NITI Aayog Report Charts Roadmap for Homestays as Drivers of Tourism Growth

Shri Suman Bery highlighted during the launch that homestays can act as a bridge between heritage preservation and modern economic growth, particularly in rural and semi-urban regions.

The NITI Aayog, in partnership with the Internet and Mobile Association of India (IAMAI), today launched a landmark policy report titled “Rethinking Homestays: Navigating Policy Pathways”, which provides a strategic roadmap for harnessing the potential of homestays and bed-and-breakfast (BnB) accommodations to transform India’s tourism landscape.

The report was released by Shri Suman Bery, Vice Chairman, NITI Aayog, in the presence of Shri Yugal Kishore Joshi, Programme Director, NITI Aayog, and senior officials from the Ministry of Tourism, Ministry of Culture, and state governments such as Goa, Kerala, Uttarakhand, and Uttar Pradesh, which were prominently featured in the study.

Homestays: A Cultural and Economic Opportunity

The report emphasizes that homestays and BnBs are not just accommodations but cultural experiences, offering travelers immersive engagement with India’s traditions, cuisine, festivals, and local heritage. They serve as vital platforms for entrepreneurship, enabling local households to tap into the growing tourism market.

Shri Suman Bery highlighted during the launch that homestays can act as a bridge between heritage preservation and modern economic growth, particularly in rural and semi-urban regions. By creating localized employment opportunities, especially for women and youth, the sector can significantly contribute to inclusive development.

Policy Recommendations and Framework

One of the core themes of the report is the need for light-touch and transparent regulation that balances safety, accountability, and growth. The recommendations include:

• Safety and Quality Assurance: Establishing basic safety protocols for tourists and hosts while keeping compliance requirements simple.

• Heritage Preservation: Encouraging homestays in historic and cultural hubs to contribute to heritage conservation and cultural revival.

• Digital Integration: Leveraging digital platforms for bookings, ratings, and payments to enhance consumer trust and ease of doing business for hosts.

• Capacity Building: Training homestay operators in hospitality, language skills, and digital tools.

• Inclusive Growth: Ensuring that marginalized communities and women entrepreneurs have access to resources and support schemes.

• Sustainability: Promoting eco-friendly operations such as zero-waste practices, renewable energy adoption, and community-led tourism models.

Case Studies and State-Level Models

The report features case studies and best practices from leading states like:

• Goa: Promoting heritage-based homestays integrated with cultural festivals.

• Kerala: Successful models of eco-tourism and Ayurveda-based homestays.

• Uttarakhand: Mountain homestays providing sustainable livelihoods and reducing out-migration.

• Uttar Pradesh: Cultural homestays linked with religious and heritage tourism circuits.

These examples illustrate how tailored state-level policies and community partnerships can create scalable, replicable models of growth.

Public–Private Collaboration at the Core

The launch event saw participation from leading industry representatives including IAMAI, Indian School of Public Policy (ISPP), MakeMyTrip, Airbnb, Chase India, and The Convergence Foundation. Their presence underlined the importance of multi-stakeholder collaboration between government, private sector, and local communities to build a robust homestay ecosystem.

Industry leaders highlighted the need for harmonizing regulations across states, reducing compliance burdens, and creating a uniform policy framework to attract domestic and international travelers.

Building a Resilient Homestay Sector

The report concludes with actionable recommendations for policymakers and industry stakeholders, aiming to make homestays:

• Resilient against market fluctuations.

• Inclusive, by ensuring participation from underrepresented communities.

• Heritage-conscious, protecting India’s tangible and intangible cultural assets.

By encouraging innovation, digital adoption, and entrepreneurship, the homestay sector can emerge as a pillar of India’s tourism economy, while also supporting the government’s larger goals under the Dekho Apna Desh and Atmanirbhar Bharat initiatives.

The full report “Rethinking Homestays: Navigating Policy Pathways” is available on the NITI Aayog website: Download Here.