Chandigarh’s draft B&B policy promotes regulated homestays to boost tourism while raising concerns about misuse, privacy, parking, and enforcement issues
The Union Territory of Chandigarh recently published the draft “Bed and Breakfast Policy” (B&B policy) to provide lodging and food options to visitors in establishments other than hotels, motels, guest houses, and boarding and lodging houses. The policy defines an ‘establishment’ as registered residential premises where guests are provided bed and breakfast for payment, thus offering a niche product previously unavailable in the city’s tourism market.
Owners wishing to rent out their residences to guests must register their properties as establishments. Each bedroom must have an attached restroom, adequate water supply, ventilation, lighting, proper hygiene, and essential furniture. The establishment must also provide parking facilities. Registration will be granted within a month following the government’s classification committee's inspection and evaluation of the establishment and its services.
The registration certificate must be prominently displayed on the premises, and guests must be informed of the house rules. Establishment owners must maintain guest records and submit fortnightly reports to the police and local authorities.
The policy also lays down clauses relating to guests’ obligations, grievance redressal, and the circumstances under which an establishment may lose its registration. Establishments will not require licences and will not be treated as commercial units.
This is not the first attempt by the Chandigarh administration to introduce such a policy. An earlier attempt in 2008 was marred by widespread violations, with many owners converting their residences into mini-hotels, forcing the administration to withdraw the scheme.
This time, the Chandigarh administration has introduced a more clearly articulated policy with tighter controls, setting out the duties and obligations of each party. The draft prohibits owners from opening a front office, and the premises should always retain the character of a residential property.
This is not the first attempt by the Chandigarh administration to introduce such a policy. An earlier attempt in 2008 was marred by widespread violations, with many owners converting their residences into mini-hotels, forcing the administration to withdraw the scheme.
It further prohibits owners from engaging in commercial activities such as tours and travel, sightseeing, transport, or providing dine-in food services to anyone other than the household’s residents. All activities that may affect residents’ privacy are prohibited.
Some citizens, however, have opposed the revised policy, fearing it will lead to visitor vehicles being parked on narrow residential streets, thereby hindering the movement of emergency vehicles. Several groups have also warned that the policy could lead to infrastructural chaos in Chandigarh and encourage building violations. They have also raised concerns regarding security, misuse of short-term rentals, and neighbourhood disturbances.
Besides, they fear that the new B&B policy will be widely misused, leading establishment owners to clandestinely convert their residences into hotels. The authorities will have to address these concerns with regular on-site inspections and penalties for violations. The latest B&B policy attempts to address some of these concerns by imposing stricter documentation and operational requirements.
Some citizens, however, have opposed the revised policy, fearing it will lead to visitor vehicles being parked on narrow residential streets, thereby hindering the movement of emergency vehicles.
The policy requires proof of parking within the premises, which could be verified during the classification committee’s inspection. The policy addresses safety concerns, as the establishment must maintain a record of people who come and stay. Their identification cards must be collected and the details uploaded to a database accessible to authorities. The policy stipulates that establishments have house rules regarding boisterous behaviour and arrival and departure time limits.
The B&B policy is not peculiar to Chandigarh. Many states, including Delhi, Uttarakhand, Himachal Pradesh, Kerala, Rajasthan and Goa, as well as union territories such as Ladakh and Andaman & Nicobar, have implemented this scheme under the guidelines of India’s Ministry of Tourism ‘Incredible India Bed & Breakfast (B&B) Scheme’. Some states, such as Maharashtra, Uttar Pradesh, Haryana, West Bengal, Odisha, and Madhya Pradesh, also run similar schemes. Globally, Airbnb is a popular online marketplace that facilitates lodging, homestays, and tourism experiences, using a similar concept.
Such schemes have gained global popularity. Part of the appeal of B&B accommodation lies in its flexibility, relatively lower costs for longer stays, and a more personalised residential environment. For example, a hotel may not provide a family travelling for an annual get-together with elderly members and children, with multiple rooms and a common space exclusive to the family. If the stay extends over a longer period, hotels can become prohibitively expensive. Customised food, additional assistance, privacy, and a more relaxed environment are all possible when a family stays in a separate B&B facility. Such conveniences are even more necessary for a family visiting a city for medical consultation, which often requires longer stays and constant care. In such cases, B&B accommodation offers a more practical alternative. For homeowners, such arrangements may also provide a supplementary source of income.
Bed-and-breakfast schemes, however, including Airbnb, have had their own downsides, as has been experienced internationally. For example, protests were witnessed in several major European cities, including Paris, Barcelona, Madrid, Malaga, and London, as short-term B&B rentals created housing imbalances. Landlords started preferring them over traditional long-term tenancies. The locals were pushed further into the suburbs because they could no longer afford the higher rents. Consequently, many cities restricted short-term rentals and imposed heavy fines for unlicensed listings.
Bed-and-breakfast schemes, however, including Airbnb, have had their own downsides, as has been experienced internationally.
India’s tourism sector continues to have significant growth potential, particularly in emerging domestic and experiential tourism segments. In this context, bed-and-breakfast schemes will remain attractive to many tourists, and the business is likely to flourish across cities. However, B&B schemes need to be tightly regulated, and their impacts on the overall housing and rental markets should be closely monitored.
Ramanath Jha is a Distinguished Fellow at Observer Research Foundation.
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Dr. Ramanath Jha is Distinguished Fellow at Observer Research Foundation, Mumbai. He works on urbanisation — urban sustainability, urban governance and urban planning. Dr. Jha belongs ...
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