Only 40% of homestays are registered in Karnataka
Real Estate

Only 40% of homestays are registered in Karnataka

Although the state boasts 10,000 homestays, fewer than 4,000 of these are officially registered. Originally, the government introduced homestays as a means for rural households to supplement their income, particularly those facing crop losses and declining prices. The regulations specified that only locals could operate homestays and imposed limits on the number of rooms. In Kodagu, there are 3,500 homestays in total, but only 57.1% (2,000) have received authorisation.

In Chikkamagaluru, a mere 20.1% (602) of the 3,000 registered homestays are authorised, while in Hassan, only 10.5% (210) out of 2,000 registered homestays have been granted authorisation. Uttara Kannada has the highest compliance, with 77.7% (233) of its 300 registered homestays being authorised. Additionally, in other districts, there are 2,000 officially registered homestays, of which 40% (800) are operating without proper authorisation.

Sources have indicated that homestays have proliferated in the Western Ghats without adequate regulation. In some cases, influential individuals have established resorts disguised as homestays. There are reports of encroachment on forest land, leading to damage to water sources, forests, and wildlife.

Despite repeated appeals from authorised homestay owners, the government has not taken significant action. Many unauthorised homestays are allegedly involved in illegal activities, and some have had cases filed against them. The government?s regulations are being flouted, with homestays being established in environmentally sensitive areas, resulting in environmental degradation. It is also widely known that some politicians and officials are operating homestays under assumed names.

While regulations dictate that only a limited number of individuals should be permitted to run homestays, there are instances where one person manages multiple establishments without any intervention from district authorities.

In districts like Chikkamagaluru, Kodagu, and Shivamogga, many homestays remain unregistered because they are constructed on encroached land. The tourism development committee has been pushing for homestays to obtain the necessary permissions but has struggled to identify and shut down unauthorised operations. According to guidelines, any establishment with more than five rooms should be classified as a resort. However, there is little oversight, and even those with 15-20 rooms are not being monitored for registration or GST compliance.

Although the state boasts 10,000 homestays, fewer than 4,000 of these are officially registered. Originally, the government introduced homestays as a means for rural households to supplement their income, particularly those facing crop losses and declining prices. The regulations specified that only locals could operate homestays and imposed limits on the number of rooms. In Kodagu, there are 3,500 homestays in total, but only 57.1% (2,000) have received authorisation. In Chikkamagaluru, a mere 20.1% (602) of the 3,000 registered homestays are authorised, while in Hassan, only 10.5% (210) out of 2,000 registered homestays have been granted authorisation. Uttara Kannada has the highest compliance, with 77.7% (233) of its 300 registered homestays being authorised. Additionally, in other districts, there are 2,000 officially registered homestays, of which 40% (800) are operating without proper authorisation. Sources have indicated that homestays have proliferated in the Western Ghats without adequate regulation. In some cases, influential individuals have established resorts disguised as homestays. There are reports of encroachment on forest land, leading to damage to water sources, forests, and wildlife. Despite repeated appeals from authorised homestay owners, the government has not taken significant action. Many unauthorised homestays are allegedly involved in illegal activities, and some have had cases filed against them. The government?s regulations are being flouted, with homestays being established in environmentally sensitive areas, resulting in environmental degradation. It is also widely known that some politicians and officials are operating homestays under assumed names. While regulations dictate that only a limited number of individuals should be permitted to run homestays, there are instances where one person manages multiple establishments without any intervention from district authorities. In districts like Chikkamagaluru, Kodagu, and Shivamogga, many homestays remain unregistered because they are constructed on encroached land. The tourism development committee has been pushing for homestays to obtain the necessary permissions but has struggled to identify and shut down unauthorised operations. According to guidelines, any establishment with more than five rooms should be classified as a resort. However, there is little oversight, and even those with 15-20 rooms are not being monitored for registration or GST compliance.

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement