Bifurcation of the State seems to have come as a blessing in disguise for the hospitality industry to prosper economically, with most corporate companies now planning to have their footprint in the city and surrounds.

Geographical advantage of the city supported by rail, road and air connectivity is making the area a very attractive business proposition since the new investments are likely to be eligible for the proposed tax holiday. Given its proximity to surrounding districts such as Guntur, East Godavari and West Godavari, the hospitality industry would get a fillip once the Central government finalises new capital for the residuary State of Andhra Pradesh, industry experts feel.

Finalisation of the capital

“We hope growth of the industry will also enhance after the finalisation of the capital and the formation of new Government in Seemandhra,” says Quality Hotel DV Manor vice-president Rajesh Berry.

Hoteliers say the occupancy that was affected during Seemandhra agitation is likely to go up in view of polls.

They say special package to Seemandhra will also make it an attractive centre for investment. Already, managements of a few star hotels are planning to develop three star hotels here. A clear picture could be emerged only after the Centre finalises the place for new capital in Seemandhra.

As speculation is rife over making Mangalagiri capital for the residuary State, hotel managements are likely to construct their facilities between Mangalagiri and Vijayawada. Politicians, businessmen and industrialists, especially from Hyderabad may invest in this industry.

“At present, there are seven hotels in star category in Vijayawada and three in Guntur. This apart, lodges and unclassified hotels are also established to cater to the needs of customers,” says Hotels and Restaurants Association of Andhra Pradesh Secretary, Pradeep Kumar Dutt. Prospects for the industry in Seemandhra region will be high as several developmental activities will start now, he explains.

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