In a significant move to transform its tourism landscape, the Odisha government has given the green light to 55 new hotel and accommodation projects since July 2024. This massive infrastructure push, with a total estimated investment of Rs 3,211.32 crore, is set to dramatically expand the state's capacity to welcome both domestic and international visitors.
Diverse Projects from Luxury to Eco-Tourism
The list of approved projects, tabled during the recent state assembly session, showcases a wide variety of developments. The portfolio ranges from high-end five-star hotels to serene eco-resorts. While the state capital, Bhubaneswar, remains a prime focus for urban hospitality growth, a clear strategic shift is underway to promote coastal, nature-based, and tribal tourism.
Leading global hospitality chains are spearheading the luxury segment. In Bhubaneswar, Ashirbad Engineering and Construction Pvt Ltd will develop a five-star property in partnership with World of Hyatt at a cost of Rs 139 crore. ITC Hotels is also setting up a similar luxury project in the city for Rs 119.14 crore. The iconic pilgrim city of Puri is attracting major investments, including a Rs 212.25 crore project by SNM Hotels and Resorts in collaboration with Marriott Bonvoy.
Focus on Untapped Tribal and Scenic Destinations
A notable trend in the new approvals is the focus on developing hospitality infrastructure in previously untapped regions. Districts like Koraput, Keonjhar, Kandhamal, and Ganjam are set to witness several resort developments. These projects aim to cater to travellers seeking unique scenic beauty and authentic ecological experiences, moving beyond the traditional tourist circuit of Puri, Cuttack, and Bhubaneswar.
"There is an influx of tourists and the choice nowadays is not limited to Puri, Cuttack and Bhubaneswar. People are also looking to explore the wild and opting to visit many tribal-dominated districts," said Ananta Mohapatra, a Bhubaneswar-based travel agent.
Economic Impact and Surging Tourist Numbers
The collective development of these 55 projects will add over 3,800 new rooms to Odisha's hospitality inventory. This expansion is anticipated to generate thousands of direct and indirect employment opportunities, giving a substantial boost to the local economy.
The investment surge aligns with a remarkable post-pandemic recovery in tourist arrivals. Official data indicates a sharp rise, with foreign tourist numbers jumping from just over 10,000 in 2020 to more than 53,000 in the 2024-25 period. Domestic tourism has seen an even more dramatic upswing, crossing 11 million arrivals in the same timeframe. Currently, the state offers over 48,000 hotel rooms to travellers.
Industry experts have welcomed the government's proactive stance. "This surge in approvals reflects the state government’s proactive policy to improve tourism infrastructure and ensure increased footfall. The quality of stay and services will meet international standards. Authorities should now focus on providing due support to the projects," commented Akash Patra, an industry analyst.
From budget-friendly three-star hotels to high-end retreats like the planned Rs 110 crore resort on Somolo Island in Chilika Lake (in partnership with ITC), Odisha is strategically positioning itself as a versatile destination capable of catering to every segment of the travel market.
