The central government to set up five exclusive tourism zones

Published on : Friday, October 27, 2017

The central governmentThe Centre will soon set up five exclusive tourism zones in public-private partnership mode wherein state governments will offer land in excess of 1,000 acres and rope in private players for development. This will help in meeting the shortage of hotel rooms in the country, and also generate employment opportunities and assist the economy.


The states competing for the project will be ranked on availability of land and infrastructure, tax incentives and, most importantly, whether a state has a plan for the development of these zones by private players.


According to a senior official, “Top five ranked states will bag the project for these zones, which will eventually emerge as not just a huge source of revenue for the state governments but also a big source of employment generation,” the official said. “The tourism ministry has already initiated discussions with the state governments and industry, and will soon formalise guidelines for the same.”

India has a supply of 110,000 hotel rooms and there is a shortage of 150,000 rooms, and this gives rise to a huge requirement in hotel room rates across the country. Demand is expected to be at least double the supply over the next two years given the government’s focus on tourism. Hence, the available land from competing states could be used for development of hotels.


The Prime Minister Narendra Modi had recently approved NITI Aayog’s proposal of granting all future central government projects, institutions and schemes on the basis of the challenge method for selection of sites.

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