Exemptions and Incentives for Home Stays in Himachal Pradesh

3 Qs about Homestay Incentives

Why?
Which?
Who?

Himachal Pradesh offers a number of incentives to promote the home stay scheme. But why does it promote the scheme? What types of incentives are available for local home stay owners? Who can avail themselves of the incentives? Read on to find the answers to these questions.

3 Reasons to Offer Exemptions and Incentives to Home Stays in Himachal Pradesh (Clause 7)

  1. To divert tourist inflow from overcrowded destinations to less and least frequented destinations.
  2. To promote concept of home stay so that local community can reap economic benefits of tourism.
  3. To popularize rural tourism that ensures local community participation.

 

4 Incentives for Himachal Pradesh Homestay Units (Clause 7)

The Department of Tourism offers the following incentives for the registered home stay units as per the Scheme 2008:

  1. The units are exempt from the land conversion fee collected by the Town & Country Planning Department.
  2. The units with maximum of three rooms are exempt from VAT and luxury and sales tax.
  3. The units will pay electricity bill at domestic rates only.
  4. The units will also pay water bills at domestic rates only.

 

5 Eligibility Criteria for Claiming Home Stay Related Exemptions (Clause 5)

The scheme lists the following criteria for claiming home stay related exemptions in Himachal Pradesh:

  1. All home stays registered under the Scheme 2008 are eligible for prescribed exemptions and benefits.
  2. Since the Government of Himachal Pradesh provides exemptions under its discretionary powers, the home stay owners cannot sue the government in any court regarding these exemptions.
  3. The home stays shall comply with scheme guidelines / instructions laid down by the Directorate of Tourism.
  4. The home stay units shall be built as per hill architecture and design principles.
  5. The home stay unit owners with their family shall physically live in the same unit.

 

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