VIJAYAWADA: Placing tourism at the centre of its economic development strategy, the State government has rolled out an ambitious plan to attract over Rs 20,000 crore in investments and generate employment for more than 1.22 lakh people through major tourism projects across the state.
With new tourism policies, global hospitality partnerships and infrastructure expansion, the coalition government is positioning Andhra Pradesh as a leading multi-experience tourism destination in the country.
Notably, boosting the economy, increasing employment opportunities and strengthening Andhra Pradesh’s global tourism presence the government introduced a comprehensive Tourism Policy 2024-29 with a roadmap aimed at attracting private investments through public-private partnerships.
As part of the policy, the government granted industrial status to the tourism sector and announced incentives including capital subsidies, SGST reimbursement and stamp duty exemptions to encourage investors.
The state also introduced a Tourism Land Allotment Policy to ensure transparent land allocation for tourism-related projects.
Chief Minister N Chandrababu Naidu has consistently highlighted tourism as one of the strongest future economic drivers, while Deputy Chief Minister Pawan Kalyan has provided key suggestions to improve tourism infrastructure and promotion. According to the government, 117 Memorandums of Understanding (MoUs) have been signed over the past two years in the tourism sector. These projects are expected to generate employment for nearly 1.22 lakh people.
Several leading hospitality brands including Taj Hotels, Marriott International, ITC Hotels, Hyatt Hotels Corporation, Oberoi Hotels & Resorts and Hilton Hotels & Resorts are preparing to establish projects in Andhra Pradesh, which are expected to add over 7,700 hotel rooms.
The government has set major targets for the tourism sector, including development of 50,000 classified hotel rooms, establishment of 10,000 homestays and creation of nearly five lakh jobs in the coming years.
To strengthen tourism infrastructure, Andhra Pradesh is developing seven anchor tourism hubs in Visakhapatnam, Araku, Rajamahendravaram, Amaravati, Srisailam, Gandikota and Tirupati, along with more than 25 tourism circuits. Amaravati, Visakhapatnam and Tirupati are also being promoted as major MICE (Meetings, Incentives, Conferences and Exhibitions) destinations.
The government has also introduced several innovative tourism concepts including luxury cruises, heli-tourism, caravan tourism, floating houseboats, eco-tourism projects and adventure tourism activities. Water sports facilities are being expanded at destinations such as Suryalanka Beach, Bhavani Island and Gandikota. The government is also promoting spiritual and cultural tourism by improving facilities at major pilgrimage destinations including Tirumala Temple, Srisailam Temple, Kanaka Durga Temple, Antarvedi and Simhachalam.
1,855 homestays
The tourism department has partnered with major travel platforms including airbnb.com, makemytrip.com, and booking.com, to strengthen homestay tourism.
Around 1,855 homestays have already been linked to the tourism network through a dedicated AP Homestay portal.
The Centre sanctioned Rs 428 crore for eight major tourism projects in Andhra Pradesh under various schemes. These include development works at Suryalanka Beach, Borra Caves, Gandikota, Simhachalam and Annavaram, with most projects targeted for completion by July 2026.
According to government figures, tourist arrivals in Andhra Pradesh increased by 10.10 per cent compared to the previous year, while foreign tourist arrivals registered a growth of 126 per cent.
Tourism Minister Kandula Durgesh said “ Andhra Pradesh offers immense opportunities for tourism-based investments and invited industrialists and entrepreneurs to come forward with innovative ideas and projects”, he said. He assured investors that the coalition government would provide complete support for tourism developmentin the State.
