Thiruvananthapuram: In a major push to boost the tourism sector, the Kerala Cabinet on Wednesday approved the draft liquor policy for 2025–26.

Hotels above three-star category will now be permitted to serve liquor even on dry days, provided they are hosting weddings or international conferences. However, prior approval from the Excise Commissioner is mandatory, with organisers required to declare the events in advance. Liquor service is to be limited strictly to the event venue, and bars cannot be opened as usual on these days.

Meanwhile, dry day restrictions will continue to apply to state-run beverage outlets and regular bars. In another significant provision, luxury vehicles offering five-star facilities will be allowed to serve liquor. Such vehicles will be eligible for special bar licences.

The annual bar licence fee remains unchanged at ₹35 lakh. There will be no change in the permissible distance limits for toddy shops — they must remain at least 400 metres away from places of worship and educational institutions. Trade unions had earlier raised concerns that over 1,000 toddy shops had shut down due to stringent legal restrictions.