Introduction to UP Tourism Subsidy 2022
The Uttar Pradesh Tourism Policy 2022 has transformed the state into one of India’s most investor-friendly destinations for tourism projects. With generous capital investment subsidies, incentives for Focus Tourism Destinations (FTDs), interest subsidies, heritage hotel support, and dedicated schemes for homestays, the policy creates a wide landscape of opportunities for investors, hotel developers, homestay operators, and tourism entrepreneurs.
However, the subsidy structure is technical, multi-layered, and involves strict documentation, eligibility mapping, and financial calculations. This is why most investors prefer professional consultancy support rather than navigating the process independently.
At Finraja Consultancy Private Limited, we specialize in end-to-end execution, including project assessment, financial structuring, subsidy mapping, documentation, and departmental coordination—ensuring that clients receive maximum eligible benefits under the UP Tourism Subsidy 2022.
Overview of the Uttar Pradesh Tourism Policy 2022
The Uttar Pradesh Tourism Policy 2022 aims to encourage tourism-led investment across the state by offering substantial financial assistance. The policy covers:
- Large tourism units
- Budget hotels
- Resorts
- Heritage hotels
- Homestays
- Eco-tourism projects
- MICE facilities
- Adventure parks
- Tourism circuits (e.g., Ramayana, Buddhist, Krishna, Shaktipeeths)
The core objectives are job creation, tourism infrastructure development, and increasing domestic & international tourist footfall.
UP Capital Investment Tourism Subsidy
Financial support varies by project category and location.
General Tourism Units (Hotels, Resorts, Wellness Centers)
Project Location | Capital Investment Subsidy | Maximum Limit |
General Areas | 20% of project cost | Up to ₹1 Crore |
Focus Tourism Destinations (FTDs) | 25% of project cost | Up to ₹1 Crore |
FTDs provide an additional 5% subsidy, making them a highly rewarding zone for investors.
Choosing the correct location can increase a project’s subsidy value significantly. At Finraja Consultancy, we map projects to the right category, ensuring investors receive maximum benefits with correct location classification.
Additional Financial Support for Focus Tourism Destinations (FTDs)
FTDs are specially identified zones with high tourism potential.
Benefits include:
- Extra 5% Capital Subsidy
- Priority in approvals
- Higher chances of receiving complementary incentives
For investors planning hotels, resorts, cafés, or tourist amenities, an FTD location provides higher ROI.
UP Heritage Hotel Subsidy
Heritage properties receive special incentives because of their cultural and architectural significance.
Category | Subsidy |
Heritage Hotels | 25% of project cost up to ₹5 Crore |
This is one of the highest subsidy caps in the entire policy.
UP Bed and Breakfast Home stay Subsidy Support
Homestays and B&B units receive:
- Capital subsidy support
- Registration facilitation
- Marketing & promotion assistance
- Training for host families
- Financial incentives for infrastructure upgradation
This section is a major opportunity for small entrepreneurs and home property owners.
UP Tourism Interest Subsidy
The policy offers interest subsidy on term loans for eligible tourism projects:
- 60% reimbursement of interest paid, for up to 5 years
- Maximum annual cap varies based on project type
This helps investors reduce debt burden and operational pressure during early years.
Additional UP Tourism Incentives
Apart from capital subsidy and interest subsidy, the policy provides:
- Skill development support (training for tourism staff)
- Marketing & branding assistance
- Subsidy for adopting renewable energy / green tourism
- EPF reimbursement for new jobs created
- Stamp duty concessions
- Electricity Duty exemptions
These incentives improve project viability and maximize profitability.
Incentives for Tourism Circuits
Projects located near major tourism circuits receive higher eligibility and faster approvals.
Key tourism circuits include:
- Ramayana Circuit
- Krishna Circuit
- Buddhist Circuit
- Mahabharata Circuit
- Shaktipeeth Circuit
- Suheldev Circuit
- Wildlife Tourism Circuits
- Eco-Tourism Parks
Investors benefit from:
- Higher visibility
- Increased footfall
- Easier integration with government tourism campaigns
Finraja helps choose the right circuit-based location for maximum subsidy benefits.
How to Claim the UP Tourism Subsidy with Finraja Consultancy
The claim process involves:
- Project appraisal
- Financial assessment
- Category verification
- Documentation mapping
- Filing on the designated Tourism Subsidy portal
- Department inspections
- Compliance verification
- Subsidy calculation & approval
The process is multi-layered and requires expert coordination, where even minor documentation mistakes can delay approval by months.
Financial Assessment: UP Tourism Subsidy 2022
Component | Amount | Notes |
Capital Investment Subsidy (General Area) | 20% | If in FTD → 25% |
Interest Subsidy | ~60% of yearly interest | Over 5 years reduces EMI burden |
Stamp Duty Concession | Up to 100% waiver | Depends on project type |
EPF reimbursement | For new jobs created | Enhances payroll flexibility |
Marketing Assistance | 75% cost coverage | Helps in occupancy & branding |
Conclusion
The UP Tourism Subsidy 2022 offers one of India’s strongest financial support systems for tourism development. From capital subsidies and FTD bonuses to heritage hotel support, homestay incentives, interest subsidies, and marketing assistance, the benefits significantly reduce investment risk and increase long-term profitability.
Finraja Consultancy Private Limited helps investors, developers, and tourism businesses receive the maximum eligible subsidy with complete end-to-end support.
Call us now: +91 9373114747 or visit finraja.com/contact for quick assistance.
