NITI Aayog Report on Rethinking Homestays
India’s domestic tourism sector is witnessing rapid growth. The homestay market is expanding fast, driven by travellers seeking authentic cultural experiences. Recently, NITI Aayog released the report ‘Rethinking Homestays – Navigating Policy Pathways’ to guide policy reforms and promote sustainable homestay development. The report offers a strategic framework to harness the potential of homestays and bed-and-breakfasts (BnBs) across the country.
Current Trends
India’s domestic tourism spending rose by 28 percent from 2019 to Rs 16 lakh crore in 2023-24. International tourist spending also surpassed pre-pandemic levels. The homestay sector is projected to grow at an 11 percent compound annual growth rate (CAGR) till 2031, the highest worldwide. This growth reflects a shift towards experiential travel and local entrepreneurship.
Regulatory Challenges
The report marks inconsistent regulations across states. For example, Goa requires three steps for homestay registration, while Kerala, Uttarakhand, and Uttar Pradesh require five to six. Validity periods for registration certificates vary from one to five years depending on the state. These discrepancies create confusion and delays, with approvals often taking two to six months.
Need for Simplified and Uniform Policies
NITI Aayog recommends adopting best practices from different states to create a uniform, simplified regulatory framework. A centralised digital portal is proposed for registration, renewals, and compliance management. This would streamline processes, reduce paperwork, and enhance transparency for hosts and tourists alike.
Promoting Local Entrepreneurship and Cultural Authenticity
Homestays offer culturally immersive experiences and generate local employment, especially in rural and semi-urban areas. The report stresses the importance of policies that protect heritage and promote inclusive economic growth. Capacity building and digital integration can empower hosts and improve consumer trust in the ecosystem.
Incentives and Marketing Strategies
Fiscal incentives exist but remain underutilised due to lack of awareness among homestay operators. The report suggests tier-based incentive schemes prioritising areas with immediate tourism potential. Targeted marketing by state governments can showcase unique local offerings and attract more visitors, boosting the sector’s growth.
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surjit singh puri
September 1, 2025 at 10:22 amBut my experiences,at kerala,Manipur etc have not been very pleasant.First staying in a house,where tge landlord is also staying,acts like a CCTV,with all family members watching you like Police.
Secondly at the dinner table ,the lanord sits on tve table with you,as if watching how much you are consuming.Again the things served are Ltd,than expected.
I think its more of an intrusion into your privacy,for a high price of stay you are paying.
The local tourist does not have to stay in a typical crowded and noisy Indian house,to learn about the local culture.