The demolition drive against tourist resorts in Kerala’s hill town of Munnar by the previous state government has led to a shortage of room supply in the state. This move however, has lead to mushrooming of homestays. “There is a shortage of inventory in the market. In the past couple of years, no big resorts have come up in the state. The government is also stricter with the regulations on setting up resorts on river banks, near lakes and the sea leading to inventory shortage in destinations like Kovalam, Poovar and Kumarakom,” said Anil Kumar, Regional Head Kerala of Club Mahindra.
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