Kerala govt to introduce 'revolving fund scheme' to boost tourism sector amid COVID-19

The Kerala government will be implementing a 'revolving fund scheme' in the state tourism sector. The Pinarayi government is aiming to revive the tourism sector, which was among the most successful ones in the country, but has not been able to recover after multiple outbreaks of COVID-19.

Tourism Minister P A Mohammed Riyas said in the State Assembly that the revolving fund scheme is designed to provide people with interest-free loans. This will help and support businesses within the tourism industry to solve a part of the problems they are facing since the pandemic started. CPI MLA E Chandrasekharan asked the assembly during the Question Hour if the project was ready to be implemented immediately, to which Mohammed Riyas said yes.

The proposed scheme allows a large sector of industry professionals to avail of interest-free loans. Those who can request a loan once the scheme is implemented are- the tourist taxi and bus drivers, houseboat staff, hotel-restaurant employees, those working in Ayurveda centres, homestays, amusement and green parks and responsible tourism projects and artists, handicraft experts and martial artists experts. The tourism minister also said that the state tourism department has decided to renew the licence and accreditation that they previously issued to various institutions like Ayurveda centres, restaurants, homestays and service villas. The business owners can apply for renewal till December 31, 2021.

Kerala's tough road to recovery

Kerala’s government has found it hard to control the recent surge in the cases and due to that, the tourism industry again finds itself in a position where it’s unable to recover. The official data of the state government suggests that the tourism sector had suffered losses of at least Rs 33,675 crore due to the COVID-19 pandemic. A package has been announced in the latest budget for the tourism sector, in which Rs 30 crore were given to the industry from the government’s revenue to recover. Apart from the already sanctioned amount of Rs 100 crore, an additional Rs 50 crore had been given to the department specifically for marketing during the budget session of the Pinarayi Vijayan’s Government.

(With PTI inputs)