Andhra Pradesh Government Pledges Full Support for Mega Theme Park Development
In a significant announcement on Friday, Tourism Minister Kandula Durgesh informed the legislative assembly that the Andhra Pradesh government is prepared to extend comprehensive support for the establishment of world-class theme parks and entertainment facilities across the state. This declaration came in response to a query from Prathipadu MLA Burla Ramanjaneyulu regarding a proposal to develop a Disney World-like project on 171 acres at Karnuthala village in Vatticherukuru mandal, Guntur district.
Government Role and Investment Requirements
Durgesh elaborated that mega projects such as Disney World or Universal Studios typically demand substantial investments ranging from ₹35,000 crore to ₹60,000 crore. He emphasized that globally, such ventures are primarily developed and operated by private companies, with governments facilitating through land allocation, permissions, and policy incentives. The minister affirmed that if private investors step forward for the Karnuthala project, the government would provide full cooperation, aligning with Chief Minister Chandrababu Naidu's directive to boost tourism investments.
Tourism Policy and Incentives
To attract major investments, Andhra Pradesh has granted industrial status to tourism under the AP Tourism Policy 2024–29. This policy offers a robust package of incentives, including:
- Capital investment subsidies of up to ₹40 crore
- 100% reimbursement of stamp duty
- Waiver of land-use conversion charges
- Reimbursement of power costs
- SGST reimbursement for a period of 7 to 15 years
- Additional incentives covering EPF and ESI contributions
- Special packages tailored for mega projects
Market Challenges and Strategic Initiatives
Durgesh acknowledged that the average spending capacity of Indian tourists is approximately ₹20,000 to ₹21,000, which is lower than international standards. However, he highlighted that the state is actively working to create conducive conditions for world-class projects. He pointed out that successful Disney and Universal Studios locations are situated in global metros like Orlando, Los Angeles, Tokyo, Paris, and Shanghai, where high demand and tourist inflow justify such investments.
The tourism department has engaged in discussions with prominent operators such as Imagicaa and Wonderla, which currently run parks in Mumbai, Bengaluru, and Hyderabad. These companies have expressed interest in developing projects at Tirupati and Visakhapatnam. Furthermore, the state has promoted investment opportunities through international roadshows and forums, including ITB Berlin, Arabian Travel Market, and World Travel Mart, as well as national events.
Recent Achievements and Future Prospects
At the recent Visakha Partnership Summit, the department signed 102 Memoranda of Understanding (MoUs) worth ₹18,448 crore, which include three agreements related to theme parks. This underscores the growing interest and potential for tourism infrastructure development in Andhra Pradesh.
Durgesh reiterated the government's commitment to fostering a vibrant tourism sector by encouraging private investment in large-scale entertainment projects, aiming to position Andhra Pradesh as a premier destination for both domestic and international tourists.
