NITI Aayog Pushes One-Stop Clearance to Boost Homestay Tourism

Government think tank NITI Aayog on Friday recommended a single-window clearance system for homestay registration and destination-focused financial incentives to unlock the sector’s vast potential in India’s tourism landscape.

The report, titled “Homestays Navigating Policy Pathways”, suggested streamlining the registration process by requiring only essential documents such as ownership proof, applicant identification, and GST registration.

The report was prepared with inputs from online accommodation platforms Airbnb and MakeMyTrip, and was released by NITI Aayog Vice Chairman Suman Bery.

Central Nodal Agency and Unified Coordination

To ensure effective policy implementation, the report proposed the creation of a central nodal agency. This body would streamline communication across departments and facilitate coordination among stakeholders for a unified approach in policy execution, marketing, and resource allocation.

The report emphasized that financial incentives should be tied to promoting tourism at the destination level, rather than being limited to the amenities or classifications of individual homestays.

Marketing and Promotion of Undeveloped Regions

According to the report, state governments should undertake collaborative marketing campaigns to showcase the unique offerings of underdeveloped regions. By doing so, homestays could be positioned as providers of authentic, community-driven travel experiences that attract both domestic and international tourists.

Need for Transparent and Inclusive Regulation

The report underlined the importance of light-touch, transparent regulatory frameworks that prioritize tourist and homeowner safety, protect cultural heritage, and support inclusive and sustainable economic growth.

Economic Potential of Homestays in India

Citing market data, the report highlighted that India’s homestay sector recorded ₹4,722 crore in sales revenue in 2024.

Following the pandemic-induced slowdown, India’s tourism industry has staged a strong recovery, largely fueled by booming domestic travel. Trends such as experiential tourism and interest in less-explored destinations have further boosted growth.

As the sector expands, NITI Aayog noted that alternative accommodations like homestays present immense economic potential, capable of supplementing the rapid growth of India’s overall tourism industry.