*State-Level Committee to Fast-Track Tourism Startups, New Investment Proposals Invited
’Hobbit Houses’, ‘Caravan Units’, ‘Capsule Pods’ Among New Tourism Models Under
Consideration
*Women, SC/ST Entrepreneurs to Get Additional Incentives Under Tourism Policy
Tourism Startup Push Seen as Key Driver of Jobs in UP’s $1 Trillion Economy Vision
Innovation, startups to accelerate tourism growth in state: Jaiveer Singh
TTT NEWS NETWORK
NEW DELHI | 23 APRIL 2026
Uttar Pradesh is sharpening its focus on tourism-led job creation as part of its broader $1 trillion economy vision, with the sector expected to play a much larger role in employment generation over the next two decades.
With tourism’s current share in total employment at around 1.4 percent, the state is working towards increasing it to 5 percent by 2047 in a phased manner. Officials say the strategy hinges on expanding tourism infrastructure, improving visitor experiences, attracting private investment and unlocking new opportunities through innovation-led enterprises.
In line with this approach, the UP Tourism Department has invited proposals under the category of ‘New Tourism Startup Units’, aimed at bringing technology-driven, experience- based and sustainable projects into the sector. The category covers projects and services that use new technologies, promote sustainability and create a positive impact on local communities through innovation. The move is aligned with the state’s Tourism Policy, which focuses on boosting private participation, local entrepreneurship and job creation across tourism value chains.
Tourism and Culture Minister Jaiveer Singh said the sector is undergoing a structural shift.
“Tourism in Uttar Pradesh is no longer limited to sightseeing. It is emerging as a smart, experience-driven sector with strong potential for employment and investment. Through startup-led innovation, we are creating new opportunities that will contribute significantly to the state’s economic growth and help achieve the $1 trillion economy target,” he said.
He added that tourism’s ability to generate decentralised employment across hospitality, transport, food services, handicrafts and local enterprises makes it one of the strongest growth engines for the state.
The startup push includes a range of innovative tourism models being explored across Uttar Pradesh. These include theme-based stays such as Hobbit Houses, Japanese-style capsule pods, regenerative tourism projects focused on sustainability, technologically advanced caravan tourism units and open-air ‘star bed’ concepts. Such offerings are expected to attract young travellers, families and experiential tourists while creating fresh opportunities for local businesses.
Projects proposed under the startup category will be placed before the State-Level Special Tourism Committee (SLSTC), chaired by the Additional Chief Secretary/Principal Secretary (Tourism), which will evaluate eligible proposals and determine incentives and concessions.
Once approved, registration certificates are issued through the Tourism Directorate. Officials said the mechanism has been created to ensure faster decision-making and targeted support for high-potential tourism ventures.
To support investors, the Uttar Pradesh Tourism Policy offers a graded incentive framework.
Projects with investments ranging from ₹10 lakh to ₹10 crore are eligible for 25 percent subsidy in(up to ₹2 crore), while larger investments are covered under slab-based incentives. Additional benefits include 100 percent exemption on stamp duty and full waiver on land conversion and development charges. Women entrepreneurs and SC/ST investors are eligible for an additional 5 percent subsidy.
Officials said investors can apply for subsidies within six months of the start of commercial operations. Proposals involving incentives below ₹1 crore can be approved at the SLSTC level, while higher-value subsidy proposals are taken up by the State Level Committee headed by the Infrastructure and Industrial Development Commissioner.
Officials say these incentives are designed to lower entry barriers and encourage participation from both large investors and first-generation entrepreneurs, particularly in emerging tourism segments.
The wider tourism roadmap also targets a rise in the sector’s contribution to State GVA from the current 1.2 percent to 5 percent by 2047, while Uttar Pradesh aims to raise its share in India’s tourism GVA to 16 percent through phased expansion.
Additional Chief Secretary, Tourism, Culture and Religious Affairs, Amrit Abhijat said tourism startups are being positioned as a core element of the state’s employment strategy. “Tourism has one of the highest employment multipliers across sectors. By enabling startup-led models and experience-based tourism, we are expanding opportunities beyond traditional hospitality into services, mobility, digital platforms and local enterprises. This approach will be critical in scaling both jobs and value creation in the tourism economy,” he said.
The state government is also focusing on improving infrastructure, accommodation capacity, air connectivity and quality of services across key destinations such as Ayodhya, Kashi, Mathura and emerging sites like Naimisharanya, ensuring that rising tourist inflow translates into sustained economic activity.
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