Tourism plays a crucial role in the economy of Kerala. The image of Kerala as 'Gods Own Country' attracted the investors and tourists alike to this small but beautiful state, which is located in Indian Subcontinent. Over years, there are many questions raised about the negative impacts of tourism on society and environment,available information and literature are very limited in this area. This research evaluates the perception of local people on the direction of tourism development in Kerala, with respect to socio-cultural, environmental and economic aspects. The study also give an insight in to the efforts taken up to embrace fair tourism practices by the hospitality units in Kerala. The outcome of the study is useful to academic world and tourism administators as well. It also open up several fronts for debate on tourism planning and implimentation.