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FDI In Tourism Projects
May 10, 2012

FDI In Tourism Projects


10 May 2012

New Delhi: Foreign Direct Investment  (FDI) is allowed for the development of tourism projects in the country.  Hotel and Tourism sector is declared as high priority sector and FDI upto 100%, under the  automatic route is permitted in ‘Hotels & Tourism Sector’, subject to applicable laws/regulations, security and other conditionalties.

As per a report received from the Department of Industrial Policy & Promotion, the details of the FDI equity flows from April 2008 to January 2012 in the Hotel and Tourism sector are as follows:

 Sl. No.  Year (April-March)  Hotel & Tourism Projects  FDI (`  in crore)
 1  2008-09  489  2,098.23
 2  2009-10  582  3,566.32
 3  2010-11  403  1,405.15
 4  2011-12 (Apr-Jan)  427  4,041.28
  Grand Total 1901 11,110.98

The FDI has been allowed with an objective to encourage investments in the hotel sector in India and to create job opportunities in hospitality sector.

This information was given by the  Minister of  State for Tourism  Shri Sultan Ahmed in a written reply to Dr. Janardhan Waghmare in Rajya Sabha today.