An Indian court on Thursday upheld a ban on alcohol served in most bars in the southern tropical state of Kerala popular with tourists, in a major blow to hoteliers.

The Kerala High Court backed the state government's plans to introduce almost complete prohibition in a bid to tackle the area's drinking problem.

Justice K. Surendra Mohan said "the challenge made against the policy" by hoteliers "fails", rejecting arguments that the move would drive away tourists seeking some booze with their beach holiday.

However the court made some concessions, ruling that hotels with a four-star and heritage ranking could stay open.

Hotel owners warned that hotels would close as a result of the ruling -- although not as many as originally feared.

"It is a very unfortunate order as it will shut around 200 of the 312 bars in the state," G Sudhiesh Kumar, a hotelier and president of the local Bars Association said.

"We will definitely go in for an appeal," he told the NDTV network.

Owners had been hopeful of overturning the ban after the country's top court ordered a stay in September on introducing the policy until the Kerala High Court had ruled on the petitions.

The Kerala government had planned for all hotels to close, although shops selling liquor would be phased out over 10 years and five-star places exempt from the ban except on Sundays.



With its sweeping coastline, riverboats and emerald tea plantations, Kerala has become a leading tourist draw in India, promoting itself as 'God's Own Country'.

But behind the paradisiacal slogan, the state has a damaging drinking problem among its 34 million population, leading the government to opt abruptly for almost complete prohibition.