With hotels and restaurants shutting down amid fuel shortages and dwindling patronage, Kerala’s once-buoyant hospitality industry, which is dominated by Chinese and Arab cuisines of late, is slipping into distress.
The fallout has triggered a temporary reverse migration, with a significant number of migrant workers returning to their home States, several of which are heading into elections. However, whether jobs will be available when they return to Kerala remains an open question, given the global supply chain disruptions caused by the West Asian crisis. The prospects for lakhs who depend on key sectors also remain bleak and uncertain.
A delegation led by the Kerala Hotel and Restaurant Association (KHRA) has met the Commissioner of Civil Supplies and Consumer Affairs seeking urgent intervention to ensure that commercial establishments which use LPG can remain open and to prevent migrant workers, who form the majority of the workforce in Kerala, from returning to their home States.
According to G. Jayapal, State president of KHRA, which represents around 60,000 registered hoteliers in Kerala, nearly 70% of eateries have shut down operations, while the remaining 30% are functioning with restricted hours and pared-down menus due to the fuel shortage.
“We had requested the government to provide at least 40% of each hotelier’s average fuel consumption during this period. However, the State is yet to take a decision on even supplying 20% of the sector’s average requirement. This has forced many establishments to send workers home, as owners cannot keep them on payrolls for weeks without work,” Mr. Jayapal said.
Migrant workforce
The issue gains further significance considering that Kerala is home to around 31.4 lakh migrant workers, according to a 2017–18 study titled ‘In-migration, Informal Employment and Urbanisation in Kerala,’ sponsored by the State Planning Board (Evaluation Division).
Migrants from West Bengal and Assam together account for the largest share of 22.6 lakh (West Bengal: 12.8 lakh; Assam: 9.08 lakh). The study projected that the migrant population could reach 50 lakh by 2030. Current estimates suggest the number is already around 40 lakh, with nearly 60% coming from West Bengal (40%) and Assam (20%), both of which are heading into Assembly elections in April.
According to Benoy Peter, Executive Director of the Centre for Migration and Inclusive Development, migrants from Assam and West Bengal are already grappling with concerns over identity and political representation, compelling them to return home to cast their votes and avoid the risk of disenfranchisement.
“In the past, migrants would typically return only for local body elections, as they had a direct stake in them, while preferring to stay in Kerala during parliamentary and Assembly polls. However, this time, the prevailing uncertainties and fears about SIR have triggered a large-scale return to their home States,” he said.
Typically, a migrant worker returns to Kerala only after about 45 days. It remains to be seen whether they will rejoin the same sectors they were previously employed in, or seek alternative opportunities in the absence of stability in traditional sectors.
The exodus of migrant workers and the shutdown of key industries are also likely to have significant political repercussions in the Assembly elections. The crucial question remains: who stands to gain from this upheaval, and who will bear the brunt of the social backlash?
Published – March 21, 2026 04:17 pm IST
