The tourism department mentioned that the policy was created in response to the increasing demand for affordable lodging due to the growing number of tourists visiting religious and cultural sites like Ayodhya, Varanasi, Mathura-Vrindavan, and Agra.
Officials noted that there has been a substantial rise in applications under this policy since early 2026, reflecting a heightened interest in tourism-related enterprises.
According to the statement, urban homestays are gaining traction in Varanasi, Mathura, Agra, Ayodhya, Prayagraj, and Lucknow, while rural homestays are rapidly expanding in the Bundelkhand area, especially in Banda, Hamirpur, Mahoba, and Jhansi.
Districts like Barabanki, Bahraich, Pilibhit, and Lakhimpur are also starting to emerge as rural tourism hotspots, the statement indicated.
The government highlighted that the policy is creating local job opportunities, with families transforming empty rooms into rental units. It was noted that this model is particularly advantageous for retirees, women-led households, and families with unutilized residential spaces.
The homestay and farmstay initiative allows tourists to engage with local culture and traditions while generating employment and self-employment prospects in villages, said Uttar Pradesh Tourism and Culture Minister Jaiveer Singh.
Under this policy, the registration process for homestays and bed-and-breakfast facilities is conducted online. Units that are registered can benefit from the program and receive promotional support through the tourism department’s website, he added.
According to the policy guidelines, both urban and rural homestays may have up to six rooms and a maximum of 12 beds. In bed-and-breakfast establishments where the owners do not reside, appointing a caretaker is compulsory.
The statement mentioned that registered units would still be subject to residential rate charges for electricity, water, and house and sewer taxes.
Participants can also access subsidies for rooftop solar panels under 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.
