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Daman & Diu have a mix of natural and manmade attractions. The Major Tourism Drivers and attractions in Daman can be categorised two heads: Heritage Attractions and Waterfront Attractions. In addition to these there are religious attractions and man made attractions too like Water Park, Gardens etc. The Major Tourism Drivers and attractions in Diu can be categorised two heads: Beach Attractions and Heritage Attractions. There are also other attractions like religious attractions, Caves etc.
The Government of INdia has alloted only one Smart city for Daman & Diu.
All the tourism attractions are assessed and evaluated in terms of its existing situation its quality, amenities, infrastructure, popularity etc., the tourism development potential of these sites etc. The current tourism trend in Daman is mainly the domestic tourists from the nearby towns and cities like Surat, Nasik, Mumbai, etc. of the states Gujarat and Maharashtra. They are either leisure tourists or business/ conference tourists. The current tourist visitation to Diu is mainly from the neighbouring state of Gujarat. Diu, inspite of having the right mix to grow as a tourist destination, has restricted visitation mainly due to the difficulty in accessibility to Diu. Based on the tourism resource assessment, SWOT analysis, demand estimation and market study, unique tourism development plans have been proposed for both Daman and Diu.
For over 450 years, the coastal exclaves of Daman (Portuguese: Dam�o) and Diu on the Arabian Sea coast were part of Portuguese India, along with Goa and Dadra and Nagar Haveli. Goa, Daman, and Diu were incorporated into the Republic of India on December 19, 1961 by military conquest. Portugal did not recognise the Indian annexation of these territories until 1974.
The territory of "Goa, Daman, and Diu" was administered as a single union territory until 1987, when Goa was granted statehood, leaving Daman and Diu as a separate union territory. Each enclave constitutes one of the union territory's two districts. Daman and Diu are approximately 650 kilometres away from each other by road.
Daman & Diu are well connected by roads, and are 12 km from Vapi, 125 km from Surat, and 150 km from Mumbai. Daman isn't actually connected by railway but Vapi is, with all major cities. Nearest airport is Mumbai. Diu Airport has commercial air services, while Daman has an Indian Navy air base.
Daman and Diu's gross state domestic product for 2005 was estimated at US $156 million in current prices.