You are on page 1of 3


The Vision of the Government of Andhra Creation of a multi-disciplined Project
Pradesh, as declared in its policy, is to Monitoring Unit (PMU) is another first for
make it a destination state, given the Andhra Pradesh. This unit acts as a
array of natural resources and the catalyst in the fast-changing scenario of
traditional hospitality of its people. tourism. It is the generator of ideas,
Taking Andhra Pradesh to the world, and identifier of projects, selector of
bringing the world to Andhra Pradesh is investors and monitor of the
the ultimate aim. implementation process. As of now, 49
projects are being set up in the State by
AP Tourism, has kept abreast of the rapid private entrepreneurs with an
developments and with the searing pace investment of Rs.592 crore. Another 14
set by the State Government to make it projects are in the process of evaluation
the ideal destination in the country. Over for an investment of Rs.524 crore. Under
the past 4 years, by which time the 1998 MoU category, the PMU has facilitated
Tourism Policy of the State Government 11 projects with a cost of Rs.430 crore.
started showing results, faster growth in Thus, during the last 4 years the
the tourism sector has been achieved. Government has facilitated the launch of
Andhra Pradesh is among the first in the 68 projects with a total investment of
country to have an exclusive policy for Rs.1510 crore. In addition 88 projects
tourism, a sphere that can generate costing Rs.810 crore have been set up
overall growth and create employment exclusively by the Private Sector due to
opportunities. the state’s pro-active role.

94 Doing Business with Andhra Pradesh

Detailed studies were also made by tourism development with a priceless
reputed consultants like WTO, EDAW and asset - a friendly and hospitable people.
KPMG for identifying the areas for Andhra Pradesh bagged 6 National
tourism development and the strategies Awards including the Best Performing
t o b e a d o p t e d . T h e To u r i s m State for the year ending 2001-02.
Development and Management Plan,
prepared on behalf of the State by the Andhra Pradesh offers attractive
World Tourism Organization (WTO), investment opportunities to private
coordinates the diverse elements of developers and investors. The State has
tourism activity and provides direction for picturesque beaches, hills, wildlife and
tourism policy formulations and Industry forests, forts, temples, a large number of
planning all through to the year 2020. Buddhist sites, bird sanctuaries etc. In
With the involvement of the private sector order to attract private investment, the
being an accepted and inevitable policy provides a number of incentives
component in tourism promotion and and concessions with a liberal
development, Andhra Pradesh Tourism organizational set-up for one-stop policy
has responded with alacrity and decisions and inter-departmental
grounded several projects with the coordination. Introduction of a Single
involvement of this sector. To bring in Window Clearance System is yet another
more investment and projects, Andhra latest step in this direction. Land is the
Pradesh Tourism has gone a step further basic requisite for any infrastructure
to identify government vacant development Government is also inclined
government land in order to develop to lease Government lands for important
major tourist attractions on these Tourism Projects.
locations. The Regulations of Master Plans of
concerned UDA also provide for
automatic conversion of land us (for
Hotel occupancy rate in 2002 was higher Tourism Related Projects and also
than the national average of 53. Andhra exemption from conversion charges.
Pradesh shares about 23 per cent of Andhra Pradesh accounts for around 23
national tourist arrivals. A beginning has per cent of the domestic tourist arrivals in
been made and a bright future awaits the country and 2.7 per cent of
tourism. Endowed bountifully by nature, international tourists coming to India to
Andhra Pradesh has vast potential for visit Andhra Pradesh.

Doing Business with Andhra Pradesh 95


Investment Opportunities
The State offers attractive investment
opportunities to developers and
investors. It also offers tourists, both
international and domestic, an
opportunity to partake in the experience,
the Government has embarked on a
series of steps that will promote tourism
and result in increased tourist inflow in
terms of value. Hence, the Government
of Andhra Pradesh has adopted a pro-
active, investor-friendly, open-door
policy for the investors. Investors are
assured of a cooperative Government
and transparent administration. Andhra
Pradesh will soon be transformed into a
tourism destination. This can be
achieved only with active participation
from the private sector. Immense
o p p o r t u n i t i e s ex i s t i n t o u r i s m
development in the State. The identified
clusters for tourism development,
include Hyderabad, Visakhapatnam,
Tirupati, Vijayawada, Nagarjunasagar
and Warangal, which need to be linked
by transportation corridors.

96 Doing Business with Andhra Pradesh