After rural tourism, policy on homestays to be next big thing

One of the incentives offered in the strategy is that for setting up a homestay accommodation, the proprietor will not need to obtain a permit from the authority.
Image used for representational purpose only. ( File Photo)
Image used for representational purpose only. ( File Photo)

NEW DELHI: After rural and sustainable tourism, the next big thing on the agenda of the ministry of tourism is promotion of rural homestays. To facilitate and encourage stakeholders to create accommodations in villages and rural areas offering authentic local experience, the ministry has drafted a National Strategy for Promotion of Rural Homestay (NSPRH) – under which several reliefs, exemptions and financial assistance to individuals, companies, and self-help groups are proposed.

One of the incentives offered in the strategy is that for setting up a homestay accommodation, the proprietor will not need to obtain a permit from the authority.

It further proposes that rural homestays should be considered eligible projects under Micro, Small, and Medium Enterprises (MSME) service of the Central and State Governments so that they can avail the benefits under those schemes.

The draft of the NSPRH also says that governments should frame dedicated schemes to provide subsidy for a new set-up or subsidy of 30 per cent of the capital invested subject to a ceiling of Rs 1 lakh per lettable space with a maximum of six rooms.

To make a homestay project a more financially viable enterprise, the ministry’s document suggests that private properties offering lodging and food to tourists in rural areas should not be treated as commercial entities, and domestic power and water tariff should be applicable.No entertainment or other commercial tax will be imposed on rural homestays in connection with food, lodging or cultural activities, says the draft.

The official said that the NSPRH is an initiative towards Atmanirbhar Bharat in accordance with the vision of the Prime Minister of making India a self-reliant nation.“The NSPRH is in line with the national strategies for rural tourism and sustainable tourism. The policy is in the public domain. The Last date of sending feedback is April 15,” said an official.

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