In a major step to promote rural tourism and generate employment opportunities, the Odisha government has rolled out the Homestay Establishment Scheme 2025 to encourage community participation in tourism by developing homestays in villages, thereby offering tourists an authentic experience of Odisha’s culture, traditions, and natural beauty.
The government has set a target to develop around 450 new homestays with 1,800 beds in selected gram panchayats notified under the scheme. Each unit will be eligible for financial assistance of up to ₹10 lakh, which will help local households and entrepreneurs build or upgrade homestay facilities that meet basic quality standards for tourists.
The initiative has been launched with a budget allocation of ₹50 crore.The scheme is expected to create both direct and indirect employment opportunities, particularly for women and youth in rural areas.
It would not only improve the livelihood of villagers but also provide travelers with an immersive cultural experience. Guests will have opportunities to witness local crafts, cuisines, festivals, folk art, and eco-friendly lifestyles, making rural Odisha a more attractive destination.
The homestay model is an inclusive approach to tourism. It empowers local communities, disperses tourist footfall beyond conventional destinations, and ensures economic benefits reach grassroots households.
The project will prioritize ecologically and culturally significant villages, especially those near heritage sites, forests, and eco-tourism hotspots.
This initiative will contribute to Odisha’s vision of becoming a leading destination for responsible and community-based tourism in India. The scheme is also expected to curb urban migration and strengthen the rural economy.
The government has already invited applications from interested households and entrepreneurs in the notified gram panchayats.
Odisha government hopes to strike a balance between economic development, cultural preservation, and sustainable tourism,
