Ahmedabad Needs 60,000 Rooms By 2030. Can Gujarat's Hotel Boom Plan Deliver By Then?

Last Updated:March 24, 2026, 12:04 IST

The upcoming 2030 Commonwealth Games and a potential 2036 Olympics have made Gujarat's hotel infrastructure a pressing priority

With several international sports events on the horizon, the Gujarat government is moving forward with a new hotel and tourism policy to strengthen the state’s tourism infrastructure. The upcoming 2030 Commonwealth Games and a potential 2036 Olympics have made this a pressing priority.

Hotel Capacity and Investment Goals

Estimates suggest that Ahmedabad alone will require more than 60,000 rooms during the Commonwealth Games, a capacity the state currently lacks. According to hotel industry groups, at least 300 new hotels will need to be built across Gujarat to meet this target.

The previous tourism policy (2021–2025) did not yield the expected level of hotel development, prompting the government to offer more aggressive and practical incentives in the new policy. Rather than direct subsidies, the focus will be on structural relaxations to ease the process for investors.

Investors have been assured extra floor space index at no cost, enabling hotels to be built with greater capacity. Also on the cards is relief on property tax and other government levies for a specified period, along with discounted electricity rates for hotels, replacing the standard commercial tariff. To accelerate construction and clearances, the government will offer a one-stop approval platform.

The government is also reportedly studying tourism policies of Karnataka, Madhya Pradesh, and Maharashtra, with the aim of customising these models to Gujarat’s needs. The overarching goal is to grow the private sector’s role without placing an additional burden on the state treasury.

Budget Allocations for 2026-27

In the recent Budget, the Gujarat government had made a “historic" budgetary provision of Rs 1,331 crore to transform the state into a sports hub and develop Ahmedabad as an ‘Olympic-ready’ city.

Cabinet minister Jitu Vaghani had told the Assembly that the total allocation for the Sports, Youth and Cultural Activities Department exceeding Rs 2,000 crore reflects the BJP government’s strong commitment to building Olympic-level sports infrastructure and nurturing youth talent.

“This year, a total provision of Rs 2,006 crore has been made for sports, youth and cultural activities, which is significantly higher than allocations made in previous years. Out of this, Rs 1,331 crore has been earmarked specifically for the sports sector," the minister had said.

India’s Olympics Dreams

On several occasions in the past, PM Narendra Modi and Union Home Minister Amit Shah have expressed India’s resolve to host the 2036 Olympic Games.

Earlier this year, Shah expressed confidence that Ahmedabad city will bag the hosting rights for the 2036 Olympic Games. His remarks followed after Ahmedabad was officially awarded the hosting rights for the 2030 Commonwealth Games.

The state government has declared that Ahmedabad will be developed as an ‘Olympic-ready’ city with an investment of around Rs 500 crore as part of the state’s broader vision to host and support international-level sporting events in the future.

As part of this initiative, the government plans to develop the SVP Sports Enclave around the Narendra Modi Stadium in Ahmedabad. Spread across 335 acres, the enclave will house multiple Olympic-standard facilities.

The facilities will include an aquatic centre with a seating capacity of 12,000, a tennis centre with a capacity of 24,000 spectators and a state-of-the-art indoor arena that can accommodate 18,000 people.

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