Homestay operation: A win-win business

Monday Musing

[ Karyir Riba ]

When one speaks of places to visit in Arunachal, Roing and Anini are two names that will surely make it to the list, and cannot be missed.

The twin Dibang Valley districts – Lower Dibang Valley and Dibang Valley – are naturally endowed with an abundance of picturesque beauty. Be it its rivers, lakes, snow-clad mountains, orange gardens, or trekking routes, these destinations have a lot to offer to visitors.

Each year, these places attract a large number of visitors, especially during the winter months when it receives snowfall. Mayudia, Dambuk, Anini, Chigu, the Seven Lake Trek – these are just a few names amongst many. The journey to these hotspots itself mesmerises one with the most scenic views.

Now, when you are living in the lap of nature’s abundant bounty that attracts visitors from all around the globe, you are presented with opportunities to make a living out of catering to the needs of these tourists. And one of the best businesses one can think of, apart from restaurants, cafés, or resorts, is the homestay business.

The homestay business could easily be considered one of the most lucrative businesses, with an initial requirement of very little investment. A spare room in your home can very well be used to host guests in exchange of a good amount of money, in accordance with the facilities requested.

To know what a homestay is, and how to go about starting a homestay, let us learn from an expert in the field of tourism.

Neharika Sahgel Umbrey is a senior tour operator of the state, and is currently the vice president of the Arunachal Pradesh Tour Operator Association (APTOA). Her firm, A1 Travel Management, is a registered tour operator under the state tourism department, and has grown to become one of the leading tour operators, specialising in both inbound and outbound travels. A recipient of several awards and recognition, A1 Travel Management had also come in the second position in the ‘best tour operator’ category for 2024-25 from the state tourism department.

Additionally, it has conducted homestay training, tourism awareness programmes, guide and tour operator sensitisation programmes, courses on multi-cuisine and bakery, and many more programmes from time to time. It also works towards promoting rural, culture, eco-, adventure and culinary tourism in Northeast India.

Umbrey explained: “A homestay is a home where guests are allowed to stay with the host family, and in return they have to pay for the accommodation and meals. You can start running a homestay at any point of time as long as you have extra rooms in your house. According to the guideline, a maximum of four rooms are allowed at one homestay.”

“Just keep in mind that when you have planned to open a homestay, you have to register it under the tourism department and get your licence. The licence needs to be renewed annually. Homestays are divided into three categories – silver, gold and diamond. The silver category is the very basic homestay -traditional bamboo huts are also applicable in this category. Gold requires you to have proper RCC rooms with attached toilets, while for diamond category registration, the homestay has to have more facilities like geysers and air conditioning, parking, WiFi, and any other such best of the best amenities that you can add. One can apply as per the categories classified,” she informed.

She further said, “A homestay can be started with basic facilities like clean and hygienic rooms, preferably western toilets, parking space, and fresh, clean and healthy meals. Other facilities can be added to attract guests, like WiFi services, transportation, pick-and-drop services, and most importantly, guiding services.

How much one can earn from a homestay business will vary, and depends upon the number of days you would want to offer your rooms to your guests. Assuming that you have offered one room for Rs 1,500 for two days per week, you can earn upto Rs1,44,000 a year.

Like every other business, running a homestay may have its own advantages, as well as disadvantages. As Umbrey puts it: “Apart from being a good source of income, a homestay gives you the perfect setting to showcase your culture and tradition. It helps in promoting your community, district, and the state as a whole. You meet people and connect with them in various terms, such as education, medical, and so on. As for the disadvantage, mostly it could be language barrier, food restrictions, and not being able to offer the same amenities that a hotel would.”

 These are not huge disadvantages, especially when compared to the advantages a homestay owner has in store.

Lastly, Umbrey adds: “I would recommend this business to everyone, especially to womenfolk who call themselves housewives. Earning an income out of a spare room in your house that is simply collecting dust is certainly a good business idea. The youths in our society can also turn towards this business, instead of getting frustrated chasing after government jobs. The homestay business is something you can plan on your own accord. The more services you provide to your guests, the more you can earn. Providing services as a guide, taking them around – these services will only add to your USP.

“Also, a homestay is profitable not only to its owner but to the community as a whole. For instance, if your guests want to have some local chicken or local produce, you will procure it from someone in the community who deals in these businesses. If you take your guests to visit a local weaver, they will not only enjoy watching them weave but might purchase something or the other from them. If a neighbour has a beautiful garden, your guests might be interested to look around, and so on. You just have to be innovative to provide your guests with a good experience,” Umbrey said.

You should strive to give the best to your guests. ‘Atithi devo bhava’. Running a homestay is simply like taking care of a guest that arrives at your home. Welcoming them with your best behaviour, feeding them the best food you can cook, spreading the best sheets for them, pulling out the best blankets for them- just giving your best to give them a comfortable stay. The only difference here is that you earn money in return. Word-of-mouth is the best method of marketing your business. When you provide the best experiences to your guests, they will speak of you and you will receive more guests, and that is how your homestay business will grow. The best feedback from your guests will take your homestay a long way, and that is what you should aim for.

So, as seen above, a homestay indeed seems to be a simple yet profitable business for anyone who wants to earn extra income, or wants to make a mark in the hospitality and tourism sector. A spare room, a little innovation, flexible days to offer your room to your guests, promoting your culture, tradition, food and drinks, while also earning a living looks like a win-win situation in every way.