As the water level in the Mullaperiyar dam drops to an alarming low, the tourism sector and drinking water projects in Thekkady are facing a serious crisis. According to officials, water from the Thekkady lake — part of the Mullaperiyar reservoir — is vital for both local boating tourism and drinking water projects in the Kumily and Chakkupallom panchayats.

Due to receding water levels, the Forest department and the Kerala Tourism Development Corporation (KTDC), which operate boat services within the Periyar Tiger Reserve (PTR), have been forced to reduce seating capacity.