States focussing on tourism likely to benefit from Union Budget, thrust for medical tourism to benefit Kerala

The Central government’s decision to bring in easier visa norms and streamlined e-visa facilities announced in the Union Budget presented on Saturday is likely to support the economy of States like Kerala and Goa, where tourism holds great sway over the local economy.

Tourism contributes around 10% of the State GDP in Kerala, and the decision to simplify the visa norms will help increase foreign tourist arrivals significantly. The foreign tourist arrivals in the State have slipped to 6.5 lakh in 2023 compared to 11.9 lakh in 2019.

According to industry insiders, the medical and wellness tourism sector will get the major benefit of the new decision. The Budget has announced that medical tourism and ‘Heal in India’ will be promoted in partnership with the private sector along with capacity building and easier visa norms. Speaking to The Hindu, Sajeev Kurup, general secretary of Confederation of Kerala Tourism Industries and chairperson of Ayurveda Task Force FICCI Tourism National Committee, said simplifying visa norms was one of the long-pending demands of the hospitality industry in the country.

Segment leader

For the time being, Kerala, Mumbai, and Chennai are the leading markets for medical tourist arrivals in the country for allopathic treatment, while Kerala is the only segment leader in the Ayurveda and wellness tourism sector. In the case of allopathic treatment, Kerala is the preferred destination for foreigners from West Asian countries, while people from countries like Maldives, Colombo, and other Southeast Asian countries prefer Chennai for treatment. Mumbai is the prime destination for people from countries like Bangladesh, said Mr. Kurup.

Further, the decision to develop the top 50 tourist destination sites in the country in partnership with States through a challenge mode will also benefit Kerala. Though the hospitality industry has struck a cautiously optimistic note, there are also concerns about how the new policy decisions would be implemented. In addition, the exorbitant price for flight tickets continues to dampen the spirit of the announcements made.

“The government should also resume the duty drawback scheme under the SEIS (Service Export India Scheme) given for the tourism service providers during the pre-pandemic era. Such a step will give a decent incentive for the stakeholders handling the foreign tourism segment,” said James Kodianthara, chairperson of the Kerala chapter of the Indian Association of Tour Operators (IATO).

On the other hand, the seaplane service has not been mentioned in the modified UDAN scheme, much to the chagrin of the State. Kerala was pinning its hopes on the introduction of seaplane service to increase the tourism potential and suggested close to 10 waterbodies to start services under the UDAN scheme.