Uttar Pradesh Secures ₹1 Trillion Investment Proposals in Hospitality Sector Over 2 Years.

Uttar Pradesh has attracted investment proposals worth ₹1 trillion in the hospitality sector over the past two years, following the implementation of the Uttar Pradesh Tourism Policy 2022, according to state government officials.

The proposals were spurred by the Global Investors Summit held in February 2023, marking a significant milestone in the state’s efforts to enhance its tourism infrastructure. The policy aims to foster private sector collaboration in developing hospitality properties, including hotels, resorts, guesthouses, wellness centres, and homestays, across all 75 districts of the state.

A significant portion of the proposed investments is concentrated in religious and spiritual destinations like Varanasi, Ayodhya, and Prayagraj, alongside key tourism hubs such as Lucknow, Agra, Kanpur, and Noida. Notably, Ayodhya is witnessing an influx of developments, with 10 new hotels planned, and 12 properties under construction in Varanasi.

Ayodhya’s tourism boom follows the consecration of the Lord Ram temple in early 2024, propelling the city to the forefront of the state’s tourism agenda. The city hosted 16.4 million pilgrims in 2024, marking an impressive increase of over 10 million from the previous year.

In line with the rising demand, prominent hospitality groups are stepping in. Indian Hotels Company (IHCL), which operates the Taj Group of Hotels, recently signed an agreement to open a luxury Taj property in Ayodhya, in partnership with the Solitaire Group. Puneet Chhatwal, MD & CEO of IHCL, confirmed that the company would soon operate 31 hotels in UP, with 18 more in the development pipeline, reflecting the growing tourism interest in the state.

With UP being the most visited state for domestic tourism in India, it currently boasts about 190,000 hotel rooms, of which 4,000 are classified as quality rooms. The state is aiming to add 200,000 new rooms, focusing on Varanasi, Ayodhya, Prayagraj, Agra, Mathura, Gorakhpur, and the Buddhist Circuit.

These developments are expected to generate 300,000 new jobs.

In line with its ambitious economic goals, UP is targeting a $1 trillion economy, with tourism playing a key role. The state’s annual tourist footfall is projected to reach 850 million by 2028, with the 2024 figures showing a rise of 17%, totaling 650 million visitors compared to 480 million in 2023. Additionally, the number of foreign tourists surged by 667,000, reaching 2.2 million in 2024.

This growth highlights the burgeoning potential of Uttar Pradesh as a key destination in India’s tourism landscape, fueled by both domestic and international interest.

BS