The Government of Rajasthan notified the Rajasthan Homestay (Paying Guest House) Scheme 2026 in February 2026, introducing significant reforms to decentralise tourism, promote rural employment, and provide authentic cultural experiences to visitors. The scheme is part of Chief Minister Bhajanlal Sharma's broader tourism promotion agenda aligned with the Rajasthan Investment Summit and the state's Tourism Policy 2024.

Key changes under the new scheme include: (i) maximum rooms per homestay unit increased from 5 to 8, with bed capacity raised to 24; (ii) removal of the mandatory owner residence requirement — enabling rural households, women entrepreneurs, and small property owners who do not permanently reside on premises to register their properties; (iii) online registration via a one-window system with reduced documentation; and (iv) faster approvals to encourage broader participation from remote and rural areas.

The scheme is designed to support community-based tourism in Rajasthan's heritage zones — including Jaisalmer, Jodhpur, Pushkar, Udaipur, and the Hadoti region — and tribal areas of the Scheduled Tribes-dominated districts of Banswara, Dungarpur, and Pratapgarh. By expanding the homestay supply chain, the policy aims to reduce concentration of tourist revenue in urban luxury hotels and channel it toward grassroots entrepreneurship, especially among women and SC/ST communities. The scheme aligns with the Central Government's 'Dekho Apna Desh' initiative.