Odisha Tourism Policy 2026: ₹1,500 Crore Infrastructure Push and 5,500-Acre Land Bank

Odisha Chief Minister Mohan Charan Majhi announced a ₹1,500 crore tourism infrastructure budget for 2026-31 and a 5,500-acre land bank for tourism projects on 3 October 2026. He spoke while inaugurating the seventh Odisha Travel Bazaar in Bhubaneswar. The measures form part of the revised Odisha Tourism (Amendment) Policy, 2026. The event aims to attract domestic and international investment into the state's tourism and hospitality sectors.

Hotel capacity is a key gap for Odisha, a state better known for its temples and coastline than for rooms. Chief Minister Mohan Charan Majhi pointed to the Jagannath Temple in Puri and the state's 575-kilometre coastline as assets for resort development.

The lower room threshold mostly helps mid-sized and boutique operators. Before the change, a property with fewer than 50 rooms could not meet the threshold for star-hotel benefits under the earlier framework. Now projects with as few as 10 rooms can qualify for state incentives.

The higher subsidy ceiling and the land bank target bigger projects. A larger ceiling lowers the upfront money an investor must raise for large resorts. A land bank, a set of identified parcels kept ready for projects, can shorten land acquisition, often a major source of delay.

The category rates show the state's priorities. Heritage and museums get up to 40 per cent, while electric boats, electric caravans and craft complexes get up to 50 per cent. These point to interest in heritage, cleaner transport and local craft.

Majhi placed tourism within the Developed Odisha Vision 2036-47 roadmap, also called Viksit Odisha. He described it as a pillar of economic progress and job creation in urban and rural areas. Across India, states are competing to attract private capital in hospitality.

Short-term: Investors can now apply under the revised Odisha Tourism (Amendment) Policy, 2026, with a 10-room minimum for star-category hotels and a subsidy ceiling of ₹120 crore. The Odisha Tourism Investment Incentive Management System offers a single web point for incentive applications, and the new Odisha Tourism Portal presents tourism assets and investment options. On the ground, tourist police at 29 destinations, 1,000 lifeguards and Destination Managers are meant to improve visitor safety.

Long-term: The ₹1,500 crore budget and 5,500-acre land bank run through 2026-31, so delivery will be judged within that five-year window. The state aims to add rooms, jobs and visitor facilities, in line with the Developed Odisha Vision 2036-47. Chief Minister Majhi described the Bazaar as a platform for new partnerships and new travel circuits. The state has not yet published how many projects will use the revised ceiling, or when and how much of the land bank will be allotted.

Who is affected: Hotel developers are the main group affected, from boutique and mid-sized operators now eligible for star-hotel benefits to larger resort investors who gain from the higher subsidy ceiling. Operators of museums, heritage properties, electric boats, electric caravans and craft complexes can claim category-specific subsidies. Tourists in Odisha, especially at beaches and major destinations, will see added safety staff. Workers in urban and rural areas stand to gain from job creation. The Bazaar, organised with FICCI, also involves hospitality brands, tour operators and hosted buyers.

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