The hospitality industry in Visakhapatnam (Vizag) and the scenic Alluri Sitharama Raju (ASR) district is experiencing an unprecedented boom, with hotels and resorts reporting near-total occupancy for the New Year 2026 festive season. This remarkable surge in demand, stretching from late December into the first week of January, marks one of the strongest performances in recent years for the region's tourism sector.
A Perfect Storm of Events Drives Record Demand
According to MV Pavan Kartheek, President of the Hotels and Restaurants Association of Andhra Pradesh (HRAAP) in Visakhapatnam, this exceptional growth is not accidental. He attributes the boom to a rare convergence of factors that have firmly established Vizag as a multi-faceted destination. A series of international conferences, national sporting events, large-scale government programmes, and peak seasonal tourism have all combined to fill the city's accommodations. This blend of business, academic, sports, and leisure travel has created a sustained high-occupancy environment throughout December 2025.
The festive spirit of Christmas and New Year significantly boosted leisure travel, attracting a sharp rise in visitors from Andhra Pradesh, Telangana, Odisha, and Chhattisgarh. This influx added to the existing institutional and sports-related travel, creating a scenario where hotels across luxury, mid-scale, and budget segments are operating at near-full capacity. Vizag city alone boasts around 2,000 rooms in star hotels, with the overall accommodation capacity across all types—hotels, resorts, lodges, guest houses—reaching approximately 10,000 rooms.
Cool Weather and Scenic Beauty Draw Crowds to ASR District
While Vizag city thrived, the hill stations and valleys of the ASR district witnessed their own tourist rush. The foggy and cool weather conditions in destinations like Araku Valley, Lammasingi, Vanjangi, Paderu, Ananthagiri, and Chintapalle proved to be a major attraction. The drop in mercury and the blooming of yellow Niger flowers drew visitors from West Bengal, Odisha, and other parts of Andhra Pradesh.
Popular spots such as Beach Road, Rushikonda, and RK Beach in Vizag, along with Araku Valley and Chintapalle in ASR, are experiencing heavy tourist footfall. The demand has been so intense that all rooms in noted hotels and resorts, including those run by the AP Tourism department in the ASR district, were booked until at least January 2. The Araku region itself is home to over 100 hotels and resorts, with room prices ranging from Rs. 2,000 to Rs. 8,000 during this peak period.
Tented Accommodations Emerge as Popular Alternative
The overwhelming demand led to a unique trend: the rise of tented accommodations. With cottages and hotel rooms in short supply and at a premium cost, local tribal youth began pitching tents at major tourist spots. These tents, leased for about Rs. 1,000 per day, became a trending shelter for tourists in Lammasingi, Vanjangi, and Araku Valley.
V Ganesh, an employee from a private firm in Vizag, shared his experience, stating he was surprised to find all noted resorts fully occupied for his New Year plans with friends in Araku. "We have decided to stay in the rented tents in the Araku region and will welcome the new year," he said. The popularity of these locations is evident from the footfall; Lammasingi alone attracts around 3,000 visitors on weekdays and over 6,000 on weekends.
The collective scenario paints a vibrant picture of Andhra Pradesh's tourism and hospitality sector ending 2025 on a historic high, with expectations of the positive trend continuing into the new year.
