A significant endorsement has been extended by the Hotel Association of India (HAI) toward the latest legislative changes introduced via the Odisha Tourism (Amendment) Policy 2026. This move is viewed as a pivotal step in aligning the regional hospitality sector with national standards, thereby fostering a more robust environment for private investment. By the Odisha Cabinet, chaired by Chief Minister Mohan Charan Majhi, these reforms were ratified to catalyze the state’s tourism infrastructure and fulfill the long-term objectives outlined in Vision 2036 and Vision 2047. It is observed that the state is positioning itself as a premier global destination through these strategic fiscal and structural modifications.
Alignment with National Hospitality Standards
One of the most noteworthy amendments highlighted by industry experts involves the reduction of the minimum room requirement for star-category hotels. Previously, a minimum of 50 rooms was mandated for a property to qualify for 3-star status and above. Under the new guidelines, this threshold has been significantly lowered to 10 rooms. This adjustment is recognized as being in perfect harmony with the norms established by the Union Ministry of Tourism. It is believed that by lowering the barrier to entry, smaller boutique hotels and high-end niche resorts will find it increasingly feasible to establish operations within the state. The move is expected to diversify the types of accommodations available to travelers while maintaining high quality and service standards.
Enhanced Capital Investment Subsidy Framework
The financial landscape for investors has been substantially improved through a revised Capital Investment Subsidy (CIS) structure. The framework has been rationalized into two distinct slabs to provide a more predictable and lucrative support system. For projects with an investment value of up to ₹200 crore, a subsidy of 30% is offered, with a maximum cap of ₹50 crore. For larger-scale developments exceeding the ₹200 crore mark, the subsidy cap has been raised to ₹100 crore. These measures are designed to attract major domestic and international hospitality brands to the region, ensuring that large-scale infrastructure projects receive the necessary fiscal backing to ensure long-term viability.
Empowering Inclusive and Diverse Entrepreneurship
Particular attention has been given to the promotion of social inclusivity within the tourism sector. Enhanced subsidies of 40% are now available for projects spearheaded by women, Scheduled Caste (SC), Scheduled Tribe (ST), and differently-abled entrepreneurs. For such projects, the subsidy is capped at ₹60 crore for investments up to ₹200 crore, and reaches as high as ₹120 crore for larger ventures. Furthermore, the geographic scope of Special Zones has been expanded to include high-potential destinations such as Hirakud, Satkosia, Similipal, Bhitarkanika, and the Ratnagiri-Udayagiri-Lalitgiri Buddhist circuit. These regions join existing zones like Chilika and the KBK (Kalahandi-Bolangir-Koraput) corridor in receiving preferential treatment for tourism development.
Broadening the Scope of Experiential Tourism
Beyond traditional lodging, the Odisha Tourism Policy 2026 introduces targeted support for emerging and niche segments. Substantial capital support of up to 40% is allocated for the development of museums and heritage properties, ensuring the preservation of the state’s rich historical legacy. Additionally, a 50% capital support rate is applied to innovative products such as electric boats, electric caravans, and art and craft theme complexes. These initiatives are intended to modernize the visitor experience and promote sustainable practices. The inclusion of MICE (Meetings, Incentives, Conferences, and Exhibitions), destination weddings, and luxury camping further signifies a shift toward high-value, experiential tourism.
Promotion of Authentic Regional Culture and Cuisine
The narrative of Odisha’s tourism is also being strengthened through the promotion of its culinary heritage. A dedicated support framework for both Capital Expenditure (Capex) and Operational Expenditure (Opex) has been established to promote authentic Odia cuisine. This initiative involves the creation of culinary outlets not only at notified tourism sites within the state but also in major Indian metros including Mumbai, Delhi, Bengaluru, Chennai, and Kolkata. Furthermore, major tourist hubs such as Agra, Varanasi, Goa, Kochi, and Jaipur have been identified for the establishment of these outlets. The primary objective is to enhance the global recognition of the state’s food culture while providing a unique value proposition to tourists.
Projected Economic Impact and Employment Generation
The long-term economic benefits of these policy amendments are projected to be substantial. According to briefings provided by Chief Secretary Anu Garg, the state aims to facilitate the creation of 15,000 star-category hotel rooms by the year 2036. This expansion is anticipated to generate over one lakh direct and indirect employment opportunities, thereby strengthening the socio-economic fabric of the region. By simplifying expansion requirements—reducing the eligibility threshold from 50% to 25% of existing capacity—current hospitality operators are also encouraged to grow their businesses. The formation of a State Tourism Advisory Council under the chairmanship of the Tourism Minister is expected to further streamline governance and ensure consistent stakeholder engagement.
Conclusion: A Collaborative Path Forward
In summary, the warm reception of these amendments by the Hotel Association of India underscores the collaborative spirit between the government and the private sector. The Odisha Tourism (Amendment) Policy 2026 is viewed as a comprehensive blueprint that balances economic growth with sustainability and inclusivity. By addressing the ease of doing business and providing robust financial incentives, the state of Odisha is being positioned to witness a revolutionary transformation in its tourism landscape over the coming decades.
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