Budget 2025: As part of its widespread efforts for tourism development, stakeholders welcomed the center’s move to promote ‘Homestay’, saying that it can help promote the local economy and create employment opportunities. The facility of staying tourists by paying in private homes is called ‘Homestay’. Union Finance Minister Nirmala Sitharaman said in her budget speech on Saturday that homestay will also be eligible for currency loan. It aims to support small scale hospitality businesses in rural and town areas. This initiative is expected to provide financial assistance to people especially popular and emerging tourist destinations to introduce ‘Homestay’ facility or to expand existing units.
Under the Mudra Loan Scheme, micro and small businesses can get a loan of up to Rs 10 lakh. The Ministry of Tourism is expected to work with banks for easy access to these loans for homestay operators.
The chairman of FHRAI, the body of the hotel and restaurant area, K.K. Shyama Raju said that the introduction of currency loan for homestay business is another positive step, which will give local entrepreneurs a chance to start and develop small tourist businesses. This will help produce more jobs in these areas and encourage tourism. This decision has been taken at a time when the tourism sector is continuously improving after the Kovid-19 epidemic, and the demand for new housing options is increasing.
Industry reports suggest that in recent years the homestay segment has increased significantly, which is due to interest in domestic travel and experienced tourism. However, industry experts emphasize that a systematic implementation of the scheme is needed to ensure that the benefits reach those who need the most.
Sandeep Kulkarni, who runs homestay at Kasar Devi in Uttarakhand, said, “Financing has always been a challenge for small hospitality enterprises. If these loans come with minimum paperwork and low interest rates, they can encourage more entrepreneurs to enter the region. ”
“However, the government will also have to ensure proper marketing and infrastructure support to maintain this growth,” he said. According to a recent government report on the tourism sector, the Homestay industry has the ability to create important employment opportunities, especially in rural areas. The report highlighted the need for financial incentive, capacity building and digital marketing aid to help homestay owners.