Kerala 2005 - of Planning Commission

CHAPTER 8
LOOKING AHEAD: POSSIBILITIES AND STRATEGIES
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• Low pollution or other negative externalities but using
the ecological resources as a positive factor (e.g.
eco-tourism, herbal medicines, high value agricultural
products).
• Small and medium-sized activities except where there
are distinct economies of scale (e.g. food-processing,
fashion garments, precision engineering, etc.).
• Activities which can create a ‘niche’ market both within
India and abroad.
In fact, objective conditions in Kerala are emerging in
such a way that there are already visible signs of such
a ‘high road’ approach to new economic activities.
The two well-known examples are tourism and ayurveda.
In the case of tourism, there has been a concerted policy
initiative by the State in the 1980s, which later resulted in
a symbiotic partnership between the public and private
sectors. Tourism is focused on enhancing the value of
Kerala’s special characteristics such as the promotion of
eco-tourism (based on its backwaters, lush green high
Table 8.1 Foreign Tourist Arrivals – District-wise
District 2002 2003 % Increase
Thiruvananthapuram 65,240 94,835 45.4
Kollam 8,478 8,620 1.7
Pathanamthitta 177 287 62.1
Alappuzha 17,261 26,157 51.5
Kottayam 20,488 21,897 6.9
Idukki 24,692 31,831 28.9
Ernakulam 87,357 99,987 14.5
Thrissur 1,979 2,667 34.8
Palakkad 611 661 8.2
Malappuram 1,048 1,402 33.8
Kozhikode 563 621 10.3
Wayanad 3,076 3,529 14.7
Kannur 1,014 1,438 41.8
Kasaragod 580 689 18.8
Kerala 2,32,564 2,94,621 26.7
Source: Economic Review, Kerala, various issues.
Box. 8.1: Tourism in Kerala
Kerala, a north-south linear State, has the unique advantage of being able to offer a wide variety of tourist attractions
within a relatively small area of around 40,000 sq. km, thus qualifying for the best venue for ‘multi-destination
tourism’. Kerala’s 600-km-long coastline offers some of the best beaches in India; the Western Ghat region in the
east has some of the finest hill stations and wildlife sanctuaries, and many other locations have good potential for
eco-tourism and the backwaters in the State also offer good potential for tourism development. Besides the opportunities
offered by the geographic factors, the State also has enormous opportunities in the emerging health tourism sector.
Kerala emerged as an important tourism destination only during the late 1980s, but since then its market share is
steadily increasing. The State is now considered as one of the important tourist destinations in the world. The World
Travel and Tourism Council (WTTC) has accorded the status of ‘partner State’ to Kerala in recognition of its potential
in the tourism sector. The State accounts for 11-12 per cent of international tourist arrivals of around 24 lakh in India
in 2002 and domestic tourism was around 56 lakh in 2002. Being a service industry, tourism has higher potential
to generate employment for local population. In 2003, this sector generated direct employment of 3.8 lakh and an
estimated total employment (direct plus and indirect) of 7.8 lakh and they respectively account for 3 per cent and
6.2 per cent of total employment (Economic Review, 2003).
Healthy growth of this sector, however, depends on the proper development of what is called tourism infrastructure
and provision of adequate skilled human resources. Tourism infrastructure includes mainly transport, accommodation,
reception, catering and services like repairs, banks, currency exchange, medical services, communication, water
supply and sewage facilities. This implies that the tourism sector has very strong linkages with other sectors and
hence, can be relied upon to develop these sectors also. Skilled labour is required for the efficient development of
the hospitality sector. Further, the State’s ability to move to high value added products like ayurvedic and allopathic
treatments crucially depends on the creation of adequately skilled human resources in this field.
Very crucially, the infrastructure facilities that urgently needed further improvement include quality of transport,
electricity, water supply, sewage and waste management. An important area calling immediate attention is the assurance
of quality of various tourism products like ayurvedic treatment and marketing of the tourism products of Kerala.