The Yogi government in Uttar Pradesh is opening up new opportunities in tourism by inviting proposals for innovative stay options like capsule pods, caravan tourism, and theme-based accommodations. These projects fall under a new category called ‘New Tourism Startup Units’, aimed at attracting young travellers and boosting tourism in smaller towns.
Focus on low-cost, unique travel experiences
Officials say the idea is to move beyond traditional hotels and promote stays that are more “experience-driven” and “tech-enabled”, while still being affordable. These models are designed for travellers who prefer short, budget-friendly trips but want something different and memorable.
Incentives to attract entrepreneurs
To encourage startups, the government is offering capital subsidies starting from 25% for projects costing between ₹10 lakh and ₹10 crore. Along with this, there is a 100% exemption on stamp duty and waivers on land conversion and development charges. Women entrepreneurs and those from SC/ST communities can get an additional 5% subsidy.
All proposals under this category will be reviewed by a State-Level Special Tourism Committee (SLSTC), which will also decide the incentives for each project.
New stay formats being promoted
The government is focusing on several new formats that are already showing in different parts of the state.
- Capsule pods: Inspired by Japanese designs, these are compact, tech-enabled sleeping units. They are already running in Varanasi, especially in crowded areas, and are seen as a low-cost stay option.
- Caravan tourism: These are mobile homes equipped with basic facilities. A pilot project is already underway on the Lucknow-Ayodhya route to test road-based travel.
- Open-to-sky or ‘star beds’: These are designed for night sky viewing and nature experiences. Regions like Bundelkhand and the Terai are being considered suitable. A similar bamboo cottage setup is already available in Firozabad.
- Hobbit houses: These theme-based stays focus on eco-friendly design and local materials. Places like Lakhimpur Kheri and Banda have already tried similar village-style tourism models on a small scale.
Boost for jobs and smaller towns
According to officials, these new tourism models require less investment compared to hotels and can be set up quickly. They are also expected to create more jobs at the local level, especially in areas where large hotel projects are not practical.
“These models are flexible and can be developed near highways, wildlife areas, or in small towns,” a senior tourism official said, adding that the focus is now shifting from destination-based tourism to experience-led travel.
With this initiative, the Yogi government aims to reshape tourism in Uttar Pradesh by making it more inclusive, innovative, and accessible for both travellers and entrepreneurs.
