NITI Aayog Maps The Rising Homestay Homestay Sector In India

Aided by an upsurge in domestic tourism, the Indian homestay market is growing exponentially. Aware of this potential, NITI Aayog has issued a strategic report, entitled Rethinking Homestays - Navigating Policy Pathways that suggests policy-level reform on how to harness it in support of sustainable development in the sector.

Growth and Potential Record Growth

The industry is flourishing and spending by domestic tourists increased by 28 percent between 2019 and 2023-24 reaching to a total of Rs 16 lakh crore. A global trend towards more personalised and experiential travel, India is expected to have a 11 percent CAGR growth through 2031, in homestay market.

Dealing with the Regulatory Obstacles

The report concentrates on this aspect of irregular regulation of each state. Registration is highly varied, as some states require three and others as many as six steps. The length of time an approval may take is two to six months and the certificate timeliness varies, leading to confusion and delays to hosts.

Main Suggestions on Reform

In the framework suggested by NITI Aayog, the government will pay 27 percent while the rest will be shouldered by the employer.

• Uniform Policies: Bringing a simplified and standardised regulatory environment through adoption of the best practices pursued by different states.
• Centralised Digital Portal: Creation of a sole web-based portal of registration, renewals and compliance to restrict documents where the online activity could be noticed and monitored.
• Tier-Based Incentives: Rolling out of Fisher-promoted fiscal incentive packages with the focus on region with the potential of tourism development.
• Targeted Marketing: Promoting the state governments to promote special local experiences to help attract more visitors.

Economic and Cultural Influence

The report also points out that homestays are more than overnight stays, it provides authentic cultural immersion and links directly to employment opportunities, especially in rural areas. The marketed reforms will put power into the hands of local entrepreneurs, guard heritage and regulate an inclusive economic development.