The development of domestic as well as international tourism has immense potential. However, much could not be achieved till recently owing to inadequate transport arrangements. Now international as well as domestic tourism has received a remarkable boost. Numerous infrastructure facilities have been created including the opening of Vayudoot service between Mainland and Agatti in April,1988. Now NEPC, a
private airline is operating in place of Vayudoot service. But limits have been placed on the number of tourists to be admitted in order to prevent overcrowding and consequent environmental damage.
Since the literacy rate in the Union Territory is one of the highest in the country,the level of educated unemployed can be kept under control by developing this sector. Society for promotion of Recreational Tourism and Sports (SPORTS) is a society registered under the Societies Act,1860. The main aim of this organisation is to promote tourism and recreational activities in islands in collaboration with different departments of the Administration. During 1994-95 2962 Home tourists and 1059 foreign tourists arrived in Lakshadweep. It could provide employment to 69 educated unemployed in different islands. In addition the Bangaram Resort has been placed under professional management and employes 20 local boys. There is good potential for employment as tourism is sought to be promoted as an economic activity. Tourist huts and cottage are provided at Kavaratti,Kadmat,Bangaram, Kalpeni and Minicoy. Tourist huts ( 3 in Minicoy and four in Kalpeni) have been set up under Govt. assistance. Twenty bedded Tourist Home is also functioning at Agatti.
Government of India has agreed in principle to open three inhabited islands, Suheli Cheriyakara, Cheriyam and Tinnakara for foreign tourists. A full fledged water sport Institute established at Kadmat during 1992-93 provides facilities for different disciplins of water Sports like wind surfing, Kayaking, Canoeing, water skiing, Yatchting para sailing and Scubadiving etc. Tourist Cafeteria, Floating restaurant etc. are other attractions for tourists .