Thiruvananthapuram: The Kerala Cabinet on Wednesday approved the draft liquor policy for the financial year 2025–26, which includes major changes aimed at promoting the tourism sector. One of the key decisions is the relaxation of the "dry day" rule in tourist destinations.

As per the revised policy, hotels rated three stars and above will be permitted to serve liquor even on dry days, provided they are hosting events such as weddings or international conferences. However, prior approval must be obtained from the Excise Commissioner after submitting details of the event in advance.

Notably, the bars themselves must remain closed, and liquor can only be served as part of the registered event. The exemption does not extend to retail liquor outlets under the state-run BEVCO or to bars in general, which will continue to observe dry days.

The Cabinet also decided to allow the serving of liquor in luxury cruise with five-star amenities, for which bar licenses will be issued.

There are no changes to the existing distance restrictions for toddy shops. They must still be located at least 400 metres away from places of worship and educational institutions. Trade unions had previously raised concerns that over 1,000 toddy shops had shut down due to such regulatory restrictions.

Meanwhile, the annual license fee for bars remains unchanged at Rs 35 lakh.