Karnataka charts bold new course for coastal and hospitality tourism growth

Karnataka is set to position itself as India’s next major tourism hub, with the unveiling of a new Coastal Tourism Policy and an upcoming Homestay Policy. At the 55th Federation of Hotels and Restaurants Association of India (FHRAI) convention, Chief Minister Siddaramaiah and senior ministers highlighted policy reforms, capacity-building, and private-public partnerships to drive the sector’s growth.

Inaugurating the three-day FHRAI Annual Convention in Bengaluru, Chief Minister Siddaramaiah said the government is committed to transforming Karnataka into a global tourism destination. He announced that 50,000 youth will be trained by 2026 to serve as brand ambassadors, boosting the state’s image worldwide. Already, 1,000 youth have been trained as tourist guides, creating both employment and quality service standards.

The convention, themed “Futurescape 2047: Refining Hospitality for New India”, comes at a time when domestic tourist arrivals in Karnataka surged to 30.46 crore in 2024, marking a 56% increase from the previous year. The sector contributed nearly ₹25,000 crore to the state’s economy, supporting over four lakh direct and indirect jobs.


Highlighting the government’s focus, Siddaramaiah noted that ₹200 crore has been earmarked for coastal tourism development. With 320 km of pristine coastline, the new Coastal Tourism Policy aims to develop beaches, water sports, resorts, and eco-tourism initiatives. The Chief Minister also pointed to Bengaluru’s growing role as a premier MICE (Meetings, Incentives, Conferences, Exhibitions) destination, accounting for 15% of India’s share in this segment.

Tourism Minister H.K. Patil reinforced the government’s reform push, recalling the earlier Tourism Policy 2024–29, which provides subsidies of up to ₹5 crore for premium hotels, ₹10 crore for MICE infrastructure, and ₹2 crore for budget hotels, along with 50% stamp duty exemptions. “So far, over 120 projects worth ₹1,900 crore have benefited from subsidies,” he said. Patil added that tenders have been floated for 13 tourism projects under the PPP model, spanning districts like Gadag, Hassan, and Mandya.

Further, the state will soon launch a Homestay Policy to promote community-based tourism, particularly in heritage-rich regions such as Lakkundi and Aihole. “We are also upgrading pilgrim centres like Anjanadri Hills and Saundatti Yellamma,” Patil said, inviting FHRAI members to explore investment opportunities.

Union Tourism Minister Gajendra Singh Shekhawat, speaking at the event, projected that India’s hospitality sector will witness 20% growth in the coming years, driven by rising domestic and international travel.

With more than 1,000 delegates attending, FHRAI President Syama Raju lauded Karnataka’s leadership in extending a ₹1,350 crore package under the 2024–29 Tourism Policy, affirming that hospitality and allied sectors like aviation and transport stand to benefit immensely from the reforms.