Karnataka eyes INR 7.8k-crore investment in 5 years under new tourism policy – ET TravelWorld

The Siddaramaiah cabinet approved a new tourism policy 2024-29 Thursday, setting an ambitious target to double domestic tourist footfalls to 48 crore from the current 23 crore and increase foreign tourist arrivals from 4 lakh to 20 lakh by 2029.

“Our objective is to make Karnataka one of the top three states in domestic tourism and among the top five in international tourism,” said tourism minister HK Patil, who also holds the law and parliamentray affairs portfolio. “We also intend to create 47,000 direct jobs and over one lakh indirect jobs.”

The policy proposes to attract INR 7,800 crore investment in tourism over the next five years by setting up a ‘tourism investment facilitation cell’, which will act as a nodal agency. District tourism committees will be formed to ensure tourism is aligned with needs of local communities. The govt also aims to organise a ‘global tourism investors meet’ to attract investors. It also hopes to monetise 680 acres of tourism department land.

Currently, Karnataka accounts for about 10 per cent of overall domestic tourist visits — the fourth among states. The policy envisions the creation of a high-quality, tourist-centric ecosystem by uniting private and public sector stakeholders. It will focus on nine key areas, including tourism marketing and promotion, infrastructure development, tourist products and experiences, tourist comfort and safety, and investment facilitation.

The govt plans to develop 50 land, water, and air-based adventure tourism destinations by 2029. A tourism development fund will be established, supported by budgetary allocations and external sources, to strategically aid development of tourism, particularly in enhancing hospitality infrastructure and developing tourism land banks.

The new policy proposes a capital investment subsidy of up to 25 per cent for tourism projects outside Bengaluru Urban district or within BBMP limits, capped at INR 10 crore. Additionally, projects initiated by women, SC, ST, and differently abled entrepreneurs will receive an extra 5 per cent subsidy. Hotel projects in Kalyana-Karnataka and Kittur Karnataka will also benefit from this additional subsidy.

The policy offers exemptions on stamp duty, registration charges, and land conversion fees for new and expanding projects. Tourism service providers will also enjoy a reimbursement of motor vehicle tax for five years on the purchase of new buses and cabs.