The Hindu Business Line : Tourist accommodation in short supply

In Kerala, there are 260 hotels in the classified sector with around 10,000 rooms, with an equal number in lodges and home-stay facilities. But it is estimated that another 20,000 rooms will be required over the next five years.

— K. Ananthan

More guests, less rooms in Kerala.

Mony K. Mathew

While the activity in the residential segment in Kerala remains hectic, there has been a continuous shortfall in supply against firm projections in the hospitality sector.

The surging demand for accommodation for tourists indicates that the present capacity will need to be doubled over the next five years.

The flow of tourists into the State has been growing at an average of 21 per cent year after year and the annual income from the sector has reached Rs 10,000 crore. Last year, 5.15 lakh foreign and 60 lakh domestic tourists visited the State, according to Dr V. Venu, Tourism Secretary.

There are 260 hotels in the classified sector with around 10,000 rooms on offer, while the informal sector, comprising lodges and home-stay facilities, boasts another 10,000 rooms, . But as per the current growth rate, another 20,000 rooms will be required over the next five years, though the demand is seasonal, says Dr Venu.

The Government’s share, through the Department of Tourism and the Kerala Tourism Development Corporation, as of now, is less than 10 per cent and the major chunk of the projected demand will have to be met by the private sector. Currently, around 25 hotels in the classified category are under construction, mainly in central Kerala, which are expected to add around 4,000 rooms to the capacity.

‘Home-stay’ taking off

The home-stay concept, which focuses on eco-friendly tourism and participation of the local people, has proved to be successful in the State. The State Bank of Travancore, for one, has a scheme for financing home-stay facilities with a maximum loan of Rs 50 lakh depending on the total project cost.

Though the scheme was unveiled in 2006, the loan off-take has been moderate, according to bank officials. This has been attributed to a number of issues that which are expected to be sorted out in the near future.

Dr Venu sees good growth prospects for the home-stay sector. However, this will not be sufficient to close the demand-supply gap.

More Stories on : Hotels | Tourism | Kerala

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page