Context:
NITI Aayog has released a report titled “Rethinking Homestays: Navigating Policy Pathways”, outlining a strategic framework to develop an inclusive and sustainable homestay ecosystem in India. The report emphasizes fiscal incentives, streamlined registrations, and digitalization of homestay operations. These steps align with India’s broader aim of leveraging tourism for job creation and regional economic development.
Key Highlights of the Report:
- Strategic Policy Framework: Advocates for destination-specific incentives over asset-based subsidies to channel investments into under-served regions.
- Ease of Operations: Calls for a single-window digital platform for homestay registration, renewal, and compliance, with a strict 30-day approval timeline.
- Regulatory Rationalization: Recommends treating homestays as residential properties for utilities and taxation to reduce operational costs.
- Digital & Market Integration: Encourages greater collaboration with online travel aggregators to improve visibility, credibility, and revenue for hosts.
- Economic Potential: Projects an 11% CAGR in India’s homestay market (₹4,722 crore in 2024), positioning homestays as a solution to India’s hotel room shortage (2 lakh rooms gap).
Significance:
- Tourism-Led Livelihoods: Homestays offer culturally immersive experiences, fostering rural incomes and empowering micro-entrepreneurs.
- Public–Private Collaboration: Strong industry participation from platforms like Airbnb, MakeMyTrip, and ISPP reflects the sector’s transformative potential.
- Sustainable Development: Aligns with India’s goals of inclusive growth, heritage conservation, and eco-friendly tourism.
