NITI Aayog Report on “Rethinking Homestays: Navigating Policy Pathways”

  • 28 Aug 2025

In News:

NITI Aayog, in collaboration with the Internet and Mobile Association of India (IAMAI), released the report “Rethinking Homestays: Navigating Policy Pathways”. The document provides a strategic roadmap for strengthening India’s homestay and BnB sector, emphasizing its role in tourism, rural livelihoods, and cultural preservation.

Key Highlights of the Report

  • Tourism & Cultural Value: Homestays offer travelers culturally immersive experiences while promoting local entrepreneurship, heritage conservation, and community participation.
  • Economic Role: They serve as engines of livelihood creation, particularly in rural and semi-urban areas, fostering inclusive and sustainable growth.
  • Regulatory Approach: The report calls for light-touch, transparent regulation to balance safety, consumer trust, and ease of doing business.
  • Digital Integration: Strong emphasis on leveraging digital platforms for marketing, consumer engagement, and capacity building of hosts.
  • Public–Private Partnerships: Collaboration with stakeholders like Airbnb, MakeMyTrip, IAMAI, ISPP, Chase India, and The Convergence Foundation was highlighted as critical for shaping a vibrant ecosystem.
  • Best Practices: State-level examples from Goa, Kerala, Uttarakhand, and Uttar Pradesh showcase scalable models in policy, governance, and community-led initiatives.
  • Policy Recommendations: Suggests flexible frameworks, skill development, financial access, and infrastructure support to strengthen the sector.

Significance for India

  • Tourism Development – Homestays diversify India’s hospitality sector, offering authentic alternatives to conventional hotels.
  • Employment Generation – Potential to create entrepreneurial opportunities for women, youth, and local communities.
  • Cultural Preservation – Encourages conservation of art, craft, cuisine, and heritage while generating income.
  • Rural Transformation – Helps bridge urban–rural divides by promoting community-based tourism.
  • Sustainability – Supports low-impact tourism models, aligning with SDG 8 (Decent Work & Economic Growth) and SDG 11 (Sustainable Cities & Communities).

About NITI Aayog

  • Established: 1 January 2015, replacing the Planning Commission.
  • Chairperson: Prime Minister of India.
  • Vice-Chairperson: Appointed by PM.
  • Members: Full-time, part-time experts, ex-officio Union Ministers.
  • Governing Council: Chief Ministers of states and LGs of UTs.
  • Functions:
    • Premier policy think tank for cooperative federalism.
    • Provides strategic and long-term policy frameworks.
    • Monitors and evaluates development programmes.
    • Promotes innovation, entrepreneurship, and technology adoption.
    • Coordinates between Centre, States, and global partners.
  • Nature: Advisory, yet influential in shaping policies; key driver of initiatives like Aspirational Districts Programme, Atal Innovation Mission, and SDG localization.