The hotel and tourism industries are set to grow at an impressive rate in the bifurcated Andhra Pradesh. Alongside accelerated urbanisation, the local hotel industry is becoming more competitive with big players showing eagerness to make inroads in the new State.
The market of hotel and tourism industries will be worth thousands of crores, say experts associated with the two sectors. Lured by the bright prospects projected by Chief Minister N. Chandrababu Naidu who has recognised the tourism industry as a growth engine, a chain of star hotels has evinced interest in making their presence felt in the State.
In addition to the three existing star hotels in the city, the Varun group has started work on the first five-star hotel project opposite Vinayak Theatre on Eluru Road. Its managing director V. Prabhu Kishore had said in an interview that more than Rs. 100 crore would be spent on the project and it may be completed in three years.
Profit-making private airline Indigo has expressed its interest to set up a chain of hotels in Andhra Pradesh as well as increase air connectivity from existing airports in the State. The Marriot group is said to have just closed the deal while a series of others luxury, budget and mid-sector hotels and is waiting in the wings to enter the local landscape. The Sarovar group, Ginger hotels, Lemon Tree chain and Key hotels among others have reportedly carried out surveys.
“There is no clarity yet on the policy. No big announcement has been made so far. Investors are waiting for official announcement on a coherent policy, tax incentives and other sops before taking the plunge,” says K. Pattabhiram, former president of Vijayawada Hotel Owners’ Association.
The APTDC, meanwhile, pegs its monthly revenue on its operational units across the State at Rs. 10 crore. “Big projects are in the pipeline which will significantly add to the revenue,” says S. Suryapraksh Rao, Divisional Manager of the APTDC.
