Sector

Tourism & Hospitality

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INDIA SCENARIO

  • The Tourism and Hospitality sector is an integral part of the Make in India initiative, serving as a vital economic catalyst that fuels job creation and rapid development.
  • The recently announced 2023 Union Budget has firmly placed tourism as a key sector in the spotlight. The Ministry of Tourism, in its mission mode, is dedicated to promoting the industry through active participation from all States, the convergence of Government Programs, and the establishment of impactful Public-Private Partnerships. This visionary approach will facilitate comprehensive development in at least 50 selected destinations through a challenge mode process.
  • Embracing a progressive outlook, India welcomes 100% Foreign Direct Investment (FDI) in the tourism industry under the automatic route.
  • Additionally, 100% FDI is permitted for tourism construction projects, including the development of exquisite hotels, resorts, and unparalleled recreational facilities.
  • 6th in terms of Travel & Tourism total contribution to GDP, WTTC (2021)
  • 2nd in terms of Travel & Tourism Employment, WTTC (2021)
  • 39th on the World Economic Forum Travel Ire & Tourism Development Index (2024)
  • 0.73 Bn Domestic Tourist Visits to all States/UTs (2022)
  • 0.4% Annual Growth Rate of FTAs in India (2022)
  • $0.07 Bn Foreign exchange earnings (FEE) from tourism (Jan-Dec 2023)
  • 0.64% Share of India in International Tourism Receipts (ITRs) in World

UTTAR PRADESH SCENARIO

  • Identified tourism circuits to attract various theme-based tourists. Dedicated focus on Buddhist circuit covering key destinations
  • 24 bird sanctuaries, 11 wildlife sanctuaries and 1 National park
  • Rich tradition of Ayurveda and wellness practices.
  • UNESCO World Heritage Monuments – 3 Sites –  Taj Mahal, Fatehpur Sikri and Agra Fort
  • Religious and Cultural sites of international importance   such as Ayodhya, Varanasi, Vrindavan, Mathura
  • With the presence of the mighty Ganges River, State has presence of adventure tourism activities like river rafting, kayaking, and trekking

DOMINANT INDUSTRY FORCES

KEY DEVELOPMENT IN THE INDUSTRY

Lucknow, Noida, and Agra predominantly host a multitude of business-oriented / 5-star hotels to meet the growing demand for accommodations among business travelers.

Presence of Major Hotel Chains

POLICIES & SCHEMES

Policy Highlights

  • Interest Subsidy 5% for a period of 5 years on a bank loan up to INR 5 crore
  • Stamp Duty @100% on sale/lease/transfer for the first transaction
  • Skill Development Subsidy @onetime grant of INR 10,000 for one year will be provided to youth clubs constituted within educational institutions for tourism related activities
  • Excise License Fee @ 50% exemption to Heritage hotels set up in rural areas

Specific Incentives for Heritage Properties

  • 25% subsidy on capital cost without disturbing the architecture
  • 5% subsidy for a period of 5 years on a bank loan up to INR 5 crore
  • 100% exemption on stamp duty and land use conversion
  • 50% reimbursement on Excise license fees of first year

Other Key Incentives

  • Employment Generation Subsidy : 100% reimbursement of EPF expenditure for a period of 5 years
  • Incentives for Information and Communication Technology (ICT) Enablement : One time assistance of 25% of the cost of procuring equipment

KEY INVESTMENT OPPORTUNITIES

  • Tourist Infrastructure

    Develop hotels, wellness centers and resorts, sports resorts, budget hotels, tented accommodation, eco-tourism resorts, heritage hotels, heritage homestays, flotels, Swiss cottages to cater to a cross-section of tourists.

  • Thematic Tourism

    Establish theme-based facilities across Wildlife, Nature & Eco-tourism, adventure tourism, rural tourism segments.

  • Experiential Tourism

    Develop experiences for tourists in inland water and cruise-based tourism segment, provide accommodation in ecotourism destinations such as forests, reservoirs, water bodies and other eco-sites where tourists can enjoy flora and fauna

  • Focus Tourist Destinations (FTDs)

    Develop a holistic end-to-end experience at the tourist place with all customer touch points

  • Tourist Circuits

    Enhance infrastructure across various tourist circuits to drive quality and reach of inbound tourists

  • Wellness and Medical Tourism

    Establish Yoga, Ayurveda, and other wellness centres focussed on lifestyle enhancement techniques

  • Adventure Tourism

    Develop Land, Water and Air-based adventure tourism activities such as Bungee Jumping, Cycling Tours, Jeep Safaris, Motorcycle tours, Nature Walks, Bird Watching, Rock Climbing, Wildlife Safaris, river rafting, kayaking, water sports centers, trekking, hot air ballooning, paragliding, sky diving, etc.

  • Religious & Cultural Tourism

    Enhance the availability and quality of infrastructure across various religious and cultural sites of international importance circuits such as Ayodhya, Varanasi, Vrindavan, Mathura, etc and also developing and popularising various spiritual circuits such as the Ramayana circuit, Mahabharata circuit, Buddhist circuit, Jain circuit, Shakti-Peeth circuit, Sufi-Kabir circuit, etc.

  • Heritage Properties

    Re-adaptive use of heritage properties such as forts, palaces and other structures as heritage hotels, museums, heritage restaurants/banquets/wedding destinations/etc, on PPP model.

  • Historical Sites

    Develop facilities, especially around UNESCO World Heritage Monuments sites such as Taj Mahal, Fatehpur Sikri and Agra Fort

  • Wildlife & Nature/Eco-Tourism

    Develop improved facilities within one national park, 11 wild life sanctuaries and 24 bird sanctuaries of the state

  • Investible land parcels

    Develop integrated tourism zones comprising of hotel rooms of diverse categories, banquets, restaurants, retail areas, food courts, MICE facilities, convention centres and yoga centres.

  • Heliports

    Development of heliports on PPP model in five tourism destinations of the state Agra and Mathura in Phase I and Lucknow, Prayagraj and Ayodhya in Phase II


Nivesh Sarathi Nivesh Mitra