Andhra bets big on tourism to drive growth

Metro India News | AMARAVATI

The Andhra Pradesh government is positioning tourism as a key engine of economic growth, employment generation and investment attraction, rolling out an ambitious roadmap aimed at transforming the state into a multi-experience tourism destination.

Backed by the vision of Chief Minister N. Chandrababu Naidu and strategic inputs from Deputy Chief Minister Pawan Kalyan, the state government has introduced a series of policy reforms, infrastructure projects and investment incentives over the last two years to accelerate tourism development across Andhra Pradesh.

Calling tourism the most sustainable growth model, the government has accorded industrial status to the sector and introduced the AP Tourism Policy 2024–29 to attract large-scale investments through the public-private partnership model. The policy offers incentives including capital subsidies, SGST reimbursements and stamp duty exemptions for investors.

In a first-of-its-kind initiative, the government also introduced the Tourism Land Allotment Policy 2025 to ensure transparent land allocation for tourism projects. Special focus is being placed on caravan tourism, home stays, beach tourism, spiritual circuits and eco-tourism.

According to official estimates, the tourism sector is expected to generate employment opportunities for nearly 1.22 lakh people through 117 Memorandums of Understanding (MoUs) signed over the past two years. Investments worth more than Rs.20,000 crore have reportedly been committed to tourism-related projects across the state.

Several global hospitality brands including Taj, Marriott, ITC, Hyatt, Oberoi, Hilton and Mayfair are preparing to launch projects in Andhra Pradesh, adding nearly 7,770 new hotel rooms. Amaravati, Visakhapatnam and Tirupati are also emerging as major MICE (Meetings, Incentives, Conferences and Exhibitions) destinations. The government is simultaneously developing seven major tourism anchor hubs, including Visakhapatnam, Araku, Amaravati, Gandikota, Rajamahendravaram, Srisailam and Tirupati, along with more than 25 tourism circuits.

Innovative tourism concepts such as luxury cruise tourism, floating houseboats, heli-tourism, luxury tent cities and adventure tourism are also being introduced. Water sports and eco-tourism activities are being expanded across destinations including Suryalanka, Gandikota and Bhavani Island.

The state is also aggressively promoting cultural tourism through festivals such as Visakha Utsav, Araku Chill Festival, Flamingo Festival, Amaravati Avakaya Festival and the Jagannathota Prabhalu celebrations, which have drawn lakhs of visitors.

Officials said tourist arrivals in Andhra Pradesh increased by 10.10 per cent over the previous year, while foreign tourist arrivals recorded a sharp 126.87 per cent rise.

Tourism Minister Kandula Durgesh said Andhra Pradesh offers immense opportunities for investors and assured full government support for tourism projects, stating that the state is emerging as one of India’s fastest-growing tourism destinations.