FHRAI Welcomes Andhra Pradesh’s Tourism Policy 2024-29 as a Transformative Step for Growth

• FHRAI hails the Andhra Pradesh Tourism Policy 2024-29, commending its vision of establishing the state as a premier global tourism destination.

• The policy grants Industry Status to the tourism and hospitality sector and introduces key incentives like stamp duty reimbursements, capital subsidies, and operational benefits.

• Power at industrial rates and electricity duty exemption for five years. 100% SGST reimbursement for up to 15 years based on project scale.

• Ambitious targets include boosting tourist spending, extending stay durations, and increasing the room inventory from 3,500 to 10,000 under the classified category.

• Focused on sustainability, it features eco-friendly practices, improved infrastructure, and simplified approval processes to attract private investments of ₹25,000 crore.

• Sustainable initiatives such as zero-emission zones, Blue Flag-certified beaches, and green-certified accommodations are central to its vision.

• Skill development programs to empower local communities in hospitality, eco-tourism, and niche sectors like MICE (Meetings, Incentives, Conferences, and Exhibitions).

India, 9 Jan,25 – The Federation of Hotel and Restaurant Associations of India (FHRAI), the world’s third-largest hospitality association, has welcomed the Andhra Pradesh Tourism Policy 2024-29, lauding it as a visionary move to transform the state’s tourism landscape. By fostering a conducive investment climate, bolstering infrastructure, and promoting sustainability, the policy seeks to elevate 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 granted “Industry Status” to the hospitality and tourism sector across all segments, recognising its strategic importance as a key driver of economic growth, employment generation, and regional development. This bold step reaffirms the state’s commitment to positioning Andhra Pradesh as a premier global tourism hub and driving economic growth, employment, and cultural enrichment. The Policy 2024-29 sets ambitious goals with a mission-driven approach.

The Vision 2047 focuses on transforming Andhra Pradesh into a global tourism hub, offering world-class spiritual, coastal, ecological, and wellness experiences while prioritising sustainable development. Mission 2029 talks about elevating 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, aiming to attract private investments worth ₹25,000 crore.

The policy emphasizes maximizing tourism potential, by developing seven major hubs and creating 25 circuits spanning across beach tourism, eco-tourism, river cruises, Buddhist heritage, and temple tourism. The policy’s foundation rests on four strategic pillars: Diversified Tourism Offerings; Infrastructure Upgrades; Sustainable Practices; and Robust Governance Frameworks.

The Policy offers robust fiscal incentives such as 100% Stamp Duty reimbursement on land purchases or leases for tourism projects, waiver of Land Conversion Charges, and 100% reimbursement of expenses incurred for getting quality certification. It also offers a Capital Subsidy at 25% of the fixed capital investment (FCI) for MSMEs and 10% for Large, Mega, and Ultra Mega Tourism Projects with certain capping.

Along with these financial benefits, the policy includes non-financial incentives like a single-window clearance system to speed up approvals and the creation of Destination Management Organizations (DMOs) to manage anchor hubs and thematic circuits. The Policy also emphasises establishing district-level hubs to support investors and track project progress.

Reacting to this development, Mr. K. Syama Raju, President of FHRAI, further stated: “Andhra Pradesh has taken a giant leap in Tourism and Hospitality. Recognising tourism as an industry, combined with substantial incentives for private investors and a focus on thematic circuits, will elevate the state’s appeal to tourists. With its emphasis on sustainability and community empowerment, this policy has the potential to create significant economic and employment opportunities. FHRAI is keen to collaborate with the state government to achieve these ambitious goals.”

FHRAI strongly believes that granting ‘Industry Status’ as well as the incentives offered to the tourism and hospitality sector shall reduce operating costs, facilitate ease of doing business, as also encourage domestic and international investments while positioning Andhra Pradesh as a dynamic, inclusive, and sustainable leader in India’s tourism industry. Moreover, it is also a move towards a visionary roadmap for other States to follow suit. The strategic blend of fiscal incentives, sustainable practices, and inclusive policies of Andhra Pradesh Tourism Policy 2024-2029 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.