Kochi: The Kerala Tourism Department has confirmed what the industry has been warning about for months – tourism revenue has dipped since the state government forced the bars to shut down.

The inflow of foreign visitors has increased by hardly 6 percent in 2015, while the MICE (Meetings, Incentives, Conventions and Events) segment contracted by 6 percent, a survey conducted by the department found out.

The findings of the survey were presented before Chief Minister Pinarayi Vijayan and Tourism Minister A C Moideen by the Tourism Secretary and Director, who recommended urgent interventions before the next tourism seasons starts in September.

The survey recommends an overhaul of the excise policy, a reduction in luxury taxes, an improvement of infrastructure, a curb on hartals and an increase in air connectivity to Kerala.

Most of the participants in the survey blamed the change in the excise policy for the dent in Kerala Tourism’s brand value, although stiff competition from Sri Lanka and Goa was adding to the woes of the industry that provides employment for more than 15 lakh people.

A majority of those surveyed said the MICE sector in Kerala was lagging only because of the strict rules that limited the availability of alcoholic beverages. Kerala was no longer considered by event managers for organizing national and international meetings, which are supposed to be occasions for revelry. Many of the bookings were cancelled after the government pushed ahead with its policy to close down the bars.

Neighboring tourist destinations such as Colombo were ready to exploit the situation in Kerala.

The Sri Lankan tourism industry has grown by 20 percent while Kerala’s dropped 6 percent, the report pointed out. The fall becomes more dramatic when compared to the 20 percent growth in Kerala in previous years.

MICE tourism, which contributes half of Kerala’s tourism business, was the worst hit with tour operators cancelling bookings for conventions and events. The shortfall in MICE tourists was more evident in the domestic sector. Bookings for meetings from clients in Delhi, Mumbai, Bengaluru and Chennai nosedived. The higher tax rates also worked against Kerala’s comparative advantage.