Karnataka aims to create 1.5 lakh jobs in hospitality, attract ₹8,000 crore in investment by 2029: CM

Karnataka, with a new tourism policy in place, is setting ambitious targets for the hospitality sector, aiming to create 1.5 lakh new jobs and attract ₹8,000 crore in investments by 2029, Chief Minister Siddaramaiah said at the 55th Annual Convention Day organised by the Federation of Hotel and Restaurant Associations of India (FHRAI) on Thursday. The convention was themed ‘FutureScape 2047: Redefining Hospitality for a New India’. 

“Our vision rests on four pillars – infrastructure development, skill enhancement, sustainability, and global marketing. By strengthening these areas, we aim to create seamless experiences for tourists while ensuring growth benefits all regions of Karnataka,” he said. 

The Chief Minister highlighted that Karnataka is leading as a hub for MICE (meetings, incentives, conferences and exhibitions) tourism, with Bengaluru hosting 15% of India’s total MICE events. 

Mr. Siddaramaiah also emphasised the government’s push for sustainable and curated tourism experiences, citing a 20% growth in ecotourism initiatives across the Western Ghats, along with approvals for over 500 new homestays and 50 mid-scale hotels in offbeat destinations and plans to enhance coastal tourism with a ₹200 crore allocation for cruise and coastal infrastructure. 

Union Tourism and Culture Minister Gajendra Singh Shekhawat said that the Union government is committed to granting “industry status” to the hospitality sector.

Speaking at the event, Mr. Shekhawat said he had directed bodies such as the FHRAI to prepare detailed documentation to back the sector’s demand for infrastructure status. “This recognition will help hotels and allied businesses access lower-cost debt financing, favourable interest rates, and channel reinvestment into the industry,” he said.

Mr. Shekhawat highlighted that the Union Budget 2025-26 has already laid the foundation for such reforms. Finance Minister Nirmala Sitharaman announced that 50 tourist destinations will be identified and developed under a “challenge mode” in collaboration with States. Under the plan, States will contribute land for infrastructure, including connectivity and tourist amenities, while hotels in these destinations will be added to the harmonised infrastructure list.

He also announced that a new national tourism policy is on the anvil, aligned with India’s ongoing economic transformation into a $4 trillion economy. States and Union Territories have submitted proposals, and stakeholder consultations will shape the final framework. Incentives to promote sustainable and responsible tourism are a key part of the policy under consideration, he added.