Karnataka: The next tourism hotspot?
The Karnataka government announced a slew of initiatives to boost tourism in the state during the inaugural session of the annual FHRAI conference.
By Suman Tarafdar
Karnataka’s coastal belt is going to be the next frontier of Karnataka’s tourism development. The state government has set ambitious targets and investments to this end. Sandwiched between two states famous for their coastlines – Kerala and Goa, Karnataka has announced initiatives to boost coastal tourism in the state.
Karnataka Chief Minister Siddaramaiah announced a bold vision targeting a transformation of the state into India’s leading tourism and hospitality hub, with a special focus on developing the 320-km coastal belt through large-scale infrastructure projects in a sustainable manner.
“Our coastlines, heritage cities, and global capital Bengaluru give us a unique advantage. By building world-class facilities, ensuring sustainability, and preparing our workforce, we will make Karnataka India’s number one tourism destination,” said the chief minister while inaugurating the 55th Annual Convention of the Federation of Hotel & Restaurant Associations of India (FHRAI), being held in state capital Bengaluru this year.
The state plans to launch ₹200 crore coastal tourism development projects across the state’s extensive coastline, which stretches from Mangaluru on the Kerala border to Karwar and includes famous beaches such Om, Paradise & Half Moon beaches in Gokarna, Someshwar Beach in Mangaluru, Maravanthe Beach and Murudeshwar Beach amongst a host of others. With over 40 strategic nodes identified, the state is preparing a dedicated Coastal Tourism Policy and a Coastal Tourism Development Board.
Karnataka is preparing a dedicated Coastal Tourism Policy and a Coastal Tourism Development Board, according to the state officials. High-potential beaches such as Someshwara, Gokarna, Marwanthe, and Honnavara have been earmarked for high-end resorts and experiential stays.
Azul waters of Om Beach, Gokarna, Karnataka (Photo by Siddhesh Mangela on Unsplash).
Boosting Tourism
The Chief Minister reaffirmed the state’s targets to attract ₹28,000 crore investments and create 1.5 lakh new jobs by 2029. Karnataka’s tourism policy, announced earlier this year, has seen the state approve over 50 new hotels and 500 homestays in the past year, with subsidies for resorts and eco-tourism projects. The policy also aims at training 15,000 youth by 2026 through 1,000 new hospitality training centres.
Noting that Karnataka attracted 35.46 crore domestic tourists in 2024, a 58% surge since 2022, the chief minister pointed out that the sector generates over 4 lakh direct jobs and contributes approximately ₹25,000 crore annually to the state economy.
He also highlighted Bengaluru’s emergence as a premium global hub for MICE tourism, and credited the city with hosting 15% of India’s meetings, incentives, conferences, and exhibitions.
The Karnataka Minister for Tourism H.K. Patil noted that the new policy provides a strategic framework to build a world-class ecosystem for tourism and hospitality investments, including capital investment subsidies (up to ₹5 crore for premium hotels, ₹2 crore for budget hotels, and up to ₹10 crore for convention centres and MICE venues). Also included is financial support (interest subsidies for heritage hotels, 50% exemption on stamp duty, 100% exemption on registration charges, and reimbursement of land conversion fees); and granting “industry status” to hospitality projects. “Let us redefine hospitality and create a future where every visitor to Karnataka returns with happiness and cherished memories. Together, we will build not just hotels, but legacies,” Patil said.
120 projects worth over ₹1,900 crore have been approved, including a 5-star hotel in Hampi and a world-class events and concert facility near Kempegowda International Airport in Bengaluru.
The state has also invited tenders for 13 tourism projects on a PPP (public, private partnership) model in districts including Vijayanagara and Udupi, with more projects under feasibility study. Heritage and pilgrimage circuits are being developed at Anjanadri Hills, Saundatti Hills, and Lakundi, aimed at strengthening Karnataka’s position as a spiritual and cultural tourism hub.
Also in the works is a new homestay policy designed to transform homeowners into cultural ambassadors, while a bed & breakfast policy will support sustainable accommodations in regions less suited for large-scale hotels.
The state Deputy Chief Minister, D.K.Shivakumar mentioned that Karnataka is home to over 25 lakh engineers and more than two lakh foreign passport holders, reflecting its diverse, global character. Calling on industry leaders to collaborate on ease of doing business, he promised reforms to further simplify processes and encourage investment. “We are here to help you with strong policies, and we know your challenges. With your support, we can transform the business landscape of Karnataka.”
With a huge diversity of tourism offerings – from beaches to mountains, verdant valleys, a plethora of historical monuments from different ages, immense potential in areas such as wildlife, wellness and wedding tourism, the state could position itself as a tourism powerhouse if all the promised policies are implemented.
L to R: Karnataka Deputy Chief Minister, D.K.Shivakumar and Chief Minister Siddaramaiah with President of FHRAI, K.Syama Raju at the 55th Annual Convention of the Federation of Hotel & Restaurant Associations of India (FHRAI).