In 2016, Kerala had one of the lowest counts of bar hotels. However, currently, the state boasts 801 operational bar hotels, marking an astounding growth rate of 2,662% over the past eight years.
Following the liberalization of the excise policy by the LDF government, the number of bar hotels in the state has surged to 801 from just 29 in 2016. Under the leadership of Pinarayi Vijayan during the second LDF government, a total of 97 new licenses have been issued thus far. Notably, the districts of Thiruvananthapuram, Ernakulam, and Thrissur collectively account for 53% of these bar hotels.
Under the previous LDF government led by Vijayan, 200 new bar licenses were issued, bringing the total number of bar hotels to 671 by the end of the first LDF government’s tenure, including the renewal of expired licenses.
The current count has climbed to 801, with over a dozen in various stages of processing.
“Govt is following transparent rules for granting licences without discrimination. If an applicant me- ets all conditions as per law, the licence will be issued,” said local self-govt and excise minister M B Rajesh.
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Although Thiruvananthapuram and Ernakulam have seen numerous applicants, districts like Wayanad and Idukki, renowned for tourism, have relatively few takers for bar hotels. Notably, no fresh licenses were issued in Kasaragod and Pathanamthitta. Additionally, over the past two-and-a-half years, the number of newly established bar hotels has been minimal in districts such as Idukki (2), Malappuram (2), Kannur (4), Wayanad (5), and Kozhikode (5).
The low uptake in Wayanad and Idukki is attributed to reduced business activity on weekdays. “For survival of bar hotels, a steady and regular business is required. They will not survive with just weekend business, which is the trend in resorts in Idukki or Wayanad,” said general secretary of Federation of Kerala Hotels’ Association K B Padmadas.
According to the association’s evaluation, the average daily sales in a bar hotel in the state range from INR 1 to 1.5 lakh. However, for bar hotels to become profitable, they require a minimum daily sales of INR 2 lakh. The government has been steadily increasing license fees and liquor prices.
Moreover, stiff competition from Bevco outlets is compelling the bars to adhere to a restricted pricing structure.
“The business has become unaffordable for bar hotel owners. Most owners have availed huge loans to set up the hotels. Also, every five years, the star classification has to be conducted. According to our estimation, some of these may shut down because of a non-profitable business in the coming years,” said Padmadas.
Despite its 272 outlets, Bevco has recently managed to draw in a larger customer base.
“Bevco has focussed on improving services offered to customers. The supermarket system where customers need not wait in long queues, automated billing, online payment facilities, etc, have made Bevco a place where any citizen, irrespective of male or female, can visit without hassles,” said Yogesh Gupta, chairman and managing director of Bevco.
