INTRODUCTION

In India Guests are considered as ‘God’. Indians go out of their way to please them. There is a
saying in India,’Atithi Devo Bhava’. Indian hospitality is great. Sadly, most visitors who come to
India and stays in hotels never get an opportunity to experience true Indian Hospitality, as hotels
are unable to provide them such hospitality. The result is that there is growing popularity of
homestays in India.

A Home-Stay, by its combined words (home stay) is staying in some one's home as a paying
guest for short time period. But such guests are provided accommodation and services by
individual family and community too. Therefore, the Home- Stay Regulation has accepted it as
run or managed by an individual or community . The „Home Stay‟ seeks to draw tourists away
from posh and crowded urban areas to the rural locality full of splendid natural surroundings, by
providing them with clean, comfortable and budget-friendly accommodation and food. Thus,
homestay offers the traveler a unique local experience and possibilities of interaction with the
host family. If offers the chance to experience new and untapped places which has enabled the
government to popularize new tourist destinations, and provide alternative source of income to
the rural folks . In home stay tourism visitors get a chance to spend time with the family
observing their customs, values and culture, which gives them the opportunity to feel the taste of
rural life . Cultural-heritage and its geographical structure makes India one of the famous
destinations for homestay tourism.

In homestay tourism, both the environment and culture are commoditized; market value is
created with the demand of visitors. This provides financial reward to the local indigenous
community for conservation of the environment and their culture. Under this approach tourism is
considered to be a component of development, giving emphasis to explore ways of expanding
positive impacts and reducing negative impacts. Home stay tourism is a major player when it
comes to the reduction of rural poverty. It integrates all activities of tourism such as trekking,
cultural tourism, agro-tourism, health tourism, and ecotourism. It is a good source of earning
foreign currency. It reduces the gap in the balance of payment, provides increased tax revenue,
gives rise to economic development of the nation, increases the employment opportunities. It
may also provide new markets for local people to sell their products, such as agricultural
products, livestock and others. Growth in tourism motivates people to pursue higher education
and to obtain new jobs, and it thus also increases the literacy rate. It provides opportunities for
new generations to redefine and reclaim their cultural and ethnic identity. The villagers and other
concerns were given trainings in hospitality and basic guiding skills to the local residents to
provide them the opportunity to learn about hygiene, tourism and conservation techniques.

The development of tourism at a particular place has positively influenced the livelihood of
people of that place but on the other hand it has also had some negative impacts on the lifestyle
of the local people, making them lose their own traditional culture and heritage. Tourism is
blamed for deforestation and degradation of the environment. This results in loss of benefits to
the local community and loss of healthy environment, the loss incurred form such activities is
high compared to the economic gains made from the tourism. The increased flow of tourists may
also heighten the problem of traffic and parking in city areas, increases urbanization in places
where there is more flow of tourism increasing noise and environmental pollution. There are also
other negative impacts of tourism in society such as increase in crime, increase in the sex trade
among women, increase in consumption of alcohol, negative impacts on the lifestyles of local
people, exploitation of local resources, impacts on religion and practices of local people. All
these provide grounds for a negative attitude towards tourism.

Tourism must always preserve culture and promote it so as to use local resources and manpower
to promote the economy of a place. Hence, there is need to focus on sustainable development of
tourism. Homestay tourism will serve as a momentous tool to the development of rural areas in
every sphere including the economic, cultural, social and environmental spheres.

OBJECTIVES
 To study homestay tourism in India.
 To emphasize the major opportunities available for homestay tourism in India.
 To identify the challenges faced in the development of homestay tourism in India.
  To offer valuable recommendations so as to make the homestay tourism more viable.

LIMITATION OF STUDY

 Distance between each home stays

 lack of knowledge about home stays to host community
 Not easy to do such a big topic in a limited period of time
 Difficult to get identify home stay's owners

RESEARCH METHODOLOGY

The study has been conducted on India's homestay tourism industry. The intrinsic features of
India fit in very well considering the development of homestay as a strong tourism option. The
study is based primarily on secondary data sources such as

 previous studies
 journals
 books
 reports
 magazines
 several online data sources

The study aimed to determine opportunities and challenges of homestay tourism in India.

DATA ANALYSIS
Home stay tourism in India.
There are several examples from around the world where homestays have been successfully
developed. India has both cultural and natural resources and can provide more applicable insight
into this structure (Homestay).
India is one of those destinations found on every traveler‟s list. This is mostly because of its vast
sprawling natural beauty, seasonal diversities, cultural richness and ethnicity & hospitality of its
communities. Staying in some simply delightful homestays, lodges, resorts and bungalows
provides a delicate mix of experiences. In the northern part of country Himalyan homestay in
Ladakh, Spiti (Jammu & Kashmir) are avenues for homestay tourists. Similarly in the state of
Himachal Pardesh there are number of homestay registered under the tourism departments such
as Kullu, Shimla, Chamba, Solan and so on. In the state of Uttarkhand the major homestays were
in the Nanda Devi Valley and Valley of Flower housed famous homestay sites. The NCR are of
Delhi also spotted with beautiful homestay spots. Tikli Bottom situated in Gurgaon in Arravalli
hills is one of them

In the north-east Sikkim, Nagaland, Assam registered exotic homestay with great natural,
biological diversity for tourists. In the extreme east West Bengal with its Glenburg Tea Estate
homestay in Darjeeling (West Bengal) marked its presence. In the western part of the country the
colorful state Rajasthan has Dera Rawatsar and General‟s Retreat homestay in Jaipur are also
attracting large numbers of tourists. The Ahilya Fort homestay in Maheshwar (Madhya Pradesh)
is well known and a very unique experience for tourists visiting there. In the south India Kerala,
Karnataka, and Tamilnadu share the homestay destinations. Honey Pot homestay of Karnataka is
delightful homestay nestled in the sprawling 225 acre coffee and spice plantation in southern
Karnataka. The Cardamom House homestay in Tamilnadu is a completely informal house and is
tailored to accommodate guests where they can enjoy the stunning location on the edge of the
monsoon season, depending on Kamarjar Lake in the western ghats of India. Kerala is the

adobe for homestay in south India with its numerous spots such as Casa Del Fauno. There are
also homestay opportunities in Allappuzha, Phillipkutty‟s Farm in Kumarakom, Fringe Ford in
Mananthavadi and Tranquil Plantation Hideaway in Kolagapara and so on.

Tourists can experience a calm and quiet vacation within an environment of exquisite ecological
beauty if they opt for Kerala‟s homestay experiences. India is considered by many locals to be a
perfect land for homestay. To tap into its vast potential it is necessary to give proper attention to
this concept of tourism by assessing its opportunities and challenges as they exist in India.
The reason for tourist choose home stays in India

 Meeting new people and friends

 Exploring new culture.
 Experiencing off beat places with the host
 Trying the authentic native cuisine
 Experience the feel like home.
 Experience local culture.
 Learn a new language.

Basis of classification under the Incredible India Scheme of BnB

1,The Incredible India Bed and Breakfast/Homestay will be categorised as follows;

 Gold
 Silver

Homestays are divided into various categories, which differ from state to state. For
instance, while the government of Kerala classifies homestays as Silver, Gold and Diamond,
the government of Rajasthan only categorises them as Silver and Gold. The higher the
category, the higher are the yearly fees varying from state to state, a homestay has to pay to
the government.

2, The Regional Classification Committee will inspect and access the Bed and Breakfast
Establishment based on facilities and services provided by them.The details of the standards,
facilities, services and the documents required for approval of such establishments will be as
per these guidelines.
3,The Incredible India Bed & Breakfast/ Homestay Establishments, once approved by Ministry
of Tourism, will be duly publicised. A directory of all such approved establishments will also be
prepared, so as to enable domestic as well as foreign tourists to live in a homely environment
and to take advantage of the scheme. In addition, efforts will be made to organise short-term
training in hospitality trade to those who would opt for such training.

4,For obtaining license, the owner/promoter of the establishment along with his/her family must
be physically residing in the same establishment and letting out minimum one room and
maximum 6 rooms.

5,The Incredible India Bed and Breakfast/Homestay Establishment is expected to maintain

required standard.

Registration and licensing of Homestay.

 Regional Director (North), India Tourism, 88 Janpath, New Delhi – 110001.Tel:
011-23320005/8 (for States of Jammu & Kashmir, Himachal Pradesh, Punjab,
Haryana, Uttranchal, NCT of Delhi, UT of Chandigarh and Uttar Pradesh except
Agra and Varanasi).
 Regional Director (West), India Tourism, 123 M. Karve Road, Mumbai
-400020.Tel: 022-22033144 (for States of Gujarat, Chattisgarh, UT of Daman &
Diu, Dadra Nagar Haveli and Maharashtra except Aurangabad).
 Regional Director (South), India Tourism, 154 Anna Sallai, Chennai – 600002.
Tel: 044- 28460193 (for States of Tamil Nadu and UT of Lakshwadweep).
 Regional Director (East), India Tourism, “Embassy”, 4 Shakespeare Sarani,
Kolkata -700071. Tel: 033 -22825813 (for States of West Bengal and Jharkhand).
 Regional Director (North- East), India Tourism, Amravati Path, Christian Basti,
G.S. Road, Guwahati -781007. Tel: 0361- 2341603 (for States of Assam, Tripura,
Mizoram, Nagaland, and Sikkim). 6. Director, India Tourism, KFC Building, 48
Church Street, Bangalore – 560001, Karnataka. Tel: 080-25585417 (for the State
of Karnataka).
 Director, India Tourism, State Hotel, Khasa Kothi, Jaipur- 302001. Tel: 0141-
2372200 (for the State of Rajasthan)
 Director, India Tourism, Sudama Palace, Kankar Bagh Road, Patna- 800020,
Bihar. Tel: 0612-2345776 (for the State of Bihar).
 Manager, Indiatourism, 191, The Mall, Agra- 282001, Uttar Pradesh. Tel: 0562-
2226378 (for the city of Agra).
 Manager, India Tourism, 15-B, The Mall, Varanasi–221001, Uttar Pradesh. Tel:
0542-2501784 (for the city of Varanasi).
 Manager, India Tourism, B/21B.J.B. Nagar, Bhubaneshwar -751014, Orissa. Tel:
0674-2432203 (for the State of Orissa).
  Manager, India Tourism, Near Western Group of Temples, Khajuraho -471606,
Madhya Pradesh. Tel: 07686-242347 (for the State of Madhya Pradesh)
 Manager, India Tourism, VIP Road, 189, IInd Floor, Port Blair- 744103, Andaman
& Nicobar Islands. Tel: 03192-236348 (for the UT of Andaman & Nicobar
Islands).
 Manager, India Tourism, 3-60-140, IInd floor, Netaji Bhawan, Liberty Road,
Himayat Nagar, Hyderabad -500029, Andhra Pradesh. Tel: 040-23261360 (for
the State of Andhra Pradesh).
 Manager, India Tourism, Willingdon Island, Kochi -682009, Kerala. Tel: 0484-
2668352 (for the State of Kerala).
 Manager, India Tourism, Communidade Building, Church Square, Panaji
-403001, Goa. Tel: 0832-2223412 (for the State of Goa).
 Manager, India Tourism, ‘Krishna Vilas’, Station Road, Aurangabad – 431005,
Maharashtra. Tel: 0240-2364999 (for the city of Aurangabad).
 Manager, India Tourism, U Tirot Singh Syiem Road, Police Bazaar, Shillong
-793001, Meghalaya. Tel: 0364-225632 (for the State of Meghalaya).
 Manager, India Tourism, Sector ‘C’, Barapani Police Point, Naharlagun -791110,
Arunachal Pradesh. Tel: 0360-2244328 (for the State of Arunachal Pradesh)
 Manager, India Tourism, Old Lambu Lane, Jail Road, Imphal – 795001, Manipur.
Tel: 03852-221131 (for the State of Manipur).

The applications were initially handled by the State Government, application now are accepted
and handled at the district level itself. This makes easier for the establishment in small towns
and rural areas. After submission of application form the representatives of the district
government come in for a surprise inspection, following which a homestay is recognised and
rated as per facility available. As homestay is not treated as commercial establishment in most
states, no commercial luxury or service taxes are levied. The process of acquiring an electricity
connection is the same as that of a home, so the taves vary from state to state. Once initiated,
the application and registration procedure takes a few months, but the whole process takes a
couple of years to be completed. 

Application format for an establishment of homestay.

1) Name of the(IIB&B) Incredible India Bed&Breakfast/ Homestay Establishment.

2) Category applied for

a) E-mail

b) Mobile No. of the promoter

3) Distance of the IIB Name and address of the promoters/owners with a note on
their background

4) Complete postal address of the IIB&B/ Homestay Establishment

c) Tel. no

d) Fax
5) &B/Homestay Establishment in kms. from:

a) Airport

b) Railway Station

c) City Centre

d) Nearest main shopping centre

e) Nearest bus stand /scheduled city bus stop

6) Details of the IIB&B/Homestay Establishment:

(a)Area (in sq. metres) with title – owned/ leased (copies of sale/ lease
deed to be enclosed)

(b) Revenue papers regarding ownership. Affidavit in case of co-sharer of

house/land.

(c) Whether clearance obtained from the Police Authorities regarding the
antecedents of the owner /owners and the proposed activity (copy to be
enclosed)

(d)Number of rooms and area for each type of room in sq.ft.

(single/double/suites)

e)Number of attached baths

(f)Details of public areas for the following facilities in sq. ft.

(i)Lobby/lounge

(ii)Dining space

(iii)Parking facilities

(g)Additional facilities available if any (not mandatory)

(i)Eco –friendly facilities

(ii)Facilities for differently abled persons

 (h)Details of Fire Fighting equipment/ hydrants etc. if any

7)Photographs of the building including interiors showing types of facilities

available, bathroom, livisng room, bedroom, parking etc.

8)Details of payment of application fee

9)Check list details as per Annexure II

(enclose a copy of the checklist duly certified that the facilities are available in the
establishment)

10)Consent of acceptance of the regulatory conditions (please enclose a copy of

the prescribed undertaking as per Annexure III duly signed by the owner of the
establishment)

Other Legal Requirements.

If an establishment applies for classification/re-classification, it will have to be ready at

all times for inspection by the Regional Classification Committee. No requests for
deferment of inspection will be entertained.Classification will be valid for two years from
the date of issue of orders or in case of reclassification from the date of expiry of the last
classification provided that the application has been received within the stipulated time
i.e. 3 months before the expiry of the last classification.

The application fees payable for classification/reclassification of IIB&B/Homestay will be

as follows for the Govt. of India. The demand draft will have to be payable to

” Pay & Accounts Officer, Ministry of Tourism, New Delhi “.

Star Category For Classification/Reclassification

Silver Rs. 3,000

Gold Rs. 5,000
The rate of taxes for property, electricity and water to be paid for classified
IIB&B/Homestay Establishments will be those prescribed by the appropriate authorities.
 Opportunities for home stays

Economic opportunities
Social opportunities
Environmental opportunities
Tourism related opportunities
Infrastructural opportunities

Economic opportunities

 Increase employmentopportunities in tourism areas and it is helpful for alloviating

poverty
 Motivating and supporting foreign investment in tourism
 Encouraging micro entrepreneurship in tourism and other related industries.
 Local Govt. will get direct economic benefit like purchase of
souvenirs,food,transportation, accommodation, etc
 Preservation of handicrafts of artisan work.
 Promotion of indigenous skills and works.

Social opportunities

 It is an ideal vehicle for cross cultural exchange

 Reduce misunderstanding between different nationalities.
 It is helpful for learn locals, to new culture, lifestyle, language, customs, food style etc.
 It is helpful for locals to educate about new technologies and changes in the world.

Environmental opportunities

 Preservation and conservation of host areas.

 Consideration of carrying capacity of areas.
  Conducting EIA (Environmental Impact Assessment) in tourism areas.
 Source of fund for conservation of physical environment like , entry fee, parking fee,
activity fee, etc

Tourism related opportunities

 Increase of accommodation related opportunities to direct and indirect (skilled, semi-
skilled and unskilled).
 Increase destination demand.
 Promote destination as a all year round.
 Increase tourism awareness amongst local and foreign tourist by the constant
intervention by key role players.

Infrastructural opportunities
 Increase connectivity to all mean by places
 Degree illiteracy rate.
 Increasing awareness of safety and security, both tourist and host people.
 Increasing health awareness
 Promoting hygienic amenities at the destination like public utilities, drinking water.

India’s travel market is projected to grow at a rate of 11-11.5% and be worth $ 48 bn by

2020. A substantial increase in domestic demand due to rising disposable incomes, and
focused government measures to attract foreign tourists are driving this acceleration in
growth. In recent times, India has seen a 14.4% year on year increase in Foreign Tourist
Arrivals. Business tourism too is expected to grow three-fold by 2030 from $ 30 bn in 2015.

The hospitality industry must diversify its offerings to keep up with this exponential growth
and tap into this extraordinary potential. At a time like this, alternate accommodation, which
occupies only a small section of the market today, will grow to play a significant role. The
strength of accommodation offerings such as homestays, short-term rentals etc. lies in their
ability to evolve, innovate and reinvent themselves and offer unique experiences to the
more open-minded foreign and domestic traveler. While it’s still in its early stages, the
homestays segment is gradually gaining a strong foothold in the Indian hospitality market
and would be worth $ 3 bn by 2020.  In an age where customers especially millenniums
prefer experiential travel options, homestays give them just that by allowing them to
immerse themselves in the Indian culture and experience firsthand incredible diversity and
warm hospitality of Indian people.

Homestays also happen to be highly economically viable for both tourists and homeowners.
For tourists, homestays offer not only quality, low tariff and offbeat accommodation but also
a unique opportunity to gain invaluable insight into the local culture by staying with a local
family. India is said to be experiencing a shortage of budget hotel rooms. And while the
demand for such accommodation is increasing, building hotels involves high capital
 expenditure, which is not feasible for most people. Homestays enable locals to become
micro-entrepreneurs by capitalizing on rooms that already exist. This allows local
homeowners to find income opportunities in rural areas and new destinations with minimal
or no investment. It also plays a central role in nurturing local communities and in making
women financially independent.

Homestays coexist comfortably with hotels as they offer unique value. They are playing an
important role in increasing tourism in lesser-known places by providing accommodation in
areas where it isn’t yet economically viable to build big commercial hotels. During peak
seasons or big city events such as world cups etc. homestays play a pivotal role in
compensating for the room shortage and ensuring that hotels do not increase their rates to
unreasonable levels.

To further encourage growth in this segment, active steps need to be taken. The Indian
online hotel bookings industry is estimated to be worth $ 4 bn by 2020. Online penetration
in hotel bookings is increasing at a rapid rate, and studies reveal that by 2020, almost 50%
of urban Indian consumers will be digitally influenced.  Thus hospitality providers need to
strengthen and expand their digital presence. There is a need to provide skills and digital
literacy to micro-entrepreneurs in rural and inaccessible areas so that they can enter the
homestays market.  Studies reveal that prospective tourists navigate through a range of
websites while planning their journey. Thus the digital medium plays a significant role not
just as a platform for purchase but also in the traveler’s decision-making and selection
process. To keep abreast of this trend, digital platforms and hospitality providers need to
offer end-to-end curated travel solutions to the consumer. Airbnb, for example, has started
offering a range of services and experiences on its website such as walking tours, classes
etc. along with its accommodation offering.

The Government of India realizes that India possesses immense potential in the tourism
industry and is taking active steps to further the same. The Government has increased its
tourism budget, boosted spending on tourism infrastructure and proposed 100% FDI in the
sector. The E-visa is a revolutionary initiative and is expected to double the tourist inflow to
India. Marketing initiatives such as ‘Incredible India!’ and ‘Atithi Devo Bhava’ have also
helped improve the country’s brand image and encouraged new destinations on the world
map. There is a need for such specially curated and detailed government policies for the
homestay segment as well.

The travelers of today are looking for unique yet authentic travel experiences, and the
hospitality sector is continually reinventing itself to keep up with these rising expectations.
With the rapid growth of homestays, finding ‘a home away from home’ will soon not just be
a dream, but an undeniable reality!

Challenges facing by home stay

 Lack of good infrastructure facilities like transportation , communication, electricity etc
  Lack of skilled labour in hospitality industry.
 Lack of good guideline for entrepreneurs
 Lack of loan or subsidy from Govt. and other financial institution.
 Home stay tourism operation practice in both community and privately should be
differentiated and treated accordingly by the government during providing assistance
and other facilities
 Lack of database regarding number of home stays

Homestays can be a daunting, even scary, concept for an outsider and even locally established
partners often express skepticism about a team’s ability to live in the community. In both Kenya
and India, our team members expressed worries over personal security, health, comfort, and
communication, as well as concerns for burdens placed on the host families in financial terms,
security (over thieves’ belief that the team member might have brought money or valuables to
the host’s home), or religious, ethnic, and gender terms (Hindus living with Muslims, Kikuyus
with Nubians, or men staying with families with daughters).

Local partners were worried that we wouldn’t be able to give up the comforts of the modern
world (air conditioning, beds, Western toilets, etc.), would expect preferential treatment, or
could not handle day-to-day life in a poor community. In India, parents of some our teammates
(who were well into their 30’s) prohibited them from staying in a slum at night. Finally, it can
often be confusing to know the reasons why an outsider is staying in the community, and
rumors (sometimes wild ones) are likely.

It’s also important that the team understand that normal social conventions between people of
different class levels in a community have developed for a reason. This is especially true
between those providing a service and those that are being served. Often these conventions
act as a shield to protect both parties from the other, providing clearly defined roles and
etiquette to minimize misunderstandings.

SUGGESIONS
 It should implement good mechanism in home stay
 Should provide more fund for home stay.
 Provide more man power and conduct training.
 Tourism department should take good initiative for promoting home stays in local
areas.
 Provide proper guideline for home stay construction.
 Provide more publicity for supplementary accommodation like home stay.
CONCLUSION

Home stay tourism is an emerging tourism concept evolved lately in the tourism world. India
can be a model home stay for its multi-faceted potentialities. Natural gifts, man-made heritages
ethno-cultural richness, innocent social settings, pleasant hospitality and many more
unexplored treasures that are dreams for experts of tourism. Home stay tourism cannot prosper
sans the convergence of needs of the affluent and the needy based on the premise of demand
driven mechanism because it is a need base concept. India can harness the boon of tourist
potentiality rampant at the rural areas where government has pro-poor programs. This form of
tourism is based on three aspects namely service, facility and attraction. India has a strong
position only in attraction whereas it is lacking in facility and services. Sustainable tourism
takes place if home grown resources and natural settings are effectively served to the tourism
as well as also preserved. Promotion of tourism thus is highly dependent upon the active
participation of the private sector and communities where the role of government becomes that
of a facilitator.
With the aim of providing facilities of standardised world class services and a comfortable stay
to the tourist, and to supplement the availability of accommodation in Metros and tourist
destination, Ministry of Tourism classified fully operational terms of Bed and Breakfast/
Homestay facilities as “Incredible India Bed and Breakfast/Homestay Establishments”. The
idea behind this concept is to provide a clean and affordable place for foreigners and domestic
tourists including an opportunity for foreign tourist to stay with an Indian family to experience
Indian customs and traditions and to relish authentic Indian cuisine.

BIBLIOGRAPHY

1. TOURISM PRODUCTS OF INDIA-Robinet Jacob,Mahadevanp,Sindhu Joseph-Abhijeet

Publications
2. TOURISM OPERATIONS AND MANAGEMENT-Sunetra Roday,Archana Biwal,Vandana
Joshi-Oxford university
3. SOCIAL AND CULTURAL HISTORY OF KERALA-Menon,A.Sreedhara-Sterling
Publishers
4. www.sikkimhomestay.com
5. www.ecotourismsocietyofindia.org