Kerala Budget 2026-27: Rs 326 Crore for Tourism, Industry Status
Kerala Budget 2026-27: Rs 326 Crore for Tourism

The Kerala government has allocated Rs 326 crore for the tourism sector in the revised budget for 2026-27. Although this amount is lower than the funds sanctioned in previous years, the new administration has announced its intention to declare tourism as an industry. This move aims to develop destinations and promote heritage, pilgrim, farm, dam, and plantation tourism.

Tourism as a Priority Sector

Presenting the revised budget, Chief Minister V D Satheesan stated that steps will be taken to make tourism a priority sector. He added that measures will be initiated to declare tourism as an industry, so all incentives available to industries may also be extended to the tourism sector.

New Tourism Initiatives

In addition to announcing a pilgrim circuit, the budget includes amendments to the law to allow plantations to be used for tourism purposes. The minister also announced the setting up of tourism amenity centres and the renovation of houseboat terminals that have fallen into disuse. A modern waste treatment plant will be established in Alappuzha to handle waste, including that from houseboats.

Wide Pickt banner — collaborative shopping lists app for Telegram, phone mockup with grocery list

Chief Minister Satheesan said that brand Wayanad will be created and a Muziris heritage tourism project will be established. He emphasized that the Muziris tourism project will become a foremost heritage tourism destination by promoting environmentally sustainable tourism while preserving ancient monuments in the area. The project will include a live museum, heritage museums, and boat journeys through traditional waterways. An allocation of Rs 19 crore has been made for this project.

Focus on Sustainable and Community Tourism

Greater emphasis will be given to eco-tourism, biodiversity tourism, mangrove tourism, farm tourism, agri tourism, and rural experiential tourism. Community-based tourism hubs and cultural tourism hubs will be established to generate employment while preserving unique heritage, food culture, and cultural traditions.

The chief minister also announced the introduction of a brand Wayanad concept and the promotion of Ashtamudi Lake tourism. Women-led tourism enterprises, homestays, and responsible tourism projects will be expanded across the state. Smart tourism applications, including AI-enabled advanced digital tourism platforms, will be developed.

Infrastructure and Accessibility

Pathiramanal Island, a popular tourist spot on Vembanad Lake, will get a comprehensive master plan, along with a ropeway connecting it to Muhamma Jetty to make the island more accessible.

A new Green Marshals scheme will be introduced on a pilot basis in Fort Kochi, Munnar, Kovalam, and Alappuzha. Under this scheme, women will be trained to promote cleanliness, responsible visitor behaviour, and environmental awareness. The government will also set up coastal care units to strengthen healthcare access for coastal communities.

Pilgrim Circuit and Legal Amendments

A project connecting pilgrimage centres such as Arthunkal Basilica, Ambalappuzha Sree Krishna Swamy Temple, Kakkazham Mosque, Mannarasala temple, Krishnapuram Palace, Mata Amritanandamayi Math, and Ochira Temple will be implemented.

The chief minister also stated that amendments to the law will be brought in to enable the use of more land in plantation areas for tourism purposes.

Pickt after-article banner — collaborative shopping lists app with family illustration