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Himachal Pradesh Launches Startup Scheme To Expand Homestay Tourism

The state government is providing financial incentives to local entrepreneurs to establish or upgrade homestays, aiming to create self-employment and broaden tourism beyond urban centers.

The Traveller Trails by The Traveller Trails
September 18, 2025
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Himachal Pradesh Launches Subsidy Scheme To Expand Homestay Tourism

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Himachal Pradesh has rolled out a new initiative to encourage local entrepreneurship in tourism, with a focus on homestays and small hospitality ventures. The state government has approved the ‘Chief Minister Tourism Startup Scheme in Hospitality Industry’, which provides financial incentives to establish new tourism units, such as homestays, as well as to expand or upgrade existing units.

The scheme provides interest subsidies on loans up to ₹2 crore, with rates of 3 percent in urban areas, 4 percent in rural areas, and 5 percent in tribal regions, applicable for a maximum period of three years from the date of loan disbursement. The benefit is available exclusively to bonafide Himachalis.

Also Read: Private Operators Invited To Manage 27 Eco-Tourism Sites In Himachal Pradesh

Government officials highlight that homestays play a critical role in attracting visitors by offering cost-effective alternatives to hotels, encouraging longer stays in rural areas, and providing travellers with opportunities to engage directly with local traditions, cuisine, and customs. By tapping into the state’s rich cultural and ecological resources, the initiative seeks to open new avenues of self-employment and strengthen local economies.

The program is also expected to formalize the homestay economy, raising quality standards across hospitality ventures while supporting tourism in urban, rural, and offbeat locations. Officials note that Himachal Pradesh’s clean environment, rivers, forests, sacred shrines, and scenic valleys make it a compelling destination for a diverse range of visitors. According to the Economic Survey 2024-25, the tourism and hospitality sector contributes 7.78 percent to the state’s Gross Domestic Product, underscoring the importance of sustained investment in this area.

By offering structured financial incentives, the scheme encourages private entrepreneurship in tourism infrastructure without compromising ecological balance. Homestays supported under the program are expected to enhance sustainable travel experiences, enabling visitors to access culturally immersive stays while ensuring that local communities benefit directly from the expanding tourism economy.

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Tags: Himachal Chief Minister Tourism Startup Scheme in Hospitality IndustryHimachal Pradesh Tourism Startup SchemeHomestaysSustainable Tourism
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