Key features, incentives, eligibility and implementation

The investment, employment and training figures are policy objectives. They do not establish that the corresponding investment has been realised or that the targeted jobs and training outcomes have already been achieved.

What is the Uttar Pradesh Tourism Policy?

The policy is the state government’s principal investment and development framework for tourism and hospitality projects.

It supports a wide range of facilities and activities, including:

• Hotels and resorts;
• Budget hotels;
• Heritage hotels and adaptive reuse of heritage properties;
• Wellness centres;
• Convention and meeting facilities;
• Eco-tourism and nature-based accommodation;
• Adventure-tourism projects;
• Rural tourism and homestays;
• Tented accommodation and Swiss cottages;
• Cruise and inland-water tourism;
• Sports resorts;
• Caravan and recreational facilities;
• Tourism transport and electric vehicles;
• Information and communication technology applications;
• Responsible and sustainable tourism infrastructure.

The policy does not provide one uniform subsidy to every tourism business. The eligible investment, percentage and maximum assistance depend on the project category, size, location, ownership and compliance with the operational guidelines.

Why was the policy introduced?

However, tourist destinations require adequate accommodation, transport, sanitation, visitor facilities, trained staff and commercially viable experiences. The policy seeks to attract private investment to fill infrastructure and service gaps around established and emerging destinations.

It also seeks to diversify tourism beyond major religious and heritage centres by supporting eco-tourism, adventure, rural tourism, wellness, meetings and conventions, water-based activities and the adaptive reuse of historic buildings.

What are the principal objectives?

The policy seeks to:

• Make Uttar Pradesh a preferred tourism destination;
• Increase private investment in tourism infrastructure;
• Improve the quality and range of accommodation;
• Generate employment and self-employment;
• Develop lesser-known and underserved destinations;
• Encourage responsible and sustainable tourism;
• Promote heritage conservation through adaptive reuse;
• Strengthen tourism circuits;
• Improve tourist transport and last-mile connectivity;
• Promote digital and technology-based visitor services;
• Improve skills in hospitality and tourism;
• Encourage participation by women and disadvantaged groups.

The policy also identifies thematic circuits and Focus Tourism Destinations for concentrated development and enhanced incentives.

Which projects may qualify?

The policy covers new eligible tourism units and specified projects involving expansion or diversification, subject to the applicable definition and operational guidelines.

Potentially eligible categories include:

• Star-category and other qualifying hotels;
• Resorts;
• Budget hotels;
• Heritage hotels;
• Heritage homestays;
• Wellness resorts and centres;
• Tented accommodation;
• Eco-tourism resorts;
• Convention centres;
• Meetings, incentives, conferences and exhibitions facilities;
• Sports and recreational tourism projects;
• Adventure-tourism facilities;
• Cruise and water-tourism projects;
• Rural tourism projects;
• Caravan and caravan-park facilities;
• Wayside amenities;
• Tourism transport and tour-bus projects;
• Other projects specifically approved as tourism units.

Ordinary residential property, an unregistered guest house or a restaurant with no qualifying tourism-project component should not be assumed to qualify merely because it serves visitors.

The unit must satisfy the minimum investment, room, capacity, classification, location and operational requirements prescribed for its category.

What capital subsidy is available?

Eligible projects may receive a capital investment subsidy based on their approved eligible capital investment.

Official policy summaries describe a range of 10–25 per cent, depending on the tourism-unit category. The exact rate and ceiling vary among hotels, resorts, wellness facilities, heritage projects, tented accommodation and other eligible units.

The subsidy is generally payable after the project begins successful commercial operations. The policy states that 100 per cent of the sanctioned capital subsidy may be released after the eligible tourism unit commences commercial operation and satisfies the verification requirements.

Eligible capital investment may include approved expenditure on:

• Land used for the eligible project;
• Buildings and civil works;
• Plant and machinery;
• Furniture and fixtures;
• Equipment;
• Other capital assets accepted under the policy.

The policy specifically allows the eligible portion of purchased land to be considered in eligible capital investment. Both promoter expenditure and qualifying loan-funded expenditure may be considered, subject to the project category and guidelines.

Working capital, routine operating expenses, unrelated buildings, taxes or expenditure outside the eligible period should not be included unless expressly permitted.

What additional capital subsidy is available?

The policy provides an additional subsidy of 5 per cent for specified categories.

These include:

• New units in Focus Tourism Destinations;
• Projects in underserved destinations in Tier-II or smaller cities;
• Eligible units owned and managed by women entrepreneurs;
• Eligible units owned and managed by persons belonging to specified Scheduled Caste, Scheduled Tribe or other covered categories;
• Eligible projects promoted by differently-abled entrepreneurs.

For a woman-owned unit, the qualifying woman or women must ordinarily hold at least 51 per cent equity and exercise the prescribed management control.

The general policy summary caps the combined incentives at 30 per cent. Official explanatory material also indicates that qualifying projects combining a Focus Tourism Destination benefit with specified entrepreneur-category support may receive capital subsidy of up to 35 per cent. Applicants should obtain a written calculation from the Directorate of Tourism because the maximum depends on the project’s exact category and combination of incentives.

What interest subsidy is available?

An eligible tourism unit may opt for an interest subsidy instead of the standard capital subsidy.

The policy provides:

• Interest subsidy at 5 per cent;
• For five years;
• On an eligible bank loan of up to Rs 5 crore;
• Subject to a maximum annual benefit of Rs 25 lakh.

A unit must generally choose either the capital subsidy or the interest subsidy. It cannot ordinarily claim both for the same standard project unless a specific exception applies.

The benefit applies to eligible interest on an approved term loan. It does not reimburse the principal amount or interest on unrelated working-capital borrowing.

What special incentives are available for heritage properties?

The policy provides a distinct package for heritage properties converted into eligible tourism facilities without materially damaging their architectural character.

The main benefits include:

• Capital subsidy of 25 per cent of eligible capital cost;
• Interest subsidy of 5 per cent for five years on an eligible bank loan of up to Rs 5 crore;
• Full stamp-duty exemption;
• Full exemption from eligible land-use conversion charges;
• Reimbursement of 50 per cent of the first year’s eligible excise licence fee;
• Government signage and specified publicity support.

Unlike ordinary tourism units, eligible heritage projects may receive both capital and interest subsidy under the special provisions.

The project must preserve the property’s architectural and heritage value. Demolishing the historic structure and constructing a conventional hotel should not be assumed to qualify as heritage reuse.

The policy may cover adaptive uses such as:

• Heritage hotels;
• Museums;
• Restaurants;
• Banquet or wedding venues;
• Cultural facilities;
• Other approved tourism uses.

Heritage status, ownership, conservation plan and proposed use must be verified by the competent authorities.

Is stamp duty exempt?

Eligible tourism units may receive 100 per cent stamp-duty exemption on the first qualifying sale, lease or transfer transaction.

The exemption is not automatic. The applicant must generally:

• Register the tourism project;
• Obtain the appropriate eligibility or exemption certificate;
• Ensure that the transaction is the qualifying first transaction;
• Execute the document in accordance with the relevant government order;
• Comply with project-completion and operational conditions.

The government has issued separate orders dealing with stamp-duty and registration-fee exemptions under the policy.

What land-use and development-charge relief is available?

The policy provides concessions in land-use conversion and development charges for eligible tourism projects.

Official government orders issued under the policy prescribe the applicable relief and procedure. The actual amount depends on:

• The existing land classification;
• The type of tourism project;
• The relevant development or planning authority;
• The site location;
• The project’s eligibility certificate;
• The first-transaction and completion conditions.

Hotels and resorts may also be permitted in notified industrial areas, subject to the applicable land-use, development-authority and building requirements.

A tourism-policy registration does not by itself change the land use. Formal approval must still be obtained from the competent revenue or planning authority.

What employment-generation support is available?

Eligible tourism projects may receive reimbursement of the employer’s contribution to the Employees’ Provident Fund for a period of five years.

The official policy summary describes the reimbursement as 100 per cent of the eligible Employees’ Provident Fund expenditure, subject to the prescribed worker, wage, domicile, employment and claim conditions.

The policy also provides payroll assistance for eligible differently-abled employees. Official explanatory material refers to assistance of Rs 1,500 per employee per month, subject to the scheme’s conditions.

Businesses should maintain:

• Employee appointment records;
• Payroll registers;
• Provident-fund challans;
• Bank-payment evidence;
• Identity and eligibility documents;
• Attendance and employment records.

What skill-development support is available?

The policy supports tourism and hospitality skills through several measures.

These include:

• Reimbursement of eligible hospitality-related course fees;
• Support for training tourism service providers;
• A one-time grant of Rs 10,000 to qualifying youth clubs in educational institutions for tourism-related activities;
• Support for training guides, hospitality staff and other tourism workers;
• Assistance to revive traditional arts, cuisine, music, dance and crafts.

The policy envisages training 10,000 tourism service providers over five years. This is a policy target, not a verified beneficiary count.

An individual or group working to revive an indigenous or scarce art, music, folk dance, craft or cuisine may receive assistance of up to Rs 5 lakh, subject to selection and approval.

What technology support is available?

The policy provides one-time assistance equal to 25 per cent of eligible expenditure on specified information and communication technology equipment.

It also provides support for promotional or visitor-facing content using technologies such as:

• Artificial intelligence;
• Virtual reality;
• Augmented reality;
• Digital interpretation;
• Metaverse applications;
• Online ticketing or visitor systems;
• Other approved tourism technology.

Official explanatory material refers to a subsidy of 25 per cent for eligible technology-enabled promotional content.

The applicant must demonstrate that the expenditure is directly connected with the approved tourism unit or destination. General office computers or unrelated marketing expenditure should not automatically be treated as eligible.

What support is available for responsible tourism?

The policy provides incentives for energy efficiency, environmental management and responsible-tourism certification.

These include:

• Reimbursement of 75 per cent of the eligible cost of an energy audit;
• Reimbursement of 20 per cent of the eligible capital cost of a sewage-treatment plant;
• Reimbursement of 50 per cent of eligible green-certification fees;
• Full reimbursement of the fee for obtaining qualifying certification from the Responsible Tourism Society of India.

These benefits remain subject to approved agencies, eligible expenditure, certification and operating conditions.

The policy also encourages water conservation, waste management, energy efficiency, local employment and protection of cultural and natural assets.

What transport support is available?

Eligible tourism projects may receive support for cleaner and improved tourist transport.

The policy provides:

• Capital subsidy equal to 10 per cent of eligible capital investment for the procurement of qualifying electric vehicles;
• Reimbursement of 20 per cent of road tax for two years on eligible tour buses.

These provisions apply to vehicles and transport services satisfying the tourism and registration conditions. They should not be interpreted as a general electric-vehicle purchase subsidy for all buyers.

The tourism policy’s transport incentives are separate from incentives available under the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy, 2022.

How are Focus Tourism Destinations treated?

Focus Tourism Destinations are locations identified by the Tourism Department for concentrated investment and infrastructure development.

New eligible units in these destinations may receive an additional 5 per cent capital subsidy. The objective is to direct private investment towards locations with tourism potential but inadequate accommodation, visitor facilities or commercial services.

A project cannot claim the additional benefit merely because it is near a tourist attraction. Its location must fall within a destination or area formally notified or recognised under the policy.

Are public-private partnership projects eligible?

Yes. Public-private partnership projects may claim policy incentives where they meet the eligibility requirements and the concession agreement does not provide otherwise.

Potential projects include:

• Redevelopment of government tourist accommodation;
• Heritage-property reuse;
• Heliports;
• Convention facilities;
• Destination infrastructure;
• Cruise terminals;
• Visitor amenities;
• Integrated tourism zones.

The developer must distinguish between support already provided through the public-private partnership agreement and incentives claimed under the policy. The same expenditure should not be subsidised twice unless expressly permitted.

How can a developer apply?

The Directorate of Tourism is the principal implementing authority. The Tourism Department provides a dedicated policy portal, operational guidelines and unit-registration mechanism.

The broad application process involves:

• Identifying the correct eligible tourism-unit category;
• Preparing a detailed project report;
• Establishing legal control over the site;
• Registering the proposed unit with the Tourism Department;
• Submitting investment, financing, ownership and project documents;
• Obtaining an eligibility or registration certificate;
• Securing land-use, building, fire, pollution and other approvals;
• Completing the investment within the prescribed period;
• Beginning commercial operations;
• Obtaining classification or recognition where required;
• Submitting audited expenditure and employment records;
• Applying for the selected incentive;
• Undergoing inspection and verification;
• Receiving assistance after sanction and budgetary approval.

The Tourism Department’s portal also provides operational guidelines and subsequent government orders under the policy.

Which approvals may be required?

Depending on the project, approvals may include:

• Land-use conversion;
• Building-plan sanction;
• Fire no-objection certificate;
• Pollution-control consent;
• Electricity and water connections;
• Hotel or tourism classification;
• Food-safety registration;
• Shops and establishments registration;
• Excise licence;
• Lift and electrical-safety approval;
• Forest or wildlife permission;
• Heritage-conservation approval;
• Real-estate registration where applicable.

The official sector page identifies indicative timelines for several approvals, but these are service timelines rather than guarantees that every tourism project will receive complete approval within the stated period.

Implementation and progress so far

The state continues to list the Tourism Policy, 2022 as an operative policy and has issued operational guidelines and government orders relating to stamp duty, registration fees, land-use conversion and development charges.

Official government material reported that investment proposals of around Rs 1 trillion had been received in the hospitality sector within about two years of the policy’s implementation. This is a proposal figure and should not be described as investment already realised or as tourism units already operational.

Another official government document referred to approximately Rs 1.29 trillion in proposed tourism investment and projected employment of around 3.52 lakh. These figures similarly represent announced or proposed investment and employment rather than verified operational outcomes.

Uttar Pradesh reported around 64.9 crore tourist visits in 2024, compared with a lower total in 2023. Tourist visits are counts of visits rather than unique individuals, and the growth cannot be attributed solely to the Tourism Policy. Major religious events, infrastructure, destination redevelopment and broader travel patterns also affect footfall.

The official sources reviewed did not provide a single consolidated table showing:

• Tourism units registered under the policy;
• Projects completing construction;
• Capital subsidy sanctioned;
• Interest subsidy sanctioned;
• Subsidy actually disbursed;
• Heritage properties restored;
• Employment created specifically by approved units;
• Investment realised against policy approvals;
• Benefits distributed by district or project category.

How does the policy fit into Uttar Pradesh’s wider tourism strategy?

The policy complements public investment in religious, cultural, heritage, ecological and urban tourism destinations.

The state’s tourism strategy includes circuits such as:

• Ramayana Circuit;
• Krishna-Braj Circuit;
• Buddhist Circuit;
• Bundelkhand Circuit;
• Shakti Peeth Circuit;
• Jain Circuit;
• Sufi-Kabir Circuit;
• Mahabharata Circuit;
• Wildlife and Eco-Tourism Circuit;
• Freedom Struggle Circuit.

Private tourism units can provide accommodation, food, recreation, transport and visitor services around these circuits, while the government develops public infrastructure and destination facilities.

The policy also works alongside rural tourism, bed-and-breakfast, guide recognition, eco-tourism and destination-development schemes. Each scheme has separate eligibility conditions.

Key challenges and limitations

• Reimbursement-based support: Developers may have to complete the project and commence operations before receiving the capital subsidy.

• Multiple approvals: Hotels, resorts and adventure or eco-tourism projects require approvals from several departments.

• Destination infrastructure: A private unit may depend on external roads, drainage, public transport and destination management controlled by government bodies.

• Seasonality: Revenue can vary considerably by season, festival and destination.

• Environmental pressure: Rapid visitor growth can increase waste, congestion, water use and ecological stress.

• Heritage compliance: Adaptive reuse requires specialist conservation and may cost more than ordinary construction.

• Proposal versus actual investment: Large announced investment figures may include projects that are delayed, modified or not completed.

• Limited disclosure: Policy-specific sanctions, disbursements and operational outcomes are not consolidated publicly.

What investors should keep in mind

A prospective applicant should verify:

• Whether the proposed unit is an eligible tourism category;
• Minimum investment, room, capacity and classification requirements;
• The applicable capital subsidy rate and ceiling;
• Whether the location is a notified Focus Tourism Destination;
• Whether the promoter qualifies for an additional subsidy;
• Whether capital or interest subsidy is more suitable;
• Eligible capital-investment components;
• Land-use and building permissions;
• Heritage or environmental restrictions;
• Commercial-operation deadlines;
• Claim documentation;
• Restrictions on combining incentives;
• Whether a later government order has amended the process.

Eligibility and assistance remain subject to the policy, operational guidelines, subsequent government orders, budget availability and approval by the competent authority.

FAQs

What is the policy’s main purpose?

It seeks to attract private investment, improve tourist facilities, generate employment and develop new tourism destinations and experiences in Uttar Pradesh.

What capital subsidy is available?

The standard rate generally ranges from 10 per cent to 25 per cent of eligible capital investment, depending on the project category and applicable ceiling.

Can a unit receive both capital and interest subsidy?

An ordinary eligible unit must generally choose one. Qualifying heritage properties may receive both under the special heritage provisions.

What interest subsidy is available?

The policy provides a 5 per cent interest subsidy for five years on an eligible bank loan of up to Rs 5 crore, subject to a maximum benefit of Rs 25 lakh a year.

Is stamp duty exempt?

Eligible tourism units may receive full stamp-duty exemption on the first qualifying sale, lease or transfer transaction.

Are women entrepreneurs entitled to additional assistance?

Yes. A qualifying women-owned and managed unit may receive an additional 5 per cent capital subsidy, subject to equity, management and maximum-subsidy conditions.

Are heritage hotels covered?

Yes. Eligible heritage properties receive a special package including capital and interest subsidy, stamp-duty and conversion-charge relief, and partial reimbursement of the first year’s excise licence fee.

Which department implements the policy?

The Department of Tourism and the Directorate of Tourism, Uttar Pradesh, administer the policy.

How long is the policy valid?

It is valid for five years from November 23, 2022, unless amended or replaced earlier.

Conclusion

The Uttar Pradesh Tourism Policy, 2022 combines capital assistance, interest support, transaction-cost relief and specialised incentives for heritage, responsible, technology-enabled and inclusive tourism projects.

Its standard capital subsidy varies by project category, while additional support is available in Focus Tourism Destinations and for specified entrepreneur groups. Heritage projects receive a particularly broad package intended to make conservation-led reuse commercially viable.

The policy has attracted substantial investment proposals, but proposals must be distinguished from completed projects and operational investment. Its effectiveness should ultimately be assessed through units commencing operations, capital actually invested, jobs created, heritage properties restored and subsidies transparently disbursed.

Sources

• Uttar Pradesh Tourism Policy, 2022, Department of Tourism, Government of Uttar Pradesh; effective from November 23, 2022.
• Tourism Policy, 2022 — official policy and incentive page, Invest UP, Government of Uttar Pradesh.
• Tourism Policy, Department of Tourism, Government of Uttar Pradesh.
• Operational Guidelines under the Uttar Pradesh Tourism Policy, 2022, Department of Tourism, Government of Uttar Pradesh.
• Tourism and Hospitality Sector, Invest UP, Government of Uttar Pradesh.
• Tourist Statistics, Department of Tourism, Government of Uttar Pradesh.