Amaravati, the designated capital of Andhra Pradesh, continues to see tepid interest from private investors in the hospitality sector—even as tourism hubs like Visakhapatnam, Tirupati, and coastal towns emerge as hotbeds for luxury hotel development.
At the recent Andhra Pradesh Tourism Conclave – Tech AI 2.0, the Andhra Pradesh Tourism Development Corporation (APTDC) signed 82 MoUs worth INR10,329 crore, including 47 agreements for hotel projects. However, only one of these is earmarked for Amaravati, with the lion’s share headed to destinations like Vizag, Tirupati, Suryalanka, and Rushikonda.
Tourism department officials noted that earlier MoUs with top hotel chains for Amaravati remain valid. Seventeen major hotel groups are expected to invest in the capital region, though progress has been minimal.
According to a senior hospitality industry executive, investor hesitation stems from the state’s proposed three-year project completion rule, mandating boundary wall construction within one year of land allotment and full hotel development within three years. “While not yet officially applicable to hotels, investors fear the rule will extend to them, mirroring land terms given to central and state institutions,” the executive told TOI.
He added that relaxing timelines and showcasing development in government complexes could help rebuild trust.
Meanwhile, the state is aggressively pushing coastal tourism, offering greater regulatory flexibility. Seaplane and cruise tourism initiatives are underway, alongside hotel development incentives in beach destinations like Machilipatnam and Suryalanka.
In Vijayawada, marquee hotel chains are eyeing entry. “Radisson is exploring a property near the Kanuru stretch, while Marriott is considering locations near Ramavarappadu Ring or close to the airport corridor,” the representative said.
Source: TOI
