Kerala Tourism estimates Rs 1000 crore loss post demonetisation

The cash crunch has severely affected the tourism sector since demonetisation of 500 and 1,000 currency notes came into effect from November 8 last, stated Kadakampally Surendran, Minister – Co-operation, Tourism and Devaswoms, Govt. of Kerala. There has been a decrease of 10-15 per cent in the number of foreign tourists arriving while the number of domestic tourists dipped by 20-30 per cent, he added. He pointed out that the state netted a revenue of Rs 25,000 crore every year from the tourism sector. “The currency crunch arose during the tourism season itself and so, things went wrong to a great extent,” Surendran said, adding that foreign tourists were not getting enough cash at airports on their arrival. Tourists were also spending very little money in the state now which had affected the local traders, he stated. The houseboat business, one of the main attractions of backwater tourism in Kerala, was “on the verge of collapse”, he said and added that the state government would do “everything possible” to boost the tourism sector. Surendran, who also holds the Co-operation portfolio, said the cooperative sector was in a “bad shape” and alleged that even though the Supreme Court had directed for provisions for cash in the sector, no step had been taken in that regard.