The tourism department stated that the policy was established to cater to the increasing demand for affordable lodging as more tourists visit religious and cultural sites like Ayodhya, Varanasi, Mathura-Vrindavan, and Agra.
Officials noted that applications under the policy have surged significantly since the start of 2026, reflecting a heightened interest in tourism-related enterprises.
The statement mentioned that urban homestays are experiencing considerable engagement in Varanasi, Mathura, Agra, Ayodhya, Prayagraj, and Lucknow, while rural homestays are rapidly growing in the Bundelkhand area, particularly in Banda, Hamirpur, Mahoba, and Jhansi.
Regions like Barabanki, Bahraich, Pilibhit, and Lakhimpur are emerging as notable rural tourism spots, the statement added.
The government emphasized that the policy is fostering local employment opportunities, as families are transforming vacant rooms into lodging options. It highlighted that this model is particularly advantageous for retirees, women-led households, and families with unutilized residential properties.
The homestay and farmstay model allows tourists to engage with local culture and traditions while promoting job and self-employment opportunities in villages, stated Uttar Pradesh Tourism and Culture Minister Jaiveer Singh.
The registration of homestay and bed-and-breakfast establishments is processed online under the policy. Registered units are eligible for benefits from the scheme, as well as promotional support via the tourism department’s website, he added.
According to the policy guidelines, both urban and rural homestays can comprise a maximum of six rooms and accommodate up to 12 guests. In bed-and-breakfast establishments where owners do not live on-site, appointing a caretaker is essential.
The statement indicated that registered units would continue to pay residential rates for utilities such as electricity, water, and taxes related to housing and sewage.
Beneficiaries may also receive subsidies for rooftop solar panels through the Pradhan Mantri Muft Bijli Yojana.
The Manyawar Kanshiram Institute of Tourism Management will offer free skill development training to eight support staff members linked with registered units, the statement concluded.
