Kerala may be a darling for travel brochures, but when it comes to actual foreign tourist arrivals (FTAs), it is ranked far behind many north Indian States. Yet, when you look at the number of five-star, four-star, and three-star hotels, the tiny southern State beats them all.
According to data from the Ministry of Tourism, Kerala has been leading the star hotel tally since 2019. The State boasts 94 five-star, 420 four-star, and 601 three-star hotels — a number that leaves Maharashtra, Delhi, and other metropolitan regions trailing. Maharashtra, sitting second, has 86 five-star, 36 four-star, and 69 three-star hotels.
The hotel ratings come through the NIDHI+ portal of the Ministry of Tourism, which classifies hotels from one-star up to five-star deluxe, with variations depending on whether alcohol is served or not.
Interestingly, while Kerala shines in star counts, the story with tourist arrivals is quite different.
In 2023, India welcomed about 95.2 lakh foreign tourists. Maharashtra topped the chart with 33.87 lakh foreign tourist visits, followed by Gujarat (28.06 lakh), West Bengal (27.06 lakh), and Delhi (18.28 lakh). Kerala, despite all the glossy promotions, recorded only 6.49 lakh foreign tourist visits.
The contrast between a booming hotel scene and relatively modest tourist arrivals raises questions — and plenty of speculation.
According to E.M. Najeeb, senior vice-president of the Indian Association of Tour Operators (IATO), the hotel boom in Kerala cannot simply be linked to tourist arrivals. The real driver, he suggests, lies in past State excise policies.
During the United Democratic Front (UDF) regime, bar licences were granted only to five-star hotels. Naturally, many three-star and four-star properties found a strong incentive to upgrade to five-star status just to keep their liquor flowing. When the Left Democratic Front (LDF) government came to power, bars were opened to three-star and four-star hotels too, keeping the momentum alive.
So, the boom in star ratings may have had less to do with tourist demand and more to do with serving drinks legally.
Another angle is the high volume of NRI remittances into Kerala. James Kodianthara, CEO of Concord Exotic Voyages, points out that many expat entrepreneurs, flush with cash sent home, invested heavily into the hospitality sector.
Kerala's visibility as a tourist destination also got a major push over the last few decades. About 30 years ago, five-star hotels were few and far between. Aggressive marketing campaigns, both nationally and internationally, helped paint Kerala as a must-visit location — and this attracted serious investments into fancy hotels, says Shilendran Mohan, vice-president (Sales) at CGH Earth Hotels.
