Why in news?
The NITI Aayog and the Internet and Mobile Association of India released a report titled “Rethinking Homestays: Navigating Policy Pathways” on 22 August 2025. The report seeks to harness homestays as engines of tourism, cultural exchange and rural development, while advocating smart regulations.
Context and evolution
Homestays allow travellers to lodge with local families, offering authentic experiences that hotels cannot. In many Himalayan and coastal villages they have generated income for women and youth. Yet uneven licensing rules, lack of safety standards and poor digital presence limit their potential. Recognising this, the report calls for a balance between formalising the sector and preserving its informal charm.
Recommendations
- Light‑touch regulation: Simplify registration through single‑window digital portals. Rules should focus on fire safety, hygiene and respect for local culture rather than heavy taxation.
- Capacity building: Provide training in hospitality, waste management and digital marketing so that hosts can meet traveller expectations.
- Infrastructure and connectivity: Improve internet access, road connectivity and signage in rural areas to attract visitors and integrate homestays into tourism circuits.
- Public–private partnerships: Encourage collaborations between tourism boards, private platforms and local cooperatives to market homestays and build trust among consumers.
Benefits
Well‑designed homestay policies can decentralise tourism, reduce pressure on crowded hotspots and empower communities. When travellers stay with local families, they spend directly in villages, helping to preserve crafts, cuisine and traditions. By embracing digital tools and fair regulation, India can create a resilient and inclusive homestay ecosystem.