NITI Aayog Report: NITI Aayog on Friday (August 22) launched the report titled ‘Rethinking Homestays: Navigating Policy Pathways’ in collaboration with
Internet and Mobile Association of India (IAMAI), offering a strategic roadmap to unlock the potential of homestays and BnBs in India’s tourism landscape.
Single-Window Clearance System
The government think tank pitched for a single-window clearance system for homestay registration and destination-focused financial incentives to unlock the potential of homestays in India's tourism landscape.
Cultural Authenticity and Livelihood Creation
The report underscores that homestays have the unique ability to blend cultural authenticity with livelihood creation, particularly in rural and semi-urban regions. It calls for flexible policy approaches, capacity building and the integration of digital platforms to empower hosts and strengthen consumer trust.
Case Studies and Scalable Models
It also features case studies and state-level best practices to illustrate scalable models for homestay development and governance.
The report suggested that the registration process for homestays may be streamlined, requiring only essential documents such as ownership proof, applicant identification, and GST registration.
Online accommodation platforms Airbnb and MakeMyTrip were also involved in preparation of the report.
"Establish a single-window clearance system for homestay registration," it said.
The report was released by NITI Aayog Vice Chairman Suman Bery.
Central Nodal Agency for Coordination
The report also called for establishment of a central nodal agency to streamline communication across departments and facilitate coordination between various stakeholders to ensure a unified approach to policy implementation, marketing, and resource allocation for encouraging homestays.
Destination-Focused Financial Incentives
"Financial incentives may be based on promoting tourism at the destination level rather than focusing solely on individual homestay amenities or classifications," the report added.
Collaborative Marketing Initiatives
According to the report, collaborative marketing initiatives and promotional campaigns should be undertaken by the state government to highlight the unique offerings of underdeveloped regions, with a focus on how homestays can provide authentic, community-driven travel experiences that attract both domestic and international visitors.
Light-Touch Regulatory Frameworks
It also emphasised the need for light-touch, transparent regulatory frameworks that ensure the safety of tourists and homeowners, protect heritage, and support inclusive and sustainable economic growth.
Homestay Market Growth
Reports suggest that the homestay market in India reached market sales revenue of Rs 4,722 crore in 2024.
Tourism Sector Recovery and Trends
Following the economic slowdown during the pandemic, the tourism sector in India has undergone a major recovery, driven significantly by booming domestic tourism and accompanied by trends such as the rising propensity for travellers to choose experiential travel and less explored destinations, it said.
Future Prospects
As the sector continues on its growth path, strong future prospects can be unlocked by tapping into the opportunities presented by these trends.
Alternative accommodation such as homestays is one such opportunity that has immense economic potential, and an increasing ability to supplement the massive growth in India's tourism sector, the report said.
