Demonetization affects tourism in Kerala
- The currency ban has come at a time when the tourism in Kerala is at its peak season.
- The report also says Kerala mainly benefited from domestic tourists.
In a huge setback, the demonetization has affected the tourism prospects of the state, the Kerala Tourism department has reported a slump in tourist arrival this season.
According to the department, in 2015, the tourism sector showed a 5.86 per cent growth compared to the previous year and buoyed by the rise the department was hoping a 10 per cent increase but the scrapping of currencies have affected the flow of tourists to Kerala. Also, many bookings are being cancelled in the peak tourist season.
Till last July, 5, 94, 846 foreign tourists visited Kerala, and the number of domestic tourists who came is reported to be 70, 68, 503 which means the industry mainly benefited from domestic tourists but the scrapping of currencies have adversely affected the same.
A survey report by Kerala Tourism Statistics 2015 had shown that the new 'New Excise Policy’ introduced by the United Democratic Front (UDF) government had made a dent on state's tourism sector, after which a major drop was recorded in tourist arrival.