Sri Vijaya Puram, June 6: The Andaman and Nicobar Islands administration is preparing to launch a series of roadshows aimed at attracting high-end hospitality brands as part of its renewed focus on low-density, high-value tourism. According to well placed sources, the initiative is part of a broader effort to reposition the islands as a premium destination and will be anchored around upcoming resort-led infrastructure proposals outlined in the recently finalized Project Implementation Mechanism (ANI PIM). The project according to sources is being monitored at the highest level of A&N Administration including the Lieutenant Governor and Chief secretary, respectively.
Three projects, on Aves Island, Smith Island, and the Megapode resort in Sri Vijaya Puram, form the initial set of offerings being prepared for potential investors. On Aves Island, officials confirmed that a 50-room resort has been cleared for development over 2.75 hectares, with a projected investment of ₹66 crore. The project has received Coastal Regulation Zone (CRZ) clearance and will incorporate renewable energy, water recycling systems, and green building standards, including GRIHA or LEED certifications.
The Smith Island project involves a proposed 70-room resort across 25 hectares, with an investment estimate of ₹126 crore.
In Sri Vijaya Puram, the existing Megapode Resort is set to be redeveloped into a 128-room facility under a concession model, with an expected investment of ₹175 crore. Officials stated that the project would follow energy-efficient design principles and form part of the administration’s strategy to promote “low-volume, high-yield” tourism that reduces ecological pressure while maximising per-capita tourist spending.
Upcoming Projects
In addition to these three, Long Island and the Ross–Smith twin islands have been identified for potential tourism-focused development. Infrastructure upgrades, such as new jetties and enhanced air connectivity, are being considered to support the expansion. The plans are inspired in part by tourism models in island economies such as the Maldives, one official said.
The islands already host a limited presence of national hospitality chains. Taj Hotels operates the Taj Exotica Resort & Spa on Havelock Island, a luxury property situated on 46 acres of beachfront, offering villas designed with sustainability in mind. Lemon Tree Hotels has a property in Sri Vijaya Puram, located near the airport, featuring 48 rooms and suites with modern amenities. Welcomhotel by ITC Hotels manages the Bay Island property in Sri Vijaya Puram, a hotel designed by legendary architect Charles Correa, offering rooms with views of the Bay of Bengal. Club Mahindra has expanded its presence through affiliate partnerships, operating resorts such as Symphony Palms on Havelock Island, Symphony Summer Sands on Neil Island, and Symphony Samudra in Sri Vijaya Puram.
According to sources, the new strategy attempts to address long-standing issues in the region’s tourism development, including fragmented planning and infrastructure delays.
Sources added two international consulting firms have been engaged to structure investor transactions and advise on public-private partnership models. Officials also confirmed that the administration is considering policy relaxations, including visa and inter-island travel norms, to facilitate greater international tourist inflow.
Sources indicated that initial conversations have already begun with some of India’s leading hotel groups. While no formal bids have yet been submitted, officials said discussions are progressing and that several chains have shown preliminary interest in evaluating the proposed sites. “We expect some movement in the next quarter,” a senior official noted, adding that the interest from the hospitality sector has been “cautiously positive.”
While segments of the local population have welcomed the prospect of improved livelihoods, a few have voiced concern over resource strain, land rights, and potential displacement. Smith Island, in particular, has seen opposition from a section of residents who fear the loss of traditional settlement patterns.
Recent assessments by planning body NITI Aayog have identified gaps in core infrastructure across several island clusters, including sanitation, drainage, and waste management. One official admitted that these gaps remain a challenge and would need to be addressed in parallel with any tourism expansion.
PM Modi’s Vision
In recent years, Prime Minister Narendra Modi has placed renewed emphasis on India’s island territories, hoping to turn both Lakshadweep and the Andaman and Nicobar Islands into world-class, sustainable tourism destinations. During a visit to Lakshadweep in January 2024, he inaugurated a string of development projects worth over ₹1,150 crore—including a submarine optical fibre cable linking Kochi to the islands and a new solar power plant in Kavaratti. The aim, government officials said, is to bridge the infrastructure gap and lay the foundation for eco-friendly, high-value tourism.
A similar transformation is underway in the Andaman and Nicobar Islands, where large-scale investments under the Great Nicobar Island Development Project are beginning to take shape. Plans include an international airport, a container transshipment terminal, and designated zones for luxury tourism development. Officials say the effort is not just about boosting footfall but about positioning the islands as strategic nodes in India’s maritime and economic map—while ensuring that the fragile ecosystems and cultural heritage of these regions remain protected in the process.
