Himachal to revise Homestay regulations with new rules in 2024
In Himachal Pradesh, a significant shift is on the horizon for the regulation of homestays, thanks to the upcoming Homestay Rules-2024. The state government is gearing up to introduce these changes to address growing concerns about the misuse of the Homestay Scheme and to ensure a level playing field with the hotel industry. The Cabinet Sub-Committee, tasked with drafting these new rules, is set to present its recommendations at the next Cabinet meeting on August 8, 2024.
One of the most noteworthy proposals is to introduce a tax for urban homestays that matches the rate paid by hotels. This move is seen as a way to prevent unfair competition, as many homestays currently operate like hotels but don’t pay equivalent taxes. The committee believes that this imbalance is undermining legitimate hotel businesses that fully comply with tax regulations.
The Homestay Scheme was originally designed with a noble purpose: to promote self-employment in rural areas and offer tourists a taste of traditional local hospitality. However, over time, some operators have taken advantage of the scheme, effectively running hotel-like businesses without bearing the same tax responsibilities.
The upcoming rules aim to return to the scheme’s roots, encouraging authentic experiences and fair business practices. As we wait for the final decision, it’s clear that these changes could have a profound impact on both the tourism industry and local communities in Himachal Pradesh. The government’s efforts signal a commitment to preserving the integrity of the homestay experience while ensuring that all players in the hospitality industry are playing by the same rules.
