Home Stay operators sound alarm over proposed policy changes
Photo used for indicative purpose only Source: Internet
Shimla, Feb17,
The Bed & Breakfast and Home Stay Owners Association based in Shimla has strongly opposed the Himachal Pradesh government’s newly proposed regulations, citing excessive financial and administrative burdens that could severely impact small hospitality businesses.
GM Wani, President of the association, stated that in an online video conference attended by home stay and bed & breakfast owners from across Shimla, concerns were raised regarding the sharp increase in registration fees, additional compliance requirements, and the imposition of commercial tariffs on utilities.
He informed that one of the primary issues highlighted was the steep hike in registration fees from ₹3,000 for two years to ₹12,000 per year. “Owners argued that such an increase is unjustified and places an unfair financial strain on small home stays, particularly when compared to hotels, which are purely commercial establishments,” he said.
He added, “The proposed regulations also introduce additional compliance burdens, including the requirement for a structural stability certificate from a registered professional, significantly increasing operational costs. Furthermore, urban home stays will be required to install separate electricity meters, further adding to their financial burden.”
According to Wani, another major concern is the government’s decision to impose commercial rates for water, electricity, and sewerage unless a separate residential meter is installed. “Home stay operators contend that their establishments are family-run enterprises and should not be classified under commercial property norms,” he stated. He also highlighted concerns regarding the proposed regulations granting authorities the power to inspect home stays at any time without prior notice. “This raises fears of harassment and disruptions, particularly as inspections will be conducted by both central and state authorities,” he added.
Wani further stated, “The association also opposed the mandatory re-registration of existing home stays under the Incredible India scheme and the 2008 HP Home Stay Scheme, arguing that it is an unnecessary bureaucratic hurdle. The proposed regulation requiring compliance within 90 days, with the risk of registration cancellation, is too stringent and impractical for many home stay operators to meet.”
He said, “Another key issue raised was the mandatory GST registration for businesses with a turnover below ₹20 lakh per annum. The association questioned whether the State government has the authority to enforce such a requirement, arguing that it would place an additional financial burden on small-scale hospitality businesses.”
In response to these concerns, Wani stated, “The association has demanded that the government lower the registration fee to align with the previous ₹3,000 for two years, rather than the proposed ₹12,000 per year. They also urged the authorities to exempt small home stays from commercial tariffs on utilities and simplify the renewal process by removing the need for complete re-registration. Furthermore, they stressed the importance of tourism-friendly policies that align with the state and central government’s existing home stay schemes and called for the removal of the unnecessary GST registration requirement for businesses earning less than ₹20 lakh annually.”
He concluded, “The association has strongly urged the Himachal Pradesh government to reconsider these proposed regulations, warning that they could discourage small hospitality businesses and negatively impact tourism in the state.”
Noteworthy that Homestay operators in Chamba have also opposed the new homestay policy introduced by the state Government, arguing the steep increase in registration fees could jeopardise their livelihoods.
About the Author
The HimachalScape Bureau comprises seasoned journalists from Himachal Pradesh with over 25 years of experience in leading media conglomerates such as The Times of India and United News of India. Known for their in-depth regional insights, the team brings credible, research-driven, and balanced reportage on Himachal’s socio-political and developmental landscape.
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