The Andhra Pradesh Hotels Association has appealed to the state government to formulate a plan for the establishment of budget-friendly hotels in major cities across the state. The association believes that such a development will significantly boost tourism, generate substantial employment opportunities, and stimulate economic activity within the region.
During an interaction with the media on World Tourism Day, G. Srinivasa Rao, the State President of the Andhra Pradesh Hotels Association, highlighted that the hotel industry possesses the capacity to create thousands of jobs. He emphasized that this can be facilitated if the government extends industry status to the sector and makes lands available at reasonable rates for the construction of new hotels. Mr. Srinivasa Rao also mentioned that representatives from the association are scheduled to meet with the Minister for Tourism and Culture, Kandula Durgesh, in Eluru on October 1, 2026. The purpose of this meeting is to present a detailed overview of the growth opportunities within the state’s hospitality sector.
The association noted the ongoing development of numerous star hotels in and around the Bhogapuram international airport. However, they pointed out that many air travelers might not be able to afford accommodation in these high-end establishments. Providing an acre of land at an affordable rate, the association suggested, could lead to the construction of at least ten budget hotels near the airport, catering to a wider range of travelers.
This plea comes in the context of Andhra Pradesh’s ambitious tourism goals under the Tourism Policy 2024-29. The policy aims to position the state as a premier global tourism destination, targeting significant investments and job creation. As part of these efforts, the government has granted industry status to the tourism sector, offering a range of incentives to attract private investment. These incentives include capital subsidies, Goods and Services Tax (SGST) reimbursements, and stamp duty exemptions, alongside a dedicated Tourism Land Allotment Policy designed to streamline approvals and land allocation for tourism projects.
The Andhra Pradesh Tourism Policy 2024-29 aims to attract over ₹20,000 crore in investments and generate employment for more than 1.22 lakh people. The policy emphasizes developing major tourism hubs, circuits, and hospitality projects across the state. Seven anchor tourism hubs are being developed in Visakhapatnam, Araku, Rajamahendravaram, Amaravati, Srisailam, Gandikota, and Tirupati, with over 25 tourism circuits also planned. Key cities like Amaravati, Visakhapatnam, and Tirupati are being promoted as MICE (Meetings, Incentives, Conferences, and Exhibitions) destinations.
The state’s commitment to enhancing its tourism infrastructure is evident in its efforts to attract major hospitality brands. Leading hotel chains such as Taj Hotels, Marriott International, ITC Hotels, Hyatt Hotels Corporation, Oberoi Hotels & Resorts, and Hilton Hotels & Resorts are reportedly preparing projects in Andhra Pradesh, which are expected to add over 7,700 hotel rooms. The government has set ambitious targets, including the development of 50,000 classified hotel rooms and the establishment of 10,000 homestays in the coming years.
Furthermore, the Andhra Pradesh Tourism Land Allotment Policy 2024-2029 seeks to promote sustainable Public-Private Partnerships (PPPs) and efficiently utilize government-owned land for tourism projects. The policy outlines objectives such as improving infrastructure, providing long-term land leases, and prioritizing development in underserved regions. It establishes guidelines for land allotment, tenure, and revenue sharing to foster investment and boost the state’s tourism sector.
The policy provides various incentives for different project scales. For instance, MSME-classified tourism units can receive a 25% capital investment subsidy, while large and mega projects may receive a 10% subsidy. There are also provisions for 100% stamp duty reimbursement on tourism land and a waiver of land conversion charges. The state is also looking to diversify its tourism offerings beyond traditional attractions, exploring concepts like luxury cruises, heli-tourism, caravan tourism, floating houseboats, eco-tourism, and adventure tourism activities. This comprehensive approach underscores the government’s dedication to transforming Andhra Pradesh into a globally competitive tourism destination, with the hospitality sector playing a pivotal role in achieving these objectives.
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The Chenab Times News Desk
