, including proposed ropeway services.

₹19 crore has been allocated for the Muziris Heritage Project, which aims to transform it into a leading heritage tourism destination featuring live museums, heritage sites and traditional waterway cruises.

The budget also introduces initiatives such as “Green Marshals” in tourist hubs like Fort Kochi, Munnar, Kovalam and Alappuzha to promote cleanliness and sustainable tourism practices, alongside expanded focus on eco-tourism, farm tourism and rural experiential tourism.

Additional proposals include promoting women-led tourism enterprises, developing AI-enabled smart tourism platforms, launching academic tourism for foreign students, and establishing an International Maritime Museum with an allocation of ₹50 crore.