It is felt that a New Tourism Policy reflecting the vision of the Government to achieve “SwarnAndhra Pradesh” should be developedwhich is in line with the overall State development strategy. Accordingly, a new Andhra Pradesh Tourism Policy 2015-20 has been made with support from various State Departments, industry expert workshop at ISB, Hyderabad and M/s. KPMG, Consultants for Tourism Department.
The salient features of the Andhra Pradesh Tourism Policy 2015-20 are as follows:
1. Andhra Pradesh is on the threshold of evolving as the most preferred tourist destination in the country. The State offers myriad experiences to tourists, and multifarious opportunities to investors. The proactive Tourism Policy, coupled with abundant and world class tourism opportunities available in the State, shall place the State on the tourism map of the world.
2. Vision: The vision of the Tourism Policy is “To develop Andhra Pradesh as one of the most preferred tourist destinations through sustained investments, robust Tourism Infrastructure projects & services, and provide world-class diverse tourist experience”
3. Objectives The objective of the Tourism Policy are to facilitate investments in the tourism sector to the tune of Rs 10,000 crore and contribute 7% to the State GDP by 2020, and creation of 5 lakh additional jobs in the tourism sector
4. Modes of investment: Investments will be attracted mainly through private sector projects, and a limited extent through PPP projects and government projects.
5. Categories of Tourism Infrastructure Projects and Services: There are 12 categories of Tourism Infrastructure projects and 20 categories of Tourism Services eligible for various incentives under the Policy.
Tourism Infrastructure Projects (12 categories)
Hotels (3 Star or higher category hotels) Botanical gardens
Resorts (beach, jungle, hill etc.) Urban/Rural haats
Heritage Hotels Tourism & Hospitality Training Institute
Amusement Parks Wayside amenities
MICE Centers Spiritual/Wellness centers
Golf Courses Museums
Tourism Services (20 categories)
Beachside shacks Caravan tourism
Water sports
(sailing, windsurfing, jet skiing, scuba diving, river rafting, kayaking, snorkeling, paddling etc.) Inbound travel & tour operators
Water ride/sailing facilities
(sail boats, houseboats, glass bottom boats, amphibious, hovercraft, seaplanes etc.) Cab services / car hire services catering to tourists
Sea/ River/Canal Cruises Food courts/stalls at tourist destinations
Adventure services
(Parasailing, paragliding, camping/trekking/hiking services, cycling trails, nature trails etc.) Rest rooms at tourist destinations
Ropeways Cloak rooms at tourist destinations
Heli-tourism Parking facilities at tourist destinations
Farm tourism services Souvenir shops at tourist destinations
Rural tourism services Light & sound/laser shows at tourist destinations
Heritage walks Audio-video guide services at tourist destinations
6. Tourism Infrastructure Projects
i) The following incentives have been proposed for Tourism Infrastructure projects:
S. No Incentive category Incentives
a) Complementary/Linkage Infrastructure Development Assistance 5% – 15% of the project cost (excluding land) based on the size of the project
b) Land Conversion Charges Waiver of Non-Agriculture Land Assessment (NALA) tax or Land Use Conversion charge, as applicable
c) Registration and Stamp duty 100% reimbursement on Registration and Stamp duty for all Tourism Infrastructure Projects
d) VAT/CST/SGST 5% for all new Tourism Infrastructure projects from date of commencement of operations.
e) Luxury Tax 100% exemption of Luxury Tax for all new Tourism Infrastructure projects for a period of 3 years from date of commercial operations
f) Entertainment Tax 100% exemption of Entertainment Tax for first 3 years from date of commercial operations
g) Energy Tariffs Tariff as per the rates provided in the “H.T. Category-III: Airports, Railway Station and Bus Stations” in the Andhra Pradesh Electricity Regulatory Commission (APERC) Tariffs
h) ‘Industry’ status for specified purposes Special incentives like ‘accelerated depreciation’ which Government of India may provide to new industries in Andhra Pradesh as ‘special status’ will be made available for new Tourism Infrastructure projects
ii) For Tourism Infrastructure projects on PPP mode, land allotment will be as follows:
a) For setting up of Tourism Infrastructure projects that are proposed on government owned land, the Government shall fix appropriate land lease rental for various Tourism Infrastructure projects
b) Competitive and transparent process for identification of PPP partner.
c) Swiss Challenge Approach for suo-motu proposals for unique/innovative project
iii) Mega Tourism projects: All projects with investment above Rs. 200 crores, irrespective of the location in the State, will be treated as Mega tourism projects. Additional incentives and concessions on a case-to-case basis may be granted with approval of the STPB/STPC or the SEDB as the case may be.
7. Tourism Services
i) The following incentives will be applicable for Tourism Services:
a) Investment Subsidy: 5% -15% of the total project cost
b) GoAP will support building of Complementary/Linkage Infrastructure (example – jetties, helipads etc.) which becomes essential for the provision of the Tourism service. Support will be up to 20% of the cost of building of Complementary/Linkage infrastructure or Rs 25 lakhs, whichever is less
c) GoAP may provide any other support on case-by-case basis after due examination for investments greater than Rs 20 crores in tourism services
8. Institutional arrangements
a) State Economic Development Body (SEDB), being constituted will the apex level decision making body.
b) Empowered Committee will be strengthened for faster implementation of PPP projects.
c) Commissionerate of Tourism (CoT) shall be strengthened to function as a Tourism “Investment Facilitation Cell” and “Single Desk Bureau”
9. Marketing & Promotion
a) Initiatives under Marketing & Promotion include a Mega brand campaigns to attract tourists and major tourism investments in the State
10. Skill Development & Capacity Building
a) All new education institutes, focused on Hospitality Education, and/or set up in collaboration with foreign institutions/ experts, will be classified as Tourism Infrastructure Projects
b) GoAP aims to establish a Tourism University with international technical collaboration
c) Andhra Pradesh State Skill Development Corporation (APSSDC) will develop strategy and undertake initiatives to promote skill development in the hospitality and tourism sector
11. Safety & Security of Tourists
a) Special tourist police/ stations will be deployed at all major Tourist destinations with special emphasis on safety of women tourists.