As flights descend into Thiruvananthapuram airport at night, passengers are greeted by a striking sight: the shimmering, vibrant lights of Varkala beach, forming a bright patch on the otherwise dark southern coastline. This nocturnal glow symbolises the remarkable transformation of this once-quiet destination, now a favourite among foreign travellers and young Indian visitors. Similarly, in the state's north, Kasaragod is rising as a preferred staycation spot, bolstered by consistent government promotion.
Record Numbers Hide a Critical Gap
Despite the visible progress and increased footfall, industry stakeholders—including travel operators and hoteliers—argue that the current tourism surge is insufficient to substantially boost the sector and its allied businesses. The state welcomed a record number of domestic tourists in 2025, with popular hubs like Kovalam, Varkala, Munnar, Kochi, and Wayanad seeing strong visits. Newer, lesser-known spots promoted by KSRTC's budget tours also attracted local day-trippers.
Tourism Minister Mohamed Riyas, inaugurating the year's final tourism event, Vasantholsavam at Kanakakunnu Palace, celebrated the achievement. "2025 has been a great year as the domestic tourist footfall in the state reached an all-time high. Foreign tourist arrivals also increased significantly," he stated, highlighting efforts across beach, high-range, cinema, and wellness tourism.
The Missing Piece: High-Spending International Visitors
However, the core issue, according to the industry, is the composition of visitors. The critical shortfall is in foreign tourists, who typically stay longer than a week and spend considerably more, directly injecting revenue into local economies. In contrast, the current boom is largely driven by domestic tourists, often from within the state, who are more frugal, frequently opt for day trips without hotel stays, and thus generate lower per-capita revenue.
The state government projects total tourist arrivals to hit 3 crore this year. Yet, a nationwide trend shows foreign tourist arrivals from January to September still lagging behind pre-Covid levels, partly due to a marketing focus on Non-Resident Indians over foreign nationals. This trend threatens Kerala, which directly competes with destinations like Sri Lanka. Kochi continues to lead in foreign arrivals, though a significant portion are likely business visitors.
Industry Voices Call for Strategic Shift
G Sudheesh Kumar, patron of the Kerala Hotel and Restaurant Association, pinpointed the change: "The footfall and room occupancy are fine this year but the clientele has fully changed." He noted a decline in food and beverage revenue because domestic tourists, who often visit temples and shops, have replaced big-spending international guests who usually stay for two weeks. Kumar also emphasised the need to develop new locations beyond traditional spots to manage overtourism at places like Athirapally Falls and Kadamakudy.
While budget tours have spurred domestic travel, the state is also seeing success in the premium segment. A star hotel manager in Kasaragod noted a trend of visitors from Bengaluru and Mumbai flying in for quiet, two-day staycations, preferring private beach or riverside retreats. Kasaragod's proximity to Mangalore airport has made it a hub for this segment.
Looking ahead, industry leaders like S Swaminathan of Kerala Travel Mart urge proactivity, citing that hotel inventory growth is outpacing tourist growth. Promotions from neighbouring countries and competitive airfares are helping, but more is needed. The proposed heli-tourism project linking Kochi, Idukki, Munnar, Vagamon, and Bekal remains grounded. For 2026, the industry's wishlist includes launching heli-tourism, developing coastal cruises, liberalising excise laws, and making destinations more foreign-tourist-friendly—a crucial move to capitalise on opportunities as competitors like Goa see decreased favour.
