Only green for Kerala

Team Hotelier India , June 1st, 2009

The Kerala government announced its intent to prohibit non- eco friendly resorts from setting up in state. But their focus should be on existing properties says Amrit Dhillon

The Kerala government recently announced that only eco-friendly resorts would be permitted in future.

It sounded like a bold new policy statement but in reality it merely acknowledged formally what hoteliers in the state have been doing for years. By common consent, they have been protecting nature so that they can offer it to tourists in pristine condition. The success of this policy explains why ‘National Geographic’ has listed  Kerala as a ‘must see in a life time destination’.

One of the pioneers in this, Jose Dominic, managing director of CGH Earth, understood early on that tourists want to enjoy nature in its spectacular purity without causing it any damage through this enjoyment.

This changed the concept of luxury from meaning opulent buildings to the quality of the experience. 

‘Our resorts are known now for respect for the environment, the community, and the local ethos. We involve the community so that they are an intrinsic part of the resort and benefit in a tangible way,” said Dominic.

The economic slowdown has had an impact with lower occupancy and fewer new projects coming up. But Sanjay Sharma, general manager, Le Meridien, Cochin, believes the lull is a good opportunity.

“In tough times, the government should focus on improving existing infrastructure rather than building new resorts,” he said. “There’s no point building 200 km of new roads when the existing ones are no good.”

Sharma believes the government needs to do much more to stimulate demand and his idea of effective stimulation is not road shows or advertising but a reduction in luxury and service taxes. 

India, he says, is probably the only country in the world with a 15 per cent tax on laundry and a service tax on exchanging foreign currency. “Lower taxes benefit the consumer immediately. It means we can give value for money but with the recession, the government won’t want to reduce its income,” he said.

The tourist industry in Kerala has enjoyed a good partnership with the government. The industry drives demand while the government provides the backup and marketing. It’s a model that is being emulated by other states.

E. M. Najeeb, IATO head in Kerala, points out that Kerala was the first state to introduce the idea of ‘responsible tourism’ and is pursuing it diligently with eco-friendly resorts that are  proving hugely popular while providing tangible economic benefits to local villagers.

One example is Kumbalangi, a tiny island near Kochi that has become the first model tourism village in India.

“The whole thrust in Kerala is to promote nature. In fact, our latest resort which is coming up is unusual – it provides both a backwater and a beach,” said Najeeb who is also chairman of the ATE Group. 

This luxury resort, Bekal Beach Resort and Spa, is being built in north Kerala by Green Gateway Leisure Limited, the hospitality arm of the ATE Group and is expected to open next year.  

(Green Gateway Leisure. The properties include a city-hotel Geeth International in Trivandrum and The Tea Valley Resort in the tea gardens of Munnar. Another project under development includes a 160 room five-star beach and backwater resort spread across 45 acres at Bekal in Kasargode district of North Kerala.

“The property will include a spa, convention centre, mini golf course, backwater cruise houseboats, beach activities, water and pool villas and be ready by 2010. We are also identifying new projects in other locations of Kerala,” informed E M Najeeb, CMD, ATE Group)

Najeeb says that the approximately 500 homestays on plantation bungalows – coffee, cashew, tea, pepper, vanilla - are also proving popular. “Tourists enjoy experiencing the local customs, food and culture and it’s useful income for the families,” he said.

Families who had been suffering from falling farm incomes are happy at the way the tourism industry has come to their aid. “Our aim is to make some villages self-sustaining. Homestays ensure that a large part of the income from tourists goes to the local people,” said T. Sivaraj, Secretary of URAVU, a none-profit group in Thrikkaipetta village in Wayanad district.

Homestay arrangements are flexible. Sivaraj says that in one homestay in Thrikkaipetta, a family is providing a Frenchman with free food and accommodation for two months. In return, he is teaching them French and English.

The only area of concern with some homestays is the lack of standardisation. While some are excellent and professionally-run, in others, the level of hygiene and quality of food and facilities tended to vary as the government had not yet enforced basic regulations. Some home stays are run by small entrepreneurs who need training.

There can also be some cultural mishaps owing to lack of training. Some host families tend to start relating sob stories of their deprivation and lack of income in the hope of extracting extra money. The effect on guests is unsettling.

Kerala hoteliers believe that when demand picks up, the industry should refrain from the wild fluctuations that have been seen in tariffs in recent years – sky-high during peak demand and then falling when demand is flat.

Najeeb says it creates a negative impression when hotel rooms can plummet from $450 a night to to $150.

 Travellers go back home and talk about ‘overpriced India’. That flattens demand even more and everyone suffers, including the smaller hotels who were not over-charging in the first place.

He points out that hotels in south east Asia stick to consistent tariffs instead of swinging violently depending on market conditions. “How can you demand $400 for the same room that you were charging $150 for a few months earlier, without any added value for the customer?

People need to understand that we are not in the business of selling rooms but in the business of giving value for money,” he said. Concerned at the dip in tourist inflow, the Kerala Tourism Ministry is organising road shows in 15 Indian cities in north India to stimulate domestic demand.

This will be followed up by another promotion campaign in other southern states.