NITI Aayog highlights Goa’s homestay model, urges states to cut red tape

Panaji: Centre’s public policy think tank, NITI Aayog, has recommended that states from across India adopt Goa’s streamlined regulatory model for homestays, citing it as a best practice for boosting tourism and reducing bureaucratic obstacles for small operators.

In its report titled, ‘Rethinking Homestays: Navigating Policy Pathways’, it points out that Goa simplified its registration process by requiring only three essential documents: proof of ownership, applicant identification, and GST registration. Unlike most others, the coastal state also offers seamless digital registration and renewal through a single online portal, with a five-year validity and no additional paperwork required for renewals.

The report highlights that while states like Uttarakhand, Uttar Pradesh, and Kerala follow relatively lean procedural steps, their frameworks differ in regulatory design and intent. Goa stands apart by issuing registration certificates before conducting verification, thus minimising delays for operators.

Paperwork and procedural burdens, however, remain a significant barrier elsewhere.

The Uttar Pradesh Paying Guest scheme, for instance, entails the most documentation, often stretching approval timelines to anywhere between two and six months. NITI Aayog notes that such processes not only discourage new entrants but also complicate compliance for existing operators, eating into valuable time and resources.

The report also flags inconsistencies within Goa itself. Despite its simplified model, the state’s tourism department introduced the Homestay and B&B Policy in 2023, which mandates multiple documents for registration, thus contradicting earlier ease-of-doing-business measures. This mismatch, the report said, left many operators uncertain about the correct procedures. As a result, many continue to function under outdated rules or miss out on benefits offered under newer schemes.

The think tank believes that a more uniform, digitised, and less cumbersome system across states would help realise the sector’s growth potential while ensuring greater participation from local communities.