Tourism Policy 2015


To position Gujarat as a vibrant tourist destination, with an emphasis on improving visitor experience, livelihood linkages, environmental concerns and enhancing investment opportunities, thus catapulting tourism as one of the most important economic drivers, leading to sustainable development and inclusive growth in the State.

Policy Operative Period:- 2015 to 2020

  • To unlock the immense untapped/under-tapped potential of tourism in the State • To develop tourism products and strengthen infrastructure
  • To undertake tourism-specific skill development leading to gainful employment and self-employment, especially for the local populace
  • To preserve and upgrade environment to encourage responsible tourism in the State
  • To create an investment-friendly policy framework and suitably ensure access to requisite tourist infrastructural facilities
  • To showcase the infrastructure and institutions, achievements and accomplishments, entrepreneurship and hospitality of Gujarat in order to attract investments in the State and, thereby, espouse the cause of Make in India
  • To make Gujarat one of the top three tourist States of India in terms of local, national and international tourist footfalls by 2025
  • To promote responsible tourism in the State and develop tourism products in an environment-friendly manner
  • To upgrade skills, knowledge & professionalism and promote employment opportunities for additional two million persons by 2025
  • To develop diverse tourism packages and products to augment tourist stay and encourage repeat visits
  • To promote tourism for all segments of the society especially facilitating senior citizens, the differently abled, homemakers, farmers and students, by ensuring affordable accommodation and travel circuits
  • To provide tourism infrastructure in terms of tourist information, transport services, accommodation and way-side amenities
  • To enhance the use of ICT in the sector and further improve the quality of services
  • To leverage innovative forms of tourism such as adventure, cruise, event-based, inland waterways, medical and others
  • To attract the MICE segment, by creating convention/exhibition facility and support infrastructure
  • To create enabling framework for public-private partnerships in developing tourism products, projects and services.
Policy Features

Policy covers these units which commence commercial operations during the policy period i.e. from 24 September 2015 31st March 2020

Units covered
  • Hotels (One Star to Five Star Deluxe)
  • Resorts
  • Heritage Hotels
  • Convention Centres
  • Motels
  • Tented Accommodations
  • Amusement Parks/Theme parks
  • Tourism & Hospitality Training Institues
  • Water Sports and Adventure Sports
  • Wayside Amenities
  • Apartment Hotels
Capital Subsidy
Eligible Capital Investment (excluding the land cost) Admissible Subsidy Maximum Limit
Investment up to Rs. 50 Crore 15% Rs. 7.50 Crore
Investment above Rs. 50 Crore 15% Rs. 10 Crore  
Tented accommodation (With minimum investment of Rs. 0.20 Crore)  20% Rs. 0.15 Crore  

Equipment worth Rs. 1 Crore and above for Water Sports and Golf

Equipment for Public Golf Courses registered with TCGL 10% Rs. 0.50 Crore 

10% Rs. 0.50 Crore Adventure &

* As %age of eligible capital investment

Interest Subsidy

5% of the loan amount with maximum amount of Rs.25 Lakh per annum for a period of five years in Municipal Corporation areas for eligible tourism units

7% of the loan amount with maximum amount of Rs.30 Lakh per annum for a period of five years in the areas other than mentioned above.

For heritage hotels interest subsidy will be of7% of the loan amount with maximumamount of Rs.30 Lakh per annun for a period of five years.

Registration/Stamp Duty Concession

100% reimbursement of stamp duty and registration fee ansallease transfer of land for the first transaction only during the operative period of the Policy

Exemption from Luxury Tax & Entertainment Tax

The exemption from Luxury Tax/ Entertainment Tax is applicable to eligible tourism units for a period of five years from the date of commencement of commercial operations or date of completion of expansion.

Exemption from Electricity Duty

There will be complete exemption from paying electricity duty for a period of five years from the date of commencement of commercial operations or 1st April 2016 (whichever is later) for new tourism units only.

Support for Sustainable Tourism

The assistance will be available for eligible tourism units up to 75% of the cost of carrying out energy audit by a recognized institution/consultant, Water Harvesting / Conservation and Environment-friendly practices like green buildings, solar and other renewable energy measures, to a maximum amount of Rs 50,000 per unit.

Special Package for Mega Tourism Units

Projects capable of creating new employment of more than 150 persons with new investment of Rs.75 Crore and above (excluding the cost of land) will be construed as Mega Tourism Unit. Hotels and resorts, multiplexes and malls shall be excluded

  • 100% reimbursement of stamp duty and registration fee on sale/lease/transfer of land for the first transaction only
  • Capital Subsidy of 15% (excluding cost of the land) - Maximum ceiling Rs.20 Crore .
  • Exemption from luxury and entertainment tax for a period of seven years
  • Exemption in electricity duty would be for a period of five years
  • Mega tourism units are not entitled for any interest subsidy

Incentive for Promotion of Innovation

Project Cost No of Persons Directly Employed Incentive Amount
Investment between Rs. 10-50 Crore 50 10 Lakh
Investment between Rs. 1-10 Crore 30 5 Lakh

It will be a one-time incentive to be disbursed after the successful commissionong of the project.

Support for Marketing and Promotion

The incentive for taking part in various national and international tourism exhibitions or fairs or marts shall be limited to 50% of the space rent actually paid subject to a maximum of Rs. 30,000 per national event or Rs. 75,000 per international event.

Skill Development
  • Reimbursement of 100% of Course Fees, up to a maximum of Rs. 10,000
  • Training to Tourist Guides - monthly stipend of Rs. 5,000 to Guides
Incentives for ICT Enablement
  • Facilitate and support international and national level conferences, exhibitions and other events for the promotion of usage of ICT in Tourism Sector. Assistance up to maximum limit of Rs.5 Lakh per event.
  • The Tourist Service Provider providing audio/video guide at heritage Monuments eligible for one-time assistance up to the extent of 25% of the cost of procuring the equipment / content etc. or Rs. 25 Lakh, whichever is less.
Assistance for Research in the Tourism/ Hospitality Industry

Financial assistance up to the maximum limit of Rs.5 Lakh will be provided to carry out market research studies on travel and tourism/hospitality sector.

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