To ensure balanced socio-economic development of all regions and all states in a country like India it is necessary to utilize the latent natural and human resources that are spread out throughout the country. It will enable people everywhere to share the benefits of development. Balanced growth is necessary for the overall development of a federal country like India. The different forms of tourism can certainly generate employment and economic growth in the backward regions of the country. Thus it can help to mitigate the regional imbalances. Tourism has already fuelled a parallel industry in states like Kerala and very recently the backwaters have emerged as a popular tourist center.

The growth of the Greek and Yugoslav islands, the coastal regions of Kenya and Spain and lately the developments in Khajuraho in India are spectacular examples of economic regeneration through tourism and the scores of newer employment opportunities thus created. In kerala honeymoon tour is gaining popularity with the advent of the package tourism model and also due to the promotion gained through the backwater tourism packages. Both during the season time and also during the off-season, the prominent tourist resorts are full of honeymooners.

The indirect impact of tourism on regional development could be as great as its direct impact. The development of tourism may entail a more complete utilization of the system of infrastructure and other related services. Thus, it improves the productivity of related investments. Further, recent studies have revealed that tourism plays an important role as a regional development motivator at the micro-level.

The tourist centers and its environs in Kerala became the economic ‘nodal’ regions of the state. Thus, continuous movement of people, goods and money became inevitable. The excessive inner movement often led to outer expansion and the enlargement in the importance of particular regions. The growing intensity of tourism models and the popularity of the packaged tourism model stimulated the formulation of new sub-areas of tourist interest.