The economic implications of the Kerala floods
Live MintThiruvananthapuram: Over the past week, the entire state of Kerala is in the grip of a massive, unprecedented flood: the last time anything like this has happened was in 1924. Kerala is essentially a consumption state, but consumption is now going to be adversely affected as many people have lost their livelihood. Kochi international airport has been closed for over a week and the consequent rescheduling of flights have meant not only terrible inconvenience to travellers but also loss of revenue to the airlines and Cochin International Airport Ltd. For CIAL, the non-aeronautical income, which is about 70% of its total income, will be adversely affected. Services sector, tourism The services sector accounts for about 63% of Kerala’s gross state value added and of which tourism alone accounts for about 10%. The one saving grace is that Kerala is still open to business as Thiruvananthapuram and Kollam are not that much affected and tourists can still reach the state through the Thiruvananthapuram gateway.