Uttar Pradesh Attracts ₹1 Trillion in Hospitality Investment, Boosting Tourism
Uttar Pradesh has secured investment proposals worth ₹1 trillion over the past two years, marking a monumental achievement in its efforts to expand and modernise its hospitality infrastructure. The influx of investment follows the introduction of the Uttar Pradesh Tourism Policy 2022, which has sparked interest among private investors, particularly after the Global Investors Summit held in February 2023.
This ambitious policy aims to foster collaboration with the private sector to develop a diverse range of hospitality properties, including hotels, resorts, wellness centres, guesthouses, and homestays across all 75 districts in the state. A major focus is on enhancing the tourism experience in both religious and non-religious destinations. A major highlight of this investment boom is the growing focus on Uttar Pradesh’s spiritual and religious destinations, especially Ayodhya, Varanasi, and Prayagraj. Following the consecration of the Lord Ram temple in early 2024, Ayodhya has emerged as a key destination in the state’s tourism strategy. In 2024 alone, the city hosted 16.4 million pilgrims, an impressive increase of over 10 million from the previous year. As a result, developers and hospitality chains are flocking to the city to cater to the growing influx of visitors. Ten new hotels are planned in Ayodhya, with 12 properties under construction in Varanasi. Prominent hospitality players are keen to capitalise on the surge in spiritual tourism. The Indian Hotels Company (IHCL), which operates the iconic Taj Group of Hotels, has entered into a partnership with the Solitaire Group to open a luxury Taj property in Ayodhya. Puneet Chhatwal, MD & CEO of IHCL, confirmed that the company would soon operate 31 hotels in Uttar Pradesh, with 18 more in the development pipeline, underscoring the immense potential of the state’s tourism sector.
Uttar Pradesh already boasts approximately 190,000 hotel rooms, of which 4,000 are classified as quality rooms. With the state’s tourism industry on a rapid growth trajectory, authorities are targeting an additional 200,000 hotel rooms, primarily focusing on high-demand areas like Varanasi, Ayodhya, Prayagraj, Agra, Mathura, Gorakhpur, and the Buddhist Circuit. The ambitious plan is to position Uttar Pradesh as one of the leading tourism hubs in India, with the potential to attract millions more visitors. This surge in tourism infrastructure will also create significant job opportunities. The hospitality sector developments are expected to generate 300,000 new jobs, contributing to the state’s economy and supporting local communities.
Uttar Pradesh, already the most visited state for domestic tourism in India, is positioning itself to play a central role in the country’s economic future. The state’s tourism is projected to grow exponentially, with a goal of reaching 850 million annual visitors by 2028. In 2024, Uttar Pradesh’s tourist footfall saw a notable 17% rise, reaching 650 million visitors, up from 480 million in 2023. The state also saw a surge in international tourists, with 2.2 million foreign visitors in 2024, an increase of 667,000 over the previous year. The state’s broader vision is tied to the ambition of achieving a $1 trillion economy. Tourism is central to this plan, with officials stating that the sector will play a critical role in driving economic growth and employment generation. As more infrastructure projects come to life and investments pour in, the state’s tourism sector is set to be one of the key drivers of economic prosperity in the coming years.
With major investments pouring into the hospitality sector and a growing focus on spiritual and cultural tourism, Uttar Pradesh is poised for a tourism revolution. The state’s comprehensive approach to enhancing infrastructure, coupled with its rich heritage and spiritual significance, is attracting global attention. As a result, Ayodhya, Varanasi, and other key destinations are fast becoming hubs of both spiritual and leisure tourism. With increased job opportunities, a flourishing hospitality sector, and a growing economy, the future of Uttar Pradesh’s tourism industry looks incredibly promising. As these developments unfold, the state is not just planning for short-term gains but is building a long-term tourism legacy that will position Uttar Pradesh as a premier destination on the global tourism map.