THIRUVANANTHAPURAM, 3 November 2007 — Kerala’s tourism industry showed an impressive performance during April-September 2007. The inflow of domestic tourists increased by 40 to 50 percent and foreign tourists by 20 to 30 percent, according to the biannual Industry Monitor Survey conducted by the Confederation of Indian Industry (CII).
CII conducts the biannual industry monitor survey for top five sectors of each state in the southern region to identify the industry’s performance for the first half and the outlook for the second half of each financial year.
The state’s tourism industry witnessed rapid growth in early 2007 resulting in high occupancy rate and increased revenue — to the tune of 20 to 25 percent.
Accommodation costs also increased by 10 to 15 percent, which coupled with other factors like increased tourist inflow and increased hotel occupancy, resulted in a 15 percent increase in profit margins.
The industry employment level has also gone up by 15 to 20 percent during the same period.
The inflow of tourists, hotel occupancy rate and the industry revenues are expected to continue to increase by 40 to 50 percent in the case of domestic tourists and 20 to 30 percent in case of foreign tourists during October 2007-March 2008. With a 10 to 15 percent increase in pricing, the industry is likely to increase its profit margin realization by 5 to 10 percent.
However, according to the survey, the poor condition of Kerala roads and lack of infrastructure give foreign tourists a negative impression.
The industry feels that the government should help construct more hotels with 400 to 500 rooms. The promotion strategies also have to be redesigned to attract upmarket tourists.
Kerala’s coir industry, the leading producer of coir in India, has also reported improved performance during the current half year — from April to September 2007. The coir industry production has gone up by 5 to 10 percent and consequently, sales and export have also grown by 5 to 10 percent and 15 to 20 percent respectively during the same period.
As a spillover effect, the capacity utilization level has gone up by 15 percent while the value of production and inventory levels have increased by 5 to 10 percent.
The coir industry in Kerala is expecting an improvement in the performance parameters during October 2007-March 2008. The industry expects 5 to 10 percent increase in production, 15 to 20 percent increase in both sales as well as exports during the same period.
The chemical and fertilizers industry in Kerala is also buoyant. During April-September 2007, production and sales went up by 10 to 15 percent.
The industry is expecting a better performance during October 2007-March 2008. The industry expects a significant 20 to 25 percent rise in demand, a 10 to 20 percent increase in sales and 10-12.5 percent increase in production.
Industry leaders have expressed their concern over the poor road condition, lack of infrastructure and the rising fuel cost that increase the transportation cost of raw materials.
The rubber industry has witnessed a mixed performance during April-September 2007. Though the production of rubber declined, sales and exports have increased by 20 to 30 percent and 20 to 25 percent respectively.
The capacity utilization and value of production have also increased by 15 to 20 percent. The rubber industry expects better performance during the next six months.
The food processing industry in Kerala recorded a moderate performance during April-September 2007.
The industry has increased its production and sales by 5 and 10 percent respectively during the same period. The industry was able to increase its capacity utilization level by 10 percent. The value of production had also gone up by 15 percent.
The food processing industry has forecast a good performance during October 2007-March 2008. The industry leaders are expecting a 10 percent rise in demand, a 10 to 15 percent increase in sales and a 10 percent increase in exports.
The industry’s biggest concerns are lack of trained manpower and weaker marketing links.
Poor power supply and transportation problems also worry industry leaders. The industry wants streamlining and simplification of government policies.