‘Right time’ to invest in Andhra; state’s tourism policy setting stage for transformational growth

Ajay Jain IAS, Special Chief Secretary to Govt of Andhra Pradesh on investor friendly policies, push on inbound numbers, skilling strategies and more.  

Andhra Pradesh’s latest Tourism Policy 2024–2029, launched in December 2024, has not only redefined the investment landscape but also positioned Andhra Pradesh as a model for transparency, inclusivity, and growth-led tourism development, shared Ajay Jain IAS, Special Chief Secretary to the Government of Andhra Pradesh. 

“We have created a highly investor-friendly ecosystem with unmatched financial and regulatory advantages,” said, in an exclusive interaction with T3, adding that granting “Industry Status” to hotels is at the heart of Andhra Pradesh’s new policy. According to Jain, this change ensures greater ease of doing business for hoteliers through financial, regulatory, and operational benefits.

Key incentives include 100% reimbursement of stamp duty and land conversion charges, capital subsidies up to 25% for MSMEs and 10% for large projects, and 100% SGST reimbursement for 7–15 years. Additionally, power and water are now offered at industrial tariffs, and investors will receive 5-year electricity duty reimbursement—significantly reducing operational costs, Jain told T3. 

“The policy ensures a streamlined investor experience through Single Desk clearances and incentivises projects operational within one year and those in Tier-2/3 cities we call our Unexplored Gems,” Jain added, saying this is the right time to invest in Andhra’s tourism and hospitality sectors.  
He asserted that a key pillar of investor confidence has been the state’s transparent land allotment mechanism. All available land parcels are now publicly listed on official platforms—eliminating discretion and ensuring a level playing field. 

With such investor-friendly policies, several leading hospitality brands have already committed to Andhra Pradesh. “Major national and international brands—including Taj, Marriott, Hilton, Hyatt, Atmosphere Core, Postcard Hotels, Mayfair, Oberoi, and Lemon Tree—are establishing properties, validating the policy and positioning Andhra Pradesh as a premier hospitality destination,” he shared. Priority destinations include Visakhapatnam, Vijayawada, Tirupati, Gandikota, Horsley Hills, and the coastal belt, all of which are being developed as key tourism hubs. 

Inbound push: Niche tourism & ASEAN outreach

To boost inbound arrivals, Andhra Pradesh is diversifying its tourism offerings with a focus on Tribal Tourism, handicrafts, and Buddhist heritage at Amaravati and Nagarjunakonda. The state recorded approximately 25,000 foreign tourist arrivals in 2024–2025, with strong outreach to ASEAN countries. This encapsulates Andhra’s “Hospitality at its Best” appeal, making it a destination of diverse, immersive experiences. 

Domestically, tourism operates on a successful hub-based model: Visakhapatnam attracts tourists from East and Central India, Suryalanka and Amaravati see strong traction from Telangana, Gandikota and Lepakshi draw visitors from Karnataka, while Tirupati and Srisailam continue to anchor national pilgrimage travel, shared Jain. 

Infra, connectivity momentum

Connectivity remains a top government priority. Enhancing its multi-modal connectivity, the state is upgrading aviation, road, sea, and urban transport networks to ensure seamless tourist mobility. The Bhogapuram International Airport, set to open by mid-2026, will turn Visakhapatnam into India’s eastern gateway to Southeast Asia and will also be state’s largest hub. 

Andhra Pradesh’s tourism growth story is being powered by strong infrastructure expansion too. “The development of Amaravati and the Orvakal Industrial Corridor will drive significant business and academic travel, feeding into nearby spiritual and heritage sites like Tirupati and Gandikota,” Jain said. Further, the NH-516E upgrade will cut travel time to Araku, while the Visakhapatnam–Raipur corridor will draw tourists from neighbouring states.

The state is also creating destination-level infrastructure—eco-tourism in Araku, riverfront projects in Rajahmundry (Akhanda Godavari), and water-based leisure experiences at Polavaram. Also in plans, Urban mobility projects such as the Vizag and Vijayawada Metros, along with a fully operational International Cruise Terminal and upcoming seaplane links from Vijayawada and Hyderabad to Srisailam, will make Andhra Pradesh “one of India’s most accessible and tourist-friendly destinations”, as per Jain. 

Additionally, Andhra Pradesh Tourism has also sharpened focus on skilling and community empowerment. The department has trained 1,500 beneficiaries across 15 specialised programs, targeting youth, local communities, and women’s Self Help Groups. The initiatives like capacity-building in guiding, driving, culinary practices, travel operations, and souvenir production have notably increased women’s participation in the tourism value chain, extending to destinations like Kuchipudi and Kondapalli. This has ensured a skilled, locally rooted workforce to sustain long-term growth.