Tourism
Overview of India
₹ 7,64,250 crore
Worth of contribution of travel & tourism sector to GDP in 2014
7%
Contribution of travel & tourism sector to GDP in 2014
7.6%
Expected contribution of travel & tourism sector to GDP in 2025.
6.2%
Total investments from travel & tourism sector in 2014
Destination Andhra Pradesh
3rd highest in India
in terms of number of visits by tourists to Indian states
152.1 million
domestic tourists visited Andhra Pradesh in 2013, which was about 13.3% of the total domestic tourism market
Variety of destinations
in the state such as scenic locations, virgin beaches, backwaters, pristine forest areas and divine destinations
Capacity to emerge
as a world class tourist destination
Theme Based
MICE & infrastructure development for recreation/adventure, spiritual/wellness and medical tours
100% exemption
of luxury tax for all new tourism infrastructure projects meeting certain minimum requirements
1st
in ease of doing business
by World Bank
Excellent logistics and reliable infrastructure available
Skilled labour workforce available
Drivers of Growth
Increasing per-capita income
of individuals leading to raise in travel & tourism expenditure
Shift in consumer preference
Key Policy Targets
₹10,000 crore
Worth of new investments in the sector by 2020
5 lakh
additional jobs to be created in the sector by 2020
7%
contribution of the sector to the GSDP by 2020
To be the most preferred State in India for international tourists
Key Fiscal Incentives
Entertainment tax
GoAP will provide 100% exemption of Entertainment Tax for first 3 years from date of commercial operations.
Luxury tax
GoAP will provide 100% exemption of Luxury Tax for all new Tourism Infrastructure Projects meeting the minimum requirements for a period of 3 years from date of commercial operations.
VAT/CST/SGST
VAT will be charged at 5% for all new Tourism Infrastructure Projects from date of commencement of operations.
Land bank
A dedicated land bank shall be created by the Tourism Department and regularly updated for undertaking Tourism Projects on PPP basis.
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
Infrastructure support
Where a road is not available, the Government will provide all necessary revenue record information for the investor to acquire Right of Way.
Marketing incentives
GoAP will provide support as part of the State’s tourism megabrand campaigns and facilitate tie-ups with outbound tour operators in other states / countries.
Investment subsidies
  • GoAP will provide Investment Subsidy
  • For Total Project Cost < Rs.1crore- 15% of value of Total Project Cost, excluding the cost of land
  • For Total Project Cost from Rs.1-10 crore 15% of value of Total Project Cost, excluding the cost of land, or Rs.1.25 crore, whichever is less
  • For Total Project Cost from Rs.10-20 crore 15% of value of Total Project Cost, excluding the cost of land, or Rs. 2 crore, whichever is less
Registration and stamp duty
GoAP will provide 100% reimbursement on Registration and Stamp duty for all Tourism Infrastructure Projects

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Tourism policy 2015-20 DOWNLOAD