Kerala’s Tourism Faces Devastating Decline As Domestic Arrivals From India Drop By Forty Percent, Marking A Historic Low

Published on November 29, 2025

Kerala’s tourism industry is grappling with an unprecedented setback as domestic arrivals from India have plummeted by a staggering 40%, reaching a historic low. This sharp decline can be attributed to several factors, including the economic slowdown, unpredictable weather conditions, and shifting travel preferences. The state, once a hotspot for Indian tourists, is now facing a significant challenge in regaining its appeal. As the tourism sector forms a crucial part of Kerala’s economy, this drop in visitor numbers has sparked concerns about the long-term impacts on local businesses, hospitality services, and job opportunities across the region.

Kerala’s tourism sector is grappling with a significant slump, marked by unusually low domestic arrivals despite the beginning of the traditional peak season. According to industry stakeholders, bookings and occupancy rates have dropped by about 40%, making this November one of the most challenging months for the sector in recent years. As Kerala typically experiences a surge in tourists during this time, the current situation is a stark contrast to the usual trend.

One of the state’s most famous hill stations, Munnar, is experiencing the brunt of this downturn. Historically a favorite destination for tourists, Munnar’s occupancy rates have fallen drastically, with levels hovering around 40%, with improvements only on weekends. In comparison, November’s occupancy levels in previous years typically ranged between 70-75%, a clear indication that the situation this year is particularly concerning.

The tourism crisis in Kerala is compounded by the fact that, as the sector moves into the Christmas and New Year rush, the influx of visitors has remained unpredictable. Stakeholders point out that there is no steady flow of tourists. Most of the bookings are limited to weekends, while weekdays remain relatively quiet. Though bookings have been secured for the period from December 24-31, the lull during the earlier weeks is a major concern for hoteliers and tourism operators.

Kerala’s domestic tourism market is traditionally supported by neighboring states such as Tamil Nadu, Karnataka, Maharashtra, Andhra Pradesh, and Gujarat. These regions remain the primary source markets for Kerala’s tourist traffic. In 2024, the state welcomed approximately 2.2 crore domestic tourists. However, the continuing low numbers have raised alarms. The steep decline in November’s occupancy levels signals an issue that might have long-lasting implications for the state’s tourism industry.

The situation in Munnar is a perfect example of how deep the impact of this downturn is. Normally, the hill station sees high occupancy rates between 75% and 90% during the peak season, especially in the months of November and December. For this reason, the current situation is unprecedented. Locals involved in the tourism industry in Munnar have pointed out that they have never seen such a subdued season, which makes the outlook for the upcoming months particularly worrisome.

The low occupancy in Munnar has become a major talking point among hoteliers and tourism operators, who are grappling with the lack of a steady stream of tourists. One local tourism official commented that the region has been seeing only sporadic bookings, primarily during the weekends. This makes it difficult for tourism-related businesses to plan effectively, as they cannot rely on the usual influx of visitors throughout the week. Even during the festive season, when the state usually expects a surge in tourists, the slow bookings paint a grim picture of what lies ahead for Kerala’s tourism industry.

Looking at the broader picture, Kerala’s tourism crisis is reflective of a larger trend that is unfolding across the country. Domestic tourism, which is typically a major contributor to the state’s economy, has faced several challenges in recent times. Despite the state’s longstanding reputation for being a prime destination for both domestic and international tourists, factors such as changing travel patterns and competing destinations have affected visitor numbers. In addition to this, the impact of global economic uncertainty and the shifting preferences of travelers have made it even more difficult for Kerala to attract the same levels of tourism as it once did.

Industry insiders believe that one of the contributing factors to this year’s dip in tourism may be related to the timing of the Kumbh Mela, a major religious event that took place earlier in the year. Many travelers may have exhausted their annual vacation plans attending this event, leaving them with little to no room for additional travel. This could explain the unusual dip in bookings, particularly during what should be a peak time for the state’s tourism industry.

While Munnar and other hill stations are feeling the pinch, the broader tourism landscape in Kerala remains uncertain. As the state looks to recover from this slump, stakeholders are hoping that the upcoming months, especially the Christmas and New Year period, will provide a much-needed boost. However, with occupancy rates still well below historical averages, the tourism sector is facing a challenge in regaining its momentum.

The tourism industry in Kerala has always been one of the state’s most vital economic drivers, contributing significantly to both employment and local revenues. With the sector facing such difficulties, the ramifications could extend beyond just tourism businesses. Local artisans, small businesses, and even the hospitality industry may face long-term consequences if this slump continues. As stakeholders work to address the challenges and adapt to changing market dynamics, Kerala will need to rethink its approach to tourism marketing and ensure it remains competitive in an ever-evolving travel landscape.

In the face of these challenges, experts are advising the tourism sector to look for innovative ways to revive the industry. Exploring new international markets, investing in digital marketing, and offering unique, local experiences that appeal to niche markets could help reinvigorate the sector. Additionally, the focus on improving infrastructure and ensuring that visitors have a seamless and enjoyable experience may also play a critical role in bringing tourists back to Kerala.

Kerala’s tourism is facing a historic low with a 40% drop in domestic arrivals from India, driven by factors like the economic slowdown, unpredictable weather, and changing travel preferences.

Despite the difficulties faced by Kerala’s tourism industry this November, there is hope that with the right strategies and adaptations, the state can weather the storm and regain its status as one of India’s most sought-after travel destinations. However, for now, stakeholders remain cautious as they brace for the challenges ahead, hoping that the Christmas-New Year rush will provide the much-needed respite for the beleaguered sector.