Holistic Policy Framework for Homestay Regulation

Bengaluru, June 18: The High Court has directed the State Tourism Department to formulate a comprehensive policy and statutory framework to regulate the establishment, management and supervision of homestays in the state in consultation with other concerned departments and formulate appropriate regulations.

A bench headed by Justice Suraj Govindaraj passed the order while hearing a petition filed by the owner of a homestay in Kutta village of Ponnampet taluk of Kodagu district, challenging the district administration's action to cancel the registration of the homestay. The bench, which said that it would treat the order cancelled by the District Collector as a show cause notice (shōthi chichiuse tōnai chichie), adjourned the hearing and ordered a reply to be filed by June 24.

The growing importance of the homestay sector and the cases against them are increasing. Therefore, the bench said that the Principal Secretary, Tourism Department, Government of Karnataka, in consultation with the concerned departments, should frame rules for a comprehensive policy and regulation governing the establishment, operation and supervision of homestays in the state. 

The Karnataka Tourism Business (Facilitation and Regulation) Act, 2015 provides for the registration and regulation of homestays, tourism business establishments. However, the operation of a homestay involves several statutory and regulatory aspects. Registration under this Act alone cannot effectively address this. Therefore, a homestay is not just a commercial establishment, but a place where the public, women, stay. For a long time and where food, accommodation and related services are provided. Consequently, public safety, health, hygiene, security, consumer protection are of paramount importance, the bench said.

Important Instructions for Homestays

Since homestays are generally located in private residential buildings, there are no necessary safety standards. Therefore, fire safety measures should be adopted. There should be a fire control, a means of escape for the residents in case of a fire. These should be reviewed periodically.

For the health of tourists, kitchen hygiene and food safety standards should be strictly followed.

Homestays are mostly located in residential, semi-urban, rural, coastal, eco-sensitive or hilly areas. Therefore, tourists visiting these places should strictly follow all the rules as per the building codes and residential zone rules.

Homestay owners should cooperate with public safety, crime, smuggling, cybercrime control and investigative agencies. In addition, identity cards of all guests should be checked.

Transparency and consumer protection are needed, and transparency in pricing should be maintained. Minimum standards related to sanitation, cleanliness, clean drinking water, waste disposal, sewage management and environmental sustainability should be formulated. The responsibilities of the officials of various departments involved in the regulation of homestays should be clearly defined and segregated.

A systematic and transparent inspection mechanism should be implemented so that inspections are not carried out at will. The bench said that the classification between small and large commercial homestays should be made mandatory.

Small entrepreneurs should not be burdened

There should be a clear distinction between small family-run homestays and large resort-type homestays for commercial purposes. The rules should not be a burden on small owners. But there should be strict monitoring of large establishments, the bench said. Due to the current lack of coordination between departments, the owners are confused about which department to seek permission from. Thus, the bench said in its order that a uniform regulatory framework will increase administrative efficiency.

In this case, no notice was given to the applicant before cancelling the homestay license. The district administration took this action without following the provisions of the ‘Karnataka Tourism Trade (Facilitation and Regulation) Act-2015’. Therefore, the order cancelling the license was converted into a show cause notice and the court gave the owners an opportunity to reply to it.

On April 12, a 33-year-old American national was sexually assaulted at a homestay in Kutta. The district administration had ordered the cancellation of the registration of the homestay in this case. The homestay owner had filed a petition in the High Court challenging this.

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