Andhra Pradesh boosts tourism with land deals and private investment
Andhra Pradesh is driving tourism expansion by increasing land and property development while promoting private sector involvement. Under the new AP Tourism Policy 2024-29, the state has already locked in INR 20,000 crore in commitments through 117 memoranda of understanding, shifting focus beyond traditional pilgrimage sites. The policy aims to diversify the tourism economy while attracting broader investment.
The government has raised tourism to industry status, a classification meant to simplify investment processes and encourage private participation. State-owned land parcels are now available for development, and Chief Minister K. Chandrashekar Rao has ordered that properties managed by other departments be reassigned to tourism projects where possible. This repurposing effort seeks to maximize underutilized assets.
New accommodation models are being introduced to meet growing demand. Homestays in tribal, rural, and backwater areas will transform traditional homes into tourism assets, generating local employment. The state has also rolled out a dedicated homestay policy alongside plans for tent cities, which will provide distinct visitor experiences while supporting rural economies.
Tourism growth is already showing measurable results. Domestic visitor numbers climbed 17.7% in 2025-26, rising from 28 million to 36 million arrivals. Officials anticipate the state will advance from fourth to second place in domestic tourism rankings by the end of the year, fueled by infrastructure upgrades and targeted promotional campaigns.
The state is broadening its tourism offerings to include wellness, yoga, Ayurveda, and adventure tourism. Coastal areas like Suryalanka, now better connected to Hyderabad, are experiencing rapid development, while inland destinations such as Araku and Gandikota are attracting record visitor numbers. Destination weddings in Visakhapatnam and Tirupati have also become significant draws, expanding the state’s appeal beyond religious tourism.
Leading up to the 41st IATO Annual Convention held in Visakhapatnam, tourism operators were engaged directly by officials. The minister stressed that while Andhra Pradesh has the potential to rival other Indian destinations, greater visibility and market access remain critical to driving actual tourist growth. The convention served as a platform to transition from policy discussions to practical product development, with a focus on encouraging operators to explore lesser-known regions and collaborate on expanding the state’s tourism offerings.
