Tie-up with private sector augurs well for medical tourism, say stakeholders

Key tourism stakeholders in Kerala have largely welcomed the announcement in the Union Budget extending Mudra loans to homestays, hoping that the move would help upgrade the accommodation units. They also hope that the once-premium tourist locales like Fort Kochi would benefit from the Centre’s proposed partnership with States to develop 50 prominent tourist destinations.

They feel that medical tourism will get a boost, in sync with the increased role envisaged for the private sector in the Budget. The emphasis on partnership with the private sector augurs well for tourism industry, especially since a good share of medical tourists come to Kerala seeking Ayurveda treatment, says Sajeev Kurup, general secretary of the Confederation of Kerala Tourism Industries (CKTI) and the chairman of the Ayurveda Task Force of FICCI’s national tourism committee.

“At the same time, the government must take steps to issue free visa for medical tourists and also reduce the rate of international and domestic air travel. Else, tourists will opt for Sri Lanka or destinations in southeast Asia, where air travel is relatively cheaper,” he adds.

‘Waive visa fee for all’

Terming the visa-fee waiver for select foreign-tourist groups disappointing, Jose Dominic, co-founder of CGH Earth Group, says many countries in southeast Asia have made visa available on arrival for all arrivals. “There is a major drop in foreign tourist arrival after COVID. In this situation, GST waiver ought to have been given for room tariff, recognising foreign tourist arrivals as an export product.”

He hoped that the government would develop farm tourism in Kerala, under the scheme announced in the Budget to develop 50 prominent tourist destinations. “Kerala’s unique social structure makes homestays particularly appropriate. Mudra loans mentioned in the Budget for homestays would help restore the buildings,” Mr. Dominic says.

On Mudra loans

Sheik Ismail, president of Tourism Care Foundation-Kerala, while welcoming the extension of Mudra loans, says care must be taken so that only operators of genuine homestays benefit from the initiative. “This is because the growing number of illegal homestays that are run on lease/rent is a matter of concern,” he says. It is also high time the Centre partnered with Kerala to protect the Fort Kochi beach which is facing threat due to sea erosion, he adds.