Homestays would help bridge the gap in the short supply of accommodations during the peak tourist season by providing affordable and accessible accommodation within private residences or homesteads with minimum essentials.
Resorts- Resorts are to offer rooms at low cost to visitors in various locations. Based on the geographical location, the resorts would assume the form of eco-friendly and visually attractive huts. Such resorts must be reliable, safe, and hygienic. It is desirable to develop resorts outside Shillong to encourage visitors to visit the places selected for development and create employment and income transfer possibilities.
Benefits
Homestays:
- Assistance of 30% of the project cost is provided, limited to a maximum of ₹16.00 Lakhs.
- The maximum number of rooms allowed under this scheme is 4 (four). Each room must have a minimum area of approximately 15 sq. m. and include a bedroom, an adjacent toilet, and a walk-in cupboard.
- Entrepreneur contribution forms 2% of the total project cost.
Resorts:
- 30% project expenditure assistance is provided for project costs within ₹1.00 crore.
- Resorts should have at least 10 rooms. Each cottage must have a plinth area of at least 24 sq. m., while the central reception, lobby, restaurant, and kitchen should have a built-up area of approximately 240 sq. m.
- Entrepreneur contribution is 2% of the project cost.
Eligibility
The project cost for Homestays should not exceed ₹16.00 Lakhs, and for Resorts, it should not exceed ₹1.00 crore. If the cost exceeds these amounts, the support will be restricted to 30% of ₹16.00 Lakhs for Homestays and 30% of ₹1.00 crore for Resorts. The entrepreneur must own the land for resorts and the property for homestays. Projects must be completed within 12 months for homestays and 18 months for resorts after incentive disbursement. Only units established after the notification of the incentive scheme are eligible, and entrepreneurs must adopt the Government’s Minimum Wage policy.
Procedure for Application
Offline Process:
- Download the application form from the official website.
- Submit the completed form along with required documents.
- Pay ₹5000 for the application form and scheme brochure, which is non-refundable.
- Deposit the amount via a Demand Draft drawn in favor of the Director of Tourism, Meghalaya, Shillong.
Documents Required
- Application Form
- Proof of identity and existence of the applicant
- Copy of record of right over the project land
- Affidavit in the enclosed format II with the application form
- Prescribed cost of the application form and scheme brochure
- Copy of the latest submitted income tax return, if any
- Detailed Project Report submitted to any FI/Bank indicating project feasibility
- Letter from FI/Bank confirming the loan case is under consideration
- Key map of the project land, showing layout and boundaries, source of water/electricity, and existing land use
- NOC for creating the facility in the area
Frequently Asked Questions
1. In case of Homestay, what % contributes the entrepreneur’s from the project cost?
10% contribution is made by the entrepreneur.
3. What is the cost of the project in case of Homestays?
₹1 Lakh.
2. In case of Resort, what % contribution of the entrepreneur’s from the project cost?
25% contribution is made by the entrepreneur.
4. What is the cost of the project in case of Resorts?
₹1 crore.
5. What is the eligibility of the entrepreneur in case of Homestays?
The entrepreneur needs to be a resident of Arunachal Pradesh and must be registered with the Department of Tourism. Preferably, they need to have training provided by the Department.
8. How many months does it take for the completion of the project for Resorts?
The project must be completed within 1 year from the date of approval.
9. How much does the Application Form & Scheme Brochure cost?
₹5000.
6. What is the eligibility of the entrepreneur in case of Resorts?
The applicant must be a resident of Arunachal Pradesh, registered with the Department of Tourism, and should have prior experience in the hospitality trade.
7. How many months does it take for the completion of the project for Homestay?
The project must be completed within 6 months from the date of approval.
10. Is the amount refundable?
No, the amount is non-refundable.