Liquor in 5-star hotels till 3am: Move linkedto state’s rise as destination wedding hub | Thiruvananthapuram News – The Times of India

T’puram: The govt’s decision to allow five-star bar hotels to serve liquor till 3am marks a calibrated but politically loaded shift in the state’s tightly regulated liquor regime. Framed as a tourism-driven reform aimed at supporting destination weddings and MICE events, the amendment to Rule 28 of the Foreign Liquor Rules opens a narrow but significant three-hour extension beyond the existing midnight cap, exclusively for a small segment of premium hotels.Under the revised proviso, FL-3 licensed premises in hotels classified five-star and above may remain open for an additional three hours from midnight on payment of an extra annual rental of Rs 5 lakh. The relaxation, however, will not apply if the immediately succeeding day is a statutory dry day, in which case the bar must close at midnight as mandated under Rule 28A.The measure is tightly targeted. Of Kerala’s 882 bar hotels, only 55 have five-star classification and are eligible for the extended timing. Ernakulam accounts for 23 of these properties, followed by Thiruvananthapuram with 10. Kottayam and Thrissur have four each, Alappuzha and Wayanad three each, Kozhikode and Kollam two each, and Kasaragod, Idukki, Palakkad and Malappuram one each.The existing annual licence fee for an FL-3 bar is Rs 35 lakh. With the additional Rs 5 lakh rental, the state’s maximum annual revenue gain, assuming all 55 opt in, would be Rs 2.75 crore. In fiscal terms, this is modest. For five-star hotels that host large weddings, corporate conferences and high-end social events, however, the additional outgo is unlikely to be prohibitive, as extended service hours during late-night events could offset the fee within a busy season.The policy shift is closely linked to the rise of Kerala as a destination wedding hub. Official estimates indicate that the state hosted over 1,000 destination weddings in the previous year. Govt-run hospitality properties alone reported more than 300 such weddings recently, with the bulk hosted at Bolgatty Palace in Kochi and others at Kovalam and Kumarakom. Industry sources point to nearly 20% annual growth in destination weddings and around 40% growth over five years. These figures remain indicative, as the state does not publish a consolidated, year-wise dataset exclusively tracking destination weddings, and a significant share of ceremonies are conducted in private resorts, convention centres, churches and homestays.Large-format destination weddings and MICE events frequently extend late into the night. Organisers have long argued that the midnight cut-off created operational friction, as guests often approach bar counters only after formal ceremonies and dinners conclude. The three-hour extension directly addresses this bottleneck for premium properties.Yet the relaxation remains circumscribed. Kerala observes 18 statutory dry days annually, in addition to local prohibitions during major festivals and elections. On the eve of any such dry day, the extended window collapses and bars must shut at midnight. A broader proposal to revisit the state’s dry day regime was discussed but remains politically sensitive.From a macroeconomic standpoint, the direct revenue gain of Rs 2.75 crore is not transformative. The larger argument rests on indirect economic spillovers, strengthening high-value tourism, enhancing event-driven travel and supporting allied sectors such as hospitality, logistics and event management. At the same time, the benefit accrues to a narrow premium segment, while the vast majority of bar hotels remain bound by the midnight rule.While the decision can be defended as a sectoral reform aligned with tourism strategy, its timing, along with the govt’s decision not to disturb the existing dry day framework, lent the move a clear political undertone.