Kerala Launches K-HOME Scheme To Convert Vacant Houses Into Tourist Stays

In a fresh boost to the tourism sector of Kerala, the state finance minister K N Balagopal has announced the implementation of the K-HOME scheme. Initially trialled across four districts, the scheme aims to maximise the use of unoccupied houses by providing accommodation to tourists.

The pilot scheme will focus on areas within a 10-kilometre radius of popular tourist destinations such as Fort Kochi, Munnar, Kumarakom and Kovalam. According to reports, the K-HOME scheme will leverage management practices from analogous international initiatives like Japan’s Minka Renovation Programme, which provides accommodation at affordable prices by repurposing abandoned rural houses into modern lodgings while preserving cultural heritage. While the programme is not a centrally administered government initiative in Japan, it involves significant government support and local collaborations to revitalise rural homes. This model has also been successful in France, Finland and New Zealand.

By integrating these global strategies, Kerala aims to create a sustainable model that ensures quality accommodation while maintaining the cultural essence of local architecture. This approach will also ensure the security and maintenance of vacant properties, generating an additional income stream for homeowners. An initial allocation of INR 5 crore has been earmarked for the scheme’s implementation.

Kerala registered over 22 million tourists in 2023. Reports indicate that the state has around 1.5 million vacant houses, which could serve as an untapped resource for tourism infrastructure.

In addition to the K-HOME scheme, the government plans to develop large convention centres and destination tourism centres to promote MICE (Meetings, Incentives, Conferences and Exhibitions) tourism.

The Kerala Financial Corporation will launch a dedicated scheme offering loans of up to INR 50 crore for hotel construction projects. Additionally, the budget has allocated INR 7 crore for the 2025–26 edition of the Kochi-Muziris Biennale.

(With inputs from multiple news reports)