Very much True, Rajesh.
There should be a permanent open air theatre to show case out traditional arts forms ( Kathakali,Mohiniyattam,Bharathanatyam,Koodiyattam,,( guru gopinath dance academy and surya can give their expertise on these) ....chendamelam,panchavadhyam,nadaswaram,violin( with people like balabhaskar's calibre).......Kalaripayattu,Velakali,Chiramapayattu(thekkan kalari),....magic show(in cordination with magic academy every evening.),.......traditional art forms like tholpavakoothu,fire dance,snake charmers ( India used to be known as land of snake charmers),...
They can charge a nominal fee of say Rs200 per head ( for audience of 100 people) for such shows towards the remuneration for the artists.
Also,this can serve as a venue for arts festivals from other parts of india and the world.
In addition to this they can arrange for crafts melas from local as well as other states.
Tourists staying in Kovalam will get another place to spend time.
Even traditional foood festival will be suited during tourist season.
Local hotels should take initiative to make such things a reality,rather than sitting with mouth open so that some would spoon feed them.