ADB to promote sustainable tourism in Uttarakhand

The Asian Development Bank (ADB) and the Government of India signed a $126.42 million loan agreement to promote rural development through sustainable tourism in Uttarakhand, especially in the Tehri Lake region.

“The ADB loan supports the Government of Uttarakhand’s policy to position the state as a diversified, all-weather tourism destination, with Tehri Lake identified as a priority area for development,” said Ms. Juhi Mukherjee, Joint Secretary, Department of Economic Affairs, after signing the loan agreement.

Mr. Kai Wei Yeo, Officer-in-Charge, India Resident Mission, for ADB, mentioned, “The project showcases a model for sustainable tourism anchored around a hydropower lake by adopting a multisector approach to generate jobs, diversify income, and build climate resilience”.

The project targets the Tehri Garhwal District, one of Uttarakhand’s most climate-vulnerable and economically disadvantaged regions.

In late August and early September 2025, cloudbursts and intense rain caused multiple flash floods and mudslides across Tehri Garhwal, Chamoli, and neighbouring districts. These floods inundated villages, damaged infrastructure, and led to widespread disruption.

Many observers and people consider unsustainable tourism as one of the contributors to this destruction. Rampant, unregulated construction of hotels, roads, and tourist facilities, often on unstable slopes and floodplains, has disrupted natural buffers, increased drainage problems, and made the region more vulnerable to extreme weather events like heavy rains and cloudbursts.

Ecoplore Hotel

The $126.42 million loan agreement aims to benefit over 87,000 residents and 2.7 million annual visitors through improved tourism planning, upgraded infrastructure, enhanced sanitation and waste management, and disaster preparedness.

Key interventions include institutional strengthening, climate-resilient infrastructure, nature-based solutions to mitigate landslide and flood risks, and inclusive tourism services led by women, youth, and the private sector.

Notable features include a livelihood matching grant program to support tourism led by women, youth, and micro, small and medium-sized enterprises, universal access design including for persons with disability, and a women-led disaster risk management initiative in pilot villages.

If executed efficiently, the ADB loan agreement to promote sustainable tourism in Uttarakhand can be one of the measures to improve resilience and make tourism in the Himalayan region climate-resilient for both local communities and ecosystems.