Homestay Market Outlook-North-East India (2026 Edition)

Homestay is a recent development in the tourism industry sector that has evolved as a profit-making venture in its own unique way. Homestay is a form of tourism that uncovers the host community life, culture, art and heritage, thus benefiting the host communities socially and economically. Such form of tourism has created incredible impact on the local economy of the concern destination on one hand and carries a potential scope for the residents on the other hand. A survey by Booking.com found that 73% of Indian travellers in 2025 preferred to stay in accommodations that offered some connection to the local community.

According to NITI Aayog report, ‘Rethinking Homestays: Navigating Policy Pathways’, the country’s homestay market touched a staggering ₹4,722 crores in 2024 and the sector is projected to grow at an 11 percent compound annual growth rate (CAGR) till 2031, the highest worldwide. This growth reflects a shift towards experiential travel and local entrepreneurship with OTAs, such as Airbnb and MakeMyTrip scaling aggressively. Several factors are propelling the homestay industry's growth—rising disposable incomes, more digital nomads and a hunger for authentic experiences etc.

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The Indian government promotes tourism through several initiatives like Swadesh Darshan (for infrastructure development), PRASAD (for pilgrimage site rejuvenation) and Dekho Apna Desh (to boost domestic tourism). Other efforts include improving air connectivity via the RCS-UDAN scheme and developing the MICE (Meetings, Incentives, Conferences and Exhibitions) sector. 

The Northeast Region, comprising eight states (Assam, Arunachal Pradesh, Meghalaya, Mizoram, Manipur, Nagaland, Tripura and Sikkim), is home to breathtaking landscapes, rich biodiversity and vibrant tribal cultures. While a specific market size and growth rate for the North East India homestay market is not available, it is part of India's larger homestay market. The market for homestays in the North East is expected to mirror the trends seen in the broader Indian market, with continued growth at 11% (CAGR) driven by domestic tourism. Key types of homestays in the region are expected to include rural, eco-friendly and independent homestays, aligning with the region's natural and cultural attractions.

The North East is identified as a high-potential area for hospitality growth, but investor focus has been heavily skewed towards states like Assam, Meghalaya and Sikkim. There is a need for more balanced investment in other states like Arunachal Pradesh, Manipur, Mizoram, Nagaland and Tripura to unlock the full potential of the region.

Homestay tourism has strong prospects in North East India due to its potential for sustainable, community-based tourism that provides authentic cultural experiences and direct economic benefits to local communities, while preserving the region's fragile ecosystems and unique heritage. The region's rich cultural heritage and varied landscape are ideal for homestays. Key factors supporting this potential include government policies like the UNNATI 2024 Scheme, growing domestic and international tourism demand and successful models in neighbouring regions like ASEAN countries.