Thiruvananthapuram: Keralam is set to grant industry status to the tourism sector by October 2026, a major policy move aimed at attracting new investment, reducing procedural hurdles, and strengthening tourism infrastructure across the state.

Tourism Minister P. C. Vishnunadh announced the move during the ongoing Onam Tourism Week celebrations in Thiruvananthapuram. He said the draft proposal for granting industry status has already been prepared, while consultations with stakeholders in the tourism sector are currently underway.

The proposed industry status is expected to make tourism businesses eligible for benefits such as bank subsidies and single-window clearances, while creating a more investor-friendly environment for tourism-related projects. The government also expects the move to encourage greater investment from both within India and overseas.

Focus on New Tourism Destinations

Along with the policy change, Kerala Tourism is planning to expand tourism beyond the state's most established destinations. The Tourism Minister said several popular centres are approaching their carrying capacity, making it important to develop lesser-known destinations and distribute tourism activity more widely across the state.

Akalapuzha in Kozhikode, where around 40 houseboats are already operating, is among the destinations being considered for further development and formal promotion. Munroe Island in Kollam is also being positioned as a major tourism attraction with greater marketing support planned.

The government believes that developing new destinations can reduce pressure on heavily visited locations while creating new opportunities for local communities, accommodation providers, tour operators and other tourism businesses.

Greater Emphasis on Experiential and Cultural Tourism

Keralam is also planning to give greater prominence to its cultural heritage as part of its tourism strategy. Cultural events such as Theyyam and Padayani are expected to receive greater visibility through the Tourism Department's annual tourism calendar, allowing international visitors to plan trips around Kerala's traditional festivals and performances.

The Tourism Department is also promoting experiential tourism through its new “Be a Malayali for a Day” campaign, designed to give international travellers opportunities to experience Kerala's food, traditions, culture and everyday lifestyle.

Ayurveda and wellness tourism remain another major focus. The state plans to strengthen Kerala's position as the authentic home of Ayurveda while developing its medical and wellness tourism potential for international markets.

Easier Procedures for Homestays

The proposed reforms could also benefit Kerala's growing homestay sector. The government is planning to simplify the process of starting homestays through a single-window clearance mechanism.

Homestay owners are also expected to receive structured training, with operators to be grouped into Malabar, Central Kerala and South Kerala regions for training purposes. The programme will focus on improving tourism entrepreneurship and the quality of services provided to visitors.

Opportunities for Kerala's Tourism Industry

For destinations such as Kumarakom, the proposed industry status could be significant. The region's tourism economy is closely linked to resorts, homestays, houseboats, backwater cruises, restaurants and other visitor services. Easier approvals and improved access to investment support could encourage further development of tourism infrastructure while creating opportunities for local businesses.

The state had already announced a broader tourism push in its 2026–27 Budget, including an allocation of ₹325.36 crore for tourism and initiatives covering eco-tourism, heritage tourism, medical tourism, houseboat infrastructure, rural tourism and community-based tourism.

With the draft industry-status proposal now under consultation and the government targeting October for implementation, Kerala's tourism sector is entering a potentially important phase of policy and investment reform.

The move is expected to strengthen the state's competitiveness as a tourism destination while encouraging investment, generating employment and opening new opportunities beyond Kerala's traditional tourism centres.