Himachal govt bans homestays running from leased buildings & flats, makes changes in rules

TNR News Network
Shimla:
In a major policy shift aimed at regulating the tourism sector, the Himachal Pradesh government has banned the operation of homestays in leased properties and flats. Under the newly revised Homestay Rules 2025, only independent houses owned by individuals, as verified in revenue records, will be eligible for homestay registration.

The new rules, now published in the state gazette, mark a significant tightening of norms. All existing homestays and bed-and-breakfast (B&B) units across the state must now undergo fresh registration through a newly launched online portal. Registration will only be allowed in the name of the actual property owner and certificates will be issued based solely on jamabandi (land ownership) records.

What revised guidelines say

• Homestays cannot be run in leased houses, flats or partial units like one-room or two-room sets.
• The property must be an independent building or an entire floor dedicated for guest use.
• A separate entry point is mandatory to ensure privacy for tourists.
• Registration will be denied if the property is not solely owned by the applicant.

Previously, the 2008 Homestay Scheme lacked clear provisions on leased properties, leading to widespread use of rented flats, especially by individuals from outside the state, for commercial operations in tourist hotspots.

The state’s Tourism Department has been instructed to strictly enforce the ownership condition, declaring all leased operations illegal. The crackdown comes amid rising concerns about unregulated tourism infrastructure and the misuse of homestay licenses by non-resident investors.

A member of the Himachal Pradesh Homestay Association welcomed the move saying, “There were no clear directions on leased properties in the earlier rules. We had requested the government to ensure local people benefit from the scheme, and these new directives reflect that intention.”

Under Section 118 of the Himachal Pradesh Tenancy and Land Reforms Act, non-Himachali individuals are required to seek permission to buy land or build homes in the state. However, flats could previously be purchased without this approval, creating a loophole for outsiders to run homestays in leased apartments.
With the implementation of the revised rules, the state government aims to protect local livelihoods, ensure better regulation and maintain the ecological balance in fragile hill areas.