Himachal to implement stricter homestay regulations to curb illegal operations

The Himachal Pradesh government is set to introduce a new homestay policy to address the growing number of unregulated homestays operating without proper oversight. Aimed at tackling illegal units, particularly those violating Section 118, which restricts land use for non-residents, this policy is part of a broader initiative to streamline the tourism sector and ensure compliance. By tightening regulations, the government hopes to create a fair and organized framework that benefits both the economy and law-abiding operators.

Officials will soon finalize a proposal enforcing stricter regulations across both rural and urban homestays. The policy will require mandatory registration for all operators, addressing the issue of unregistered units that often avoid government oversight and evade taxes. Registration fees will also increase, with different rates for village and city-based homestays, ensuring that all contributions align with local regulations.

A key driver behind the policy overhaul is misuse of Section 118, which governs land ownership in Himachal Pradesh. Numerous complaints reveal that some non-residents have acquired land under this regulation and operate illegal homestays. The new policy seeks to address these concerns by enforcing tighter restrictions on land use and taking strict action against violators.

In addition to mandatory registration, the policy will require homestay operators to pay commercial rates for utilities like electricity and water. Many operators have benefited from domestic rates, creating a cost advantage over hotels and registered lodgings. The government’s move to enforce commercial utility rates aims to level the playing field, promoting fairness across the tourism sector.

The Tourism Department will also assume a more active role in regulating rental rates for homestays. District tourism officers will inspect each homestay and set rental rates based on amenities and services offered, bringing consistency to pricing and preventing inflated rates.

Currently, around 4,500 registered homestays operate in Himachal Pradesh alongside over 5,000 hotels. However, with an influx of unregulated homestays, especially in tourist hotspots like Shimla, the government has become increasingly concerned about revenue loss and regulatory non-compliance. This new policy seeks to ensure that all homestays contribute fairly to the state’s growing tourism industry.

Originally introduced in 2008, Himachal’s homestay policy was intended to offer self-employment opportunities for local youth. However, with rising instances of illegal operations and Section 118 violations, the government now sees stricter regulations as essential to protect the local economy and support compliant operators.

The tourism department is finalizing its proposal, signaling a significant change in how homestays will operate in the state. This overhaul aims to increase accountability, align with existing laws, and ultimately strengthen Himachal Pradesh’s thriving tourism sector.