Kerala Homestay Business

Kerala Homestay

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 Kerala Homestays

The practice of homestay in Kerala has gained recognition and approval from both policymakers and tourists alike due to its innovative nature. The concept of homestay in Kerala has its roots in bed and breakfasts (B&Bs), inns, and monasteries which have existed since ancient times. However, homestays in Kerala offer a more comprehensive accommodation experience in a homely environment.  

Accommodation is a significant sector that provides employment opportunities to millions of people. Unlike hotels and resorts, homestays offer a homely atmosphere for accommodation. Homestays provide a unique opportunity for all types of travelers to experience a place firsthand, including its culture, traditions, and people. Homestays aim to offer comfortable accommodation in an informal setting, with interactions with the family, while promoting localized tourism. Today, both budget-conscious and luxury travelers seek out the best homestays that cater to their interests and expectations.  

Homestay business in Kerala has been steadily growing over the past few decades, becoming a popular alternative to traditional hotel accommodation. The concept of homestays involves tourists staying in the homes of local residents, experiencing their lifestyle, culture, and cuisine.

 The development of the homestay business in Kerala  

It can be traced back to the early 1990s when the state government introduced the Kerala Homestay Scheme to promote tourism in the state. The scheme aimed to encourage locals to open their homes to tourists and provide them with a unique experience of Kerala's culture and way of life.

 Initially, the homestay business was concentrated in the rural areas of the state, particularly in the backwater regions of Alleppey and Kumarakom. However, with the growing popularity of homestays, the business has expanded to other parts of the state, including cities like Kochi and Thiruvananthapuram.

 One of the key factors that have contributed to the success of the homestay business in Kerala is the state's rich cultural heritage and natural beauty. Kerala is known for its pristine beaches, serene backwaters, and lush greenery, which attract tourists from all over the world. Homestays provide a more authentic experience of Kerala's culture, cuisine, and hospitality, making them an attractive option for tourists seeking an immersive experience.

 The government has also played a significant role in promoting the homestay business in Kerala by providing financial assistance and infrastructure support to homestay owners. The government has also launched various campaigns and initiatives to promote the homestay business, such as the Responsible Tourism Mission, which aims to promote sustainable and responsible tourism practices in the state.

 Today, Kerala has over 2,500 registered homestays, providing a range of accommodation options for tourists. Homestays have become a vital part of Kerala's tourism industry, contributing to the state's economy and providing employment opportunities to the local community. 

Q&A

How can I start a homestay business in Kerala? 

Starting a homestay business in Kerala requires you to follow certain guidelines and regulations set by the state government. Here are the steps to follow:

Determine the location: Identify the location where you want to set up your homestay. Kerala has several tourist destinations, and you can choose a place that is in demand. Prepare the infrastructure: The homestay should have adequate space, amenities, and facilities to provide a comfortable stay for guests. It should also be aesthetically pleasing and reflect the local culture. Obtain necessary licenses: To operate a homestay, you need to obtain necessary licenses from the Kerala Tourism Department. You can either collect the application form for Homestay Registration from the District Tourism Promotion Council (DTPC) office / Tourism Directorate or Regional Office (Norka Building, 4th Floor, Thycaud. Phone 0471 2335571) Thiruvananthapuram or apply online.  Meet the requirements: Ensure that your homestay meets the minimum requirements set by the government. For instance, you need to have a minimum of two rooms for guests and provide basic amenities such as clean drinking water, electricity, and sanitation facilities.

 Promote your homestay: Once your homestay is registered, you can start promoting it through online and offline channels. You can list your homestay on popular travel websites, social media platforms, and local directories to attract tourists. In summary, to start a homestay business in Kerala, you need to obtain the necessary licenses, meet the minimum requirements, and promote your homestay through various channels. 


How much can I earn from homestay? 

The potential earning from a homestay can vary greatly depending on several factors such as location, amenities, size, competition, marketing efforts, and seasonality. While some homestay owners may earn 50k-80k per month, others may earn more or less than that. It's essential to do market research and determine the average rates of similar homestays in your area before setting a price. Providing unique and high-quality amenities and services can help you attract more guests and increase your income. Additionally, creating a strong online presence and marketing your homestay through various channels, such as social media, travel websites, and word-of-mouth, can help you increase your occupancy and revenue. Ultimately, the earning potential of a homestay depends on various factors, and it's challenging to provide a precise estimate without considering specific details. 

Is homestay a good business?

 Whether homestay is a good business or not depends on various factors, such as location, market demand, competition, and the quality of the homestay experience offered. If the homestay is located in a popular tourist destination with high demand for accommodations, and the homestay offers a unique and memorable experience to guests, then it can be a profitable business. However, if there is stiff competition from other homestays and hotels, or if the homestay is located in a less popular tourist destination with low demand, it may not be as profitable. It is also important to consider the costs involved in running a homestay, such as maintaining the property, providing amenities, and marketing the business. While the maintenance charges may be low, there may be other costs that need to be considered. Overall, the success of a homestay business depends on various factors, and it is important to do thorough research and planning before starting such a business. 

How to classify homestay in Kerala?  

To classify a homestay in Kerala, you would need to follow the government's certification process, which involves the following steps:

 Check if your homestay meets the minimum requirements for classification, such as having basic facilities like clean bedding, sanitation, and safety measures.  Apply for certification through the Kerala Tourism Department or a registered Homestay association.  A team from the Tourism Department will visit your property and evaluate it based on a set of predefined score criteria.  The evaluation team will assign a score to your homestay, which will determine its classification as either Class A (Diamond House), Class B (Gold House), or Class C (Silver House).  Once your homestay is classified, you will be issued a certificate by the Tourism Department, which you can display on your property to indicate its classification.  It's important to note that the classification is valid for three years and will need to be renewed after that period.