Cabinet Sub-Committee Proposes Major Changes to Himachal Pradesh Homestay Rules; Govt to Introduce Cess on Homestays for Additional Revenue

Shimla — The Himachal Pradesh government is gearing up to enforce stricter regulations on homestays and bed and breakfast (B&B) units, particularly targeting those operating without proper registration. This move comes following a recent meeting of the Cabinet Sub-Committee, chaired by Industry Minister Harsh Vardhan Chauhan, where significant amendments to the Himachal Pradesh Home Stay Rules, 2024 were discussed.

Unregistered Units Under Scrutiny

In a bid to streamline the homestay sector and ensure compliance with state laws, the government is set to close all homestays and B&B units that have been operating without official registration. This decision aims to restore the original intent of the Home Stay Scheme, which was to provide employment opportunities to local, unemployed residents of Himachal Pradesh. However, a significant number of these establishments have been set up by individuals from other states, utilizing the provisions of Section 118, which permits the establishment of houses or industries on acquired land but prohibits the operation of homestays by non-residents.

Proposed Amendments

The sub-committee discussed several key changes to the existing regulations:

  • Closure of Unauthorized Units: An immediate shutdown of all unregistered homestays and B&B units.
  • Introduction of a Cess: A new cess based on the facilities provided by the homestays is being considered to increase government revenue.
  • Increased Fees: Proposals to raise the registration and renewal fees from the current rate of Rs 100 were discussed. The revised fee structure aims to reflect the facilities and scale of operations of each homestay.
  • Inclusion of B&B Units: Bringing bed and breakfast units under the regulatory framework of the Tourism Department to ensure they adhere to the same standards as homestays.

Committee Deliberations

The sub-committee, which includes Rural Development and Panchayati Raj Minister Aniruddh Singh, Public Works Minister Vikramaditya Singh, and Town and Country Planning Minister Rajesh Dharmani, provided various suggestions to refine the proposed amendments. They emphasized the necessity of a thorough review of the current regulations to safeguard the scheme’s primary goal of supporting local employment.

Mansi Sahay Thakur, Director of Tourism and Civil Aviation, presented various issues related to the draft of the Himachal Pradesh Home Stay Rules, 2024. The committee decided that the Tourism Department would revise the draft rules based on the discussions and present the updated draft at the next Cabinet Sub-Committee meeting, scheduled for July 23, 2024.

Implications for the Tourism Industry

Himachal Pradesh currently has over 4,000 registered homestays, with numerous others operating without registration. The enforcement of stricter regulations and the introduction of higher fees aim to ensure fair practices and boost state revenue but may lead to a significant reduction in the number of operational homestays, particularly those run by out-of-state individuals.

The final decision on the proposed amendments will be made in the upcoming Cabinet Sub-Committee meeting. Stakeholders in the tourism sector are advised to stay informed about the changes and ensure compliance with the new regulations once they are implemented.