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KERALA

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KERALA
Kerala is famous for its backwaters, which are a network of canal, rivers and deltas that drain into the Arabian Sea. The major portion of this backwater is navigable and it connects the villages lying along and it is also used for transportation of goods and people. The largest stretch of Backwater is the Vembanad Lake and the major towns around which backwater activities occur are Alleppey (often called theVenice of the East), Kumarakom and Kollam. An overnight cruise in the traditional ‘House-Boat’ floating the serene backwaters is the dream of any tourist. These house-boats have air conditioning and have comprehensive facilities and are often expensive targeting the premium travelers. Budget travellers have an affordable option in the regular ferry service between Kollam and Alleppy. This is a full day trip along the backwaters and normally has a group of around 20 people on the upper deck of the boat.

4.00 lakhs international and over 60.00 lakhs domestic tourist arrivals per year. The tourism sector in the state attracts about 1000 crores of investment per year and provides employment to over 10.00 lakhs persons. The income to the state from tourism was in the order of Rs. 7700 crores during the year 2005 with a foreign exchange earning of Rs. 1550 crores. Even though the state has about 50,000 rooms for tourist accommodation in different categories, there are only less than 10,000 rooms of good quality. Considering the potential and demand, it is estimated that there is a gap of about 5,000 quality rooms at present. The additional room requirement for the next 5 years will be another 10,000 rooms.
If we take the average investment requirement per room for developing a hotel/resort as Rs. 20.00 lakhs per room, the investment requirement in the accommodation sector for the next 5 years will be in the order of Rs. 3,000 crores which is very ambitious. It is necessary to find out ways and means of achieving the target in a cheaper way without

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