Homestay operators in Chamba protest state new policy over high fees
Homestay operators in Chamba have opposed the new homestay policy introduced by the state Government, arguing the steep increase in registration fees could jeopardise their livelihoods.
The Chief Minister Sukhvinder Singh Sukhu-led Congress government recently launched the Himachal Pradesh Home Stay Rules-2025, aiming to expand tourism opportunities by allowing both local and non-local entrepreneurs to engage in the state’s growing hospitality sector.
However, homestay owners have expressed serious concerns over the revised registration fees. Under the new policy, rural homestay owners are now required to pay an annual registration fee of Rs 6,000, totalling Rs 18,000 for three years. Previously, the fee was only Rs 100. For properties in Special Area Development Authority (SADA) regions, the fee is Rs 8,000 per year and in urban areas, it is Rs 12,000 annually.
“Many homestays in Chamba barely attract guests throughout the year, with some never receiving any visitors despite being registered. These high registration fees will drive small operators out of business,” said Manuj Sharma, co-founder of Not on Map, an organisation that promotes sustainable tourism.
In contrast, hotels have different fee structures, ranging from Rs 1,000 to Rs 5,000 for three years.
In addition to the registration fees, homestay operators are also opposed to other provisions, such as the imposition of Goods and Services Tax (GST) and mandatory structural stability certificates, which they argue are costly and difficult to obtain. They criticised the government for not consulting them before implementing the policy.
Manoj Thakur, who runs a homestay in Pangi Valley, said the policy could harm rural tourism. “If the new rules are implemented, people may hesitate to start homestays due to the financial burden. If the government doesn’t reconsider its decision, many existing homestays will shut down,” he said.
Many other operators pointed out homestays are not commercial hotels but were introduced to promote local tourism, culture and cuisine. They argued the high registration and renewal fees, along with unnecessary conditions, are arbitrary and unreasonable.
Operators also stated treating homestays as commercial enterprises, with additional taxes and regulations, could destabilise small-scale businesses, leading to rural unemployment. They have called for homestays to be classified as domestic activities, exempt from commercial taxes, to reduce the financial burden and ensure their sustainability as a source of self-employment.
Association formed
In a bid to strengthen their protest, operators formed the Chamba Homestay Association during a meeting on Sunday. Renu Sharma, operator of H2O House Homestay in Chamba, was unanimously elected president, while Harinder Singh was appointed vice-president, Bhuvnesh Katroch as general secretary, Gaurav Sharma as joint secretary and Kishori Lal as treasurer. Four executive committee members were also elected.
Speaking on behalf of the newly formed association, Renu Sharma highlighted their commitment to addressing the challenges faced by homestay operators and ensuring their concerns are heard by the government. She pointed out of nearly 300 registered homestays in Chamba, around 70 per cent receive little to no tourist footfall, making the increased registration fees unsustainable.
The association plans to hold further meetings in the coming weeks to strategise their next steps in pushing for policy amendments. Sharma added Raj Basu, known as the “Tourism Gandhi of India,” will attend their next meeting online.
