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The Kerala Cabinet today decided to withdraw its earlier decision to observe Sundays as dry day under the Abkari policy.
The decision came in the light of a report by the secretaries of tourism and labour departments, stating the observance of dry day on Sundays was affecting the operations of hotel and tourism industry in the state.
The Cabinet also decided to reduce the working time of bar hotels.
The government had recently decided to open more beer and wine parlours across the state. It is reported that 418 bars closed for the last seven months are likely to get licences to run beer-wine parlours.
The Cabinet took this decision amidst a strong protest from the ministers of Indian Union Muslim League (IUML).
Observing Sundays as dry days had caused a series of cancellations in the meetings, incentives, conferences and exhibitions (MICE) segment of tourism in the recent months.
Kerala had emerged as an important destination in the MICE segment in recent years. However, with the announcement of latest Abkari policy, it had lost a large number of orders in the segment.
Earlier, a high-power committee meeting of the United Democratic Front (UDF) gave its nod to the Cabinet to make suitable changes in the policy based on practical issues. The change in stand came after a strong protest from the KPCC chief VM Sudheeran and the IUML.
Excise minister K Babu in the assembly stated that there has not been much reduction in the consumption of liquor in the state due to observance of dry day on Sundays.
He said there has been a 40 per cent increase in the sale of foreign liquor on Saturdays.
