Shimla – In a move aimed at tightening oversight and curbing misuse of tourism facilities, the Himachal Pradesh government has enforced stricter rules for homestay operations. Under the newly revised Home Stay Rules 2025, neither flats nor leased buildings will be allowed to function as homestays, and registrations will only be granted to property owners listed in official land records.
The fresh guidelines, published recently in the official gazette, mandate that all existing and new homestays — including bed and breakfast (B&B) units — must re-register through a newly developed online portal. The portal will verify ownership through revenue records, and certificates will only be issued in the name appearing in the jamabandi (land ownership document). Running a homestay on lease has now been declared entirely illegal.
Officials said the move was necessary to curb a rising trend where non-local investors buy flats in tourist-heavy regions like Manali, Shimla, and Dharamshala and lease them to operators who run illegal or unregulated homestays without adhering to safety or legal requirements. “Such practices were not only affecting genuine local hosts but also led to grievances regarding unprofessional services and tax evasion,” a tourism department official said.
Independent House a Must
As per the new rules, only independent houses or clearly demarcated floors of a residential building can be used for homestay purposes. There must also be a separate entry point and designated access route for tourists to ensure their privacy. One-room or two-room sets within shared buildings are not permitted.
Additionally, while land or property purchase in Himachal by non-residents requires permission under Section 118 of the Tenancy and Land Reforms Act, flats have often bypassed this scrutiny. Many outsiders exploited this loophole, converting vacation homes into commercial homestays without registering or maintaining tourism standards.
Growing Complaints Prompted Policy Shift
According to research and reports from local residents, the homestay sector in Himachal Pradesh has witnessed a spike in complaints over the past few years. Tourists have often flagged issues like inadequate sanitation, poor safety standards, misleading online listings, and untrained hosts. Local tourism stakeholders have also raised concerns about unregistered units undercutting prices, leading to unfair competition and loss of revenue for the state.
A study conducted by the Department of Tourism and Hospitality at Himachal Pradesh University found that nearly 40% of operational homestays in major tourist destinations were running without valid registrations. Many lacked fire safety certificates, proper waste disposal systems, or tourist-friendly infrastructure — contributing to both environmental degradation and customer dissatisfaction.
Boost to Local Hosts and Quality Control
By linking registration strictly with property ownership and enforcing architectural and infrastructural requirements, the government aims to support genuine local hosts while ensuring tourists receive a safe and authentic experience. The Tourism Department has been tasked with conducting strict verification drives, and violators could face fines or cancellation of tourism licenses.
Officials believe these rules will not only improve the credibility of Himachal’s homestay ecosystem but also discourage commercial misuse of residential properties, particularly by out-of-state investors seeking profit in high-traffic tourist areas.
The government is also planning to launch awareness drives in collaboration with local panchayats and tourism associations to inform hosts about the new rules and help them transition to the new system.
