After the division of the state in 2014, Vijayawada is being centre of attraction for AP. Political and business activities reached to peak in Vijayawada even before capital has announced in Amravati. Having temporary CM camp office in Vijayawada city and nearest to hyderabad in distance, people and officials visited to the city regularly. Officials are worrisome for hefty rents in Vijayawada when they decided to move from hyderabad.
Because of all these, traffic in Gannavaram airport increased drastically. CBN govt did some development activities and extend the airport to the back side to cope up the traffic in the airport. Having Ashokgajapathy Raju as Civil Aviation Minister in modi cabinet was added more advantage for the development of Airports in Andhra Pradesh. Tirupati Airport turns to be International Airport where as Vizag, Rajahmundry and Vijayawada Airports have developed. All these development activities in Vijayawada cause to increase Hotel Occupancy rate. Though there was no 5 Star Hotels in the city, other hotels are getting occupied quickly.
Now, Air Connectivity was slowly disconnected to AP. Private Airlines have decided to cancel their services from Vijayawada and Vizag. Services from Vizag to Bangalore, kolkata, mumbai, Kochi and delhi are discontinued by one of the Private Airlines. AP new Government has not showed much interest to renew the services. Vizag to Colombo flight was stopped where as Vijayawada to singapore flight was stopped. 3 of the Airlines have stopped early morning services from hyderabad to Vijayawada and vice versa. Hotel occupancy rate in Vijayawada have dropped from 90% to 30% in last 45 days. Occupancy rate increased in Hotel Sector when there is any activity in any city. Currently, we don’t see much business activity in AP new Capital Amravati. When there is no activity that impact falls on tourism and travel industry.