Andhra government considers re-examination of Tourism Policy to attract investors

Published on : Wednesday, March 29, 2017

Andhra governmentDue to exorbitant investment cost deterring investors from tapping hospitality and tourism potential, the Andhra Pradesh government is considering re-examination of the Tourism Policy 2015-20.

Under the policy are various provisions like 100% exemption of luxury and entertainment tax, industry status to new infrastructure projects and others. However, these had failed to attract investors. The customized policy is most likely to offer Viability Gap Funding (VGF), capital subsidy and other incentives.

Experts said that expensive land and uncertainty over the break even period were the key factors that discouraged investors. As per Principal Secretary, Tourism & Culture, N. Srikant, “Based on the industry feedback we are re-examining the existing policy. After a thorough review, the government will take necessary decisions. There is no particular fund allocated for the purpose and incentives will be offered to investors with feasible criteria as any incentive policy is to attract investments.”

This policy is aimed at encouraging and speeding up world-class tourism infrastructure and development and will offer incentives to new investors during the first three years. The VGF can be only up to 20% of the project cost, according to the Union Ministry of Tourism’s guidelines for PPP infrastructure.


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