NITI Aayog Proposes Single-Window System to Enhance Homestay Tourism in India, ETTravelWorld

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

The Aayog in a report titled ‘Rethinking Homestays Navigating Policy Pathways’ suggested that the registration process for homestays may be streamlined, requiring only essential documents such as ownership proof, applicant identification, and GST registration.

Online accommodation platforms Airbnb and MakeMyTrip were also involved in the preparation of the report.

“Establish a single-window clearance system for homestay registration,” it said.

The report was released by NITI Aayog Vice Chairman Suman Bery.

The report also called for the establishment of a central nodal agency to streamline communication across departments and facilitate coordination between various stakeholders to ensure a unified approach to policy implementation, marketing, and resource allocation for encouraging homestays.

“Financial incentives may be based on promoting tourism at the destination level rather than focusing solely on individual homestay amenities or classifications,” the report added.

According to the report, collaborative marketing initiatives and promotional campaigns should be undertaken by the state government to highlight the unique offerings of underdeveloped regions, with a focus on how homestays can provide authentic, community-driven travel experiences that attract both domestic and international visitors. It also emphasised 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.

Reports suggest that the homestay market in India reached market sales revenue of Rs 4,722 crore in 2024.

Following the economic slowdown during the pandemic, the tourism sector in India has undergone a major recovery, driven significantly by booming domestic tourism and accompanied by trends such as the rising propensity for travellers to choose experiential travel and less explored destinations, it said.

As the sector continues on its growth path, strong future prospects can be unlocked by tapping into the opportunities presented by these trends.

Alternative accommodation, such as homestays, is one such opportunity that has immense economic potential and an increasing ability to supplement the massive growth in India’s tourism sector, the report said.