Himachal Pradesh’s homestay owners have raised strong objections to the state government’s proposed homestay policy, arguing that it threatens the survival of small-scale operators. The policy, which introduces high registration fees ranging from INR 6,000 to INR 10,000 and imposes Goods and Services Tax (GST), has sparked widespread discontent among the state’s homestay associations.
Tanuja Dhanta, President of the Himachali Homestay Association, criticized the policy, stating that it unfairly burdens homestay owners who operate on a much smaller scale than commercial hotels. “Homestays were initiated to promote local culture, cuisine, and tourism. Imposing such financial conditions goes against this very purpose,” she said.
The Lahaul and Spiti Homestay Association echoed these concerns, with representative Rigzin Samphel Heyreppa lamenting the lack of consultation with stakeholders during the policy’s drafting.
Additionally, the requirement for structural stability certificates, which are costly and difficult to procure, has drawn criticism. The associations warned that these measures could destabilize the rural economy by forcing many homestay operators out of business, leading to increased unemployment in remote areas.
In their appeal to the government, the associations have demanded lower registration fees, longer validity periods for licenses, and the removal of commercial taxes and unnecessary requirements. They further requested that homestays be classified as domestic activities rather than commercial enterprises to preserve their role as a source of self-employment and rural development.
Homestay operators are calling for immediate revisions to the policy, emphasizing that the government must support, not stifle, the state’s grassroots tourism initiatives.
