As defined by Kerala’s tourism department, homestay means “A family business carried out by the owner of the house providing accommodation alone or food and accommodation facilities to tourists visiting Kerala”. The state’s homestays can be divided into two categories: classified and non-classified. Out of nearly 4,000 homestays operating in the state, the majority remain unclassified due to a myriad of reasons. Homestay owners claim that the never-ending norms are the prime reason they are not getting classified or reclassified. The classification process by the tourism department presents its own challenges, while the continuous regulations set by the local self-government department bring with them their own challenges.
The objective of the tourism department is to ensure that homestays operate according to the guidelines set by them. For this reason, they have come out with classifications, namely diamond, gold, and silver houses, based on the facilities, amenities, size, etc. of their homestays. An inspection committee will assess the facilities using a checklist, and the classification will be awarded according to the committee’s recommendations. The facilities and services offered will be evaluated against this checklist. For a homestay to receive the diamond classification, it must meet 70 of the necessary requirements on the checklist. The department collects a payment of Rs 3000 as an application fee per homestay while submitting the application for classification. This classification/reclassification will be valid for a period of 3 years. Homestay operators must submit eight documents for classification, including an ownership certificate and resident certificate. However, discussions with homestay owners have revealed that officials in LSG departments often delay the process of issuing these certificates.
In addition to these certificates, a house plan prepared by authorised parties must be submitted. An existing copy will not be accepted; a new plan must be submitted, which typically costs between Rs. 16,000 and Rs. 25,000 depending on the size of the home. Once classified, homestays are listed on Kerala’s tourism ministry website, which officials say is a great way to market them. However, the homestay owner’s primary opinion is that their bookings are primarily made through online platforms rather than the official website. It demonstrates that classification is not the driving factor for increased/decreased tourist presence. Tourists are attracted by a variety of factors, most of which reflect the region, such as safety and security, ease of access to the location, attractiveness of the destination, unique food and beverages, shopping opportunities, and so on.
According to a small-scale primary survey of classified homestay owners, the majority of bookings occur through booking.com, direct booking, or word of mouth, raising questions about the classification system’s relevance. Officials state that the classification system is meant to ensure the quality of homestays, but data shows that there are more non-classified homestays than classified ones. Non-classified homestays also receive bookings, suggesting that they are able to ensure their quality. However, non-classified owners mention that they are taking a risk by operating without classification, as they could face legal issues if any problems arise.
There is another important catch in the homestay sector that hasn’t been discussed enough; if your home is located in a panchayat, municipality, or corporation, you must first obtain a homestay licence from the concerned LSG by submitting documents such as a PCC, a food and safety licence, and a declaration for waste management. If you obtain this licence, you can operate a homestay. However, the tourism department’s procedure for approval states that “Classification of homestay is mandatory and those who intend to start a homestay business must apply online,” which shows a lack of clarity between departments and that amidst all the paperwork required, there is no validity to the homestay licence obtained from the LSG. The question of multiple interferences from the state departments stands as a hurdle to setting up a legal homestay. Ending such bureaucratic bottlenecks is important for the tourism sector.
Another major hindrance faced by homestay owners is the tourism department’s rule that “the maximum number of rooms that can be given for tourist accommodation is six.” A homestay owner with only two rooms in their own house for tourist accommodation may want to expand by building additional cottages on the same property. However, according to the rules, this would not be considered a homestay because it is not attached to the home and cannot be considered a serviced villa either. The presence of the owner in adjacent cottages on the same property does not alter the concept of a homestay. It is important to note that homestays that have obtained classification come under the domestic tariff. As a result, the tariff changes entirely, moving from domestic to commercial rates.
In 2022, Kerala received over 1.8 crore domestic tourists and over 3.45 lakh foreign tourists, according to the state’s tourism department. However, this is not the limit; tourist numbers could double because every village in Kerala has tourism potential. According to the Ministry of Tourism, there are 352 five-star hotels in India, with 46 in Kerala ranking highest in India. But people don’t come to Kerala just to stay in star hotels; they come to experience nature, art, food, and healthcare facilities. To facilitate this, every village in Kerala should have homestay facilities. Lakhs of houses are lying idle in Kerala; owners easily converting a percentage of them into homestays could be a great solution. This will not only generate them income but also increase the state’s tourism revenue. The current classification system and procedural hurdles not only hinder the ease of doing business but also lead to a potential loss of revenue for the state and restrict the growth of the homestay sector. Eliminating redundant paperwork, reducing the bureaucratic burden, and easing regulations are the issues that need to be addressed. Therefore, the department needs to rethink the use of the existing system. By addressing these issues, Kerala can unlock the true potential of its homestay business and offer a more welcoming and seamless experience for tourists, benefiting both the entrepreneurs and the state’s tourism sector as a whole.
(This article was first published on Samayam Malayalam)
Views expressed by the author are personal and need not reflect or represent the views of the Centre for Public Policy Research.