Shimla, Sep 18 (PTI) To promote tourism and create self-employment opportunities in Himachal Pradesh, the State Government has approved the launch of a scheme to provide financial relief on loans taken for establishing new tourism units, such as homestays, as well as for the expansion and upgradation of existing units.

Under the scheme, ‘Chief Minister Tourism Startup Scheme in Hospitality Industry’, the government will extend an interest subsidy of 3 per cent in urban areas, 4 per cent in rural areas, and 5 per cent in tribal areas on loans up to Rs 2 crore, for a maximum period of three years from the date of loan disbursement to Bonafide Himachalis, a spokesperson of the government said here on Thursday.

Highlighting the importance of the initiative, the spokesperson said that homestays play a vital role in attracting tourists by offering affordable alternatives to expensive hotels while encouraging longer stays in rural areas.

The scheme aims to tap the immense tourism potential of culturally rich rural regions, thereby creating self-employment avenues and strengthening the State’s economy, he said and added that the initiative is expected to open new avenues of self-employment for Himachalis and generate robust economic activities across the State.

Homestays also ensure authentic, sustainable travel experiences by allowing visitors to engage directly with local traditions, cuisine, and customs.

He added that the scheme will significantly boost urban, rural and offbeat tourism, while also formalizing the homestay economy through startups and improving quality standards in hospitality ventures.

The tourism and hospitality sector contributes 7.78 percent to the State’s Gross Domestic Product (Economic Survey 2024-25). This scheme reflects the Government’s commitment to promoting sustainable tourism by engaging private entrepreneurs in developing tourism infrastructure without disturbing the ecological balance,” the spokesperson said.