New Tourism Policy Aims To Boost Investments And Transform The Sector

• General

• December 11, 2024

The new tourism policy announced by the coalition government would help attract large investments into the sector. The new policy was formalized with a Government Order issued on Tuesday, which had earlier been cleared by the cabinet. Under this scheme, industrial status has been granted to the tourism sector, besides providing subsidies previously reserved only for MSMEs.

Under the Public-Private Partnership (PPP) model, the government intends to uplift the coastal regions of the state and spiritual destinations, as well as other tourism hubs. Such developments are expected to attract significant investments and change the tourism landscape.

Comprehensive Subsidies and Exemptions for Tourism Projects

In order to attract more investment in the tourism sector, the government has announced the following incentives and exemptions:

• Stamp Duty Waiver:
  • Exemption on stamp duty and fees for transfer of land.
  • Stamp duty exemptions on registration of lease for lands, buildings, and sheds.
• Land Transfer Concessions:
  • Exemption from revenue and urban local bodies fees for land transfer.
• Industrial Electricity Tariff:
  • Industrial electricity tariffs will be applicable for tourism projects.
  • Electricity tariff exemption for five years from the date of launch of the project.
• Quality Certification Subsidies:
  • ₹2 lakhs for national-level certifications.
  • ₹10 lakhs for international-level certifications.
  • Note: Subsidies are not available for investments more than ₹51 crores.

GST Exemptions to Reduce Costs

The policy contains considerable tax savings:

• Exemption from the entire GST for seven years, subject to the maximum of the amount expended under the capital investment.
• For investment in mega and ultra-mega projects, the GST exemption could be up to 15 years. The government will examine and finalize the details for each type.

Employment-Linked Incentives

Additional incentives will be offered based on the employment generated per crore of investment. Further decisions regarding these incentives will be made by the government, ensuring fair distribution across various project categories.

Conclusion

This new policy reflects the commitment of the government to transform the tourism sector into a hub for lucrative investments. This would be achieved by the provision of strong incentives as well as the use of the PPP model to attract economic growth and employment opportunities.