Examiner Bureau | Srinagar:
The Jammu and Kashmir Government has notified the Homestay Policy 2026, introducing simplified registration procedures, financial assistance and residential electricity and water tariffs to encourage local households to accommodate tourists and promote tourism in rural, border, heritage and emerging destinations.
Approved by the Council of Ministers, the policy aims to expand accommodation capacity, generate livelihood opportunities and ensure that the economic benefits of tourism reach communities beyond established tourist centres across the Union Territory.
Under the operational framework, property owners must reside on the premises and can offer between one and eight guest rooms to tourists. Homestays will be classified into Silver and Gold categories based on facilities, hygiene and safety standards.
To simplify the registration process, the policy provides for provisional Silver registration within 28 days of submission of a complete application. The provisional registration will remain valid for up to six months.
The policy also provides for a subsidy of up to 35 per cent under the Prime Minister’s Employment Generation Programme (PMEGP), with the maximum project funding limit set at Rs 20 lakh. The assistance is intended to help eligible applicants establish or upgrade homestay facilities, subject to the scheme’s applicable conditions.
In another incentive for operators, homestays will be eligible for electricity and water charges at residential rates instead of commercial tariffs, according to the policy provisions.
The framework also encourages households to adopt renewable energy by providing for solar subsidies through the PM Surya Ghar scheme. In addition, it envisages access to low-cost credit through J&K Bank to support the development of homestay facilities.
Besides homestays, the policy allows eligible residential properties that are not being used by families as their own residences to be registered as Bed and Breakfast establishments. The provision is expected to widen accommodation options for visitors and create additional income opportunities for property owners.
The government has identified rural, border, heritage and emerging tourist destinations as key areas for expanding homestay-based tourism. The initiative seeks to encourage residents to host visitors, showcase Jammu and Kashmir’s culture and hospitality, and secure a greater share of tourism-related economic activity.
By promoting locally managed accommodation and broadening the range of registered tourist stays, the policy aims to strengthen local economies, support entrepreneurship and distribute tourism opportunities among more communities across Jammu and Kashmir.
