AP announces 'new tourism policy': priority to rural tourism

Hyderabad, Oct 29 (UNI) Positioning Tourism as a major revenue generator and aiming to enhance employment and economic growth in the State, Andhra Pradesh Tourism Minister J Geeta Reddy today announced ''Tourism Policy, 2006.

Talking to newspersons here, she said the new policy would ensure balanced regional growth across the State with focus on rural tourism in small villages and towns. Local bodies would be involved in the promotion of tourism and would make them as ultimate stake holders in planning, designing and implementing tourism projects, she added.

Stating that the policy would create conducive environment for public and private sector collaborations in tourism projects, she said the new policy would pave the way for cooperation with the other Government departments to strengthen the tourism infrastructure in the State.

The minister said, 25 per cent luxury tax and entertainment tax paid for new hotels during this financial year would be reimbursed by the Government next year, as it will continue for a period of five years.

Ms Reddy said 50 per cent tax concession and incentives would be granted to the private operators, who were willing to take up tourism projects in backward areas.

She said the Government was also holding talks with Air Deccan airways for low cost connectivity between all major towns as part of the new tourism policy in the State.

Private companies have invested Rs 700 crore in tourism business and the Government allocated Rs 200 crore last year, she added.

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