The Karnataka government has designated the tourist industry as a priority sector, recognizing its significance. From 36.7 million domestic tourist visits in 2006 to 215.03 million in 2018, Karnataka has shown tremendous increase in this regard. The State ranks third among Indian states in terms of total domestic tourist trips, accounting for around 12% of all visitors. Additionally, over 5.4 lakh international visitors arrived in Karnataka in 2018, placing the State 11th in India for free trade agreements. In 2019, Karnataka's tourist industry generated over 30 lakhs of direct and indirect jobs, accounting for 14.8% of the state's gross state product.
This Policy will remain in force for six (6) years from the date of its notification.
Transform Karnataka into the top choice for tourists by offering safe, memorable, and high-quality experiences through collaborative and sustainable development.
The Government of Karnataka aims to:
| Sr. No. | Measure | Financial Assistance | Ceiling Amount for Financial Assistance per Tourism Project |
|---|---|---|---|
| 1. | Water conservation and harvesting | 50% of capital cost for undertaking measure | INR 1,00,000/- (Rupees One Lakh only) |
| 2. | Adopting renewable energy sources | 50% of capital cost for undertaking measure | INR 1,00,000/- (Rupees One Lakh only) |
| 3. | Adopting pollution control measures | 50% of capital cost for undertaking measure | INR 1,00,000/- (Rupees One Lakh only) |
| Sr. No. | Promotional Activity | Expense for which Marketing Development Assistance is Offered | Financial Assistance | Ceiling Amount for Assistance per Tourism Service Provider |
|---|---|---|---|---|
| 1. | Production of Publicity Material | Cost of Production of Publicity Material (Brochure, Product Catalogue, Information Handouts, etc.) for use during festivals/events/activities sponsored or organized by Department of Tourism or its undertakings | 50% of cost of printing/publishing of publicity material | INR 1,00,000 (Rupees One Lakh only) |
| 2. | Participation in National-level Domestic Event | Cost of rental of stall/space at tourism, travel or hospitality related events such as fairs, exhibitions, marts | 50% of cost of rental of stall/space at the event | INR 30,000 (Rupees Thirty Thousand only) |
| 3. | Participation in International Event | Cost of rental of stall/space at tourism, travel or hospitality related events such as fairs, exhibitions, marts | 50% of cost of rental of stall/space at the event | INR 60,000 (Rupees Sixty Thousand only) |
| 4. | Participation in Roadshows organized/sponsored by Karnataka Tourism | Travel expenses by air from India to any other country and/or by air/rail from one country to another country abroad | 75% of total fare, for economy class only | INR 1,00,000 (Rupees One Lakh only) |
| Sl. No. | Tourism Project | Minimum EPC Investment for Project (INR) | Percentage of Subsidy against EPC (%) | Maximum Ceiling Amount of Capital Investment Subsidy | Locations where Subsidy shall be Provided |
|---|---|---|---|---|---|
| 1. | Adventure Tourism Project | INR 25 Lakh | 25% | INR 2 Crore | Focus Tourism Destinations |
| 2. | Caravan Park Project | INR 25 Lakh | 25% | INR 2 Crore | All of Karnataka |
| 3. | Caravan Tourism Project | INR 25 Lakh | 25% | INR 1 Crore | All of Karnataka |
| 4. | Hotel Project – Budget | INR 5 Crore | 15% | INR 2 Crore | Focus Tourism Destinations (excluding Municipal Corporation limits of Bengaluru, Hubli-Dharwad, Mangaluru, and Mysuru) |
| 5. | Hotel Project – Premium | INR 10 Crore | 15% | INR 5 Crore | Focus Tourism Destinations (excluding Municipal Corporation limits of Bengaluru, Hubli-Dharwad, Mangaluru, and Mysuru) |
| 6. | Houseboat Project | INR 1 Crore | 25% | INR 2 Crore | All of Karnataka |
| 7. | Wayside Amenities | INR 2 Crore | 25% | INR 2 Crore | All of Karnataka |
| 8. | Wellness Centre | INR 2 Crore | 25% | INR 2 Crore | Focus Tourism Destinations |
| Sr. No. | Criteria for Additional Subsidy | Additional Percentage Subsidy against EPC of the Tourism Project |
|---|---|---|
| 1. | Tourism Project is undertaken by Women, SC, ST, or differently-abled Entrepreneur | |
| 2. | Project is a Hotel Project – Premium that is undertaken at Focus Tourism Destination within districts of Kalyan Karnataka region viz. Ballari, Bidar, Kalaburagi, Koppal, Raichur, Vijayanagara and Yadgir |
| Interest Subsidy | 5% per annum on term loans for fixed capital investment in tourism projects.
Maximum of INR 25 Lakh over five years, not exceeding INR 7.5 Lakh per annum. Available for Agri, Cultural, Heritage, and Safety & Hygiene Tourism Projects. Cannot claim if availing Capital Investment Subsidy. |
| Exemption on Stamp Duty | 50% exemption for loan agreements, credit deeds, mortgage deeds, etc., for a
maximum of five years. Applies to leases and sale deeds for Tourism Projects. Excludes projects within BBMP jurisdiction. |
| Concessional Registration Charges | 100% exemption of registration charges for loan documents and sale deeds eligible under the Stamp Duty exemption. |
| Reimbursement of Land Conversion Fee | 100% reimbursement for converting agricultural land to non-agricultural use for Tourism Projects.Excludes land within BBMP and BMRDA jurisdictions. |