The Odisha government has ushered in a major overhaul for its tourism sector by approving a significantly amended policy framework. The state cabinet gave its nod to the Odisha Tourism (Amendment) Policy-2026, a strategic move designed to inject fresh momentum into the industry and align its growth trajectory with the state's long-term Vision-2036 and the national Vision-2047.
Ease of Doing Business Gets a Major Boost
A cornerstone of the revised policy is a dramatic reduction in barriers to entry for hotel developers. In a bid to dramatically improve the ease of doing business, the government has slashed the minimum investment threshold for 3-star and above category hotels. Previously, projects needed a minimum of 50 rooms to qualify. The new policy aligns with national standards by reducing this requirement to just 10 rooms.
Furthermore, the norms for the expansion of existing hotel projects have also been relaxed. The eligibility threshold for availing benefits for expansion has been lowered from requiring 50% of the existing capacity to a more accessible 25%. These changes are expected to attract a wider pool of investors, including smaller and mid-sized entrepreneurs, to participate in enhancing Odisha's hospitality infrastructure.
Simplified and Supercharged Subsidy Framework
The amendment introduces a completely revamped and simplified Capital Investment Subsidy (CIS) structure to make financial incentives more attractive and straightforward. The earlier complex slabs have been consolidated into two clear categories.
Under the new Odisha Tourism Policy:
- For projects with an investment of up to Rs 200 crore, a subsidy of 30% will be provided, capped at a maximum of Rs 50 crore.
- For larger investments exceeding Rs 200 crore, the subsidy remains at 30%, but the cap is significantly increased to a maximum of Rs 100 crore.
This marks a substantial increase from the previous policy, where the maximum subsidy was Rs 15 crore for investments up to Rs 50 crore and Rs 20 crore for investments beyond that. The enhanced outlay underscores the state's serious commitment to positioning itself as a premier investment destination for tourism infrastructure.
Strategic Implications for Odisha's Tourism Future
The comprehensive amendments signal a proactive and investor-friendly approach from the Bhubaneswar administration. By lowering entry barriers and offering substantially higher financial incentives, the policy directly addresses key pain points for developers. The alignment with national norms for hotel room counts also ensures uniformity and reduces procedural confusion.
This strategic recalibration is poised to accelerate the development of quality accommodation across the state, from major circuits to emerging destinations. The ultimate goal is to create a robust tourism ecosystem that contributes significantly to economic growth, job creation, and sustainable development, firmly setting Odisha on the path to achieving its ambitious Vision-2036.
