Niti Aayog recommends model policy for homestays

Niti Aayog’s report on ‘Rethinking Homestays: Navigating Policy Pathways’, released in New Delhi on Friday (August 22, 2025), aims at advancing a framework that States can adopt to harmonise regulations and establish an inclusive homestay ecosystem in the country. The planning body believes that alternative accommodation such as homestays is an opportunity with immense economic potential that can help in promoting sustainable growth of India’s tourism sector. The report offers a “strategic roadmap” to unlock the potential of homestays and Bed and Breakfast (BnB) providers in India’s tourism landscape.

Niti Aayog said in a statement that the report draws insights from aggregators, hosts, and policymakers and highlights the role of homestays in offering travellers “culturally immersive experiences” while fostering local entrepreneurship and employment generation. “It emphasizes 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,” it said.

The report noted 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,” Niti Aayog said.

The report proposed to have a model policy framework that States may adopt to harmonise regulations and establish a more resilient and inclusive ecosystem for homestays. “This framework incorporates key components designed to simplify processes, encourage wider participation, and promote sustainable tourism growth,” the report said. It added that States could develop a centralised digital portal for homestay registration, renewals, and compliance management. “The portal may allow operators to submit documents, track applications, and receive policy updates and renewal reminders,” it said.

The panel also recommended financial incentives for promoting tourism at the destination level rather than focusing solely on individual homestay amenities or classifications. “This will encourage operators to contribute to regional growth and attract tourists to underserved areas. A tiered incentive approach could be used,” it said.