Home » TOURISM NEWS » Andhra Pradesh Witness More than Seventeen Thousand Crore INR New Tourism Investment to Create Nearly One Lakh Jobs, Boosting Coastal Tourism and MICE Infrastructure
Published on November 16, 2025
In a path-breaking investment for the tourism sector in Andhra Pradesh, Tourism Minister Kandula Durgesh revealed that MoUs totaling ₹17,973 crore were signed at the 30th CII Partnership Summit. This will lead to the creation of 97,876 jobs, including 34,406 direct and 63,470 indirect employment opportunities in the tourism and hospitality sectors. Not only does this record investment promise to bring immediate economic dividends, but it is all set to transform the tourism landscape of the state in the years to come.
Investments Driving Tourism Infrastructure and Diversification
As part of the MoUs, ₹6,500 crore will be allocated to enhancing key areas such as theme parks, film cities, wellness centers, cruise tourism, adventure tourism, and water sports. These investments will diversify Andhra Pradesh’s tourism offerings, making the state a prime destination for both leisure and adventure travelers. This shift towards a more diverse tourism portfolio is crucial for reducing dependence on a single tourism segment, fostering long-term resilience in the state’s tourism economy.
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Moreover, ₹1,860 crore in Foreign Direct Investment (FDI) in the tourism sector will generate approximately 12,500 jobs, signaling strong investor confidence and injecting new momentum into the state’s tourism sector. This influx of international capital will not only help improve infrastructure but also attract a more diverse range of tourists, further expanding the state’s global tourism appeal.
Coastal Tourism and Cruise Development: Sustainable Growth and Economic Impact
One of the key highlights of Andhra Pradesh’s tourism development strategy is its emphasis on the state’s long coastline, which presents vast potential for coastal tourism and cruise tourism. The government is prioritizing the creation of clean and safe beaches, alongside the development of three major coastal tourism circuits in collaboration with the private sector. These initiatives will offer a variety of beach-based activities, water sports, and wellness retreats, positioning Andhra Pradesh as a top coastal tourism destination.
This coastal development is expected to have a significant economic impact. Tourism-related revenue from these areas will not only contribute to the state’s GDP but will also provide a boost to local businesses, including hotels, restaurants, and transportation services. The expansion of eco-friendly beach destinations, such as the Rushikonda Blue Flag Beach, will also promote sustainable tourism, ensuring that the growth of coastal tourism does not come at the expense of environmental or cultural preservation.
Additionally, the development of cruise tourism will create new avenues for tourism revenue and employment, particularly by enhancing port infrastructure and providing luxury cruise experiences. These efforts will help Andhra Pradesh tap into the lucrative global cruise market, attracting high-end tourists and generating significant economic returns.
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Visakhapatnam as MICE Hub: Business Tourism’s Long-Term Economic Contribution
In tandem with its focus on leisure and coastal tourism, Andhra Pradesh is aiming to position Visakhapatnam as the Meetings, Incentives, Conferences, and Exhibitions (MICE) capital of South India. The city’s natural coastal advantages, along with strong air connectivity, make it an ideal location for international conferences and business events. The state plans to develop world-class convention centers and exhibition grounds, which will not only serve the growing demand for business tourism but also contribute significantly to the local economy.
The establishment of IT and AI data centers in Visakhapatnam will further complement the city’s growth as a business tourism hub, creating a sustainable ecosystem that attracts MICE tourists. By targeting both international corporations and business travelers, Andhra Pradesh is strategically diversifying its tourism offerings and ensuring long-term economic growth through the MICE sector.
Tourism Policy and its Economic Impact
The new Tourism Policy (2024–2029) introduced by the Andhra Pradesh government includes several initiatives aimed at streamlining investment and ensuring sustainable growth. These include electricity subsidies, employment-linked incentives, and a streamlined land allocation process, all designed to create a business-friendly environment for investors. The enhanced ease of doing business will attract not only domestic but also international investors, stimulating the local economy and generating sustainable tourism-related employment.
As a result, tourism in Andhra Pradesh is poised to be a key economic driver. The long-term economic impact of these investments will go beyond job creation, supporting sectors such as real estate, transportation, local crafts, and food services. By fostering a diverse and resilient tourism industry, Andhra Pradesh will create sustainable economic opportunities for communities across the state.
Long-Term Tourism Impact: Employment, Revenue, and Community Growth
The expected creation of 97,876 jobs, alongside the ₹17,973 crore investments, will not only provide short-term economic relief but also have a profound long-term impact on the state’s tourism economy. These jobs will span various sectors, including hospitality, tourism services, event management, construction, and transportation, thereby fostering employment growth across multiple layers of society.
In addition to creating jobs, the state’s emphasis on sustainable tourism practices, eco-friendly initiatives, and community-driven projects will ensure that the growth of the tourism sector benefits local communities. For instance, homestay programs and local crafts tourism will allow local families to directly benefit from the tourism boom, enhancing community involvement and ensuring that tourism dollars circulate within the local economy.
Furthermore, the long-term revenue generated from tourism-related activities, including coastal tourism and MICE tourism, will contribute to the state’s overall economic development. These revenues can be reinvested into critical sectors like education, healthcare, and infrastructure development, creating a virtuous cycle of growth that benefits all sectors of society.
Andhra Pradesh Poised for a Tourism-Driven Future
Andhra Pradesh will emerge as a global tourism leader with an investment of ₹17,973 crore, 97,876 new jobs, and with the clear focus on sustainable tourism. The tourism investments in coastal tourism, MICE infrastructure, wellness centers, and adventure tourism activities will attract various segments of travelers, thereby developing both leisure tourism and business travel. The commitment of the government toward simplifying investment and enhancing infrastructure will eventually make the tourism sector resilient and diversified for long-term economic growth.
Since Andhra Pradesh is determined to pursue sustainable tourism and community development processes, its tourism industry will help raise the stature of the state globally, along with contributing much to the larger Indian economy. The future of tourism in Andhra Pradesh looks bright and holds immense possibilities for economic growth and cultural preservation, eventually positioning the state as a top choice among tourists from all over the globe.
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