India is set to pilot tourism bonds as a new financing mechanism for developing tourism and heritage infrastructure, with Nathdwara in Rajasthan proposed as the first destination. The initiative follows the introduction of temple bonds and aims to attract investment for tourism-related projects.
The Housing and Urban Development Corporation (HUDCO) is working with Nathdwara and Pushkar to help urban local bodies raise funds through tourism bonds. The proceeds are expected to support projects related to pilgrimage, hospitality, heritage conservation and tourism infrastructure.
HUDCO Chairman and Managing Director Sanjay Kulshrestha said the corporation is assisting cities in identifying bankable projects and will help urban local bodies issue bonds while engaging investors through roadshows and other outreach activities.
The proposed tourism bonds are intended to finance revenue-generating infrastructure, improve visitor amenities and strengthen tourism ecosystems. Officials believe the initiative will boost local economies by supporting sustainable tourism development and enhancing the visitor experience.
The model builds on the recently introduced temple bonds in Ujjain, which created a new funding avenue for religious and tourism infrastructure. If the Nathdwara pilot proves successful, similar tourism bonds could be rolled out in other destinations across India.
Apart from tourism bonds, HUDCO is also exploring social impact bonds as part of its broader strategy to diversify infrastructure financing and support projects that deliver long-term social and economic benefits.