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Madhya Pradesh Tourism Policy

Tourism Policy


Government of Madhya Pradesh Department of Tourism


Government of Madhya Pradesh Department of Tourism

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Madhya Pradesh — The Heart of Incredible India

Moments of valour and glory
Etched in stone.
Love, passion, feasting, divinity...
Arrested in the sensitive chisels of master- craftsmen.
Meandering rivers, lush forests
Hills and ravines.
The roar of the tiger.
Its the magic of a many-splendoured land.


Welcome to Madhya Pradesh...the land of Khajuraho, Sanchi and Bhimbetka (World Heritage sites), and the medieval townships of Mandu and Orchha. It is also the land of the tiger, forests of Kanha and Bandhavgarh, the spectacular Satpura and Vindhya mountain ranges and the life-giving rivers like the Narmada, Chambal, Ken and Sone . Pachmarhi is easily the most pristine among the hill-resorts in the country, and then there are the spectacular marble rocks of Bhedaghat. Bhopal, Indore and Jabalpur, along with Gwalior, are vibrant modern urban centres that showcase Madhya Pradesh's unique cultural wealth.
The holy cities of Ujjain, Omkareshwar, Maheshwar, Maihar, Chitrakoot and Amarkantak attract millions of pilgrims from all overthe world.


1. Vision Statement
To promote balanced and sustainable tourism which enables socio-economic development and establishes Madhya Pradesh as a destination that provides a complete tourism experience.

2. Guiding Principles
• Set up an institutional mechanism to promote private investment.
• Set up an effective regulatory mechanism for sustainable tourism.
• Provide reception, assistance, information, amenities, hygiene, security and infrastructure for
the tourists.
• Adoptthe principle of "First Conservation Later Tourism" for Cultural Heritage.
• Make eco-tourism an effective tool to sensitise masses regarding environmental conservation.
• Ensure active and coordinated participation of Government Departments, voluntary
organizations, community and all other stakeholders of tourism sector.
• Develop tourism through Public Private Partnership (PPP).
3. Strategy

• Transparent guidelines and procedures shall be laid down to attract private investment.
• Necessary database shall be prepared and research conducted for destination marketing.
• A comprehensive feedback mechanism of the tourist experience shall be developed.
• Continuous development of basic infrastructure such as roads, drinking water, power, hygiene,
transport, and solid waste management shall be ensured.
• "Special Tourism Zones" shall be developed to encourage investment in identified areas.
• Sensitization of local bodies towards tourism needs and their active participation shall be
• Rural Tourism shall be promoted to market fairs, local cuisine, costumes, products, art,
handicraft and heritage.
• Highest priority shall be accorded to conservation and preservation of natural resources and
beauty at eco-tourism destinations.
• Comprehensive plans shall be prepared for destinations of religious tourism.
• Development of tourist facilities near water bodies shall be ensured.
• Efforts shall be made to provide enhanced air connectivity between major cities of the State.
• Necessary steps shall be taken to promote adventure tourism with the help of local administration
and local bodies.

Manpower in tourism shall be trained to create a "Tourist Friendly" image of the State.
• Qualitative training shall be imparted to youth to enhance employment opportunities.
• Land Bank Policy shall be further strengthened.
• Entertainmentfacilities shall be developed at all tourist destinations.
• A chain of budget hotels shall be set up at destinations of religious tourism.
• Tourism Department shall ensure coordination of the concerned departments to promote Medical
• "Tourism Plan" shall become an integeral part of the plans of various departments.

4. Role of MP State Tourism Development Corporation Ltd.
The role of MP state Tourism Development Corporation Ltd. shall be as follows:-
• Continue providing touristfacilities as before.
• Redefine its commercial activities and play a major role in attracting private-sector investment by
acting as a facilitator.
• Disinvest in such of its properties which have not become satisfactory profit centres and give
them out on management or short-term lease to the private-sector.
• Continue its responsibility to promote the tourism industry and tourist attractions of the State, and
notfocus merely on marketing its commercial units.
• Coordinate and network on a regular basis with all the stake holders of the tourism industry in the
State to sort out all their problems.
• Invest in such new areas which are hitherto undeveloped to pave the way for the private-sector

• The profits earned shall be invested in developing tourist infrastructure in new areas.
• Strengthen the MP Institute of Hospitality Training .
• Continue its pivotal role in obtaining financial assistance from the Ministry of Tourism,
Government of India, and loans from other financial institutions.

5. Special Provisions
With the view to encourage setting up of tourism projects, the following facilities shall be provided:
Luxury Tax
5.1 Rates of Luxury Tax: No Luxury Tax shall be payable on room rent of 2000 per day. Where room
rent is Rs 2001 and above, 10% Luxury Tax shall be payable.
5.2 Exemption in Luxury Tax during "off-seasons": There shall be complete exemption from Luxury
Tax during off-seasons. The period shall be for 3 months. There shall be no "off-season" for hotels located in the Municipal Corporation limits of Bhopal, Jabalpur, Indore and Gwalior.
5.3 Exemption in Luxury Tax on New Hotels: All new hotels in Bhopal and Indore shall be exempted
from Luxury Tax for 5 years and for 8 years if located in rest of the State. A minimum investment
of 1 Crore shall be mandatory. Any extension/expansion of existing hotels with a minimum
investment of 50.00 Lakh shall also be exempted from Luxury Tax for a period of 5 or 8 years
depending on location (for the extended portion only). It is clarified that only construction of new rooms shall constitute expansion. While computing investment, the cost of land shall be limited to 20% of the total amount invested.
5.4 Exemption in Luxury Tax on Bed & Breakfast Units: Units registered under "Bed & Breakfast
Scheme", having a maximum of 5 rooms, shall be exempted from Luxury Tax.
5.5 Exemption in Luxury Tax on Construction of New Heritage Hotels: All new heritage hotels set up
after 01/04/2006 shall be exempted from Luxury Tax for a period of 10 years subject to an investment of 1 Crore. Similarly, any extension/expansion of such existing heritage properties which had been used at least in part as heritage hotels earlier with a minimum investment of
50.00 Lakh shall also be exempted from Luxury Tax for a period of 10 years for the extended portion only. While computing investment, the cost of land shall be limited to 20% of the total amount invested.
5.6 Definition and Features of Heritage Hotel: Definition of a Heritage Hotel shall be as follows:-

"All those buildings, forts, havelis, kothis and castles that have been
(I) Constructed before 1950
(II) The architectural features of the building should be maintained in harmony with the
original architectural design.

(III) Immediate surroundings of the Heritage Hotel should be in consonance with the architectural
features of the original building.
(IV) Front elevation, architectural style and general construction practice should exemplify local
cultural traditions and features.
(V) Cuisine and catering services of the Heritage Hotel should be clean, hygienic and of good
standards, and it should give the flavour and taste of local traditions, services, facilities and
immediate surroundings of high quality and standards.

Any extension, improvement, renovation, change in the existing structures should be in keeping with the traditional architectural styles and constructional techniques harmonising the new with the old. After expansion/renovation, the newly built-up area added should not exceed 50% of the total built-up (plinth) area including the old and new structures. For this purpose, facilities such as swimming pools, lawns, etc. will be excluded".

6. Entertainment Tax
New tourism projects shall be exempted from Entertainment Tax for 10 years on all such items of entertainment that are of permanent nature, and for 6 years on entertainment programmes which are temporary in nature. In addition the State Government may notify certain areas, other than special tourism zones, wherein there shall be a complete holiday from entertainment tax for a period of 10 years.


7. Registration and Stamp Duty Fees
7.1 All new Heritage Hotel projects shall be exempted from paying Registration Fee and Stamp Duty
for the built-up area and one hectare of appurtenant land. This exemption shall be in the form of
refund by the Tourism Department after the project has been commissioned.
7.2 No Registration or Stamp Duty shall be payable on Government land being allotted by Tourism
Department to private-sector investors through 90-years lease or through the Development Agreement.

8. Transport
Transport Department's notification No. F-22-45-2005-8 dated 22/11/2005 provides exemption to Tourist Vehicles from Motor Vehicle Taxfor 2 years on designated tourist routes as given below: -

1. Bhopal Darshan
2. Bhopal — Islamnagar— Sanchi — Udaigiri — Gyaraspur— Bhopal
3. Bhopal — Bhojpur— Bhimbetka — Pachmarhi — Bhopal
4. Bhopal — Ujjain — Indore — Omkareshwar— Maheshwar— Mandu — Bhopal
5. Bhopal —Khajuraho— Satna— Bhopal (Via Sagar)
6. Bhopal — Pachmarhi — Bhedaghat — Jabalpur — Kanha — Bandhavgarh — Bhopal
7. Bhopal — Bhedaghat—Jabalpur— Bhopal
8. Bhopal —Shivpuri —Gwalior- Bhopal
9. Ujjain Darshan
10. Pachmarhi Darshan

Gwalior: -
1. Gwalior Darshan —Tighra Fort— Museum
2. Gwalior — Shivpuri — Chanderi —Orchha — Khajuraho — Panna— Chitrakoot— Satna— Bandhavgarh
— Amarkantak— Jabalpur — Gwalior
3. Gwalior— Morena — Chambal Ghadiyal Sancuary—Gwalior
4. Gwalior — Shivpuri — Ujjain — Indore — Mandu — Omkareshwar — Maheshwar — Indore — Ujjain —

Jabalpur: -
1. Jabalpur— Bhedaghat —Jabalpur
2. Jabalpur— Bhedaghat—Kisli —Amarkantak— Bandhavgarh —Jabalpur
3. Jabalpur— Seoni —Chhindwara— Pachmarhi —Jabalpur
4. Jabalpur- Seoni — Pench National Park—Jabalpur
5. Jabalpur- Kanha— Kisli —Mukki — Balaghat—Seoni — Pench Udyan —Jabalpur

Satna: -
1. Satna—Chitrakoot—Satna— Panna—Khajuraho — Dhubela—Orchha—Gwalior
2. Satna—Chitrakoot— Bandhavgarh —Amarkantak—Kanha— Pachmarhi —Jabalpur
3. Khajuraho Darshan

1. Indore Darshan
2. Indore — Mandu —Indore
3. Indore — Omkareshwar— Burhanpur— Indore
4. Indore — Omkareshwar— Maheshwar— Indore
5. Indore—Dhar— Bagh Caves — Bawangaja— Khalghat— Maheshwar - Indore

This facility shall continue and the following routes shall also be included:-
1. Pench-Bhedaghat-Jabalpur-Maihar-Chitrakoot
2. Indore-Ujjain-Badnagar-Ratlam-Mandsaur-Neemuch

9. Land Allotment
9.1 Land Bank Policy dated 23/2/2008 shall continue. Under this policy, identified plots of Government
land (including buildings/other properties located on it) are made available on lease for 90 years
through open competitive bidding.

9.2 The Department may instead of leasing out the land on 90 years grant development rights on
identified plots of land for a period of 30 years, renewable by another 30 years, through the
instrument of Development Agreement.

10. Diversion Tax
Diversion Tax is payable on land when it is diverted from agricultural to tourism use. In the case of new tourism projects or when additional land is acquired for old projects, the following procedure shall be adopted :-
10.1 Diversion Premium and Fee shall be assessed at 20% of that payable for residential purpose as
prescribed under section 59 of MP Land Revenue Code 1959.
10.2 A Committee comprising Principal Secretaries Tourism, Revenue, Urban Administration, and
Managing Director, MP State Tourism Development Corporation Ltd. as Member Secretary shall
grant this concessions on application.

11. Ecotourism and Adventure Tourism
11.1 Ecotourism and Adventure activities on all forest lands shall be organised through State
Ecotourism Development Board in accordance with the guidelines of the Forest Department.
Tourism Department may permit ecotourism/ adventure activity on non-forest
Government/revenue land in any part of the State. The activities shall include the following:-

• Camping
• Trekking
• Angling
• Water Sports
• Elephant Safari
• Cycle Safari
• Riding Trail
• Photo Safari
• Canoeing Safari
• White Water Rafting
• Rock Climbing/Mountaineering
• Para Sailing/Para Gliding
• Hot Air Ballooning...

11.2 Applications shall be invited by the Tourism Department from private-sector investors for
undertaking such activities.
11.3 Government land required for such activity shall be made available on license for a nominal fee for
a period of 5 to 15 years.
11.4 If the proposed activity demands significant construction of a permanent nature, the proposed
investment shall be considered long term and land shall be made available through the
Development Agreement.
11.5 Duration of license, fee and otherterms and conditions shall be finalised by a Committee.

12. Concessions from Energy Dept
If any Tourism Project or Heritage Hotel sets up captive power plant, it shall be exempted from Electricity Duty & Cess.

13. Film Tourism
Film producers have shown keen interest for location shooting in Madhya Pradesh. Producers face a lot of difficulties in coordinating with various Departments for permissions and clearances. Henceforth, MPSTDC shall coordinate with various Departments for their permissions and clearances on a best-
effort basis.

14. Tourism Development Councils
15.1 State Tourism Development Council: To provide vision, leadership and ensure convergence, State
Tourism Development Council shall be set up under the Chairmanship of the Hon'ble Chief
Minister of Madhya Pradesh. Ministers and officers of other Departments, representatives from
the tourism sector, voluntary organizations and other stakeholders shall be nominated as
members of this apex body.
15.2 District Tourism Promotion Council: Efforts are being made at the local level by District Collectors
and others to promote tourism related activities with local synergy. In some districts, Collectors
have registered Societies to enable these activities. To bring about uniformity, Tourism
Department shall prescribe the constitution of these societies and the manner in which they shall
discharge their responsibilities. The Minister in-charge of the concerned district shall chair the

15. Water Tourism
Madhya Pradesh has a large number of dams/water bodies with beautiful forests and landscape around them. So far they have not been developed from the tourism point of view. The Water Tourism Policy envisages grant of monopoly to MP State Tourism Development Corporation Ltd. to develop water sports in the identified reservoirs and tourist infrastructure on the banks primarily through private initiative. Plans for developing Indira Sagar (Khandwa), Ban Sagar (Rewa), Gandhi Sagar (Mandsaur) and Madikheda (Shivpuri) are underway.

16. Air Connectivity within State
Madhya Pradesh has 5 commercial airports at Indore, Bhopal, Khajuraho, Jabalpur and Gwalior. Indore and Bhopal airports are undergoing major expansion in terms of runway extension and new terminal buildings. However, to further improve air connectivity within the State, Tourism Department shall
encourage underwriting seats for private operators and grant 100% concession on VAT on ATE

17. Interdepartmental Coordination
An empowered Committee under the Chairmanship of the Chief Secretary comprising Principal Secretary Finance, Tourism, and the Secretaries of the concerned departments to resolve such matters that may require interdepartmental coordination shall be set up.

18. To Promote Sustainable Tourism
Department of Tourism shall undertake necessary studies to identify such tourism activities which adversely impact sustainability and wherever necessary take steps to regulate them. To ensure community participation, effective strategy of IEC (Information, Education and Communication) shall be used. State Tourism Promotion Council shall play the crucial role of ensuring joint participation of all the Departments and stakeholders in this endeavour.

19. Skill Development and Training for Youth
MP Institute of Hospitality and Training (MPIHT) at Bhopal organises vocational training programmes for youth in Front Desk Management, House Keeping and Food & Beverage Services. Besides obtaining financial assistance under Capacity Building for Service Providers (CBSP) Scheme of GUI, courses for SC, ST and OBC youth shall be conducted by collaborating with respective State departments. Self financing courses shall be launched in consultation with the local hospitality industry.

20. Special Tourism Zones
Many regions in the State have huge tourism potential. It is proposed to notify such regions as "Special Enormous tourism potential of many regions in the State has remained untapped for want of adequate private and public investment. The State Tourism Promotion Council shall identify and notify such regions as "Special Tourism Zones (STZ)".The State Government shall develop infrastructure in such zones through convergence.

Tourism Projects in the STZ shall be eligible forthe following exemptions:-
• Exemption from Registration Fee and Stamp Duty for tourism projects. The same shall be
refunded by the Department of Tourism after the commencement of the project.
• Full exemption from Luxury and Entertainment Taxfor 10 years.
• Discount up to 75% on prevailing license fee for FL-2/3 Liquor License and the condition of
minimum Guarantee shall be waived for 10 years .
• Exemption from Diversion Premium and Tax.
• Exemption from Motor Vehicle Tax for 5 years for a maximum of three vehicles (out of which two
should be of 5-seater capacity and one of 12-seater capacity) owned by the project.

21. MP State Tourism Development Corporation Ltd. shall act as a Single
Window for implementing the provisions of the policy..

22. "New Projects" mentioned in this Policy means all such tourism projects have either been
set up or have commenced operations after 20th October 2010 i.e the day on which the New Tourism
Policy 2010 came into effect.

The heart of
Incredible India
For further details, contact: Managing Director
Paryatan Bhawan, Bhadbhada Road, Bhopal - 462 003. Tel: 0755-2774450 Fax: 0755-2774289

Government of Madhya Pradesh
Department of Tourism

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