Tourism industry hit by global recession

Author: 
M. Ashraf | Arab News
Publication Date: 
Sat, 2008-10-18 03:00

ALAPPUZHA: For the first time in over a decade, the tourist arrivals in Kerala have entered a sluggish pace thanks to the global economic meltdown.

Hundreds of Kettuvallams, the traditional houseboats of the “God’s Own Country”, lay anchored idly on the famed Vembanad Lake here, hoping for the season to pick up. But many believe the worst is yet to come.

Normally, the season begins with the annual Nehru Trophy Boat Race being held on the second Saturday of August and continues to the end of March. The houseboat operators say there is already a 30 percent slump this season in tourist arrivals — both domestic and foreign.

India’s southernmost state, which survives mainly on the service industry and remittances from its overseas workers, received 515,808 international travelers last year (up 20.37 percent from the previous year) while domestic tourists crossed 6.6 million (an increase of 5.92 percent).

Last year tourism brought 100 billion rupees to the state. The state government expects 560 billion rupees in revenues by 2013. The tourism sector is expected to create 1.2 million additional jobs by 2013.

According to reports, the stagflation has however forced many in Europe and America to opt for “staycation” (staying at home during vacation to save money).

Five European nations, the UK, France, Germany, Italy and Switzerland, together contributed to 46 percent of all foreign tourists visiting Kerala in 2007. Nearly 7.72 percent came from the US.

Some 1,000 houseboats operate in the region employing thousands of people. With more than a million people working in the sector, tourism is the biggest employment provider in Kerala.

According to tour operators, rising costs in India forced several domestic tourists to cancel their trips to down south. The airlines no more offer special packages.

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