Temple city poised to become MICE magnet

Tirupati: Tirupati is poised for a major transformation from its current status as a temple city with the state government approving an ambitious ‘Tirupati One’ integrated cultural and MICE destination project, aimed at attracting global visitors, large conventions, and destination events to the pilgrim centre. The project, involving an estimated investment of Rs 1,226.32 crore, is expected to generate direct employment for nearly 1,500 people, apart from significantly expanding Tirupati’s tourism infrastructure.

The approval marks a renewed push for tourism development under the present coalition government, after a hiatus during the previous YSRCP regime.

According to a GO issued by the Youth Advancement, Tourism and Culture Department on March 25, the project will be developed by a consortium comprising DivyaSree Holdings and Cybercity Builders & Developers under the Andhra Pradesh Tourism Policy 2024–2029.

The State Investment Promotion Board (SIPB) has recommended the allotment of 21.10 acres at Damineedu village in Tirupati Rural mandal, along with a package of incentives to facilitate the project’s implementation.

The proposed ‘Tirupati One’ development will feature a large convention and Meetings, Incentives, Conferences and Exhibitions (MICE) complex spread over seven acres with a seating capacity of 5,000 persons. A wellness zone comprising 300 rooms and a 250-unit time-share facility will be developed across another seven acres.

Hospitality infrastructure will include a 200-room five-star hotel and a 150-room three-star hotel across four acres, while an entertainment zone with a multiplex and a cultural zone featuring a theme park will occupy two acres each.

Designed as an integrated, master-planned campus, the project combines accommodation, convention facilities, wellness, leisure, recreation and cultural attractions at a single destination. Officials believe this model will enhance visitor experience, increase visitors’ average length of stay and generate multiplier effects across the local tourism economy.

Officials say the initiative aims to bridge Tirupati’s existing infrastructure gap and position the city as a national and international hub for conventions, tourism, and destination weddings.

Given its scale and integrated nature, the project has been classified as an Ultra Mega initiative, making it eligible for a range of incentives. These include 100 per cent reimbursement of net SGST for 15 years, a capital subsidy equal to 10 per cent of fixed capital investment capped at Rs 40 crore, reimbursement of stamp duty and transfer duty on land purchase, electricity supply at industry tariff for five years, and reimbursement of electricity duty during the same period.The land will be allotted on a freehold basis at prevailing market value, subject to adherence to project timelines and tourism-use conditions laid down by the government. The Tourism Authority has been authorised to take further steps for implementation, with officials expressing confidence that the integrated development will strengthen Tirupati’s tourism ecosystem and generate substantial economic benefits for the region.