Andhra Pradesh Tourism Policy 2025
The tourist industry is one of Andhra Pradesh’s fastest expanding sectors. The state government has implemented a comprehensive tourism plan to draw in investors, encourage entrepreneurship, and generate employment in the hotel industry and related areas. The state is well known for its beaches, temples, historical attractions, and ecotourism.
In addition to increasing the number of domestic and international visitors, the Andhra Pradesh Tourism Policy offers coordinated incentives to hotels, resorts, homestays, adventure parks, and other tourism-related enterprises.
The Andhra Pradesh Tourism Policy provides coordinated incentives to hotels, resorts, homestays, adventure parks, and other tourism-related businesses in addition to boosting the number of local and foreign tourists.
We’ll go over the main characteristics, rewards, advantages, and prospects of the tourist policy in this post, along with how Cretum Advisory may assist companies in making the most of them.
Vision of Andhra Pradesh Tourism Policy
The vision is clear:
• Position Andhra Pradesh among the top five tourism states in India.
• Create sustainable and inclusive tourism growth.
• Encourage adventure, eco, medical, religious, and cultural travel.
• Create jobs and business opportunities locally.
Key Incentives under Andhra Pradesh Tourism Policy
The policy offers a wide range of incentives to attract investors in tourism projects:
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Capital Investment Subsidy
o Up to 20–30% subsidy on capital cost for eligible tourism projects.
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Reimbursement Benefits
o Stamp duty reimbursement on land registration.
o Reimbursement of land conversion charges. -
Tax Benefits
o SGST reimbursement for specified tourism units for a fixed period.
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Infrastructure Support
o Priority land allotment for hotels, resorts, and amusement parks.
o Single-window clearance for tourism projects. -
Special Category Incentives
o Projects in underdeveloped districts, MSMEs, and female entrepreneurs receive greater subsidies and perks.
Possibilities for Investment and Growth
The Andhra Pradesh Tourism Policy identifies a number of sectors with substantial room for expansion: Religious tourism brings millions of devotees to the temples of Tirupati, Srisailam, and Amaravati annually.
• Beach Tourism: The coastline has over 900 kilometers of beaches, including Rishikonda and Bheemunipatnam.
• Araku Valley, Lambasingi, and water sports are hubs for adventure and ecotourism.
• Medical tourism: Patients from all around the world are attracted to the growing healthcare infrastructure.
• Buddhist circuits, palaces, forts, and festivals are examples of cultural tourism and heritage.
Important Points (Facts & Stats)
Andhra Pradesh was one of the most popular Indian states in 2023, with over 194 million domestic tourists.
• Tourism contributes for about 6–7% of AP’s GSDP.
• It is projected that the project would generate more than 20,000 new jobs by 2030.
• The government intends to attract about ₹15,000 crore in investments over the next five years in
the tourist industry.
Challenges in Tourism Business Setup
• In spite of the advantages, establishing and managing a tourist enterprise in Andhra Pradesh entails: • •Handling permit and registration requirements.
• Managing SGST reimbursements, GST input credits, and tax exemptions.
• Managing legal compliance under state and central laws.
• Understanding policy applicability for MSMEs and startups.
This is where having the right advisory partner becomes critical.
How Cretum Advisory Can Help?
At Cretum Advisory, we work closely with entrepreneurs, MSMEs, and corporates entering the tourism and hospitality space. Our role is to make sure you get the maximum benefit from the Andhra Pradesh Tourism Policy while staying 100% compliant.
Service How We Help
Startup Guidance Organizational structure, registration of the business, and state tourism policy approvals.
Advisory and Accounting Bookkeeping, financial reporting, and accounting for tourism initiatives that complies with GST.Compliance and Taxes support for managing GST Returns filing, obtaining SGST reimbursement, and tax planning.Secretarial Services for Companies ROC filings, board decisions, and adherence to the Companies Act. CFO Provisions Fundraising assistance, cash flow management, and financial planning for tourism initiatives. Transaction Advisory and M&A encouragement of joint ventures and investors in major hospitality projects. Customs and Foreign Trade Guidance Support for tourist projects by partnering with foreign investors or importing specialist equipment.
Frequently Asked Questions (FAQs)
1 Who is eligible for the Andhra Pradesh Tourism Policy’s benefits?
Investors, company owners, and companies establishing resorts, hotels, adventure travel, medical travel, or associated services in Andhra Pradesh.
2. What kinds of financial aid are offered?
Capital subsidies (20–30%), stamp duty reimbursement, land conversion charge waiver, and SGST reimbursement.
Q3. Does the policy support MSMEs?
Yes. Special incentives are provided for MSMEs, women-led businesses, and backward districts.
Q4. How long do SGST reimbursement benefits last?
Generally, for 5–7 years depending on project type and location.
Q5. Is eco-tourism covered under the policy?
Yes. Eco-tourism and adventure tourism are priority sectors in the policy.
The Final Thought
The goal of the Andhra Pradesh Tourism Policy is to increase tourism while also boosting the state’s economy. For existing businesses and entrepreneurs in the hotel, eco-tourism, and cultural tourist sectors, the plan creates new opportunities by emphasizing infrastructure, implementing investor-friendly policies, and offering tax breaks. However, to benefit from these advantages, careful preparation, the appropriate legal framework, and compliance management are necessary.
While we handle the paperwork, you can focus on creating experiences. Cretum Advisory will guide you through the investment, tax, and compliance process. Are you ready to grow your business by utilizing the Andhra Pradesh Tourism Policy? Connect with Cretum Advisory today.