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Learn about Subsidy and Tax benefits of the First Heritage Tourism Policy of Gujarat.

Community - HC by Community - HC
September 15, 2020
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Learn about Subsidy and Tax benefits of the First Heritage Tourism Policy of Gujarat.
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The Government of Gujarat on Friday, 11th September, declared Its ‘Heritage Tourism Policy’ 2020-25, announcing Subsidy and Tax benefits to convert Heritage Buildings into Hotels, Banquet Halls and Restaurants to attract tourists!

Chief Minister Mr. Vijay Rupani declared this policy on September 11 making provisions for subsidy and tax benefits for the conversion of heritage buildings into hotels, restaurants or banquet halls as a way of attracting tourists. The policy is aimed at helping Gujarat attain a prominent place on the world tourism map.

According to the Heritage Tourism Policy, Palaces, Forts and Monuments built before January 1st, 1950 can be converted into heritage hotels and museums if the heritage structure is not damaged or altered. Moreover The state government also revised the Gujarat Home Stay Policy to simplify it and make it more convenient for owners to convert their homes into tourist facilities.


With an aim to make Gujarat one of the favorite destinations on the ”World Tourism Map”, Chief Minister Rupani announced the Heritage Tourism Policy 2020-25, an official release said. Gujarat has numerous tourist attractions such as deserts, vast coastline, hills, ancient and historical buildings, religious places, Dinosaur Park, ”Statue of Unity” and others, it said, adding HTP (Heritage Tourism Policy) was one more way to increase tourism in the state.

  • The new Policy offers state government assistance for setting up a new heritage hotel, museum, heritage banquet hall, and heritage restaurant, as well assistance for repair and renovation of such facilities. As per the policy, for setting up a hotel with an investment of up to Rs 25 crore, the state government will give 20% subsidy, with maximum amount of Rs 5 crore.
  • For investment of above Rs 25 crore, the maximum subsidy amount will be Rs 10 crore.
  • Similarly, for renovation or setting up new heritage museum, heritage banquet hall and heritage restaurant with investment up to Rs 3 crore, the government will give assistance of 15% or Rs 45 lakhs.
  • In case the investment is more than Rs 3 crore, then the assistance could go up to maximum of Rs 1 crore at the rate of 15%.
  • The loans sanctioned and disbursed during the Heritage Tourism Policy period for converting heritage buildings into tourist destinations will be subject to 7% interest subsidy for a period of five years up to a limit of Rs 30 lakhs per annum, the police document said.
  • The policy also includes 100% electricity duty waiver for five years, rent support for national-international events and marketing support.
  • For eligibility, the building should have been constructed before 1950.
  • Gujarat has many erstwhile princely states, where huge palaces and heritage buildings are located, and which can be converted to hotels and tourist destinations under the new scheme.
  • Changing the Gujarat home stay policy, the government has decided that owners of home stay will be charged property tax and electricity as applicable to residential units instead of commercial establishment.
  • The owners of registered home stay, who also reside in the same premises comprising one to six room units, can take advantage of rooftop solar energy benefits also! Furthermore, There are at present 100-odd home stays functioning in the state and Gujarat Tourism will provide training to them to provide quality hospitality to the guests.

Mr. Vijay Rupani is confident that the further simplification of Home-Stay rules will provide Rural Employment besides promoting Tourism and The Hotel Industry.

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