Kerala wellness sector stares at uncertainty as West Asian crisis continues

Kerala is considered the cradle of wellness tourism in the country, and nearly 70% of the foreign tourists visiting the State belong to this category. The hospitality sector in Kerala, which contributes around 10% of the State’s Gross Domestic Product, is staring at a bleak future with a large number of cancellations, including in the medical tourism segment.

The crisis is likely to lead to layoffs and cost-cutting measures once the upcoming domestic tourist season in April and May is over. The State has been lagging in the foreign tourist segment since the COVID-19 outbreak, as it has yet to reach the pre-pandemic peak of 11.89 lakh foreign tourist arrivals recorded in 2019.

According to Sajeev Kurup, general secretary of the Confederation of Kerala Tourism Industries (CKTI) and chairman of the Ayurveda Task Force of FICCI’s National Tourism Committee, the sector is facing an unprecedented crisis with travel restrictions coupled with an energy crisis. The shortage of commercial LPG has forced the closure of over 100 Kochi hotels, and the issue is likely to snowball into a major crisis if the war continues, especially once the Assembly elections in the country are over.

The domestic tourism sector will also be impacted by the disruption of global energy supply chains with closure of restaurants. The next financial year will be a difficult period for the sector unless the Centre introduces support measures such as the Emergency Credit Line Guarantee Scheme (ECLGS), which it rolled out during the COVID-19 pandemic, said James Kodianthara, former chairperson of the Kerala chapter of the Indian Association of Tour Operators (IATO).