Tourism News
Kerala’s Tourism Sector to Gain from Eased Visa Norms and Medical Tourism Push
The Union Budget 2025 has introduced simplified visa norms and streamlined e-visa facilities, a move expected to benefit states like Kerala and Goa, where tourism plays a significant role in the economy. With tourism contributing approximately 10% of Kerala’s GDP, the relaxation of visa rules is expected to increase foreign tourist arrivals.
One of the biggest beneficiaries of this initiative is expected to be medical and wellness tourism. The Budget announced that medical tourism and the ‘Heal in India’ initiative will be promoted in collaboration with the private sector, with emphasis on capacity building and visa simplifications. According to Sajeev Kurup, general secretary of the Confederation of Kerala Tourism Industries and chairperson of the Ayurveda Task Force FICCI Tourism National Committee, easing visa regulations has been a long-pending demand of the hospitality industry.
At present, Kerala, Mumbai, and Chennai are the primary destinations for medical tourists in India, with Kerala holding a leading position in Ayurveda and wellness tourism. For allopathic treatments, Kerala remains the preferred choice for West Asian travelers, while Chennai caters primarily to patients from Maldives, Colombo and Southeast Asian countries. Mumbai continues to be the top choice for medical tourists from Bangladesh, according to industry experts.
The Budget also introduced a plan to develop 50 major tourist destinations across India, in collaboration with state governments through a challenge-based model. This initiative is expected to benefit Kerala, though industry leaders remain cautiously optimistic about its implementation. High airfare prices, however, remain a significant concern, potentially dampening the positive impact of these reforms.
Tourism stakeholders have also called for the reinstatement of the duty drawback scheme under SEIS (Service Export India Scheme), which was available to the tourism sector before the pandemic. James Kodianthara, chairperson of the Kerala chapter of the Indian Association of Tour Operators (IATO), emphasized that reviving SEIS incentives would support businesses handling foreign tourist arrivals and strengthen the industry’s global competitiveness.
As Kerala moves forward with these policy changes, the tourism industry remains hopeful that the new visa norms, medical tourism initiatives and destination development projects will boost foreign arrivals and strengthen the state's position as a global tourism hub.
