Andhra Pradesh is opening more land and properties for tourism development, with a focus on attracting private investment. The state’s Tourism Minister, Kandula Durgesh, said the government has accorded industry status to tourism, which is expected to accelerate investment and development in the sector.
The government has introduced policies to encourage job creation, homestays, tent cities, and greater private participation in tourism projects. INR 20,000 crore in tourism investments have been reported, with 117 Memoranda of Understanding (MoUs) signed under the AP Tourism Policy 2024-29.
Tourism Development
Land parcels available with the government have been placed in the public domain, and the Chief Minister has directed that land under other departments could be considered for tourism projects where appropriate. Homestays, heritage properties, and tent cities are among the formats being pushed to diversify the state’s accommodation and experience offering.
Traditional houses in tribal, rural, plain, and backwater areas could be developed as homestays, creating both tourism products and local livelihood opportunities. A dedicated homestay policy has been introduced, alongside plans for tent cities, with the objective of creating distinctive accommodation and experiences for visitors.
Employment Generation
Employment generation is another key focus, with the government introducing an employment-generation policy under which tourism projects creating larger numbers of jobs would receive government support. The state recorded a 17.7% increase in domestic tourist arrivals in 2025-26, rising from 28 crore to 36 crore visitors.
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The state is also seeking to diversify its tourism portfolio through spiritual, cultural, wellness, yoga, and Ayurveda tourism, besides exploring opportunities around its natural environments and coastal assets. Private investors are already coming forward to undertake tourism-related activities through public-private partnership models.
Ahead of the recently concluded 41st IATO Annual Convention held in Visakhapatnam, the tourism minister made a direct pitch to tour operators to look beyond the state’s established pilgrimage destinations and help develop and promote a wider tourism basket. The minister stressed that the state had the potential to offer many of the experiences available across India, but that stronger visibility and market access were required to convert that potential into actual tourist movement.
The minister called on IATO members to visit different parts of Andhra Pradesh, experience its offerings, and work with the government on an actionable roadmap for taking the state’s tourism products to domestic and international markets. The state is expected to move up from number four to two in terms of domestic arrivals by the end of the year.
Kandula Durgesh noted that the state’s tourism sector has the potential to create a significant number of jobs and stimulate local economic growth. The government’s efforts to promote tourism are expected to have a positive impact on the state’s economy, with the tourism minister emphasizing the need for private investment to support the development of the sector.