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NITI Aayog has proposed a single-window system for homestay registration and destination-focused financial incentives to strengthen India's homestay sector. Its report recommended simplifying registration requirements to only essential documents and establishing a central agency for coordination. It also called for collaborative marketing by states, destination-level promotion, and transparent regulations for safety and heritage protection. The report highlighted that the homestay market recorded INR 4,722 crore in 2024, with strong recovery after the pandemic. With experiential travel and domestic tourism gaining traction, homestays are positioned to play a larger role in India's tourism economy.
Government think tank NITI Aayog has recommended a single-window clearance system for homestay registration in order to simplify the process and encourage wider participation in the sector. The proposal, made in a report titled Rethinking Homestays: Navigating Policy Pathways, explained that registration should be kept simple by requiring only essential documents such as proof of ownership, applicant identification, and GST registration. The report was prepared with inputs from online travel platforms including Airbnb and MakeMyTrip and was released by NITI Aayog Vice Chairman Suman Bery. Advertisement
The think tank suggested that a central nodal agency be created to coordinate communication between departments and ensure that policies related to homestays are implemented in a unified way. Such an agency, it said, could also support resource allocation, policy marketing, and stakeholder engagement, which are often fragmented under the current system. It further noted that financial incentives should be designed around boosting tourism at the destination level rather than focusing only on individual homestay facilities or their classifications.
The report added that collaborative campaigns led by state governments can play a role in showcasing the distinct experiences available in lesser-known destinations. Highlighting the strengths of underdeveloped regions, combined with authentic, community-driven travel, can make homestays attractive to both domestic and international visitors. It also recommended transparent and light-touch regulations to ensure the safety of both guests and homeowners, safeguard local heritage, and encourage inclusive and sustainable growth within communities.
Industry data included in the report indicated that the Indian homestay market recorded sales revenue of INR 4,722 crore in 2024. The sector has recovered steadily after the pandemic slowdown, with demand driven by the growing preference for experiential travel, domestic tourism, and exploration of destinations that remain outside the mainstream. The report pointed out that these trends, if supported by effective policies, could significantly expand the role of homestays within India's tourism economy.
In addition to its policy suggestions, the report underlined that alternative accommodations such as homestays hold considerable potential to complement conventional hotels in meeting the rising demand for travel. It explained that homestays provide a mix of affordability, cultural engagement, and community benefit, making them particularly relevant in regions where large-scale hospitality infrastructure is absent. By addressing gaps in registration, marketing, and financial support, the recommendations aim to unlock this opportunity more effectively.
Source PTI
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