Vijayawada: Chief Minister N Chandrababu Naidu on Wednesday declared tourism as Andhra Pradesh’s highest priority sector, underscoring the centrality of hospitality infrastructure to the State’s economic strategy.

Addressing officials at the district collectors’ conference, the Chief Minister said tourism would take precedence over all other sectors, including information technology, asserting that accommodation capacity must come before workplace expansion. “Tourism should be given first priority, then IT. First accommodation, then work. Giving priority to hotels is a big game-changer,” Naidu said, emphasising that a strong hospitality base was fundamental to attracting investments, employment and long-term economic growth.

The focus on tourism was reinforced through a detailed presentation by Ajay Jain, principal secretary, tourism department, who outlined the state’s progress in attracting marquee tourism investments and the challenges impeding faster execution. He informed the conference that Andhra Pradesh had succeeded in drawing some of the country’s largest theme park operators. Wonderla Amusement Park is set to establish a major facility in Visakhapatnam, requiring about 50 acres of land, while Imagica World has proposed a project in Tirupati spanning 20 acres.

However, he flagged land allotment as a persistent bottleneck. In several cases, land identified and proposed for tourism projects was later found to have been allotted to other departments. He urged that land for tourism be prioritised based on project potential to avoid delays and loss of investor confidence.

Responding to the concern, the Chief Minister reiterated that tourism would receive first call on land allocation, particularly for hotel and accommodation projects, which he described as critical enablers of the broader tourism ecosystem.

Jain also presented data from the recent Investors Summit, revealing that the tourism department signed 209 Memoranda of Understanding worth Rs 28,977 crore across all 26 districts. Visakhapatnam led with 66 proposals worth Rs 11,092 crore, followed by Tirupati with 27 proposals worth Rs 5,321 crore and Guntur district, including Amaravati, with 17 proposals amounting to Rs 3,960 crore.

Of these, 27 projects involving an investment of Rs 5,820 crore have already commenced. These projects are expected to add 4,597 hotel rooms and generate 10,645 direct and 18,030 indirect jobs. Visakhapatnam alone accounts for nine hotel projects with 1,880 rooms and an investment of Rs 2,916.47 crore, while Tirupati has six projects adding 1,003 rooms.

Coastal and heritage destinations have also attracted strong interest, with Bapatla district receiving proposals worth Rs 1,761 crore, Alluri Sitarama Raju district Rs 868 crore, and Gandikota in YSR Kadapa district Rs 643 crore. Jain said the department would work closely with district collectors to expedite land allotment and fast-track project implementation.