State Government Tourism Promotion Schemes and Incentives

State tourism policies are used by governments to attract private investment, create jobs, and build destination-specific infrastructure. Most states now combine fiscal subsidies, tax relief, and regulatory concessions with targeted support for heritage, eco, coastal, wellness, and homestay tourism.

Key State Tourism Policies and Investment Targets

• Telangana: The Telangana Tourism Policy 2025–2030, effective from March 17, 2025, targets ₹15,000 crore in private investment and three lakh additional jobs. It identifies 27 Special Tourism Areas (STAs) across six tourism clusters to channel infrastructure funding.
• Telangana budget support: The state government proposed ₹1,224 crore for the tourism sector in its FY2026-27 State Budget.
• Andhra Pradesh: Under the Andhra Pradesh Tourism Policy 2024–29, tourism has been granted industry status, enabling industrial-style concessions for the sector.
• Andhra Pradesh incentives: The policy provides 100% stamp duty reimbursement, 100% land conversion charge waiver, and up to 100% SGST reimbursement for up to 15 years.
• Andhra Pradesh guidelines: The formal operational guidelines for implementing the policy were released in late September 2025.
• Odisha: The Odisha Tourism (Amendment) Policy 2026, issued on January 19, 2026, updated the 2022 policy framework.
• Odisha long-term target: The amended policy aims to attract 5 crore domestic tourists and 7 lakh foreign tourists annually by 2047, with emphasis on high-value accommodation and connectivity.
• Arunachal Pradesh: The Arunachal Pradesh Tourism Policy 2025–30 focuses on sustainable livelihood generation.
• Arunachal Pradesh focus areas: It promotes experiential, farm, tribal, and wellness tourism to spread benefits directly to local communities.

Fiscal Incentives and Infrastructure Subsidies

• Maharashtra: The Maharashtra Tourism Policy 2024 offers structured financial support for accommodation projects based on category.
• Premium accommodation subsidy: Up to 20% capital investment subsidy, capped at ₹20 crore, is available for premium accommodations.
• Other tourism units in Maharashtra: A 15% capital subsidy, capped at ₹15 crore, is available for serviced apartments, agro-tourism units, eco-tourism projects, and registered homestays.
• Karnataka: The Karnataka Tourism Policy 2024–29 provides a 25% capital subsidy for hotel developers outside the Bengaluru Urban district.
• Karnataka exemptions: The policy also includes full land conversion fee reimbursement and complete stamp duty exemption.
• Karnataka project approvals: In September 2026, the Karnataka Tourism Department’s Empowered Committee approved 18 hotel projects worth ₹314.93 crore and gave in-principle clearance to 78 more projects.
• Rajasthan: The Rajasthan Tourism Policy 2025, published in December 2025, links tourism development with wider industrial incentives.
• Rajasthan incentive route: Registered tourism units are automatically eligible for fiscal incentives under the Rajasthan Investment Promotion Scheme (RIPS) 2024.
• Gujarat: Under the Gujarat Tourism Policy 2021–25, active through December 31, 2025, tourism infrastructure received a capital subsidy of up to 20%, capped at ₹10 crore.
• Gujarat financial support: The policy also offered a 5% interest subsidy on term loans for up to five years.
• Gujarat green push: Additional incentives were provided for EV charging stations and green building certifications.

Niche Tourism Frameworks and Sustainable Initiatives

• Rajasthan heritage rule: Under the Rajasthan Tourism Unit Policy 2025, certified heritage hotels must be located in historic buildings constructed before January 1, 1950.
• Rajasthan expansion limit: New construction within such heritage properties is restricted to 50% of the total built-up area.
• Uttar Pradesh: In April 2026, the Uttar Pradesh Tourism Department introduced a “New Tourism Startup Units” category within its policy framework.
• Uttar Pradesh startup support: The category provides targeted financial and regulatory incentives to technology-driven and sustainable tourism projects, including digital solutions and clean energy adoption.
• West Bengal: The West Bengal Homestay Tourism Policy 2026 standardizes rural hospitality through a formal registration system.
• West Bengal classification: Homestay units are classified into gold and silver tiers to ensure quality standards and structured financial support.
• Karnataka coastal policy: The state is preparing the Coastal-Malnad Karnataka Tourism Policy 2026 to promote cruise, beach, and water sports tourism.
• Karnataka focus area: The policy covers six coastal and malnad districts and seeks to balance environmental conservation with maritime recreation.

Key Prelims Takeaways

• Industry status: Andhra Pradesh has granted tourism industry status, making it eligible for industrial-type concessions.
• Telangana STAs: Telangana has identified 27 Special Tourism Areas across six clusters under its 2025–2030 policy.
• Telangana funding: The state proposed ₹1,224 crore for tourism in FY2026-27.
• Heritage hotel norm: Rajasthan’s heritage hotel framework requires buildings constructed before January 1, 1950.
• Built-up cap: New construction in Rajasthan heritage properties is limited to 50% of total built-up area.
• Regional subsidy model: Karnataka offers a 25% capital subsidy for hotels outside Bengaluru Urban district.
• Homestay regulation: West Bengal’s 2026 policy formalizes homestays through gold and silver categories.