Rajasthan’s Tourism & Hospitality Sector Emerges as Prime Investment Opportunity, Receives Full Industrial Recognition

The tourism sector attracts investors :
Rajasthan has become the first state in the nation to grant the tourist and hospitality industries full industrial recognition.

Investors are showing great interest in the tourism sector in the state

During the tenure of Chief Minister Ashok Gehlot in the state, from December 2018 to June 2023, a total of 802 tourism units have been sanctioned in the state, under which the state will receive an investment of INR 10,463.47 crore. These approved tourism units will generate employment opportunities to 40,785 people in the state. The Chief Minister of the State, is determined to making the state a leader in the tourism sector in the country and around the world, and the tourism and hospitality sector has been designated as a full-fledged industry in the state to that end. As a result, investors are exhibiting a keen interest to invest in the state’s tourist sector.

According to Dr. Rashmi Sharma, director of the tourism department , “ The Rajasthan Tourism Department is currently focusing on identifying and developing new, lesser-known tourist destinations within the state as part of its new tourism policy, which is continually luring Investors to invest in the state and allows them to conduct all of their business through a single window rather than compelling them to visit various places”

Simultaneously, in the year-2022, the Rajasthan Inquiry Committee was constituted, which included the President. The committee oversees 379 pilgrimages in the tourism industry, of which 55 have been completed and 149 are currently at various phases. This initiative will invest Rs 14,679.63 crore in the state and create jobs for 60,687 people.

Advantages of Industrial Status :
The department issues entitlement certificates to tourism units in order to grant industrial status benefits. The units that receive this certificate receive power at industrial prices, which are around 30% lower than commercial rates. At the same time, UD tax on these units is levied at industrial rates, which are 80% lower than commercial rates.

There were 1,262 applications for entitlement certificates for industrial status received by the department, out of which 859 have been issued. Similarly, 41 applications have been received under the Rural Tourism Scheme 2022, of which 35 certificates have been issued. So far 25 guest houses have been registered by the department in the state. The state operates about 850 home stays (paying guests) by combining old and new policies.

What is included in tourism units:
Hotel and Motel, Heritage Hotel, Budget Hotel, Restaurant or Cafeteria, Resort, Sports Resort, Health Resort Spa, Camping Site, Amusement Park, Animal Safari Park, Convention Center / Mice, Museum, Rope Way, tourist luxury coach, caravan and cruise tourism.

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