Hotel industry in Kerala fears migrant exodus amid LPG crisis

The hotel industry in the State, already reeling under the impact of LPG shortage triggered by the West Asia conflict, is staring at another crisis in the form of a potential mass exodus of migrant workers, who constitute the dominant workforce in the sector.

The gravity of the situation was flagged at the secretariat meeting of the Kerala Hotel and Restaurant Association (KHRA) held online on Saturday (March 14, 2026). According to a rough estimate by KHRA, around 1,200 eateries across Kerala have downed shutters owing to the LPG crisis.

“Migrants dominate the workforce in hotels as local residents are virtually absent from the industry. Shutting down hotels risks not only losing customers and revenue but also workers, who may choose to return home. With Assembly elections due in West Bengal, the exodus may intensify. We are exploring solutions such as asking them to return in batches since the election is likely to be held in multiple phases there,” said T.J. Manoharan, State secretary, KHRA.

Migrants from West Bengal account for nearly 40% of the workforce in Kerala, followed by Assam with around 20%. Both States are headed to elections. The Special Intensive Revision of electoral rolls and the Ramzan season are additional factors driving workers home, while the worsening LPG crisis may compound the trend. Beyond the hotel industry, sectors such as minor construction, plywood, and fishing may also be affected.

Benoy Peter, executive director of the Centre for Migration and Inclusive Development, however, observed that LPG shortage alone was unlikely to be a major trigger except for single male migrants dependent on eateries. “Very few cook using small gas cylinders sold through petrol pumps. For instance, plywood workers mostly use firewood and plywood waste. If anything, the shortage may further push up demand for plywood, though it is highly toxic. With Ramzan under way, fasting is also prevalent among migrants from the Muslim community,” he said.

George Mathew, chairperson of Progressive Workers’ Organisation, which works for migrant welfare, said it was too early to predict whether LPG shortage would lead to a return of workers. “However, if the crisis persists, it may affect migrants in the long run,” he added.