Gujarat Tourism Policy 2021-25

The Gujarat Tourism Policy 2021-25, officially titled the 'Investment Promotion Incentive Scheme for Tourism Units and Tourism Service Providers 2021-25', was a landmark five-year framework designed to position Gujarat as a premier sustainable tourism destination. It offered substantial capital subsidies (up to 20% for hotel and resort projects at High Priority Destinations), power duty exemptions, stamp duty refunds, and payroll support for tour guides, alongside targeted promotional packages for Caravan, river cruise, and MICE tourism.

Policy Vision

Positioning Gujarat as the foremost tourist destination in India by developing it in a sustainable, responsible, and inclusive manner, with a focus on attracting investments that create local livelihood opportunities.

Core Objectives

• •Significantly augment tourist footfall and double the active employment within the state's tourism and hospitality sectors.
• •Encourage global sustainability and green building certification standards across existing and new tourism assets.
• •Promote balanced regional development by directing investments to identified High Priority Tourism Destinations.
• •Develop modern, round-the-year tourism themes, including caravan parks, medical wellness resorts, and river cruises.

Priority Tourism Themes

Adventure & Wildlife, Caravan/Campervan Camping, River Cruise Tourism, Medical & Wellness Tourism, MICE (Meetings, Incentives, Conferences, Exhibitions), Spiritual/Religious, Cinematic Tourism, and Rural-Based Experience Tourism.

Tourism Unit Eligibility & Minimum Thresholds

Eligible vs Non-Eligible Capital Investments

• •Eligible Investment: Building construction, plants/rides, utilities, air conditioning, internal connectivity, last-mile utility extensions, battery-operated golf carts (max 5 vehicles), and design/consultancy fees (up to 3% for theme parks).
• •Non-Eligible Investment: Working capital margin, pre-operative expenses, second-hand machinery (shifted from domestic/foreign sites), cost of land, land development charges, utensils, cutlery, furniture, and vehicles.

Extended Project Completion Windows

Capital Subsidy Rates by Unit Type

Subsidies for Specific Equipment & Asset Purchases

Exemptions & Statutory Refunds

• •Electricity Duty: 100% electricity duty exemption for 5 years (valid for New Tourism Projects only).
• •Stamp Duty & Registration: 100% reimbursement of stamp duty and registration fee paid on purchase/lease of land/office space for New Tourism Units.

Term Loan Interest Subsidy for New Offices

New Tour Operators, Travel Agents, or Caravan Tour Operators purchasing their first office property can claim term loan interest subsidies for 5 years: @5% interest (max ₹3 Lakh/yr) in Municipal Corporation areas, and @7% interest (max ₹5 Lakh/yr) in all other areas.

Market Development Exhibition Subsidies

Hosting Assistance for MICE and Rural Fairs

• •Rural Tourism Fairs: Up to ₹5.00 Lakh per year per organizer for hosting CoT-approved traditional fairs.
• •International MICE: ₹5,000 per foreign participant staying overnight (or ₹5.00 Lakh per event, whichever is lower). Min 200 participants, at least 20% foreign.
• •Domestic MICE: ₹2.00 Lakh per event (limit of 3 events/yr/organizer). Min 500 participants, with at least 20% staying overnight in certified 4/5-star or TCGL properties.

Payroll Assistance for Tourist Guides

Registered hotels, resorts, and tour operators appointing certified, Gujarat-domiciled guides knowing at least one foreign language can claim a 25% monthly payroll subsidy (or ₹4,000 per guide per month, whichever is lower). Capped at ₹24,000/yr per guide, claimable for up to 5 years.

E-Vouchers & Foreign Tourist Cards

Offers up to ₹20,000 total discount benefits per foreign visitor, including 5% off stays at CoT-registered hotels, 10% off purchases at Garvi Gurjari, and online heritage-walk vouchers.

Registration Document Checklist

• •Proof of legal possession of land (ownership title or registered lease deed).
• •Non-Agriculture (NA) order permitting land use for tourism project purposes.
• •Legal entity constitution documents and detailed project report (DPR).
• •GPCB Consent to Establish (CTE) / operating clearances where applicable.

Incentive Capping and Clawback Rules

• •Subsidy Ceiling: The sum of all state subsidies, electricity exemptions, and registration duty refunds must not exceed the unit's Eligible Capital Investment.
• •Stacking: Beneficiaries cannot claim incentives from multiple state departments for the same project component (double-dipping barred). Stacking with central GoI schemes is permitted up to total project cost.
• •Clawback Clause: Units must remain in continuous commercial operation for at least 5 years post-DoCP. Early closures will result in the recovery of all disbursed subsidies as arrears of land revenue plus RBI prime lending rate interest.

1. 1Online Registration: Tourism units register with CoT before their Date of Commencement of Commercial Operations (DoCP).
2. 2Prior Approvals: Secure written CoT approvals prior to organizing MICE events, conducting market research, or conducting overseas marketing.
3. 3Claim Submission: Submit final incentive clearance claims within 180 days from the DoCP.
4. 4Documentation Extension: CoT can grant up to 6 months extension for document submission. Further delays require SLIC condonation.
5. 5Technical Scrutiny: Project values and structures are verified by chartered engineers (civil/mechanical) before disbursement.

Governing Committees and Authority Levels