New Delhi: The Ministry of Tourism, Government of India classifies operational hotels under various Star/Heritage categories based upon the standard of facilities & services offered under a voluntary scheme. In order to augment supply of hotel accommodation for budget tourist, both domestic and foreign, the Ministry has a voluntary scheme for approval of Guest Houses and approval of Incredible India Bed & Breakfast/Homestay Establishments, wherein the basic idea is to provide a clean and affordable place for foreign and domestic tourists alike. Construction and operation of hotels is primarily a private sector activity.
The voluntary scheme of the Ministry of Tourism for approval at project stage hotels stipulate the hotels of 1, 2, 3 and 4 star categories and Heritage (Basic) category availing subsidy/tax benefits /other benefits from the Central/State Government would be subject to a lock – in period of 8 years during which they would not seek up-gradation to a higher category. These hotels continue to serve as budget category hotels.
The number of units approved by the Ministry of Tourism as on date, in the above categories is as follows:
| 4-Star | 3-Star | 2-Star | 1-Star | B&B/Homestay | Guest Houses |
| 253 | 443 | 53 | 7 | 638 | 5 |
Hospitality Development and promotion Board (HDPB) was created in the Ministry of Tourism, Government of India vide Notification issued on 21.01.2011. All State Governments and Union Territories have been advised to set up similar Boards in their respective States/Union Territories. As on date, the State Government of Maharashtra has set up this board. The Ministry of Tourism, Government of India has not allocated any funds in this regard. However, all States have been advised to give priority to Budget Hotels while allocating land for Hotel Projects.
This information was given by Shri K. J. Alphons, Union Minister of State (I/C) for Tourism in a written reply in Rajya Sabha today.
