Despite 10,000 homestays in the state, fewer than 4,000 are registered. Initially, the government allowed homestays as a supplementary income for rural households struggling with crop loss and price drops. The rules stipulated that only locals could run homestays and limited the number of rooms. Kodagu has 3,500 total homestays, with only 57.1% (2,000) being authorised.
In Chikkamagaluru, only 20.1% (602) of the 3,000 registered homestays are authorised. Hassan shows 10.5% (210) authorized out of 2,000 registered homestays. Uttara Kannada has 77.7% (233) authorized homestays out of 300 registered. Additionally, other districts have 2,000 officially registered homestays, with 40% (800) operating illegally.
Sources said that homestays have proliferated in the Western Ghats without any restrictions. Some influential individuals have even set up resorts under the guise of homestays. “Many have encroached on forest land, harming water sources, forests, and wildlife.
Despite repeated requests from authorised homestay owners, the government has not taken action. Many unauthorised homestays are involved in illegal activities, and cases have been filed. The government’s rules are being ignored, and homestays are being established in environmentally sensitive areas, causing environmental harm. It is no secret that some politicians and officials are running homestays under pseudonyms,” said an official.
Even though only a few individuals should be permitted to operate homestays, there are cases where one person runs multiple establishments without any action taken by the district officials.
Many homestays in Chikkamagaluru, Kodagu, and Shivamogga districts remain unregistered because they are built on encroached land. The tourism development committee has been insisting that permission is required for homestays but fails to identify and shut down unauthorised operations.
Many unauthorised homestays are involved in illegal activities, and cases have been filed. Government rules have been ignored– Official
According to guidelines, establishments with more than five rooms should be classified as resorts. However, even those with 15-20 rooms are not monitored for registration or GST compliance. Surprisingly, homestays that were initially meant for coffee plantations or farmers’ lands have spread to urban areas. Some officials even use these homestays for departmental meetings, get-togethers, and social events. The original intent of supporting coffee growers has been undermined,” said an official.
