NITI Aayog Proposes Model Homestay Policy to Boost Tourism Growth

NITI Aayog Homestay Policy Latest News

• NITI Aayog has released a report titled Rethinking Homestays: Navigating Policy Pathways. 
• The report provides a framework for States to harmonise regulations and build an inclusive homestay ecosystem. 
• It highlights the vast economic potential of alternative accommodations like homestays and Bed and Breakfast (BnB) in driving sustainable tourism growth. 
• It also presents a strategic roadmap to unlock opportunities in this sector, aiming to boost local incomes, diversify India’s tourism offerings, and strengthen community-based tourism.

State of Travel and Tourism in India

• India’s travel and tourism sector has shown remarkable post-pandemic recovery, driven largely by domestic tourism. 
• According to WTTC’s 2024 Economic Impact Research, the sector contributed ₹21.15 lakh crore to the economy in 2024, marking a 21% rise from 2019, and is projected to reach ₹43.25 lakh crore by 2034, accounting for 7.6% of GDP. 
• It currently employs 4.325 crore people—one in every eleven jobs in India—with employment expected to grow to 6.3 crore by 2034. 
• Domestic tourist spending in 2024 stood at ₹16 lakh crore, 25% higher than 2019, and may nearly double by 2034, while international tourist spending reached ₹2.85 lakh crore and is expected to touch ₹4.07 lakh crore. 
• The Draft National Tourism Policy 2022 envisions India as a top five global destination by 2030, with goals to boost tourist arrivals, foreign exchange earnings, and employment. 
• To support this, the government has raised the Ministry of Tourism’s budget to ₹2,541 crore and is focusing on developing 50 top destinations, promoting PPP projects, supporting homestays through MUDRA loans, and incentivising hotel investments under the Harmonised Master List.

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NITI Aayog’s Report on Homestays: Rethinking Homestays – Navigating Policy Pathways

• NITI Aayog released its report proposing a model policy framework to help States harmonise regulations and create an inclusive homestay ecosystem. 
• The report emphasises the economic and cultural potential of homestays and BnBs in driving sustainable tourism growth.

Key Insights and Objectives

• Economic Potential: Homestays can promote sustainable growth, generate local employment, and foster entrepreneurship, especially in rural and semi-urban areas.
• Cultural Value: They offer travellers culturally immersive experiences, blending authenticity with livelihood creation.
• Policy Goal: To provide a strategic roadmap for States to strengthen homestays as an integral part of India’s tourism landscape.

Core Recommendations

• Light-Touch Regulatory Framework
  • Regulations should remain simple, transparent, and flexible. 
  • Focus on safety, heritage protection, and inclusivity while avoiding over-regulation.
• Digital Empowerment
  • Creation of a centralised digital portal for registration, compliance, renewals, and policy updates.
  • Ensures convenience for hosts and improves consumer trust.
• Capacity Building and Local Empowerment
  • Training and skill development for hosts.
  • Use of digital platforms to expand outreach and strengthen credibility.
• Financial Incentives
  • Move from focusing on individual amenities to destination-level incentives.
  • Promote tourism in underserved regions through tiered incentive structures.

Strategic Roadmap

• The model policy framework aims to:
  • Simplify processes and encourage broader participation.
  • Integrate technology for greater efficiency.
  • Strengthen cultural authenticity while promoting sustainable tourism.
  • Position homestays as a tool for regional development, not just accommodation.

Conclusion

• NITI Aayog’s report presents homestays as a driver of inclusive growth and sustainable tourism, calling for harmonised state policies, digital integration, and destination-focused incentives. 
• This approach seeks to unlock the sector’s full potential while safeguarding culture and livelihoods.

Source: TH | PIB | NITI