In a surprising and controversial move, the Himachal Pradesh government recently announced a proposal to impose commercial rates for electricity and water on homestays. This decision was revealed in various news outlets indicating that a proposal to provide electricity and water facilities in the state’s homestays at commercial rates has been placed before the Cabinet Sub-Committee constituted to amend the Home Stay Rules 2024.

For years, homestays have been a lifeline for middle-class and lower-income families, providing a vital source of supplementary income and contributing to the local economy. However, this new policy threatens to undermine the very foundation of homestays, turning what was once an accessible and inclusive form of tourism into a financially burdensome endeavour. The government argues that aligning utility rates with commercial standards is necessary for regulatory consistency and financial sustainability. However, this rationale fails to consider the unique nature of homestays, which operate on a small scale and offer tourists an authentic, home-like experience rather than a commercial service. The proposal raises critical questions about economic inequality, property rights, and the future of sustainable tourism in Himachal Pradesh. In this blog, we will delve into the multifaceted implications of this proposal, examining how it stands to impact local livelihoods, exacerbate economic disparities, and contradict the very principles of the Incredible India scheme.