Government will launch a ‘Blue Green Integrated Tourism Circuit’, with the first phase at Dharmadam in Kannur
With the 2026–27 state budget placing tourism firmly in focus, the Kerala government has raised its allocation for the sector to INR 4.13 billion, up from INR 3.85 billion last year, reinforcing tourism-led economic growth through infrastructure, heritage conservation, destination development and sustainable tourism initiatives across the state.
In a press statement, Kerala Tourism says that a significant portion of the budget is directed towards developing tourism circuits. The government will launch a ‘Blue Green Integrated Tourism Circuit’, with the first phase at Dharmadam in Kannur, at a cost of INR 20 million.
The statement adds that the project includes a river cruise circuit, Dharmadam Island bio-reserve, a walking museum and a mangrove information centre. Work on the Kollam Biodiversity Circuit and the Malabar Literary Circuit is already in progress.
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Presenting the budget in the State Assembly, Finance Minister K N Balagopal outlined higher spending on heritage and cultural tourism, infrastructure development, destination-focussed projects, marketing initiatives and Responsible Tourism programmes.
Marketing expenditure has been raised to INR 850 million, while INR 200 million has been allocated to support activities of the Responsible Tourism Mission Society.
Infrastructure development at tourism centres has received INR 1.59 billion for renovation, basic facilities and amenities. The Beypore Uru Tourism project and Kochi Heritage development have been allotted INR 50 million each, says the statement.
The Kerala Tourism Development Corporation (KTDC) has been allocated INR 141 million for implementing various projects. An additional INR 135 million has been earmarked for subsidies and incentives to promote tourism investments, entrepreneurship, products and infrastructure.
According to statement among specific projects, INR 50 million has been allocated for heliport construction at Kumarakom, while INR 10 million has been provided as an initial allocation to explore a public-private partnership model for the Peechi tourism project. Muziris Heritage and Spices Routes, along with River Cruise Heritage initiatives, will receive INR 140 million. The budget also sets aside INR 10 million for a feasibility study on developing an oceanarium in the Cochin–Vypin area.
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The Champions Boat League, an IPL-style rowing tournament conducted across Kerala, has been allotted INR 104.6 million.
To support traditional festivals and cultural programmes, the budget introduces a scheme titled Conservation and Promotion of Heritage, Environment and Culture, with an allocation of INR 290 million.
The statement further adds that other major allocations include the Kollam Marina project of INR 60 million, bicycle track development around Ashtamudi Lake for INR 100 million, Munroe Island tourism development for INR 50 million, Kollam Oceanarium at INR 100 million, Marian Pilgrimage Centre at Cheriya Palli in Kottayam for INR 20 million, Kalyanathandu and Anchuruli tourism development at INR 200 million and soft adventure tourism facilities at Mangattupara for INR 10 million.
P A Mohamed Riyas, Tourism Minister said the enhanced allocation would support both ongoing and upcoming tourism projects across the state.