With the caravan tourism project failing to take-off as expected, the State government has decided to extend the subsidy for the project for one more year to give a renewed thrust to the project. The project has been progressing slowly due to lack of interest from private players.
As per a government order, the subsidy scheme announced in 2021 to promote caravan tourism has only a three-year validity, up to October 2024. The Tourism department has earmarked ₹3.10 crore for promoting caravan tourism for the 2025-26 fiscal. Considering this, the State has changed a clause that restricts the disbursal of investment subsidy and extended it until December 31, 2025.
Although a couple of caravan parks started functioning in Kerala, since the project was flagged off in 2021, only the one at Malampuzha in Palakkad is operational at present.
According to Sajeev Kurup, general secretary of the Confederation of Kerala Tourism Industries, who owns the Malampuzha facility, the absence of a chain of caravan parks is thwarting the progress of the project. Though his park was opened in February this year, he had received only a few guests due to the absence of a dedicated network of caravan parks.
He says the project was conceived after the pandemic outbreak, giving tourists an opportunity to immerse themselves in the natural beauty of unexplored destinations in Kerala. As per the project proposal, it still has relevance, but a parallel ecosystem suited for promoting caravan tourism needs to be developed, he says.
In the past four years, around 20 caravan vehicle owners benefitted from the investment subsidy. However, only six caravans are actively providing services, while the rest have been deployed for services at marriage functions, cinema locations, pilgrimages etc.
Prashanth Vasudev, former Deputy Director of Kerala Tourism and chief tourism consultant, North Malabar Tourism Organisation, says Kerala with the highest penetration of resorts, was hardly a favourite destination for campers or caravan tourists.
“When there is enough entertainment in resorts, especially indoor and outdoor activities, at all major tourist hotspots, it’s a challenging question how many guests will choose to stay inside a camper van or caravan in a normal picnic spot,” he said.
Published – July 14, 2025 08:40 pm IST
