Big Boost to AP Tourism – Cabinet Approves New Caravan Policy

In the recently held Cabinet meeting chaired by N. Chandrababu Naidu, the Chief Minister of Andhra Pradesh, several key initiatives were approved, the highlight being the expansion of the Caravan Tourism Policy 2024-29 to include Caravan Parks and homestays, offering 100% life tax exemptions for first 50 caravans with 100 per cent exemption on life tax for the first 25 vehicles and graded rebates for the rest.

Additionally, this policy has also brought in stamp duty incentives for park developers. Homestays under a permissible limit of 6 rooms per unit would be eligible under the policy, and owners must reside on-site. This initiative was designed to promote the state’s temple and eco-tourism through caravan travel and park development.

This move highlights the growing emphasis towards modernizing and diversifying the tourism sector, and a predictable one too. Andhra Pradesh is a blessed state in terms of its geographical positioning, rich mineral resources, renowned natural landmarks, religious and cultural significance and trade. Combined with the rapidly developing cities like Amravati and Visakhapatnam, it becomes a magnet in attracting investments and potential visitors.

Currently, tourism contributes approximately 7-8% of the state’s GDP, ranking among the top non-agricultural sectors. The CM highlighted that tourism currently is the only sector which holds the capacity to generate income and employment, thus reflecting on his commitment to ensure experiential and sustainable tourism suitable for the evolving traveller preferences towards comfort and privacy.

By incentivizing the first 50 caravan registrations and caravan park developers, the policy actively encourages private investment, accelerates industry innovation, and fosters new micro and small tourism enterprises within the state. With the establishment of homestays and caravan parks in rural and urban hubs, it stimulates local entrepreneurship and potentially creates more employment opportunities.

Additionally the policy also distributes tourism benefits beyond traditional hotspots, unlocks access to lesser-known destinations, supporting tourism dispersal, reducing overcrowding at established sites, and incentivizing investment in supporting infrastructure such as roads and hospitality services thus driving inclusive growth at the grassroots level.

With the implementation of similar schemes focused on infrastructure development, land incentives like LIFT Policy, social welfare programmes and many more, the current state government is leaving no stone unturned to promote AP as a forward thinking, modern and inclusive hub which is a tourist and investor friendly destination.