Karnataka is positioning hospitality as a key driver of economic growth, with Chief Minister Siddaramaiah announcing that the state aims to attract INR 8,000 crore in fresh investment and generate 1.5 lakh new jobs in the sector by 2029. The announcement was made at the 55th Annual Convention of the Federation of Hotel & Restaurant Associations of India (FHRAI), held in Bengaluru under the theme “FutureScape 2047: Redefining Hospitality for a New India.”
The Chief Minister said Karnataka’s new tourism policy rests on four pillars, infrastructure development, skill enhancement, sustainability and global marketing. He emphasised that the state’s goal is not only to attract more visitors but also to ensure that growth in tourism and hospitality reaches every region. He added that Karnataka is already emerging as a hub for meetings, incentives, conferences and exhibitions (MICE), with Bengaluru alone hosting 15 per cent of India’s MICE events.
Siddaramaiah underlined the state government’s focus on both sustainability and diversification of tourism offerings. He highlighted a 20 per cent rise in ecotourism initiatives across the Western Ghats, the approval of more than 500 new homestays and 50 mid-scale hotels in offbeat locations, and a INR 200-crore allocation to improve coastal and cruise infrastructure along Karnataka’s shoreline. Together, these measures aim to create seamless tourist experiences while opening new opportunities for the hospitality sector.
Union Tourism and Culture Minister Gajendra Singh Shekhawat, who also addressed the gathering, said the Centre is committed to granting “industry status” to the hospitality sector. He noted that such recognition would allow hotels and allied businesses to access lower-cost financing and favourable interest rates, enabling reinvestment and expansion. Shekhawat added that the Union Budget 2025-26 has already paved the way for reform by identifying 50 destinations that will be developed under a “challenge mode” in collaboration with states, where land and infrastructure will be provided locally while hotels in these areas will be brought into the harmonised infrastructure list.
He further announced that a new National Tourism Policy is in the works, designed to support India’s transformation into a $4-trillion economy. The policy, he said, will include incentives for sustainable and responsible tourism, with inputs drawn from states, union territories and industry stakeholders.
For India’s hospitality industry, Karnataka’s ambitious targets and the Centre’s promise of industry status could mark a turning point. With domestic travel on the rise and demand consistently outpacing supply, the sector is poised to benefit from policy support, investment inflows and a renewed focus on sustainability, setting the stage for stronger growth over the next decade.
source: The Hindu
