Kodagu DC Orders: Homestays Not To Be Treated As Commercial Establishments

The directive mandates local administrative bodies to cap approval fees for homestays at ₹500, in addition to statutory taxes.

Madikeri: In a significant relief for homestay owners in Kodagu, Deputy Commissioner Venkat Raja issued an order on Tuesday clarifying that homestays should not be treated as commercial establishments. This decision is expected to ease financial burdens on homestay operators and encourage sustainable tourism in the district.

The directive mandates local administrative bodies to cap approval fees for homestays at ₹500, in addition to statutory taxes. “Electricity and water charges should be levied at domestic rates, and only property tax meant for residential purposes should be imposed on homestays,” the order stated.

The Deputy Commissioner also emphasised that buildings used for homestays should not be categorised as commercial properties, thereby exempting them from additional taxes applicable to such establishments.

Homestays: A cornerstone of Kodagu tourism

Homestays in Kodagu, often nestled amidst coffee plantations and lush greenery, play a pivotal role in promoting tourism. These establishments offer travellers a unique cultural experience by providing local cuisine, hospitality, and insights into Kodagu traditions. As an alternative to hotels, homestays have become increasingly popular among tourists in the district.

However, homestay owners have faced challenges due to the inconsistent classification of their properties as commercial establishments. This led to higher fees for approvals, elevated utility rates, and steep property taxes, adding to their operational costs. Many operators expressed concerns that such levies threatened the viability of their businesses.

To advertise on The Kodagu Express website, kindly give us a call or WhatsApp at 9108795369

Join The Kodagu Express WhatsApp Group: CLICK HERE 

Follow us on Instagram and X(Twitter)