Andaman and Nicobar Islands: A New Era of Ecotourism with Bids Invited for Luxury Resorts

Written By: Poulomi Sinha

Poulomi Sinha

I am a passionate travel writer and digital content creator dedicated to bringing the past vividly to life for modern explorers. I specialize in cultural tourism and historical storytelling, creating engaging, well-researched content that blends education with compelling narratives. My deep fascination with history and heritage preservation has led me to actively participate in heritage workshops, where I have gained hands-on experience in architectural conservation and community-led cultural initiatives. As a writer for a prominent online travel magazine, I transform destinations into immersive stories, uncovering the hidden histories behind ancient landmarks and heritage sites while inspiring readers to explore their rich cultural significance.

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October 16, 2025 09:01 GMT+5:30

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With a number of upscale ecotourism resorts planned to be built throughout some of the most pristine and unspoiled areas of the archipelago, the Andaman and Nicobar Islands are starting a significant transition in their tourism industry. In an effort to improve the region’s tourism offerings, the Andaman and Nicobar Islands Integrated Development Corporation Limited (ANIIDCO) recently released a call for bids for the construction of five-star eco-tourism resorts using a public-private partnership (PPP) model. The Design, Build, Finance, Operate, and Transfer (DBFOT) framework will be used to carry out these developments, guaranteeing sustainable growth while preserving the islands’ fragile ecological balance.

A New Vision for Sustainable Tourism

As the world moves toward more sustainable tourism practices, the Andaman and Nicobar Islands are positioning themselves as a model for eco-conscious luxury travel. The resorts planned for these islands will not only provide high-end accommodations but will also adhere to international sustainability standards, such as LEED, GRIHA, and Green Globe certifications. These developments are expected to make significant strides toward reducing the carbon footprint of tourism while providing a luxury experience that is in harmony with nature. By adhering to the Coastal Regulation Zone (CRZ) and environmental norms, the government is committed to minimising ecological impacts and ensuring that tourism benefits both the local communities and the environment.

Key Projects and Locations

Several prominent islands within the Andaman and Nicobar archipelago have been identified for these ambitious projects. These islands, known for their natural beauty and pristine environments, are now set to open their doors to high-end tourism, bringing much-needed economic growth to the region.

Aves Island (Coconut Island)

Aves Island, a previously uninhabited island known for its lush coconut plantations, is set to become the home of one of the most anticipated eco-tourism resorts. The island, covering an area of 2.75 hectares, will feature a luxury resort with 50 rooms. The resort will offer a range of activities for visitors, including scuba diving, game fishing, forest trekking, nature camping, wellness services, and a shopping area for local souvenirs. With an estimated investment of ₹36 crore, the development of this resort is expected to position Aves Island as a major tourist destination, rivalling the popularity of Swaraj Dweep (Havelock Island). This is set to be a key milestone in the region’s tourism expansion, opening the island to tourists for the first time.

Shaheed Dweep (Neil Island)

Shaheed Dweep, also known as Neil Island, is another key location for the new resorts. With an investment of approximately ₹172 crore, the planned resort on Shaheed Dweep will have a capacity of 120 rooms. Five bids have already been received for the development of this resort, and it is currently undergoing technical evaluations. The resort will offer a range of services and activities tailored to high-end travellers, including water sports, wellness facilities, and ecotourism excursions. As part of the holistic development plan for the islands, this project is expected to attract both domestic and international tourists seeking an exclusive escape amidst nature’s beauty.

Megapode Resort (Port Blair)

In addition to the island-based projects, the redevelopment of the Megapode Resort in Port Blair is also on the cards. This project, with an investment of ₹36 crore, has attracted four bids, and it is expected to be completed within three years. The Megapode Resort will undergo a significant overhaul to meet the luxury and sustainability standards set by the government. Located in the heart of Port Blair, the resort will serve as a gateway for tourists arriving by sea and air, offering modern amenities and eco-friendly accommodations.

Long Island (Lalaji Bay Beach)

Long Island, known for its serene beaches and rich biodiversity, is also set to benefit from this ecotourism initiative. With a hefty investment of ₹391 crore, the development will feature a resort with up to 220 rooms. Long Island has already received one bid for the project, and further proposals are expected. This large-scale resort will cater to the growing demand for luxury eco-tourism, offering visitors a chance to explore the pristine natural surroundings while enjoying world-class services. The Long Island project is set to become a key part of the island’s tourism infrastructure, attracting visitors seeking an off-the-beaten-path experience.

Smith Island

Smith Island, located in the Andaman Sea, will also see the development of a luxury eco-resort. With an investment of ₹60 crore and a capacity of 70 rooms, the project is currently in the bidding phase. This eco-resort is expected to provide a quiet, secluded retreat for those looking to immerse themselves in nature while enjoying the luxuries of modern living. The resort will offer a range of eco-friendly accommodations and activities aimed at promoting sustainable tourism practices.

Economic and Employment Opportunities

The development of these resorts is expected to have a significant impact on the local economy. Not only will it boost high-end luxury tourism in the region, but it will also create substantial employment opportunities for local residents. From construction jobs to positions in hospitality and tourism management, the resorts will provide much-needed employment in a region that has been historically underserved. Additionally, the local community will benefit from the increase in demand for goods and services, which will help to stimulate the economy on a wider scale.

Future Outlook and Timeline

As of early October 2025, a total of 12 bids have been received for the proposed projects, including for the resorts on Aves Island, Shaheed Dweep, and Long Island. The technical and financial evaluations of these bids are underway, and the work will be awarded to the highest bidders. The redevelopment of the Megapode Resort is expected to be completed within three years, while the island-based projects will likely take around four years to finish.

A Bright Future for Eco-Tourism in the Andamans

These eco-resorts will have a significant impact on how people travel to the Andaman and Nicobar Islands in the future thanks to the government’s dedication to sustainable tourism. The islands are poised to become a major global destination for environmentally conscious tourists by offering a luxurious experience that is in balance with the environment. The ecotourism resorts will contribute to positioning the Andaman and Nicobar Islands as a leader in sustainable tourism as the region’s tourism infrastructure expands, giving visitors the chance to responsibly explore one of India’s most stunning and unspoiled landscapes.

These changes have the potential to completely change the Andaman and Nicobar Islands’ tourism industry and make them a popular destination for both domestic and foreign tourists. The islands will continue to be a major player in the world tourism market for many years to come thanks to their combination of stunning natural surroundings, opulent lodging, and environmentally friendly operations.