16 Star hotels to be established in AP

Visakhapatnam: Tourism Minister Kandula Durgesh informed that permissions have been granted for the establishment of 16 star hotels across the State, with a capacity of 980 rooms and an investment of Rs 5,000 crore. Speaking to the media in Visakhapatnam on Friday, the Minister mentioned that construction work on six of these hotels has already begun and they are expected to become operational soon. He informed that the State government is focusing on developing tourism sector through public-private partnership (PPP) model. He stated that the decision to accord industrial status to the tourism sector has given a major boost to new projects and investments.

The Minister alleged that the construction of Rushikonda Palace in place of Haritha Resorts resulted in a significant loss of tourism revenue and public funds. He pointed out that the maintenance of the massive structure has now become a burden to the government. A cabinet sub-committee constituted by the government to examine the utilisation of the Rushikonda buildings has submitted its report to Chief Minister N Chandrababu Naidu. The committee has recommended that the facility should primarily be used for hospitality purposes, and a final decision is expected by the end of this month, he stated.

Further, Durgesh stated that of the nine acres of vacant land available at Rushikonda, around 7.5 acres fall under Coastal Regulation Zone (CRZ) restrictions, leaving little scope for construction. Expressions of Interest have been invited from companies for establishing hospitals, resorts and MICE (Meetings, Incentives, Conferences and Exhibitions) centres will be constructed at the remaining 1.5 acres.

The Minister stated that discussions were held with the Leela Group during the Indian Association of Tour Operators (IATO) meeting, and the company has expressed interest in establishing a seven-star hotel in Andhra Pradesh.

Further, he noted that Visakhapatnam-Vizianagaram region is witnessing rapid economic development, particularly with the ASR International Airport expected to provide a major boost to growth. “Visakhapatnam is developing rapidly in the industrial, IT and tourism sectors,” Durgesh said, adding that the coalition government is taking steps to develop destinations such as Araku, Lambasingi and Borra Caves into major tourism hubs.

He expressed confidence that the ongoing IATO meeting in Visakhapatnam would help strengthen coordination and rapport between the state tourism department and tour operators, contributing to the growth of Andhra Pradesh as a major tourism destination.

Later, Minister Durgesh inaugurated ‘MSME Business Expo-2026’ organised by AP Chamber of Commerce and Industries Federation at Gadiraju Palace.

Minister Durgesh and MLA Ganta Srinivasa Rao examined the products displayed at the expo.

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