Govt to regulate operations of homestays, generate revenue

The state government has accepted the recommendations of the Cabinet sub-committee on homestays and is hoping to curb the operations of unregistered units and generate revenue by substantially increasing their registration fee.

As expected, the Cabinet sub-committee has recommended that only bona fide Himachalis be allowed to run homestays in their houses. There were reports that many outsiders, who had bought land in relaxation of Section 118 of the Land Reform and Tenancy Act, 1972, were running homestays in violation of norms, as no commercial activity could be allowed when permission had been given for the construction of residential houses.

There were complaints that in many cases, the owners of the homestays, who belong to other states, were not even living in the residential buildings and had given their properties to people to run homestays. However, the government would now cancel the registration of all such homestays owned by people from other states.

There are 4,289 homestays in Himachal. Kullu district has the highest number of 1,040 homestays, followed by Shimla (805), Lahaul-Spiti (718) and Kangra (431). The homestays have a total of 17,222 rooms with a capacity of 26,727 beds in the state.

Besides, commercial water and electricity charges charged from homestays being run in urban areas will help generate the much-needed revenue for the government. At present, all homestays are being paying domestic electricity and water charges, as the government has been making efforts to promote tourism in the rural and interior parts of the state.

The hoteliers associations had repeatedly taken up with the government the issue of unregistered homestays operating across the state. They had complained that many homestays were running without registration with the Tourism Department and without paying taxes to the government. These homestays were also affecting their business in a big way.

The Cabinet sub-committee has recommended that the nominal registration fees being charged from the homestays should be increased substantially to generate revenue for the government. Homestays with four to six rooms will have to pay an annual registration fees of Rs 12,000 in municipal areas while units located in planning areas and in the jurisdiction of the Special Area Development Authority (SADA) will have to pay Rs 8,000. Homestays located in gram panchayats will have to pay a registration fees of Rs 6,000. The homestays that get registration done for three years will be given 10 per cent concession.