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Uttarakhand limits homestay scheme to permanent residents to prevent misuse

#Law & Policy#India
Last Updated : 14th Sep, 2025
Synopsis

Uttarakhand's tourism department has announced that its homestay scheme will now be limited to permanent state residents to prevent misuse by non-resident operators. The scheme, meant to support local families and showcase Uttarakhand's culture, has been exploited by outsiders registering residential properties as homestays while running them as commercial businesses. Proposed amendments to the Uttarakhand Tourism and Travel Business Registration Regulations 2014 include tax exemptions, a five-year registration period, stricter monitoring, and penalties for non-compliance. Over five thousand homestays are currently registered in the state.

The Uttarakhand tourism department has decided to restrict its homestay scheme exclusively to permanent residents, following reports of misuse by people from other states. Many non-resident operators had been registering their properties as homestays but were running them as commercial establishments. This misuse goes against the main goal of the scheme, which is to support local families and provide tourists with authentic cultural experiences.


The tourism secretary explained that some operators register properties as homestays but use residential electricity connections, hire staff, and do not stay on the premises themselves. Such practices reduce the benefits meant for local communities and affect the credibility of the program.

To address these issues, the government has proposed amendments to the Uttarakhand Tourism and Travel Business Registration Regulations 2014 (Amended 2016). The key changes include classifying homestays as non-commercial entities, providing exemptions from electricity and water taxes, setting a five-year registration period that can be renewed with a fee, and introducing stricter oversight to prevent misuse.

Unregistered homestays have been given 60 days to comply with the new regulations. Those failing to meet the requirements will face a penalty of INR 100,000, with further actions possible if violations continue.

Currently, more than 5,000 homestays are registered across the state. The tourism department has also consulted various stakeholders, including homestay owners, tour operators, hotel associations, and government officials, to get feedback on the proposed changes. These amendments are expected to be presented to the state cabinet for approval soon.

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