Kerala Tourism Minister P.A. Mohamed Riyas expressed satisfaction with the augmented budgetary allocation for the tourism sector, believing it will boost ongoing and upcoming projects, especially in infrastructure development and destination enhancement. The state’s 2026–27 Budget, unveiled by Finance Minister K.N. Balagopal in the Assembly, raised the tourism allocation to Rs 413.52 crore from Rs 385.02 crore in the previous fiscal year, showcasing the government’s commitment to fostering growth through destination-focused initiatives, heritage preservation, and marketing-driven expansion.
The budget prioritized various aspects such as tourism infrastructure development, Destination Challenge projects, implementation of the Design Policy, tourism hub development, heritage and cultural tourism, Responsible Tourism initiatives, and expanded marketing campaigns. To strengthen tourism circuits, the government announced the initiation of a ‘Blue Green Integrated Tourism Circuit’ starting at Dharmadam in Kannur with an initial investment of Rs 2 crore, integrating the Dharmadam river cruise circuit, Dharmadam Island Bio Reserve, a walking museum, and a mangrove information center.
Efforts are already underway for the Kollam Biodiversity Circuit and the Malabar Literary Circuit. Marketing funds have been increased to Rs 85 crore, with an additional Rs 20 crore earmarked to support the Responsible Tourism (RT) Mission Society’s activities, highlighting the state’s commitment to community-centered and sustainable tourism models. A substantial portion of the budget, amounting to Rs 159 crore, has been allocated for the renovation, basic infrastructure development, and visitor amenities at tourism centers.
Notable allocations include Rs 5 crore each for Beypore ‘Uru’ Tourism and Kochi Heritage, while the Kerala Tourism Development Corporation (KTDC) has been granted Rs 14.10 crore for project implementation. To encourage investments and entrepreneurship, Rs 13.50 crore has been allocated for subsidies and incentives for tourism products and infrastructure. Additionally, the budget includes Rs 5 crore for heliport construction at Kumarakom and an initial Rs 1 crore for exploring PPP-based development of the Peechi tourism project.
Emphasizing heritage-led initiatives, Rs 14 crore has been set aside for Muziris Heritage and Spices Routes and River Cruise Heritage projects, with an additional Rs 29 crore allocated under a new scheme titled Conservation and Promotion of Heritage, Environment, and Culture. The Champions Boat League (CBL) has been granted Rs 10.46 crore.
