“As one of the vital dynamic sectors of the financial system, tourism performs a big function in producing employment and contributing to nationwide revenue,” the Aayog stated in its report ‘Unlocking the Financial Potential of Homestays', launched on Friday.
“It's proposed to have a mannequin coverage framework that states might undertake to harmonize rules and set up a extra resilient and inclusive ecosystem for homestays,” the Aayog stated, including that this framework incorporates key parts designed to simplify processes, encourage wider participation, and promote sustainable tourism progress.
As a part of the monetary reforms, the Aayog has proposed basing monetary incentives to advertise tourism on the vacation spot stage somewhat than focusing solely on particular person homestay facilities or classifications. “This may encourage operators to contribute to regional progress and entice vacationers to underserved areas,” it stated within the report.
Calling for a necessity to scale back bureaucratic hurdles and eradicate pointless steps, the Aayog has additionally instructed streamlining the registration course of and creation of a unified, digital platform to combine approvals throughout key departments.
“Software disposal timelines could also be capped at 30 days, guaranteeing immediate registration and renewal processing, thereby bettering service supply and lowering delays,” it stated.“Charges and compliance necessities could also be affordable and proportionate to the dimensions and class of the homestay, guaranteeing the monetary viability of smaller operators,” it added. The Aayog has known as for classifying homestays as residential models for utility functions, guaranteeing entry to residential charges for water, electrical energy, and property taxes. “This may improve the monetary sustainability of homestays,” it stated.In response to a report by Cognitive Market Analysis, the dimensions of the homestay market in India by way of gross sales income was Rs 4,722 crores in 2024, with a projected CAGR of 11.0% between 2024-2031.
Regardless of the speedy progress in tourism, India faces a big shortfall in lodging infrastructure, significantly in peak seasons, the Aayog stated within the report.
The ministry of tourism estimates a scarcity of over two lakh lodge rooms, making different lodging a important resolution to bridge the hole.
“Whereas new lodge developments require excessive capital funding, regulatory approvals, and land availability, homestays and B&Bs supply a low-cost, scalable different that may increase lodging capability with out extra infrastructure stress,” the Aayog added.
