Lok Sabha Question No. 2343 (UNSTARRED), answered on 2025-12-15
Subject: Roadmap to Sustainable Homestay Tourism
Ministry: TOURISM
Asked by: Shri Chamala Kiran Kumar Reddy

## GOVERNMENT OF INDIA MINISTRY OF TOURISM

## LOK SABHA UNSTARRED QUESTION NO.2343

## ANSWERED ON 15.12.2025

## ROADMAP TO SUSTAINABLE HOMESTAY TOURISM

## 2343.  SHRI CHAMALA KIRAN KUMAR REDDY:

Will the Minister of TOURISM be pleased to state:

- (a) whether the NITI Aayog's report on 'Rethinking Homestays: Navigating Policy Pathways', aims a roadmap  for States to harmonies regulations in promoting sustainable growth of tourism and  unlock  homestays'  economic,  cultural  and  entrepreneurial potential; and
- (b) if so, the details thereof and the specific measures proposed to be taken by the Government to implement the provisions stated in the said report?

## ANSWER

## THE MINISTER OF TOURISM         (SHRI GAJENDRA SINGH SHEKHAWAT)

(a) to (b): Yes.  The  NITI  Aayog's  report  on  'Rethinking  Homestays: Navigating Policy Pathways' aims to advance framework that states can adopt  to  harmonise  regulations  and  establish  an  inclusive  homestay ecosystem, thus promoting sustainable tourism growth.

The best practices are available from this report for States/UTs to adopt. The specific measures proposed in the said Report is placed at ANNEXURE.

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## ANNEXURE

STATEMENT IN REPLY TO PARTS (a) TO (b) OF LOK SABHA UNSTARRED QUESTION NO.2343 ANSWERED ON 15.12.2025 REGARDING ROADMAP TO SUSTAINABLE HOMESTAY TOURISM RAISED BY SHRI CHAMALA KIRAN KUMAR REDDY

RECOMMENDATIONS PROPOSED FOR THE HOMESTAY SECTOR IN THE REPORT 'RETHINKING HOMESTAYS: NAVIGATING POLICY PATHWAYS'.

1. Adopt Best Practices from Across India on Various Components of Regulation:

The current ecosystem for alternative accommodations, particularly homestays, in India operates within a diverse regulatory landscape where states  have  tailored  frameworks  to  balance  operational  ease  with governance.  Many  states  have  simplified  registration  processes  and introduced  policy  incentives  to  drive  homestay  growth  while  ensuring compliance.

For instance, Goa has significantly reduced bureaucratic hurdles by requiring only three essential documents -proof of ownership, applicant identification, and GST registration (if applicable) -for homestay registration.  The  state  also  offers  a  seamless  digital  registration  and renewal process through a single online portal, with a five-year validity period  for  registration  and  no  additional  documentation  required  for renewal.

Kerala follows a structured yet efficient verification process through a quorum-based assessment. A team of four out of six designated officials, including the District Tourism Officer, inspects the property and issues the necessary NOCs.

For  classification  of  homestays,  Chhattisgarh  offers  functional classification with various categories such as heritage, urban, village/forest, and tribal homestays with concomitant flexibility regarding amenities to be provided.

In Delhi, under the National Capital Territory (Incredible India) Bed and Breakfast Establishments (Registration and Regulation) Act of 2007, classifies B&Bs as residential units. This provision allows operators to benefit  from  lower  power,  water,  and  property  tax  rates,  along  with deemed registration under the Incredible India B&B guidelines.

Other states have also integrated the convergence  of their respective homestay incentives into broader policy initiatives. Meghalaya offers  operators  the  opportunity  to  combine  subsidies  for  national  and state  policies  whereas  Gujarat  allows  operators  to  reap  benefits  from their state solar mission and other policies, thereby fostering growth in the  sector.  Maharashtra  has  introduced  a  zone-based  classification system for tourism projects, linking incentives to the property's location to  promote  balanced  regional  development.  Meanwhile,  Uttarakhand follows a structured, phase-wise incentive program tailored to the needs of both hilly and plain regions, ensuring equitable growth across the state.

Further,  to  advance  sustainable  and  responsible  tourism,  Kerala introduced  the  Responsible  Tourism  Mission  in  2008  which  aspires  to foster better economic benefits and the well-being of local people and communities. Its key aspects are conserving natural and cultural heritage and  preserving  the  world's  diversity.  Goa  also  prioritises  regenerative tourism through the Tourism Master Plan as well as the Homestay and B&B Policy, to revive ecosystems, communities, and cultures, and build a sustainable ecosystem.

2. Take concrete steps towards creating a model policy framework for homestays:

Building  on  these  successful  practices,  it  is  proposed  to  have  a model policy framework that states may adopt to harmonize regulations and establish a more resilient and inclusive ecosystem for homestays. This  framework  incorporates  key  components  designed  to  simplify processes,  encourage  wider  participation,  and  promote  sustainable tourism growth.

## 2.1 Ease of Doing Business:

- a. Registration and Renewal: The registration process may be streamlined, requiring only essential documents such as ownership proof, applicant identification, and GST registration (if applicable, depending on the  threshold).  For  renewal,  the  concerned  establishment's  renewal application may be processed upon payment of the requisite fee, with no additional documentation required. The focus may be placed on reducing bureaucratic hurdles and eliminating unnecessary steps.
- b. Establish a Single-window Clearance System for Homestay Registration: A unified, digital platform may be established to integrate approvals across key departments, including tourism, panchayats, revenue,  and  utilities,  to  streamline  processes  and  minimize  delays. Provisional  registration  certificates  may  be  issued  before  verification, allowing homestays to commence operations while necessary inspections are conducted. Further, interdepartmental coordination may be strengthened to facilitate a smooth and efficient registration process.
- c. Proportionate Registration Fees: Fees and compliance requirements may  be  reasonable  and  proportionate  to  the  size  and  category  of  the homestay, ensuring the financial viability of smaller operators.
- d. Facilitate Processing: Application disposal timelines may be capped at 30 days, ensuring prompt registration and renewal processing, thereby improving  service  delivery  and  reducing  delays.  Additionally,  if  the concerned Tourism Department fails to communicate a decision within the stipulated time frame, the application may be automatically deemed approved to prevent unnecessary administrative bottlenecks.
- e. Establish Central Nodal Agency: Establish a central nodal agency to streamline communication across departments and facilitate coordination between various stakeholders to ensure a unified approach to policy implementation, marketing, and resource allocation.

## 2.2 Digitalisation for Streamlined Operations of Homestays:

- a. Develop a Digital Portal for Registration and Compliance:  A centralised  digital  portal  may  be  developed  for  homestay  registration, renewals, and compliance management. The portal may allow operators to submit documents, track applications, and receive policy updates and renewal reminders.
- b. Introduce-Declaration Mechanisms: To reduce administrative burden and enhance ease of doing business, homestay operators may be permitted to self-declare compliance with essential guidelines through a digital portal while obtaining necessary NOCs and undergoing inspection processes. Further, a randomised inspection mechanism may be introduced  to  ensure  regulatory  compliance  and  reduce  administrative overheads.
3. 2.3 Destination Management and Promotion through Homestays:

The policy may emphasise developing and promoting lesser-known destinations by integrating the homestay sector as a key component in diversifying tourism across the state. In addition, a key priority may be creating distinctive, immersive experiences that are inherently linked to each destination's unique character to attract visitors.

- a. Targeted Marketing Campaigns: Collaborative marketing initiatives and  promotional  campaigns  undertaken  by  the  state  government  may highlight the unique offerings of underdeveloped regions, with a focus on how homestays can provide authentic, community-driven travel experiences that attract both domestic and international visitors.

## The following marketing strategy could be considered:

- i. Collaborations  with  OTAs,  and  travel  companies  to  increase visibility  and  drive  bookings  for  the  particular destination, attracting both domestic and international tourists.
- ii. Engagement  with  travel  influencers  and  content  creators  to showcase  local  experiences,  heritage,  and  immersive  stays associated  with  the  particular  destination  to  ensure  broader audience reach and engagement.
- iii. Integration of  registered  homestays  into  official  marketing channels, including  state  tourism's  website,  app,  social  media platforms, establishments, outlets, printed promotional materials and brochures at travel marts and exhibitions etc.
- b. Experiential Tourism & Community Involvement: State policies may prioritise the development of experiential tourism models, ensuring that visitors  have  engaging activities -such as guided cultural experiences, workshops, and adventure trails -to ensure homestays provide authentic and enriching tourism experiences in addition to facilitating accommodation.
- c. Anchor Hub and Thematic Circuit Development: State governments may diversify tourism offerings by stimulating demand in key segments through a strategic Anchor Hub and Thematic Circuit development mode. This approach establishes:
- i. Anchor  Hubs  as  key  tourist  destinations  with  the  potential  to offer  diverse  tourism  experiences  and  serve  as  gateways  to surrounding  regions,  with  homestays  playing  a  vital  role  in enhancing the visitor experience.
- ii. Thematic  Circuits  that  connect  multiple  destinations  through homestays based on shared themes such as spiritual, culture, adventure,  wellness,  ecotourism  etc.  These  circuits  should  be built  around  unique  experiences,  ensuring  travellers  have  a deeper connection to the region.

## 2.4 Incentives:

- a. Destination-Focused Financial Incentive: Financial incentives may be  based  on  promoting  tourism  at  the  destination  level  rather  than focusing solely on individual homestay amenities or classifications. This will  encourage  operators  to  contribute  to  regional  growth  and  attract tourists to underserved areas. A tiered incentive approach could be used.
- i. Tier  1  Destinations:  Areas  with  immediate  tourism  potential should  receive  top  priority  for  development  and  promotional support.
- ii. Tier  2  Destinations:  Secondary  areas  with  long-term  potential should receive phased incentives and marketing support.

## b. Non-Financial Incentives:

- i. Project Support Organisations (PSOs): PSOs may be introduced to  support  homestay  operators,  particularly  in  rural  or  remote regions. These organisations would provide technical assistance, project management expertise, and guidance on best practices to help new  homestay  operators successfully launch and maintain their businesses.
- ii. Residential Utility Classification: Homestays may be classified as residential units for utility purposes, ensuring access to residential rates for water, electricity, and property taxes. This will enhance the financial sustainability of homestays.
- iii. Capacity Building: State Tourism Departments may be encouraged  to  collaborate  with  private  industry  experts  to organise  capacity-building  sessions  and  Homestay  Business Summits. These initiatives may facilitate knowledge exchange, provide networking and collaboration opportunities, and impart best practices from top performing homestays.

## 2.5 Awareness Generation:

- i. Information Education Communication (IEC) Campaign: A national IEC strategy may be launched to raise awareness about homestay  registration,  compliance  guidelines,  and  available policy benefits.
- ii. Local Facilitation Centers: Dedicated facilitation centres may be established,  particularly  in  rural  and  remote  areas,  to  assist homestay  operators  with  registration,  compliance  procedures, and access to financial and technical support.
3. 2.6 Creation of Homestay Clusters:

Promote the creation of homestay clusters within communities by leveraging local resources and existing infrastructure to create high-value experiential  tourism  products.  This  approach  may  also  prioritise  the sustainability of these clusters by promoting long-term viability through community  involvement, environmental stewardship, and economic diversification to ensure that these clusters remain resilient and beneficial for both visitors and host communities.

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