In a strategic push to boost tourism and hospitality, Andhra Pradesh’s Cabinet has approved a major reduction in bar licence fees for 3-star and above hotels—from INR 66 lakh to INR 25 lakh. This move, led by Chief Minister N. Chandrababu Naidu, is expected to significantly ease financial pressures on hoteliers, encouraging them to invest more in food and beverage offerings.
Cleared by the Youth Services, Tourism and Culture Department, the decision is a key part of Andhra Pradesh’s broader economic revival plan centred on tourism. The state aims to add 50,000 new hotel rooms over the next five years, with temple tourism and coastal development as primary drivers of this expansion. The relaxed licensing regime signals the government’s intent to make the state more attractive to hospitality investors.
Minister Kolusu Parthasarathy highlighted that this reform will help tap into the state’s rich but underutilised tourism potential. It is projected to create substantial employment and boost tourism-related revenues while appealing to both national and global hotel brands seeking opportunities in emerging Indian markets.
By aligning regulatory reforms with infrastructure development, Andhra Pradesh is aiming to position itself as a holistic tourism destination—offering spiritual, cultural, and coastal experiences for a diverse range of travellers.
