By FMTeam In a significant boost to its tourism and hospitality sectors, Uttar Pradesh has garnered investment proposals totaling ₹1 trillion over the past two years. This surge in interest aligns with the state’s proactive initiatives under the Uttar Pradesh Tourism Policy 2022, which aims to enhance tourism infrastructure through private sector collaboration.
Investment Distribution and Key Destinations
The proposed investments encompass a diverse range of projects, including hotels, resorts, guesthouses, wellness centers, and homestays across all 75 districts of the state. Notably, significant allocations are directed toward religious and spiritual hubs such as Varanasi, Ayodhya, and Prayagraj, as well as traditional tourist centers like Lucknow, Agra, Kanpur, and Noida.
Ayodhya, following the consecration of the Lord Ram temple early last year, has emerged as a focal point for tourism development. The city welcomed 16.4 million pilgrims in 2024, a substantial increase from the previous year. Currently, ten new hotels are under construction in Ayodhya, while Varanasi is witnessing the development of a dozen new properties.
Major Players and Expansion Plans
Prominent hospitality chains are actively expanding their footprint in Uttar Pradesh. The Indian Hotels Company (IHCL), which operates the Taj Group of Hotels, recently announced a luxury Taj property in Ayodhya in partnership with the Solitaire Group. Puneet Chhatwal, Managing Director and CEO of IHCL, highlighted that the company will have 31 hotels in Uttar Pradesh, including 18 in various stages of development, underscoring the state’s growing prominence in India’s tourism landscape.
Infrastructure Expansion and Employment Opportunities
To accommodate the anticipated influx of tourists, the Uttar Pradesh government plans to add 200,000 new hotel rooms to its existing inventory of approximately 190,000 rooms. This expansion focuses on key cities such as Varanasi, Ayodhya, Prayagraj, Agra, Mathura, Gorakhpur, and the Buddhist Circuit. The initiative is expected to generate around 300,000 new job opportunities, significantly contributing to the state’s economic growth.
Tourism Growth and Future Projections
Uttar Pradesh has consistently attracted the highest number of domestic tourists in India. In 2024, the state recorded a tourist inflow of 650 million, marking a 17% increase from 480 million in the previous year. The number of foreign tourists also rose from 1.6 million in 2023 to 2.2 million in 2024. Looking ahead, the state aims to achieve an annual tourist footfall of 850 million by 2028, aligning with its broader goal of becoming a $1 trillion economy.
Strategic Initiatives and Policy Framework
The Uttar Pradesh Tourism Policy 2022 outlines several strategic measures to bolster tourism, including the development of 12 new tourism circuits across the state. Preliminary work on these circuits has commenced, encompassing surveys, gap analyses, and planning to enhance and promote key locations. The policy also emphasizes the creation of district-specific tourism master plans in coordination with other government agencies, skill profiling of the local population, and the development of a tourism service provider database to raise public awareness on tourism-related matters.
Conclusion
Uttar Pradesh’s concerted efforts to attract substantial investments in the hospitality sector reflect its commitment to transforming the state’s tourism landscape. With a focus on infrastructure development, strategic planning, and private sector collaboration, the state is poised to enhance its appeal as a premier tourist destination in India.