Hyderabad: Telangana is preparing to launch a dedicated homestay scheme that could allow homeowners across the state to earn from short-term tourist accommodation while widening the benefits of tourism beyond established hotels and major destinations.
The Tourism Department is expected to invite applications from eligible homeowners for the registration and classification of homestays. The initiative is part of the Telangana Tourism Policy 2025-30, which seeks to strengthen tourism investment, employment and regional economic activity. Under the proposed framework, homeowners can offer eligible residential properties to tourists for short stays. The scheme will cover independent houses, heritage properties, traditional homes and selected rural, tribal and residential properties. Hotels, resorts, hostels, lodges, paying-guest facilities, dormitories and serviced apartments will remain outside the homestay framework. The government plans to process applications within 30 working days, while registrations will remain valid for two years. Registered properties will be assessed and placed into three categories by a multi-department committee before receiving classification certificates.
Approved properties are also expected to receive digital visibility through Telangana Tourism’s promotional platforms. This could help smaller destinations gain access to travellers without requiring large hospitality developments. The economic case for the scheme extends beyond accommodation. Homestays can create additional income for households while directing tourist spending towards local food, handicrafts, cultural activities and community businesses. For rural and tribal areas, the model could provide an alternative source of employment and entrepreneurship. It may also allow visitors to experience local traditions in a more direct setting rather than relying mainly on conventional hotel accommodation. There is an environmental dimension as well. Expanding accommodation through existing homes can reduce the need for new large-scale hospitality construction in locations where tourism infrastructure is still developing. However, the benefits will depend on appropriate waste management, water use, sanitation, safety and local infrastructure.
The state’s tourism policy has set ambitious targets, including ₹15,000 crore in tourism investment and three lakh jobs over five years. It also aims to increase tourism’s contribution to the state economy into double digits. Telangana can draw lessons from established homestay markets in other states, including Kerala, where structured classification systems have helped bring family-run properties into the formal tourism ecosystem. The proposed scheme therefore represents more than an accommodation initiative. If implemented effectively, it could distribute tourism income across a wider geography while supporting local enterprise and reducing pressure for rapid commercial development around popular destinations. Its success will ultimately depend on how easily families can register, maintain required standards and access tourists, while ensuring that growth remains safe, inclusive and environmentally responsible.
