The policy provides industry status to the tourism and hospitality sector and introduces key incentives such as stamp duty remission, capital subsidy and operational facilities.
The Federation of Hotel and Restaurant Associations of India (FHRAI), the world's third largest hospitality body, has welcomed the Andhra Pradesh Tourism Policy 2024-29, hailing it as a visionary step to transform the state's tourism landscape. By creating a favorable investment climate, strengthening infrastructure and promoting sustainability, the policy seeks to promote Andhra Pradesh as a global tourism hub while ensuring economic growth, cultural preservation and community empowerment.
With the announcement of its transformative Andhra Pradesh Tourism Policy 2024-2029, the state government has accorded “industry status” to the hospitality and tourism sector across all segments, recognizing its strategic importance as a key driver of economic growth, employment generation and regional development. Development This bold move reiterates the state's commitment to position Andhra Pradesh as a major global tourism hub and drive economic growth, employment and cultural prosperity. Policy 2024-29 sets ambitious goals with a mission-driven approach.
Vision 2047 focuses on transforming Andhra Pradesh into a global tourism hub, offering world-class spiritual, coastal, environmental and wellness experiences with priority on sustainable development. Mission 2029 talks about raising tourism's contribution to the state's Gross Value Added (GVA) from 4.6% to 8% and its share in employment from 12% to 15%. Simultaneously, it aims to attract private investment worth ₹25,000 crore.
The policy emphasizes on maximizing tourism potential by developing seven major hubs and creating 25 circuits spanning beach tourism, eco-tourism, river cruises, Buddhist heritage and temple tourism. The policy is based on four strategic pillars: diversified tourism offer; infrastructure upgrades; sustainable practices; and strong governance frameworks.
The policy provides strong financial incentives such as 100% land purchase or lease for tourism projects, waiver of land conversion charges, and 100% reimbursement of costs for obtaining quality certificates. It provides a capital subsidy at 25% of fixed capital investment (FCI) for MSMEs and 10% for large, mega and ultra mega tourism projects with fixed capping.
Along with these financial benefits, the policy includes non-financial incentives such as a single-window clearance system to speed up approvals and creation of Destination Management Organizations (DMOs) to manage anchor hubs and thematic circuits. The policy also emphasizes on supporting investors and establishing district-level hubs to track project progress.
In response to this development, K. Shyama Raju, President, FHRAI, further informed: “Andhra Pradesh has taken a giant leap in tourism and hospitality. Recognizing tourism as an industry with substantial incentives for private investors and a focus on thematic circuits will enhance the state's appeal to tourists. With an emphasis on sustainability and community empowerment, this policy has the potential to generate significant economic and employment opportunities. FHRAI is keen to collaborate with state governments to achieve these ambitious goals.”
FHRAI strongly believes that the incentives provided to the tourism and hospitality sector besides granting 'Industry Status' will reduce operating costs, ease of doing business, and encourage domestic and international investment while positioning Andhra Pradesh as a dynamic, inclusive, and A sustainable leader in India's tourism industry. Moreover, it is also a step towards a visionary roadmap for other states to follow. Andhra Pradesh Tourism Policy 2024-2029's strategic mix of revenue incentives, sustainable practices and inclusive policies sets a benchmark for other states to replicate.
By aligning infrastructure development, private investment, and workforce training with sustainability and community welfare, the policy aims to position Andhra Pradesh as a leading player in India's tourism industry while benefiting local communities and the hospitality sector. The Andhra Pradesh Tourism Policy 2024-29 marks a transformative step in unlocking the state's tourism potential.