Why in news?
NITI Aayog has released a report titled Rethinking Homestays: Navigating Policy Pathways.
The report provides a framework for States to harmonise regulations and build an inclusive homestay ecosystem. It highlights the vast economic potential of alternative accommodations like homestays and Bed and Breakfast (BnB) in driving sustainable tourism growth.
It also presents a strategic roadmap to unlock opportunities in this sector, aiming to boost local incomes, diversify India’s tourism offerings, and strengthen community-based tourism.
What’s in Today’s Article?
- State of Travel and Tourism in India
- NITI Aayog’s Report on Homestays: Rethinking Homestays – Navigating Policy Pathways
- Conclusion
State of Travel and Tourism in India
- India’s travel and tourism sector has shown remarkable post-pandemic recovery, driven largely by domestic tourism.
- According to WTTC’s 2024 Economic Impact Research, the sector contributed ₹21.15 lakh crore to the economy in 2024, marking a 21% rise from 2019, and is projected to reach ₹43.25 lakh crore by 2034, accounting for 7.6% of GDP.
- It currently employs 4.325 crore people—one in every eleven jobs in India—with employment expected to grow to 6.3 crore by 2034.
- Domestic tourist spending in 2024 stood at ₹16 lakh crore, 25% higher than 2019, and may nearly double by 2034, while international tourist spending reached ₹2.85 lakh crore and is expected to touch ₹4.07 lakh crore.
- The Draft National Tourism Policy 2022 envisions India as a top five global destination by 2030, with goals to boost tourist arrivals, foreign exchange earnings, and employment.
- To support this, the government has raised the Ministry of Tourism’s budget to ₹2,541 crore and is focusing on developing 50 top destinations, promoting PPP projects, supporting homestays through MUDRA loans, and incentivising hotel investments under the Harmonised Master List.
NITI Aayog’s Report on Homestays: Rethinking Homestays – Navigating Policy Pathways
- NITI Aayog released its report proposing a model policy framework to help States harmonise regulations and create an inclusive homestay ecosystem.
- The report emphasises the economic and cultural potential of homestays and BnBs in driving sustainable tourism growth.
- Key Insights and Objectives
- Economic Potential: Homestays can promote sustainable growth, generate local employment, and foster entrepreneurship, especially in rural and semi-urban areas.
- Cultural Value: They offer travellers culturally immersive experiences, blending authenticity with livelihood creation.
- Policy Goal: To provide a strategic roadmap for States to strengthen homestays as an integral part of India’s tourism landscape.
- Core Recommendations
- Light-Touch Regulatory Framework
- Regulations should remain simple, transparent, and flexible.
- Focus on safety, heritage protection, and inclusivity while avoiding over-regulation.
- Digital Empowerment
- Creation of a centralised digital portal for registration, compliance, renewals, and policy updates.
- Ensures convenience for hosts and improves consumer trust.
- Capacity Building and Local Empowerment
- Training and skill development for hosts.
- Use of digital platforms to expand outreach and strengthen credibility.
- Financial Incentives
- Move from focusing on individual amenities to destination-level incentives.
- Promote tourism in underserved regions through tiered incentive structures.
- Strategic Roadmap
- The model policy framework aims to:
- Simplify processes and encourage broader participation.
- Integrate technology for greater efficiency.
- Strengthen cultural authenticity while promoting sustainable tourism.
- Position homestays as a tool for regional development, not just accommodation.
Conclusion
NITI Aayog’s report presents homestays as a driver of inclusive growth and sustainable tourism, calling for harmonised state policies, digital integration, and destination-focused incentives. This approach seeks to unlock the sector’s full potential while safeguarding culture and livelihoods.
