Chapter 6

EXTERNAL SECTOR

kerala-map.jpg

 

Introduction

 

In this chapter, three important sectors mainly Trade, Tourism and Welfare of Non Residential Keralites are grouped together to provide an insight into Kerala’s dependence on the global economic situation.

 

The fragile global economic recovery following the major slow down in global production and trade has resulted in prolonged phase of uncertainty, primarily in advanced countries. Low growth and consequently low demand in advanced economies, which are our major trade partners, have affected Indian trade as well as Kerala’s trade, adversely. In 2011-12 high export growth at the National level was observed in petroleum products, chemical & related products, agricultural & allied products, marine products and leather goods (Mid Year Economic Analysis 2012-13). Kerala has considerable presence in India’s export basket of Agricultural goods as well as marine products

 

The prospects for trade in 2012 are expected to be even lower than it was in 2010. World trade in goods and services is projected to grow only by 3.2 per cent in 2012 compared to 5.2 per cent in 2011. Imports of emerging and developing economies are expected slow down and grow by only 7 per cent in 2012 as compared to 8.5 per cent in 2011. Similarly the projected growth for exports from emerging and developing economies is expected to be only 4 per cent in 2012 as compared to 6.5 per cent in 2011 (IMFS World economy outlook update of October 2012).

 

Growing uncertainty has dampened the prospects of non residential Keralites, who are a major source of remittances for the State. There is some concern that Kerala’s outward migrants may face some instability of employment. There is thus a need for providing returning migrants viable employment opportunities in their mother State.


Kerala is known as an attractive global tourist destination and tourism is a major source of income for the people of Kerala. Once again this sector is also dependent on global growth and therefore has an inbuilt vulnerability which needs to be carefully mitigated through appropriate policy measures.

 

Trade

 

Low growth and an atmosphere of uncertainty in advanced economies have affected trade prospects in emerging market and developing economies in 2012-13. This is evident from slower growth in import demand in most advanced economies corresponding with weaker export growth in most of emerging and developing economies. India’s export growth also showed concomitant decline and in fact was more pronounced than some of other emerging market and developing economies. Fiscal cliff (increased taxes and expenditure cuts in the US), persisting low business expectations in other advanced economies, downswings in Chinese real economic activity etc may further adversely affect commodity exporters like Kerala..

 


DSC_4765.jpg 

 

6.2 Cross-country comparison of export performance indicates that India was one of the few economies in Asia which has shown decline in exports in the first quarter of 2012-13. However, India’s share in world export remained stable during the period. Going forward, downward risks to India’s exports are likely to remain on account of weak import demand in advanced countries and slowdown expected in China.

 

6.3 Being the major gateway to Kerala, the lion’s share of trade operations in the State is being conducted through Cochin Port. Items of trade include pepper, cashew, coir and coir products, tea, cardamom, ginger, spices and spices oil and marine products. Total traffic handled by the Cochin Port during 2011-12 was 200.91 lakh MT and that of 2010-11 was 178.72 lakh MT, registering an increase of 12.4 per cent.

 

6.4 Total quantity of exports through Cochin Port during 2011-12 increased to 43.11 lakh MT from 34.04 lakh MT in 2010-11, a rise of 27 per cent in quantitative terms and 22 per cent in value terms. All commodities, except tea and coir products, exported through the Cochin Port showed an increasing trend during 2011-12. Exports of cashew kernels increased by 11 per cent, sea foods by 22 per cent, spices by 41 per cent and coffee by 36 per cent. Exports of tea decreased slightly (by 0.21 per cent) and that of coir products by 6.5 per cent (see Appendix 6.1).

 

6.5 Imports through Cochin Port continued to increase and reached a level of 157.80 lakh MT in 2011-12. The main items of import include fertilizers and raw materials, food grains, iron and steel and machinery, newsprint and raw cashew nut. Import of iron and steel and machinery which increased by 82.5 per cent in 2010-11 sharply decreased by 78.6 per cent in 2011-12. Import of fertilizers and raw materials decreased by 30.5% during 2011-12. Decline in the import of the above items adversely affects the production sector (see Appendix 6.2).

 

6.6 Exports of Cargo, both coastal and foreign, from Cochin Port increased in 2011-12 by 23.4 per cent and 28 per cent respectively. Coastal exports increased to 14.86 lakh MT in 2011-12 from 12.04 lakh MT in 2010-11 while foreign exports marked an increase from 22.00 lakh MT in 2010-11 to 28.25 lakh MT in 2011-12. Both coastal and foreign imports increased by 7.3 per cent and 10 per cent respectively during 2011-12 (see Table 6.1)

 

Table 6.1

Cargo Handled at Cochin Port during 2007-08 to 2011-12

(In Lakh MT)

 

Traffic

Export

Import

2007-08

2008-09

2009-10

2010-11

2011-12

2007-08

2008-09

2009-10

2010-11

2011-12

1

2

3

4

5

6

7

8

9

10

11

Coastal

14.92

9.81

12.83

12.04

14.86

36.60

38.17

42.65

48.21

51.74

Foreign

19.99

17.29

23.13

22.00

28.25

86.04

89.67

95.68

96.47

106.06

Total

34.91

27.10

35.96

34.04

43.11

122.64

127.84

138.33

144.68

157.80

Source: Cochin Port Trust

Marine Products

 

6.7 Contribution of Kerala towards India’s marine exports in 2011-12 showed a markable increase over the earlier period both in quantity and value, an increase by around 18 per cent. Marine exports of Kerala during 2011-12 stood at155714 MT with a value of र 298833 lakh as against 124615 MT valued at र 200210 lakh in 2010-11. Export details of Marine Products of Kerala compared to all India in Quantity and Value for years 2007-08 to 2011-12 are given in Table 6.2.

 

Table 6.2

Export Trend of Marine Products – India & Kerala 2007-08 to 2011-12

 

Year

INDIA

KERALA

KERALA’S share %

Quantity (Tonnes)

Value(Rs Lakh)

Quantity (Tonnes)

Value(Rs Lakh)

Quantity

Value

2007-08

541701

762092

100318

143091

18.52

18.78

2008-09

602835

8607.94

100780

157218

16.72

18.26

2009-10

678436

1004853

107293

167002

15.81

16.62

2010-11 813091 1290147 124615 200210 15.33 15.52

2011-12

862021

1659723

155714

298833

18.06

18.00

Source: The Marine Products Export Development Agency (MPEDA)

 

6.8 Item wise details of exports of marine products from Kerala during 2010-11 and 2011-12 are given in Appendix 6.3.

 

Cashew

 

6.9 The percentage share of Kerala in cashew kernel export of India, both in value and quantity had been declining since 2006-07. Of the total exports of cashew kernels from India in 2011-12 Kerala’s contribution in quantitative and value terms stood around 52 per cent. This was 53.5 per cent and 52. 5 per cent respectively in 2010-11 (see Table-6.3). The major markets for Indian Cashew Kernels during 2011-12 were USA, UAE, Netherlands, Japan, Saudi Arabia, UK, France, Spain and Germany.

 

Table 6.3

Export of Cashew Kernels – Kerala & India (2007-08 to 2011-12)

(Qty:MT, Value :Rs.crore)

 

Year

KERALA*

INDIA

Share of Kerala (%)

Quantity

Value

Quantity

Value

Quantity

Value

2007-08

69298

1395.02

114345

2289.02

60.60

60.94

2008-09

63730

1716.52

109523

2988.4

58.19

57.44

2009-10

61698

1635.79

108120

2905.82

57.06

56.29

2010-11**

56578

1478.67

105755

2819.39

53.50

52.45

2011-12**

69149

2299.67

131760

4390.68

52.48

52.38

*Export through Cochin Port.

Source: The Cashew Export Promotion Council of India

 

6.10 The export of cashew nut shell liquid/cardanol from India during 2011-12 was 13575 MT, valued at र 59.46 crore (US $12 Million). There was an increase of 12.7 per cent in quantity, 76 per cent in Value in Rupee terms and 67.3 per cent in US $ terms compared to the export of 12051 MT of cashew nut shell liquid valued at र 33.77 crore (US $ 7.4 Million) during 2010-11 (see Appendix 6.4).

 

6.11 Import of cashew nuts into India during 2011-12 was 809371 MT valued at र 5337.76 crore and that of 2010-11 was 529370 MT having a value of र 2649.56 crore. Import through Cochin Port during 2011-12 was estimated as 252771 MT, a decline of 20.3 per cent against 2010-11 (see Appendix 6.2).

 

Coffee

 

6.12 Coffee Production in India during 2011-12 was estimated at 320000 MT. Though this amounts only to 4.5 per cent of the World’s coffee production, India exports 70-80 per cent of its output. Indian coffee exports in quantity terms was 324052 MT valued at र 4544 crore in 2011-12.

 

6.13 Kerala produced 68350 MT of coffee during 2011-12 (while neighbouring states like Karnataka produced 226355 MT and Tamilnadu 18390 MT) and exported 115359 MT valued at र 1146.29 crore. This export through Cochin Port, registered an increase of 36 per cent over 2010-11. Export of coffee in 2010-11 was 84792 MT valued at र 689.20 Crore.

 

Tea

 

6.14 Exports of tea through Cochin Port during 2011-12 was 111137 MT valued at र 464.7 Crore. The quantity of export is less than that of 2010-11, (111366 MT). However, due to a fall in the price of tea in 2011-12, the value earned was only र 436.2 crore.

 

Coir and Coir Products

 

6.15 Exports of Coir and coir Products from India recorded an increase of 28 per cent in quantity and 30 per cent in value during 2011-12. This is a very high level of exports and the highest that has ever been achieved. The total export was 410853.90 MT valued at र1052.63 crore.

 

6.16 However, exports of coir and coir products through Cochin Port continued to decrease in 2011-12 also. Quantity of exports in 2010-11 was 131046 MT valued at र 406.9 crore.This decreased to 122521 MT valued at र 400.5 crore in 2011-12. Items of export include coir mat, coir yarn and other coir products. The export trend of coir products through Cochin Port for the period from 2007-08 to 2011-12 is shown in the graph. (Fig 6.1)

 

Fig.6.1

Export trend of Coir and Coir products from Cochin Port

(Lakh MT)

5068.png 

Source: Cochin Port Trust

 

6.17 China is the major importer among 112 countries for coir and coir products from India, its share being 30.2 per cent.

 

Spices

 

pepper.jpg 

6.18 Export of spices from India during 2011-12 has registered an increase of 9 percent in quantity and 43 percent in value. Exports which was 525750 MT with value of र 6840.71 crore (US$1502.85 million) in 2010-11 reached a level of 575270 MT and र 9783.42 crore (US$2037.76 million) respectively in 2011-12.

 

6.19 Kerala exports spices mainly through Cochin and Thiruvananthapuram ports. During 2011-12 spices exports through Kerala ports was 97079.26 MT valued at र 3200.32 crore. Compared with 2010-11, there is an increase of 23345.88 MT in quantity (32 per cent) and र1315 crore in value (70 per cent). This rate of increase in quantity as well as value is an all time record . Pepper, cardamom, chilli, ginger, turmeric, coriander, cumin, celery, fennel, fenugreek, other seed spices, garlic, tamarind, nutmeg & maize, other miscellaneous spices, curry powder/mixture, spice oils and oleoresins and mint products are main items exported through the ports of Kerala.

6.20 During 2011-12 export of all spices except celery, other miscellaneous spices, spice oils & oleoresins and mint products have recorded increase, both in quantity and value, over the previous year. Export of pepper increased from 16294.97 MT (valued at र330.61crore) in the year 2010-11 to 24016.94 MT (valued at र797.10 crore) in 2011-12. Export of pepper which was declining since 2008-09 began to revive in 2011-12. About 90% of pepper export from India is contributed by Kerala both in quantity and value. Item wise export of spices through ports in Kerala from 2007-08 to 2011-12 is furnished in Appendix 6.5.

 

Cochin Special Economic Zone (CSEZ)

 

6.21 CSEZ was set up in 1981 as a multi product export processing zone to boost exports from the State. Spread over an area of 103 acres, the zone has 123 working units and 7 units under implementation as on 31.03.2012 in sectors including electronic hardware, software, engineering, gem & jewellery, food processing, readymade garments, plastics and rubber products. Both multinational corporations and domestic corporations have set up their units in the zone.

6.22 Export from CSEZ during 2011-12 was for र 29961.62 crore as against र18311.97 crore during 2010-11, registering a growth of 63 per cent over the previous year. During 2011-12, the number of Export- Oriented Units (EOUs) operating in Kerala was 79, with another 7 units under implementation. These EOUs have made an investment of about र 647 crore and provided employment to 5234 persons as on 31.03.2012. Industry-wise Export performance of units in CSEZ from 2007-08 to 2011-12 is given in Appendix 6.6.

 

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SECTION 2

Welfare of Non Resident Keralites (NRKs)

 

6.23 Non Resident Keralites are major assets to the State as their remittance increase the disposable income of their families. The principal destination of Kerala emigrants have remained more or less unchanged over these years, with 90 per cent of the Kerala emigrants going to one or other of the Gulf Countries. Migrants especially external migrants, from Kerala are predominantly males. The number of Kerala migrants living in Other States of India (OMI) in 2011 is estimated to be 9.31 lakh up from 9.14 lakh (2 per cent increase) in 2008. The number of out-migrants who returned and are now living in Kerala (Return out Migrants) in 2011 is estimated to 5.11 lakh compared to 6.86 lakh in 2008 (26 per cent). A major concern is the fact that the global slowdown is likely to result in large numbers of emigrant Keralites returning to the State. They will need to be rehabilitated with gainful employment befitting their skill sets. In the 12 th Plan, existing schemes will be converged and new schemes, including appropriate entrepreneurship avenues will be evolved to address their problems.

 

6.24 Non Resident Keralites and their relatives in the state have experienced both the positive and negative influences of global migration. Kerala is the first state in India to set up a separate department(NORKA) for the welfare of Non-Resident Indians hailing from the state. NORKA makes efforts to solve the grievances of migrants Keralites and takes remedial action on threats to the lives and property of those who are left at home.Tracing of missing persons abroad,claiming compensation from sponsors,taking action on harassment from sponsors and cheating by recruiting agents and provision of educational facilities for children for NRKs are part of NORKA’s mandate.

 

6.25 The total remittance in Kerala in 2011 was estimated to be approximately र 55,000 crore compared with र 43,228 crore in 2008. This is more than 20 per cent of the State’s NSDP and 1.8 per cent more than the revenue receipts of the State. Among the 14 districts in the State, Malappuram received the largest amount of remittance. In general, the southern districts experienced a decline in their share of remittances and northern districts experienced an increase. Considering the significant contribution of Non Residential Keralites to the ecconomy the total allotment to NORKA Department has increased from र172 lakh in 2007-08 to र1151 lakh in 2011-12 (an increase of over 7 times).

 

6.26 An amount of र11.51 lakh has been provided to the Department during the year 2011-12 and the expenditure reported was only a little 6 crore ( 53 per cent). A new scheme Pravasi Legal Aid Cell was introduced during the year but the scheme was not implemented by the Department due to some technical problems.

 

6.27 NORKA ROOTS is the field agency of the department of NORKA. It acts as an interface between the Non-resident Keralites and the Government of Kerala and also is a forum for addressing the NRKs’ problems, safeguarding their rights and if required for rehabilitation of returnees. Attestation of educational certificates prior to their attestation in the Ministry of External Affairs is being done the NORKA ROOTS. During the period under review 68763 certificates have been attested and an amount of र 15.46 crore has been collected as registration fees. The Santhwana scheme,is providing financial assistance to NRKs whose annual income is below र 25000/- for cases like medical treatment, marriage of daughters, purchase of wheelchair , crutches etc and 636 persons benefited during 2011-12.

 

6.28 Under the scheme, KARUNAYAM – funds are provided for meeting the expenditure incurred on repatriation of mortal remains of the NRKs who die abroad or those who die outside the state. Two such cases were assisted during the period under review. The Skill Upgradation programme was implemented through leading technical training institutions in the district and the objective of the scheme is to upgrade the skill of young Keralites to meet challenges in the overseas employment market.

6.29 Pravasi Bharatiya Divas (PBD) is celebrated on 9th of January every year to appreciate the contribution of Overseas Indian Community in the development of India. These conventions provide a platform to the overseas Indian community to engage with the Government and people of the land of their ancestors for mutually beneficial activities. These conventions are also useful in networking among the overseas Indian community residing in various parts of the world to enable them to share their experiences in various fields. During the event, individuals of exceptional merit are honoured with the prestigious Bharathiya Samman to appreciate their role in India’s growth and also provide a forum for discussing key issues concerning the Indian Diaspora.Several Keralites participate in this event.

 

SECTION 3

Tourism

 

6.30 Tourism with its Super brand ‘God’s Own Country’, has made Kerala a household name among global tourists. With the Arabian Sea in the west, the Western Ghats in the east and networked by 44 rivers, Kerala enjoys unique geographical features that have made it one of the most sought after tourist destinations in Asia. Kerala is blessed with varied geographical features like beaches, hill stations, backwaters, national parks & wild life sanctuaries. The centuries- old holistic medicine of Ayurveda, the unique boat races ,the ride through the winding waterways in a cosy houseboat or the colourful and exotic festivals, with all this Kerala offers a multitude of experiences to the tourist. Tourism industry in Kerala helps in balanced and sustainable regional growth by generating income and creating employment opportunities especially in trade ,transport and hospitality sectors, thus contributing significantly to the State’s GDP.

 

kovalam-beach-and-light-house.jpg 

 

 Box.6.1

Kerala’s model for success in Global Tourism

 

• Strong brand positioning

• Product differentiation

• Model public private partnership

• Tremendous political support

• Public acceptance

• Vibrant Private sector

• Safety and security for tourists

 

6.31 Kerala has an active tourism industry which is accepted as an appropriate industry for Kerala. In 1986 tourism had gained industry status in Kerala. By the early 2000s, tourism had grown into a fully fledged, multi-billion dollar industry. Over the last five year plan period priority has been given to the development of Responsible Tourism with the objective of improving the standard of life of the locals. It is for the implementation of this project in Kumarakom that the State Tourism Department won the Central Government’s award.

 

 

Box.6.2

Performance of Kerala Tourism during 2011-12

 

• Foreign Tourist arrivals to Kerala during the year 2011-12 were 732985, an increase of over 11percent compared to the previous year.

• Domestic Tourist arrivals to Kerala during the year 2011-12 were 9381455, an increase of over 9 per cent compared to the previous year.

• Foreign exchange earnings for the year 2011-12 were र 4221.99 crores, an increase of over 11percent over the previous year.

• Total Revenue (including direct & indirect) from Tourism during 2011-12 was र19037 crores, an increase of around 10 per cent over the last year’s figure.

 

 

Foreign Tourist Arrivals

 

6.32 The year 2011-12 has recorded an impressive growth in tourism sector. International Tourist arrival had declined due to the impact of Global Economic crisis in the previous years. But the year 2012 marked a significant improvement. The number of foreign tourists in Kerala in the year 2011-12 is 732985 against 659265 in 2010-11. It shows an increase of around 11 per cent over the previous year. Which was higher than the percent growth recorded bt foreign tiurist in India over the previous year. During 2011-12 Kerala has the distinction of nearly 12 per cent of the total foreign tourist arrivals to India. Appendix 6.7 gives the details of foreign tourist arrivals in Kerala and in India from 2007 to 2012. Fig 9.1 gives a comparison of growth of foreign tourist arrivals in Kerala.

 

Fig 6.2

Year Wise Foregin Tourists Arrivals

 

4728.png 

Source : Dept of Tourism

Domestic Tourist Arrivals

 

6.33 The number of domestic tourists in Kerala in the year 2011-12 was 9381455 against 8595075 in 2010-11. It shows an increase of over 9 per cent over the previous year. Appendix 6.8 gives the details of domestic tourist arrivals to Kerala from 2006 to 2011.

 

District wise arrival of foreign and domestic tourists in Kerala.

 

6.34 Thiruvananthapuram and Ernakulam are the two leading districts recording foreign tourists arrivals to Kerala for the last few years. For the domestic tourist’s arrival to Kerala, Ernakulam and Thrissur are the leading districts. Ernakulam is the leading district in domestic and foreign tourists’ arrival while as Pathanamthitta is the least attractive destination among tourists. The district wise arrival of foreign and domestic tourists for the year 2011-12 is given in Appendix 6.9. Figure 6.3 gives the comparison of District wise arrival of foreign and domestic tourists in Kerala.

 

Fig 6.3

District Wise Tourist Arrivals

4738.png 

Source: Dept of Tourism

 

Economic Impact of Tourism

 

6.35 Tourism contributes 9 percent of State’s GDP. Tourism industry is a major contributor of foreign exchange earnings of the State. The details are given in Appendix 6.10. The foreign exchange earnings during the year 2011-12 is 4221.99 crore . The total revenue generated during the same period is र 19037 crore (direct and indirect). It provides considerable employment opportunities for semi skilled workers in the trade, hospitality and transport sector. It indirectly encourages local manufacture of traditional goods. It stimulates ayurvedic practices in the state and serves to showcase Kerala’s environment friendly and high human development indicators to the rest of the world.

 

 Box.6.3

Plan Outlay and Expenditure

 

During the period 2010-11 the state plan allocation to the tourism sector was र 90 crore and the Department utilised 93% of the plan allocation. In 2011-12 the total plan allocation to the sector was र 153 crore (र 50 crore additional central assistance) and the Department utilised 93.5 per cent

 

Responsible Tourism

 

6.36 Responsible Tourism is a Tourism Management Strategy embracing planning, management, product development and marketing to bring about a positive economic, social, cultural and environmental impact to the local community. Kerala Tourism has been piloting the responsible tourism initiatives at 4 destinations viz Kovalam, Kumarakom, Thekkady and Wayanad with active support of the local self Governments, Tourism Industry, Kudumbasree, NGOs and the local community as a whole. The remarkable feature of Responsible Tourism is that it provides better living conditions to the local community, extra income generation, emergence of new entrepreneurs, micro enterprises, large area brought under cultivation.

 

6.37 Priority has been given to the development of Responsible Tourism with the objective of improving the standard of life of the local people. The Government is all set to implement Responsible tourism across the State.

 

Priorities of the State

 

6.38 Kerala Tourism will be able to grow beyond expectations if only it is able to position Kerala as a global tourism brand for which basic infrastructure is not sufficient at present. The government is giving priority to bridge this gap and is committed to creating an investor-friendly atmosphere to welcome private investors. Ensuring quality visitor experience is one of the main objectives of the newly declared Tourism Policy. As the major strength of tourism in the state of Kerala is its natural attractions, a clean and pollution free environment with minimum basic facilities at the destinations are required to increase the tourist flow to the state. But, waste management has become a serious concern in the state of Kerala,which is now being tackled on a war footing.

 

6.39 Kerala Tourism has decided to create new marketing strategies for countries like Russia, Australia and West Asia. As a part of this, the Tourism Department has decided to organize extensive promotional programmes.

 

6.40 The New Tourism policy is envisaged to help convert tourism into an industry that strongly supports the comprehensive development of the State and provides the roadmap for Kerala’s tourism development.

 

Box.6.4

Kerala Tourism Policy 2012

 

Objectives

To ensure quality visitor experience

To focus on benefits for the community from tourism

To create enabling environment for investment

To market Kerala as a visible global brand in domestic and international markets

To develop quality human resources in tourism and hospitality

 

A Cabinet Committee on Tourism will be formed with Chief Minister as Chairman, Minister for Tourism as Vice Chairman and Ministers of related line departments as members to oversee the implementation of infrastructure plans. A new campaign on ‘Kerala Waste Free Destination will be launched with the active participation of local bodies,NGOs and Self Help Groups.

 

 

6.41 As per the recent amendment of the Kerala Land Reforms Act 1963, five per cent of land in all plantations can be used for other purposes including tourism and this will have a positive impact on hill and plantation tourism development in the State.

 

Awards and Recognitions

 

6.42 Kerala Tourism won 13 awards in total in 2011-12 including national and international awards as well as two Central Government awards. PATA Grand, PATA Gold, World Travel Market (London) - Best Stand Award, ITB (Berlin) - Das Golden, CNBC, Outlook Traveller, Times Travel, Travel & Leisure, Conde Nast Traveller are a few of them. These awards were received for the exemplary per formance by Kerala Tourism in various fields

Tourist Accommodation

 

6.43 The hotel sector forms one of the most important drivers of tourism industry. Kerala has to its credit a total of 14276 rooms in classified hotels, the maximum number of rooms being in 3-Star categories. The details of availability of accommodation facility in classified hotels in 2011 and 2010 are given in Appendix 6.13

 

Supporting Organisations

 

Kerala Tourism Development Corporation (KTDC)

 

6.44 KTDC is a commercial agency, which is actively participating in building up basic infrastructure needed for the development of tourism in the State. KTDC is running hotels and wayside amenity centers in almost all tourist destinations. Presently they own 8 classified hotels, 7 budget hotels, 13 motels, 13 YatriNivas’/Tamarind Hotels, 20 Restaurants & Beer parlour, 4 Restaurant and 4 Boat Clubs. In total there are 706 rooms.

 

District Tourism Promotion Councils (DTPCs)

 

6.45 The District Tourism Promotion Councils have undertaken the responsibility of creating and marketing local tourism products and opportunities. They are constantly improving the quality standards of these tourism products and services through surveys and other data collection means. The DTPCs also monitor and supervise the levels of sanitation in tourist destinations. Other related activities of the DTPCs are the creation of awareness of the facilities and services in their specific area, development of tourism clubs, dissemination of tourism specific information, Home stay scheme and development of local basic infrastructure.

 

Kerala Tourism Infrastructure Limited (KTIL)

 

6.46 Tourist Resort (Kerala) Ltd is the agency meant for joint venture projects. Presently there are 4 hotels at Varkala, Kumarakom, Thekkady and Ernakulam sharing with TAJ group. It also oversees the Land Bank Scheme. Investment development at tourism Sector, conducting of Investors Meet and formation of consultancy cell for tourism development are other major achievements.

 

Bekal Resort Development Corporation (BRDC)

 

6.47 Bekal Resorts Development Corporation Ltd. is a company formed for the development of Bekal and surrounding tourist attractions. The main focus is to provide marketing resources and to be actively involved in local, regional and state wide marketing promotions.

 

Kerala Institute of Tourism and Travel Studies (KITTS)
and Food Craft Institutes (FCIs)

 

6.48 Kerala Institute of Tourism and Travel Studies is a pioneer organization offering quality education and training in tourism in the state. These institutes are actively involved in the recruitment, and placing of quality staff in the tourism site throughout Kerala. All aspects of Human Resources Development for the tourism and hospitality sectors are impacted by KITTS and FCIs by establishing and monitoring the quality regulations of the Tourism and Travel Training Institutes.

 

Eco - Tourism

 

6.49 Kerala is famous for its ecotourism initiatives.

The following are the objectives of Eco-tourism.

• To convert entire tourism industry in Kerala into Eco-friendly mode.

• To strengthen Eco-tourism development initiatives in the State.

• To ensure local community involvement in tourism initiatives leading to employment and

income generation.

 

Muziris Heritage Tourism Project

 

6.50 Muziris is an ancient port in Kerala. Muziris Heritage Project was developed to utilise the State’s immense potential in the Heritage tourism sector. Muziris Heritage project today, one of the most successful projects undertaken by Kerala tourism and the project is being completed in different phases. The first phase will be finished in a few months and is being dedicated to the country.

 

Kerala Sea plane Project

 

6.51 Kerala is blessed with abundance of water bodies which are mostly in areas of tourist interest. Kerala government is rolling out seaplane project for providing connectivity by air to its destinations across the state. The plan is to provide the service initially in a prioritised circuit consisting of Ashtamudi, Punnamada, Kumarakam, Bolgatti and Bekal with the three airports as base stations.

 

maldivian_air_taxi.jpg 

 

Box.6.5

Major Tourism Projects Approved in 2011-2012

 

• Varkala Tourism Plaza – र 1 crore 35 lakhs

• Development of beaches at Thalassery and Kannur – र 1 crore 20 lakhs

• Beautification of Fort Kochi, Vypeen – र 1 crore 65 lakhs

• Development of tourist facilities at Pookodu lake in Wayanad – र 2 crores 97 lakhs

• Development of Resting facilities at Aakkulam Tourist centre – र 2 crores 25 lakhs

• Landscaping and other facilities at the houseboat terminal complex – र 4 crores 99 lakhs

• Construction of biogas plant at Kovalam – र 1,18 lakh

• Manpower development for Tourism industry - र – 250 lakh

• Development of Karappuzha dam site and surroundings into a major tourist spot – र 492 lakhs

• Tourism Facilitation cum Information Centre at Kabanitheeram (Panamaram) – र 75 lakhs

• Nehru Trophy Boat Race Pavilion in Alappuzha - र 15 Crores

• Basic infrastructure development for adventure tourism at Vagamon – र 98 lakh

 

 

6.52 Kerala Tourism is now focussing on activities that fully utilise the immense possibilities of tourism in the state. It will also emphasize on the development of more tourist centres in co-operation with other agencies like Forest Department, Local Self Governments etc. It is with the objective of ushering in total development in this area that awards and incentives are being offered for novel and practical ideas. Kerala Tourism is a major development segment and a well known global brand. To sustain tourism in the highly competitive market, there is a need to ensure quality experience to the visitors while benefiting society and industry. Non availability of land,poor infrastructure and need for enviornment conservation can act as barriers to tourism development in the State. Responsible and eco tourism can be developed by having closer co-ordination between related departments in the State and Local Governments, so that projects can be completed in the planned time frame and within the estimated cost. The full protection of forests,Hill,Plantation,Water and cultural tourism will be developed during XIth plan without hampering the environment.

 

Outlook for External Sector in Kerala:

 

Kerala has long been and will continue to be a globally connected economy. Over dependence on horticulture and marine exports is risky as global commodity prices are beyond Kerala’s control. Diversification of exports to include high value knowledge based goods and services will spread the risk as well as improve inward flows to the State. Similarly, Kerala is known more for semi – skilled emigrants, the one major exception being highly skilled nurses. Efforts should be made to increase the skill and employability of all Keralalites so that they may benefit from global opportunities. The benefits gained in being a globally sought after tourist destination can be further enhanced through a variety of measures which ensure that Kerala remains a clear, eco – friendly and safe destination, with not only a rich historical and cultural tradition but a State which offers tourists world class recreation facilities.

 

 

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