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Karnataka Pledges Simpler Tourism Policies to Lure Private Investment

Jul 24, 2026
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Karnataka Pledges Simpler Tourism Policies to Lure Private Investment
Speaking at the India International Travel Mart in Bengaluru on 23 July, Karnataka Tourism Minister K.J. George announced that the state government will “drastically simplify” licensing and incentive rules to position Karnataka as India’s most investment-friendly tourism destination. The minister said a new policy draft will consolidate 24 separate permits into a single window and cut approval timelines for hotel, adventure-tourism and MICE projects to 30 days. The plan includes doubling the capital-subsidy ceiling for eco-resorts, rolling out a reimbursable interest-subvention scheme for ropeways and caravan parks, and expanding the state’s e-visa facilitation desks at major airports to cover charter flights. Tourism contributes roughly 14 % of Karnataka’s service-sector GDP, yet industry associations claim complex land-acquisition rules have slowed project pipelines outside Bengaluru and Mysuru. By promising regulatory clarity, the government hopes to draw private equity and foreign hotel chains into second-tier cities such as Hubballi-Dharwad and coastal zones like Karwar. If implemented, the policy will directly benefit corporate mobility: shorter approval cycles for business-class hotels near industrial clusters will improve accommodation options for assignees, while better tourist-visa facilitation could ease entry for overseas project teams. However, stakeholders await the final Gazette notification, expected later this year, to assess whether environmental-impact clearances are also streamlined.
Source: PTI via The Print

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