When land conversion is required
Many hotel and resort sites in Karnataka — especially resort destinations in Coorg, Chikmagalur, and coastal belts — start as agricultural or non-commercial plots. Converting land use to tourism/hospitality requires a conversion order and payment of conversion fees to the revenue department.
KTP 2024–29 reimburses these conversion fees for registered new tourism projects and qualifying expansions, reducing a significant upfront cost that often surprises first-time hotel developers.
Reimbursement process
| Step | Action | Outcome |
|---|---|---|
| 1 | Register project with Department of Tourism | KTP registration number |
| 2 | Apply for land use conversion | Conversion order issued |
| 3 | Pay conversion fee at full rate | Retain payment receipt |
| 4 | Complete building sanction and COD | Project operational |
| 5 | File reimbursement claim | Fee refunded per policy schedule |
Step1
ActionRegister project with Department of Tourism
OutcomeKTP registration number
Step2
ActionApply for land use conversion
OutcomeConversion order issued
Step3
ActionPay conversion fee at full rate
OutcomeRetain payment receipt
Step4
ActionComplete building sanction and COD
OutcomeProject operational
Step5
ActionFile reimbursement claim
OutcomeFee refunded per policy schedule
Eligibility conditions
- Project registered under Karnataka Tourism Policy 2024–29
- Conversion to tourism-approved land use classification
- New projects or expansions meeting policy category thresholds
- Environmental and building approvals obtained before construction
- Reimbursement claimed after COD with conversion order and payment proof
Related guides
Stamp duty exemption · Mangaluru hotel subsidy guide · Hampi hotel subsidy guide · How to apply — Karnataka
More Karnataka incentive guides
Subsidy outside Bengaluru · Bengaluru hotel incentives · Stamp duty exemption