Uttar Pradesh Tourism Policy 2022
The Uttar Pradesh Tourism Policy 2022 marks a significant milestone in the state’s commitment to transforming itself into a global tourism hub. Recognizing its rich cultural heritage, religious significance, and natural beauty, the policy seeks to integrate these assets with modern tourism trends, making Uttar Pradesh (UP) a leading destination for both domestic and international travelers.
This policy not only emphasizes infrastructure development but also focuses on employment generation, sustainable tourism, and investment incentives, making UP an attractive destination for private investors. Let’s explore the multi-dimensional approach of the UP Tourism Policy 2022, including its Capital Investment Subsidy, Interest Subsidy, and specialized Incentive Schemes aimed at fostering growth across all sectors of tourism.
Capital investment subsidy : Boosting infrastructure development
One of the key features of the policy is the Capital Investment Subsidy, which aims to make tourism projects financially viable for private players and entrepreneurs. The state has provided a structured investment model with subsidies based on the investment bracket:
| Eligible Capital Investment (ECI) | Subsidy Percentage | Ceiling Subsidy |
|---|---|---|
| INR 10 lakhs – Upto INR 10 crore | 25% | INR 2 crore |
| Upto INR 50 crore | 20% | INR 7.5 crore |
| Upto INR 200 crore | 15% | INR 20 crore |
| Upto INR 500 crore | 10% | INR 25 crore |
| More than INR 500 crore | 10% | INR 40 crore |
Additional 5% Subsidy is provided to tourism units located in unserved destinations in Tier 2 or lower cities, women entrepreneurs, SC/ST/Backward Classes, and Focus Tourism Destinations (FTDs) as notified by the Department of Tourism. This offers a substantial incentive to boost tourism infrastructure in underdeveloped regions, ensuring economic growth and employment generation in rural and semi-urban areas.
Moreover, the sum of all incentives is capped at 30%, ensuring a balanced distribution of financial benefits. Projects involving land purchases are also eligible, as the purchased land (only the eligible part) can be included in the Eligible Capital Investment (ECI). Additionally, PPP (Public-Private Partnership) projects are eligible to avail these incentives, opening up more avenues for collaboration between the government and private players.
Interest subsidy: Encouraging long-term investments
For those tourism projects that might prefer an interest subsidy over capital investment subsidy, the policy provides a 5% Interest Subsidy for a period of 5 years on a bank loan of up to INR 5 crore. This offers a more flexible financial model, allowing tourism units to benefit from either the Capital Investment Subsidy or the Interest Subsidy, depending on their specific business needs.
Industry status for hotels and resorts
Recognizing the importance of the hospitality sector, the policy confers Industry Status to hotels and resorts, providing the following benefits:
- House Tax (Property Tax) and Water Sewerage Tax levied at Industry rates.
- Electricity Duty charged as per industry rates.
- Construction permitted in notified industrial areas for easier infrastructure development.
- 100% Stamp Duty Exemption on the first transaction and 100% Land Conversion and Development Charges waiver.
These incentives reduce the operational costs for tourism units, making Uttar Pradesh an attractive destination for hospitality investments.
Employment generation and special assistance
To further promote job creation in the tourism sector, the policy offers a 100% reimbursement of EPF expenditure for a period of 5 years for tourism units employing more than 50 workers. This is a significant incentive, encouraging units to create sustainable employment opportunities within the state.
In line with its commitment to inclusivity, the policy provides payroll assistance of INR 1,500 per month per worker for tourism units employing specially-abled workers. This reflects the state’s efforts to ensure a diverse and inclusive workforce in the tourism industry.
Support for revival of scarce Arts and Culture
As part of its cultural preservation efforts, Uttar Pradesh offers INR 5 lakh in financial support to individuals or groups involved in the revival and conservation of scarce or endangered indigenous art, craft, and cuisine within 50 km of major tourist destinations. This not only helps preserve the state’s rich cultural heritage but also creates unique tourism products that attract niche audiences.
Incentives for ICT enablement and responsible tourism
The UP Tourism Policy 2022 also focuses on leveraging technology to enhance the tourist experience. Tourism units can avail one-time assistance of 25% of the cost of procuring equipment for introducing ICT (Information and Communications Technology) in their operations. Additionally, a 25% subsidy is available for promotional content using AI, metaverse, or other modern technology platforms.
Supporting responsible tourism is another key feature of the policy, with provisions for:
- 75% reimbursement of the cost of carrying out energy audits.
- 20% reimbursement of the capital cost of setting up sewage treatment plants.
- 50% reimbursement of green certification fees and 100% reimbursement on achieving certifications from the Responsible Tourism Society of India.
These incentives encourage tourism units to adopt environmentally sustainable practices, aligning with global standards of responsible tourism.
Special incentives for Heritage Hotels
In an effort to promote heritage conservation, Heritage Hotels enjoy special incentives under the policy, including:
- 25% subsidy on capital costs for conservation or expansion, provided the architecture is preserved.
- A 5% interest subsidy on a bank loan of up to INR 5 crore for a period of 5 years.
- 100% exemption on stamp duty and land-use conversion for heritage properties.
- 50% reimbursement of excise license fees during the first year of operation.
- Signage support along key routes and publicity and broadcasting efforts by the state to promote heritage tourism.
Heritage hotels can avail both capital and interest subsidies, making it a highly attractive segment for investors interested in preserving the cultural identity of the state while operating a profitable business.
Land allotment for Tourism Projects
The policy also addresses the allotment of government land for various tourism units, offering a range of minimum and maximum land areas based on the type of project:
| Category | Minimum Land Area | Maximum Land Area |
|---|---|---|
| Budget Hotels (1, 2, 3-star hotels) | 1200 sqm | Upto 5000 sqm |
| Hotels/ Wellness Centres/ Eco-Tourism Stays (4-star and premium) | 6000 sqm | Upto 15000 sqm |
| Resorts/ Theme Parks | 18000 sqm | Upto 50000 sqm |
| Other Tourism Units | As per requirement | As per availability |
Land allotment will be made at the prevailing District Level Committee (DLC) rates. The land must be used for the approved tourism project and cannot be repurposed for any other activity for at least 30 years. This ensures long-term commitment from investors and guarantees the integrity of tourism projects.
Marketing, Promotion, and Awards
To promote tourism in Uttar Pradesh, the state offers financial assistance for marketing efforts, including 50% of space rent reimbursement (up to INR 30,000 per national event and INR 1 lakh per international event). The State Tourism Awards provide additional recognition, with up to INR 1 lakh in prize money awarded to various tourism units for excellence in their operations.
Conclusion: A holistic approach to Tourism Growth
The Uttar Pradesh Tourism Policy 2022 is a comprehensive roadmap aimed at driving economic growth, boosting investments, and creating employment in the state’s tourism sector. By offering a range of incentives and subsidies, the policy encourages private sector participation while promoting sustainable and responsible tourism practices.
With its rich heritage, spiritual significance, and commitment to eco-friendly practices, Uttar Pradesh is on a path to becoming a global leader in tourism. This policy not only strengthens the state’s tourism infrastructure but also paves the way for future innovations in travel, hospitality, and cultural preservation.
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