Visakhapatnam tourism boom: City emerging as a major tourist hub in Andhra Pradesh is set for further growth with new airport, luxury hotels: JLL

 • Visakhapatnam offers diverse attractions including scenic beaches, historical sites, and natural wonders like Araku Valley and Borra Caves.

• Major infrastructure developments include the upcoming Bhogapuram International Airport, expected to handle ~6 million passengers annually in its first phase.

India, 2024: Visakhapatnam, also known as Vizag, is emerging as a prime tourism destination in Andhra Pradesh, India, explains a JLL report titled ‘Unlocking Visakhapatnam’s tourism sector: Strategies and Opportunities” released at the CII Tourism & Travel Summit 2024 held here today.

The city's strategic location along the eastern coastline, combined with its diverse attractions ranging from beaches to historical sites, positions it well for significant tourism growth.

In 2023, Visakhapatnam region contributed approximately 24% (about 61 million tourists) to Andhra Pradesh's total tourist inflow. The area offers a wide array of attractions including beaches like Ramakrishna Beach and Rushikonda Beach, historical sites such as Buddhist complexes, natural wonders like Araku Valley and Borra Caves, and religious centers like the Simhachalam Temple.

"Visakhapatnam is poised to become a powerhouse in India's tourism sector. With its diverse offerings ranging from pristine beaches and eco-tourism hotspots to rich cultural heritage sites, the region has witnessed a remarkable surge in visitors, according to various sources, attracting over 61 million tourists in 2023 alone. The upcoming Bhogapuram International Airport, set to handle 6 million passengers annually by 2025, coupled with significant investments in hospitality and adventure tourism, underscore Vizag's potential as a prime destination for both leisure and business travelers. At JLL, we anticipate substantial growth opportunities for investors and developers in the hospitality, eco-tourism, and entertainment sectors, further cementing the region's position as a key driver of economic development in Andhra Pradesh<" said Jerry Kingsley, Head of Strategic Consulting and Value & Risk Advisory, India and City Lead, Capital Markets, Chennai, JLL.

The government is actively promoting tourism through various initiatives. These include developing eco-tourism projects, adventure tourism facilities, and improving infrastructure. Significant investments are being made in transportation, including the upcoming Bhogapuram International Airport and a new cruise terminal, which are expected to boost tourism significantly.

The hospitality sector is also expanding to meet growing demand. Several major hotel chains have announced plans to open new properties in the region. The Oberoi Group, for instance, is developing a luxury hotel and villas near the new airport.

Emerging trends in Visakhapatnam's tourism sector include a growing focus on eco-tourism, adventure tourism, and sustainable travel practices. The government is also exploring innovative concepts like caravan tourism to diversify the tourism offerings.

To further develop the sector, the report recommends strategies such as regulatory reforms, capacity building, supply chain development, and inclusion programs. These efforts aim to create a more competitive, sustainable, and inclusive tourism industry in Visakhapatnam.

The region presents numerous investment opportunities, particularly in hotel and resort development, theme parks, and film industry-related projects. With its natural beauty, cultural richness, and ongoing development initiatives, Visakhapatnam is poised to become a leading tourism destination, driving economic growth and regional development.