In a significant move to invigorate Andhra Pradesh’s hospitality and tourism sectors, the State Cabinet—chaired by Chief Minister N. Chandrababu Naidu—has approved a steep reduction in bar licence fees for 3-star and higher-category hotels. The fee has been slashed from Rs 66 lakh to Rs 25 lakh, offering major financial relief to hoteliers and paving the way for enhanced F&B offerings in the state’s premium hospitality segment.
The initiative, cleared by the Youth Services, Tourism and Culture Department, is part of a broader tourism-driven economic revival plan. It aligns with Andhra Pradesh’s ambitious vision of adding 50,000 hotel rooms over the next five years, with a strong focus on temple tourism and coastal development.
“This move creates a more favourable environment for hospitality investors,” said Kolusu Parthasarathy, Minister for Information and Public Relations. “The goal is to unlock untapped tourism potential, increase revenue, and generate large-scale employment across the state.”
The lowered barrier to bar licensing is expected to attract national and international hotel brands to invest in Andhra Pradesh, especially in emerging micro-markets around pilgrimage circuits and port cities. It also enables existing hotels to enhance guest experiences with robust food and beverage programs—an essential component of today’s full-service hotel offerings.
With temple tourism on the rise and plans to strengthen coastal infrastructure, Andhra Pradesh is positioning itself as a well-rounded tourism destination.
Source: The New Indian Express
