Kerala says no to total prohibition: All about state's new liquor policy
The Kerala government today junked its liquor policy to allow bars at all hotels with rating of three or more stars. With this, the LDF government hopes to get much-needed revenue and to arrest the dip in the growth of tourism.
Kerala once again has a new liquor policy. And this time, it's good news for all those who enjoy their drink. The Left Democratic Front government in the state reversed the previous Congress-led United Democratic Front regime's policy that had shut down all bars except for those in five star hotels.
The new policy by the state government, which will come into place from July 1, 2017, will allow all bars to serve liquor in hotels that have a rating of three stars or more.
With this the cash-strapped state hopes to bring in additional revenue by way of sale of Indian Made Foreign Liquor (IMFL) through the Kerala State Beverages Corporation, also known as Bevco.
- Among the major announcement made on Thursday is the decision to change the timings of bars. Bars will now be open from 11 am to 11 pm, while those in tourist destinations will be allowed to open an hour earlier in the morning, at 10 am.
- The drinking age in Kerala has been increased from 21 to 23. Also, in a first, toddy will be allowed to be served at the bars of three-star and higher hotels.
- Under the new Kerala liquor policy, a total of 133 bars will be reopened at three- and four-star hotels. While announcing the new liquor policy, Chief Minister Pinrayi Vijayan said that while he respects all those who have been campaigning against alcoholism, prohibition is not a practical or feasible solution.
- LDF convenor Vaikom Viswan has called the UDF government's liquor policy a "complete failure." Viswan also reiterated that beer and and wine parlours should be allowed to operate as long as they are 500 metres away from highways, as ordered by the apex court.
- Former Chief Minister Oomen Chandy, who in his previous stint had brought about prohibition in Kerala, said the new policy is a 'conspiracy by the liquor lobby and the LDF to win elections.'
- When in power, the UDF government had refused to issue fresh licenses to 418 bars and further announced that they were shutting down 312 non-five star bars. The Kerala High Court had upheld the Congress-led government's liquor policy, leading to the shut-down of all non-five star bars in the state.
- The LDF said recent studies have shown that there has been a sharp decline in tourism after prohibition was rolled out by the previous UDF government. The Trade Research 2016, which has compiled available data, found that tourism growth rate has fallen from 8.1 per cent in 2013 to 7.6 per cent in 2014 and 5.9 per cent in 2015. This was the time the previous liquor policy was in place.
- The previous liquor policy implemented by the UDF gave wrong signals to the tourists - many felt that Kerala was a 'dry' state, the LDF further stated.
- Interestingly, the excise department's sales figures indicate that there was no big dip in the sales of IMFL in the last three years despite bars being shut down. 220.58 lakh cases of liquor were sold in 2014-15 and this dropped only to 201.75 lakh cases in 2015-16.
- The tourism department of the state also requested the government to announce a new liquor policy as the growth of foreign tourist arrivals in the state had dipped. The growth rate of foreign exchange earnings, which was 15 per cent in 2014, also reduced to 11.5 per cent in 2016.
- Tourism accounts for almost 10 per cent of Kerala's Gross Domestic Product (GDP) and the state tourism department claimed to have found in its survey that 32 per cent of hotel and resort owners and 19 per cent of tour operators blamed the state's liquor policy as the biggest reason for the dip in tourists visiting the state.
- There are 71 four-star and 62 three-star hotels that have beer and wine licenses in Kerala. Four five star-hotels were allowed to serve Indian Made Foreign Liquor. With the new liquor policy, the state is expecting to Rs 31.51 crore outright by way of license fees.
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