AP issues order to engage private firms for O&M of 22 APTDC properties, stakeholders hail decision

Andhra Pradesh Government has issued orders dividing 22 resorts/properties owned by AP Tourism Development Corporation (APTDC) including Bhavani Islands, Vijayawada, Haritha Resort, Srisailam, newly rebuilt Harita Yatri Nivas, Visakhapatnam and Coconut Resort, Dindi into six clusters and handing them over to private parties for O&M (operation & maintenance) to improve the branding and ensure a better revenue model.

In GO Ms. No,23 issued on August 7, 2025, Special Chief Secretary, Tourism Ajay Jain said engaging private operators will improve hospitality standards, increase tourist satisfaction and generate higher revenues.The model ensures risk-sharing, accountability and long-term sustainability of the tourist assets.

AP Tourism Policy 2024-29 is eyeing at attracting investments to the tune of Rs.25,000 crore by promoting theme-based tourism in next four years. The government has already announced industry status to the hospitality sector providing them power and property tax concessions.

RFP is being issued by the Department of Youth Advancement, Tourism and Culture seeking bids from interested parties drawing inspiration from the practices followed by the Ministry of Tourism, Government of India and States like Kerala, UP, Telangana and Odisha. The RFP will provide 33-year lease with performance-linked revenue sharing, ensuring payment either percentage of Annual Gross Revenue (AGR) offered over and above the IBM value i.e. 12% or the Minimum Assured Annual Lease Rent (MAALR) fixed by the department, whichever is higher. The selected agencies will be responsible for upgrading, operating and maintaining the properties, submitting quarterly reports and complying with statutory norms.

The government decision has been lauded by the stakeholders, who describe it as a game-changer in raising revenue from tourism and upgrading the available infrastructure at the APTDC-run properties. "This will certainly be a shot in the arm to boost tourism revenue and enhance the brand image of Andhra Pradesh as an ideal destination for tourists," K. Vijay Mohan, president of Tour and Travels Association of Andhra (TTAA) president K. Vijay Mohan, told Bizz Buzz on Sunday.

Meanwhile, the Andhra Pradesh Tourism Forum (APTF) welcomed the government’s decision, as announced in GO Ms. No. 23 to engage reputed private operators for the O&M of 22 Haritha hotels and resorts across the State.This forward-thinking initiative aligns perfectly with the Andhra Pradesh Tourism Policy 2024–29, which positions tourism as a powerful driver of employment generation, regional development, and economic growth, the APTF stated..

When contacted, M.V. Pavan Kartheek, APTF Secretary said "by adopting a cluster-based management approach and bringing in professional hospitality operators, the State is ensuring that our tourism assets are maintained to the highest standards, resulting in better visitor experiences and increased tourist inflow. The performance-linked revenue-sharing model, coupled with the assurance of Minimum Annual Lease Rent, reflects a balanced framework that encourages private investment while safeguarding public revenue. "

Pavan Kartheek said the approach is in harmony with best practices from other leading tourism states and demonstrates Andhra Pradesh’s commitment to innovation and sustainability in tourism development adding "we are confident that this move will not only enhance the quality and branding of our tourism properties but will also create more jobs, boost local economies, and put Andhra Pradesh firmly on the map as a world-class tourist destination. The APTF has extended its full cooperation to the government and the APTDC in ensuring the smooth implementation of the policy decision.