In a major boost to Odisha’s tourism sector, the state government recently approved the Odisha Tourism (Amendment) Policy-2026(OTP), a major reform initiative aimed at strengthening the tourism sector and aligning it with the State’s Vision 2036 and 2047.
According to officials, the amendment to the OTP-2022 focuses on attracting investment, promoting sustainable tourism, and ensuring balanced regional development. The major amendments include lowering the minimum investment threshold for 3-Star and above hotels and resorts from 50 rooms to 10 rooms. The move will make it easier for entrepreneurs and investors to expand the hospitality sector, especially in regions with high tourism potential.
Similarly, the amendment simplifies the expansion norms for existing tourism units. The eligibility threshold for expanding existing facilities has been reduced from 50 per cent to 25 per cent of the current capacity. This adjustment provides an easier path for tourism operators to grow their businesses and meet the increasing demand from both domestic and international tourists.
Interestingly, the state cabinet also approved the expansion of the Special Tourism Zones such as Hirakud, Satkosia, Similipal, and the Ratnagiri Udayagiri Lalitgiri region, while giving impetus to existing zones like Chilika, KBK region, and Gajapati.
In a bid to attract more investments, especially in special tourism zones, the amendment has also proposals for substantial Capital Investment Subsidies (CIS). For instance, for projects investing up to Rs 200 crore, a subsidy of 40 per cent will be provided. Similarly, larger projects, those with investments above Rs 200 crore, will receive a subsidy of Rs 120 crore. These generous incentives are designed to encourage private investors to develop tourism infrastructure across the state.
The policy also focuses on emerging tourism segments. Museums, heritage properties, and electric mobility tourism will receive targeted support, with up to 50 per cent capital support available for certain projects. This includes electric boats, electric caravans, and art and craft complexes, which are in line with global trends towards sustainability and eco-friendly travel experiences.
Why OTP 2026 could be a game changer
The Hotel Association of India also hailed the Odisha Tourism (Amendment) Policy 2026, citing regulatory simplification, sustainability incentives and strong potential for investment, job creation, and tourism growth.
According to HAI, the amended policy is expected to strengthen Odisha’s tourism infrastructure, attract new investment, create employment opportunities and enhance the state’s competitiveness as a tourism destination.
In fact, the reform-aimed Odisha Tourism Amendment Policy 2026 could be a game changer not only by boosting the unexplored tourism sector of the state but also broaden its wing by contributing to the national economy.
It is noteworthy that presently tourism contributes accounts for about 13per cent of the state’s GDP. According to official records, the inflow of income through tourism in 2023 was Rs 9,871 crore. The number of domestic tourists in Odisha rebounded to over 97 lakhs in 2023, up from just 37 lakhs in 2021.
In other words, Odisha’s tourism sector generates Rs 10,000 crore annually. It is a major part of the state economy — significant enough to be a core economic driver.
The recent policy decision by the state government is a well-thought shift —Odisha, which till date was known for Puri Jagannath temple, its beach and was mostly viewed as a soft cultural centre is gearing up to get recognized as an economic growth engine capable of generating revenue, jobs, and balanced regional development. Here’s how…
Major boost for investors
The lowering of eligibility threshold of hotels and tourism projects come as a major relief for investors. By lowering investment limits, the policy allows small and medium investors to put their bet in the chain, apart from the large hotel chains. More importantly, it will allow them to invest in places beyond Bhubaneswar, which has unexplored tourist spots but lack boutique hotels, homestays, and eco-resorts.
New tourist spots will get prominence
By expanding its special tourism zones and including untapped places, the policy sends a right signal for balancing the development in each region of the state. The new tourist spots will not only get recognition but also promote local growth, especially improving the infrastructure in years ahead.
A step towards moving beyond temples and beaches
Over the years, Odisha has attracted tourists for its temples, especially Puri Jagannath temple and of course the beach. Its tourism potential hasn’t been marketed properly. The recent decision by the government is an attempt to consciously market its tourism potential beyond temples and beaches. By promoting new tourism trends such as MICE tourism (Meetings, Incentives, Conferences, Exhibitions) along with destination weddings and electric mobility-based tourism, Odisha will generate revenue by raising the spending of tourists. Most importantly, the state tourism will no longer be confined to seasonality.
A path forward in generating revenue and creating jobs
As the policy encourages private investment, the tourism sector will create more jobs, which in turn will add to the state’s economy and could shape the future economy by contributing to around Rs 12,000- 15,000 crore annually to the state exchequer. It would also have a positive impact on transport, agriculture, and other services as well.
If reared and supported with an initiative-taking mindset, Odisha tourism can not only reduce migration, generate dignified employment but also can showcase its culture, heritage, and cuisines at the global platform, which till date remains unexplored.
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