Odisha Unveils Tourism Policy to Revolutionise Hospitality Industry with New Investment Incentives
Published on
January 10, 2026
Odisha is poised for a transformative shift in its tourism sector with the unveiling of its Odisha Tourism (Amendment) Policy-2026. Designed to revolutionise the hospitality industry, this new policy introduces a range of investment incentives aimed at boosting infrastructure, attracting both domestic and international investors, and fostering sustainable tourism practices. With a focus on eco-tourism, regional development, and private sector participation, the policy sets the stage for Odisha to become a top destination for travellers and investors alike. By lowering investment thresholds, providing financial subsidies, and promoting heritage and sustainable tourism, Odisha is ready to unlock the full potential of its diverse landscapes and cultural heritage. This bold new initiative promises to reshape the state’s tourism landscape, creating new opportunities for growth, jobs, and economic development.
Designed to revolutionise the hospitality industry, this new policy introduces a range of investment incentives aimed at boosting infrastructure, attracting both domestic and international investors, and fostering sustainable tourism practices. With a focus on eco-tourism, regional development, and private sector participation, the policy sets the stage for Odisha to become a top destination for travellers and investors alike. By lowering investment thresholds, providing financial subsidies, and promoting heritage and sustainable tourism, Odisha is ready to unlock the full potential of its diverse landscapes and cultural heritage. This bold new initiative promises to reshape the state’s tourism landscape, creating new opportunities for growth, jobs, and economic development.
Lowering Investment Barriers for Hotels and Resorts
A standout feature of the Odisha Tourism (Amendment) Policy-2026 is the reduction of the investment threshold for hotels and resorts. Previously, to qualify for a 3-Star or above classification, a hotel was required to have a minimum of 50 rooms. Now, this threshold has been significantly lowered to just 10 rooms. This change is expected to unlock new opportunities for small and medium-sized businesses in the hospitality sector, encouraging the development of boutique hotels, eco-resorts, and heritage properties across the state.
By reducing the barriers to entry, Odisha hopes to foster a more diverse and inclusive tourism industry, making it easier for small-scale investors to contribute to the sector’s growth. The policy will also support the expansion of Odisha’s tourism offerings, creating a variety of experiences that cater to different types of travellers, from budget-conscious tourists to those seeking luxury stays.
Expanding Existing Tourism Units
In addition to attracting new investments, the Odisha policy introduces simplified expansion norms for existing tourism units. The previous requirement for expanding the capacity of tourism businesses was set at 50%, which has now been reduced to 25%. This relaxation will allow existing operators to enhance their facilities and services without the need for substantial capital investments. As a result, businesses will be better equipped to meet the demands of growing tourism, improve their competitiveness, and provide enhanced experiences for visitors.
This approach also supports regional development, ensuring that even small-scale operators have the opportunity to expand their offerings, especially in emerging tourist hotspots across Odisha.
Capital Investment Subsidy to Attract Major Investments
To attract large-scale tourism investments, the Odisha government has introduced the Capital Investment Subsidy (CIS). This financial support scheme provides 30% subsidy on investments up to INR 200 crore, with a cap of INR 50 crore. For investments exceeding INR 200 crore, the subsidy increases to INR 100 crore. The CIS aims to incentivize large-scale investments in hotels, resorts, conference centres, and other high-value tourism infrastructure, which will be crucial to positioning Odisha as a premium destination.
By offering this financial assistance, the state intends to draw global hotel chains, international investors, and major hospitality brands, strengthening its competitiveness on the global tourism map.
Special Tourism Zones for Balanced Growth
Another key feature of the amended policy is the introduction of Special Tourism Zones in high-potential locations. The policy includes regions like Hirakud, Satkosia, Similipal, Ratnagiri-Udayagiri-Lalitgiri, and Bhitarkanika as priority areas for development. These zones will be dedicated to eco-tourism, adventure tourism, and nature-based tourism, with a focus on preserving the environment while promoting local economies.
These special zones are strategically chosen for their natural beauty and cultural heritage, offering tourists a chance to explore Odisha’s diverse landscapes and traditions. The focus on these zones will help create a more sustainable tourism ecosystem, where both the environment and local communities can benefit from increased tourism.
Support for Heritage and Sustainable Tourism Projects
The policy also provides targeted subsidies for heritage conservation projects and sustainable tourism initiatives. Heritage properties and museums in Odisha can receive up to 40% capital support, while eco-friendly projects, such as electric boats, electric caravans, and art and craft theme complexes, are eligible for 50% capital support.
This initiative is in line with global trends towards eco-tourism and sustainable travel. By focusing on projects that reduce environmental impact, Odisha is positioning itself as a responsible tourism destination that attracts conscious travellers seeking to minimize their carbon footprint.
Vision for the Future: 15,000 Hotel Rooms by 2036
The Odisha Tourism (Amendment) Policy-2026 outlines a long-term vision to develop 15,000 star-category hotel rooms by 2036. This ambitious target is aimed at meeting the growing demand for tourism accommodation, especially as the state positions itself to attract a significant number of both domestic and international tourists in the coming years.
In addition to enhancing infrastructure, the policy is expected to generate thousands of jobs, from hotel staff to local tour guides and service providers. This growth in the hospitality sector is anticipated to drive significant economic benefits for the state.
Conclusion: A Bright Future for Odisha’s Tourism
The Odisha Tourism (Amendment) Policy-2026 is a forward-thinking initiative that promises to unlock significant growth potential in the state’s tourism sector. With its focus on investment, sustainability, and regional development, the policy is set to transform Odisha into a leading tourism destination in India.
By introducing financial incentives, simplifying expansion norms, and focusing on eco-friendly projects, the policy will not only boost tourism-related infrastructure but also create a more sustainable and inclusive tourism ecosystem. As Odisha moves towards its ambitious goal of creating 15,000 new hotel rooms by 2036, the state’s tourism sector is poised for substantial growth, offering new opportunities for investors, businesses, and communities alike.
