Gujarat Govt Announces New Tourism Policy 2021-25

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Gujarat government has announced its new tourism policy for 2021-25 with lucrative incentives to attract new investments in the state’s “high priority tourism centers” by entrepreneurs.

Chief Minister Vijay Rupani revealed the policy on Tuesday, saying tourism projects such as hotels and resorts that would be built in these high-priority centers would qualify for investment subsidies and other incentives.

  • Some of these high priority centers are Kutch, Devbhumi-Dwarka, Narmada, Gir-Somnath, Porbandar, Junagadh and Dang districts.
  • Some specific talukas of other districts, such as Dhari in Amreli and Dabhoi in Vadodara, are also included in the list of high priority tourism centres.

Instead of focussing on the entire state, our aim is to develop tourism infrastructure in these high priority areas. Under the new policy, incentives will be given where it was needed the most,” Rupani said.

Some of the new avenues which we are targeting are beach tourism, caravans and rural experience-based tourism,” he said.

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  • The government is also offering subsidy of 20 percent on capital investment for setting up a hotel in the designated high priority centres.
  • However, the minimum investment is Rs 1 crore and there is no cap on maximum investment, which excludes the cost of land, as per the policy document.
  • For setting up theme parks or amusement parks in these centres, the govt. offered 15% subsidy for an investment in the range of Rs 50 crore to Rs 500 crore.
  • The state government will offer land on lease, in addition to the 15 percent subsidy, for projects of more than Rs 500 crore proposed investment, according to the policy.
  • Other tourism projects for which a 15 percent investment grant could be granted include convention centers with seating for over 2,500 people, NABH-accredited wellness centers, tourist hospitality, and training centers, tents, huts, and container accommodation.
  • To encourage caravan rental, the state government has announced that it will provide a 15 percent grant for investments of up to Rs 10 lakh to start such projects in high-priority centers.
  • In order to encourage new investments in adventure tourism, entrepreneurs will be offered a grant of 15 percent with a limit of 15 lakh for the purchase of various adventure sports equipment, says the policy document.

According to the new guideline, foreign tourists will receive a 5 percent discount if they stay in a hotel registered by the state government.


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