Himachal Tightens the Reins: New Homestay Rules Aim to Protect Local Hosts and Tourists

In the scenic hills of Himachal Pradesh, where homestays have long offered travelers a cozy, local experience, big changes are underway. The state government has rolled out stricter rules for homestay operations under the newly revised Home Stay Rules 2025, aiming to restore authenticity and curb misuse.

What’s Changing?

Under the new rules, flats and leased properties can no longer operate as homestays. Only property owners listed in official land records — the jamabandi — will be eligible for registration. A new online portal will handle registrations, verifying ownership directly through revenue records.

This means that running a homestay on a leased property is now illegal.

Why the Shift?

The move comes in response to a growing trend: non-local investors buying flats in tourist hotspots like Manali, Shimla, and Dharamshala, then leasing them out as unregulated homestays. These setups often lack basic safety standards, proper sanitation, and trained hosts — leaving tourists disappointed and locals at a disadvantage.

“Unregistered units were undercutting prices and hurting genuine hosts,” said a tourism department official. “It was also leading to tax evasion and poor service quality.”

A Homestay Must Feel Like Home

The new rules emphasize that only independent houses or clearly separated floors of a residential building can be used for homestays. There must be a separate entrance and access route for guests to ensure privacy. Small one- or two-room setups within shared buildings are no longer allowed.

This change also addresses a loophole: while outsiders need special permission to buy land in Himachal, many were bypassing this by purchasing flats and turning them into commercial homestays.

Complaints Sparked Reform

Local residents and tourists alike have voiced concerns over the past few years. Complaints ranged from poor hygiene and misleading listings to unsafe conditions and lack of hospitality. A study by Himachal Pradesh University revealed that nearly 40% of homestays in major tourist areas were operating without valid registration.

Many lacked fire safety measures, proper waste disposal, and basic infrastructure — contributing to environmental damage and unhappy guests.

Supporting Genuine Hosts

By linking registration to actual property ownership and enforcing clear architectural standards, the government hopes to empower local hosts and ensure tourists enjoy a safe, authentic experience. Strict verification drives are planned, and violators may face fines or license cancellations.

Awareness campaigns will also be launched in collaboration with local panchayats and tourism associations, helping hosts understand and adapt to the new system.

These reforms mark a turning point for Himachal’s tourism landscape — one that prioritizes quality, safety, and fairness. For travelers, it means better experiences. For locals, it’s a chance to reclaim their space in the tourism economy.