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International Journal of Tourism & Hospitality Reviews
eISSN: 2395-7654, Vol 11, No 2, 2024, pp 12-18
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Rural Tourism and Homestays in India: Impact on Local Economy, Culture and
Ecology
Pratim Chatterjee1*, Namrata Chakrabortty2, Subho Ghosh3
1*Assistant Professor, Amity University Kolkata, India; 2Assistant Professor, Guru Nanak Institute of Technology, India;
3Visiting Professor of English, Guru Nanak Institute of Technology, India.
Email: 1*chatterjeepratim29@gmail.com, 2namratachakrabortty1988@gmail.com, 3subho.siempre@gmail.com
Abstract
Purpose of the study: This study explores rural tourism as a sustainable form that
encompasses environmental preservation, entrepreneurial opportunities, and the
preservation of traditional village customs, values, and practices.
Methodology: The research methodology employed a literature review approach,
focusing on secondary data sources. The search utilized the Google Scholar database as
a search engine, with the initial 500 results sorted by relevance to ensure
comprehensive coverage of relevant scholarly sources. Finally, 31 articles were selected
for this study.
Principal Findings: Operating homestays can provide alternative accommodation
options and catalyze the promotion of rural tourism, benefiting the local community,
economy, and regional art and culture. A well-executed marketing plan in rural tourism
can bring significant societal advantages by channeling resources from urban to rural
areas and curbing rural-urban migration.
Applications of the study: This study can be helpful in the tourism and hospitality
industry. It is instrumental in promoting rural tourism and supplementary
accommodation like homestays in India, thus boosting the local economy and
promoting local culture and tradition.
Novelty/Originality of the study: Tourism and related industries substantially impact
employment due to the sector's labor-intensive nature. Village tourism can generate
income and employment and contribute to rural development, preventing rural-urban
migration and promoting sustainable revenue generation.
Keywords
Rural Tourism, Homestay
Environment, Local Economy,
Sustainability.
Article History
Received on 12th April 2024
Accepted on 7th May 2024
Published on 10th May 2024
Cite this article
Chatterjee, P., Chakrabortty, N., &
Ghosh, S. (2024). Rural Tourism and
Homestays in India: Impact on Local
Economy, Culture and Ecology.
International Journal of Tourism &
Hospitality Reviews, 11(2), 12–18.
https://doi.org/10.18510/ijthr.2024.1122
Copyright @Author
Publishing License
This work is licensed under a Creative
Commons Attribution-Share Alike 4.0
International License
INTRODUCTION
The rich traditions, historic-cultural heritage, and ample natural resources are the basis of India's tourism development. The
Vedic dictum―Atithi Devo Bhavah, which means the guest is God―is the catchphrase of India's hospitality and tourism
industry. Tourism, both urban and rural, makes considerable contributions to the image and economy of the country among
the major developing countries of the world. Nonetheless, tourism shows a significant growth potential for sustainable
rural development in India. The elevation of a robust platform around Rural Tourism is undoubtedly helpful for a fast-
developing country like India, where over 80% of the total population dwells in its seven million villages. Mostly, the
trends of industrialization and development have had an urban-centric approach the world over. However, in contrast to
constant urbanization, the stress of urban lifestyle has led to a “counter urbanization” syndrome. This has led to growing
interest in the rural areas. At the same time, excessive urbanization has led to a decrease in income levels and job
opportunities, thereby leading to the “urbanization syndrome” in rural areas. Moreover, the present ecotourism culture in
our country creates massive concern for the future sustainability of tourism infrastructure (Pujar & Mishra, 2020). Rural
Tourism provides a solution to these problems. Besides, increasing levels of awareness, growing interest in heritage and
culture, improved accessibility, and environmental consciousness have also added to the growth of rural tourism in India
(Singh & Narban, 2015).
The lifestyle of a villager is different from that in metropolitan cities or other smaller cities. The village is mainly engaged
in agriculture, which is becoming highly mechanized and therefore requires less manual labor, causing economic pressure
on some villages, leading to an exodus of young people to urban areas, besides some other vocations such as handicrafts,
arts, couture, and tourism. Rural tourism focuses on participating in a rural lifestyle. It can be a variant of ecotourism. Any
village can be a tourist attraction, and many villagers are hospitable. Rural tourism offers employment and business
opportunities to many people in Indian villages for better implementation of rural tourism, and it devises a strategy to adapt
conventional beliefs, values, and mores to modern times (Bran et al., 1997). It brings people of different cultures,
languages, faiths, customs, and lifestyles close to each other. It provides a fruitful exchange of culture and a better
understanding of life and humanity at large (Mostowfi, 2000). It promises to generate employment for the local people and
develop social, cultural, educational, and human values and awareness.
Likewise, Rural Tourism can create a tremendous impact on the local economy and socio-cultural scenario of the
concerned area and carry ample potential for the multifaceted development of the denizens of rural areas through the
incorporations of homestays which become an emerging concept in Rural tourism and hospitality industry which is also
considered to be the best alternative to hotel accommodation (Kneafsey, 2001). Homestay helps to come across the land,
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people, culture, and cuisine of any place in its perfect aspect, unlike hotel accommodation. Different types of houses are
converted to homestays like heritage homes, farmhouses, estate bungalows, ancestral homes, etc., that give a pleasant stay
away from busy towns and cities but near places of tourist attractions. Homestays contribute to conserving the local
cultural and natural heritage while ensuring sustained income for the local population.
The researchers have added several activities of home stays under rural tourism, which include interest in agriculture,
nature, adventure, health, education, arts, handicrafts, and experiencing living history such as rural customs, folklore, local
traditions, beliefs, and shared heritage (Jolliffe & MacDonald, 2003). Thus, the key parameters that define rural tourism are
as follows: located in rural areas, functionally rural; based on small-scale and traditional activities and enterprises, relies on
the traditional qualities of the countryside, develops slowly under the control of local people and is non-uniform reflecting
the complexity of the rural environment. So, the present article intends to study how rural tourism can be one of the forms
of tourism that incorporates the aspects of sustainable development along with essential provisions for the safeguarding of
the environment and progression of entrepreneurship, abreast due to the conservation of long-established ethnic village
traditions, customs, values, and practices.
RESEARCH QUESTION
The present study explores a few research questions discussed in the entire literature.
First, the present study aims to find the role of rural tourism in safeguarding the environment and village tradition and
culture while simultaneously satisfying the guests' needs and preferences.
Secondly, the present study explores homestay's role as an alternate accommodation to promote sustainable rural tourism.
Thirdly, this study also aims to discover homestay's economic multiplier effect on rural tourism.
LITERATURE REVIEW
The literature review mainly focused on the sustainable development of the rural tourism sector. Homestays as an integral
part of rural alternate accommodation are also an important area emphasized in the literature review. Finally, the literature
has also explored the impact of rural tourism and homestay on the environment, economy, and culture.
Rural tourism can enable rural areas to achieve sustainable, productive, ecological, and socio-cultural development.
(Haghsetan, Mahmoudi & Maleki, 2011) In the most significant number of instances, the travel and tourist part of the rural
areas flourishes well and attracts vacationists and other types of tourists. It is regarded as accurate that rural or semi-urban
areas where specific cultural, natural, or social charm is observed can enchant globetrotters, and this, on the contrary,
significantly impacts the rural growth design. Hazarika, 2016 points out rural tourism as a notable area for rural progress
by giving another way of occupation and comprehensive in the rural areas.
Concept of Homestay
Homestay is considered the latest trend in the hospitality and tourism industry and is also regarded as one of the perfect
hotel accommodation replacements. Homestays, while ensuring sustainable income for local people, consider conserving
local and cultural heritage. Besides spending quality time with a family during the homestay, other experiences add value
to their travel. This type of environment is found along with the tour, which gives different types of entertainment to the
tourists, such as fishing, birding tours, rural cycling, trekking and mountaineering in adjacent forests and hills,
earthenware-making, elephant and jeep riding, folk dance, and others as per availability. It becomes popular with tourists
who desire to know and interact with the local people and cultural attractions. Dey et al., 2020 opined that the location of
the homestay, the transportation facility available to reach there, and the rural and cultural attractions of that area become
essential factors in rural homestay choice.
Batabyal et al., 2021 also identified a safety and sustainability diaspora for the supplementary accommodation sector, like
homestay, with new average sustainability in this area as a future trend. The basic concept of home remains the same
everywhere, even if the place is different. A homestay recommends an intuition into the traditions, history, culture, and
family life. Customers can taste home-cooked food with local and fresh spices and condiments. Foreign and many local
tourists gain confidence in experiencing the comfort of a cozy environment as robust protocols do not spoil the stay. They
relish the homemade delicacies and rest in the heavenly peaceful environment away from the commotion of city life. The
quest for this type of travel originated in a noble accommodation area, i.e., homestay. One can clearly say that these
Homestays offer a home away from home feel. Pasanchay & Schott (2021) primarily focused on homestays for their vital
role in maintaining SDG1 No Poverty and SDG11 Sustainable Cities and Communities.
Rural Tourism in West Bengal
As per the 2011 Census of West Bengal, 69.58% of the state lives in rural areas. Human resources, culture, and subculture
play a significant role in developing rural tourism. West Bengal enjoys enormous diversity in tourism. It bestows an array
of tourism like medical tourism, sustainable tourism, village tourism, religious and pilgrimage tourism, quest tourism, and
heritage tourism. The state of West Bengal, especially the Darjeeling Himalayan region, is filled with inartificial
magnificence– beautiful locations, snowcapped ranges, abundant green ravines, a pleasant weather pattern, and gracious
persons. The state government is now developing new policies for tourism diversification, thus creating ample tourism
possibilities.
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The Government of West Bengal, with the tagline “Experience Bengal – The Sweetest Part of India,” focuses on
preserving its excellent tourist spots, along with the ‘Home Stay Scheme,’ which was initiated in 2017, was observed to
become a favorite of the tourists as it focuses the rural and suburban areas. The Government of West Bengal, Department
of Tourism, has launched the West Bengal Tourist Guide Certification Scheme for the selection, training, and Certification
of West Bengal Tourist Guides who will tell the enchanting stories, myths, and folklore linked to the distant villages of the
state to charm and satisfy the tourists. Through this scheme and by imparting appropriate measures, tourist villages will
turn into significant historic rural areas to give travelers a memorable experience (Ray et al., 2012).
It needs to be mentioned here that the West Bengal Incentive scheme is an initiative to impart support to the growing travel
and tourism sector of the State to generate employment and revenue, Providing Incentives to the new Tourism Units and
this to be the country’s second state to connect The Mahatma Gandhi National Rural Employment Guarantee Act
(MGNREGA) with publicizing activities of tourism. A few selected villages' tourism infrastructures will be further
improved by using the rural area people and utilizing funds. The ‘West Bengal Incentive scheme’ scheme will help
dynamic, willing, and potential youths to begin their venture as independent entrepreneurs, and ultimately, it will raise the
number of entrepreneurs and de-congest urban/suburban places. Rural people can also display their products, handicrafts,
local cuisines, etc.
Sustainable Rural Development
To shift an “industrial” to a “risk” society (Eagles, 1992), the requirement for the growth to be “sustainable” is most
important. Rural and semi-urban inhabitants are more prone to saving their natural resources for the global preservation of
the environment (Janjua et al., 2021). Nowadays, communities show more responsibility toward sustainability, which
positively impacts cultural, political, environmental, and social life (Richards & Hall, 2000). As the travel and tourism
sector impacts both positively and negatively on the environment, rural tourism must follow sustainability in all aspects. It
is essential for sustainable rural tourism to find innovative ways that are more energy efficient yet consume less electricity
and water. It also should focus on conserving biodiversity, reshaping cultural heritage and traditional values, and
developing local people by increasing their income through rural tourism (Takuli et al., 2022). It has been observed that the
heritage of the local community impacts local people and tourist engagement, which further controls the rural tourism
infrastructure that leads to customer satisfaction (Sharma & Sarmah, 2021).
Ecological sustainability issues can be executed in several ways in rural tourism. Protecting species of animals and plants
is called conservation in a particular area. Recycling can be ensured by verifying that all recyclable products are gathered
and sent for recycling. Sustainability can be implemented in several ways in the product development cycle. Chatterjee and
Karmarkar (2023) emphasized the application of the sustainable development goals in the hospitality and tourism sector for
their sustainable transformation. Sustainable factors must be considered in sensitive ecotourism activities like boating,
hiking, mountaineering, trekking, fishing, etc. (Lim & McAleerb, 2005). Cooperation and support among travel houses,
tourist offices, and rural communities will positively impact the preservation and knowledge enhancement of folklore
traditions and other cultural activities to boost tourism (Jolliffe & MacDonald, 2003). The study by Basak et al., 2021
found that creating tourism employment, demand-based handicraft production, and proper coordination and connection in
the market in rural areas is essential.
Undoubtedly, one of the most important necessities of rural tourism is the cooperation and involvement of the local
community through proper networking. Alongside the urban areas, the steady development of the rural areas is considered
proof of the long-term improvement of the country, though social, cultural, and economic areas need to be considered
because of the population (Hanciuc, 2002). The main objective of rural tourism is to find solutions to rural problems,
economic issues, and tourism issues caused by the movement of village people to cities. Sustainable tourism secures the
preservation of natural resources, culture, sub-culture, traditions, and customs to exceed the expectation level of the tourists
with some necessary facilities like quality food and accommodation. In their studies, Kunjuraman et al., 2022 showed
concern about the adverse effect of community-based ecotourism on rural tourism. However, suppose village people
engage themselves in the tourism development of the rural areas besides their cultural, ecological, and environmental
preservation. In that case, the contribution of tourism to the development of rural areas can be adequately justified.
METHODOLOGY
The methodology adopted is a review of literature from secondary data like journal articles and books or book chapters.
The authors initiated the research by designing a plan, which was established because of the relevance of the present topic.
The initial step was to formulate the questions that the authors considered to answer in the research. Keywords were
searched in the Google Scholar database by providing “(Tourism OR Economy OR Environment) AND (Rural OR
Homestay OR Village”). The first 500 results were ranked by relevance in the Google Scholar search engine study. A total
of 65 articles were considered after the initial search. After the articles were screened for duplicates or relevance, 30 were
selected for this study.
FINDINGS AND DISCUSSION
Homestays as Economic Multiplier
Tourism is one of the fastest-growing industries in West Bengal. Due to the massive constraint of significant tourism on
metropolitan resources, the idea of rural tourism has been stimulated. It significantly impacts the economic growth of the
whole area. It enables the changes in the behavior and attitude of the rural inhabitants. So, proper application is essential
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for the growth of rural tourism. Village people can be easily employed as cab drivers, tour guides, small hotel or homestay
owners, folk artists, small store owners, food service outlet owners, and handicraft makers, or they may take part in other
tourism-related areas Apart from that, many other different types of employment opportunity are grown as village tourism
develops (Balasingam & Bojei, 2019).
Tourism is considered a crucial economic venture that generates income and employment opportunities for ordinary people
in rural areas (Hall & Brown, 2000). Besides increasing the income level and demand for village products, tourism can
help to obtain an economic multiplier effect—the way by which expenditures of the tourists transfer through the economy
and earn other monetary activities. The multiplier effect is established on the basic idea of the interconnection of various
sectors of the economy; the outcome is that when there is any change in the economic level of the host, foreign exchange,
revenue earned by the government, employment opportunity, and flow of income level will be much more than the earlier
value (Shahudin et al., 2017). The multiplier is exhibited as a ratio of change in one of these variables to the change in
spending of the tourists that caused it. Furthermore, its impact on the economic growth of the host economy and the
service-oriented nature of tourism and tourism-related sectors provides a crucial impact on the number of jobs in this
sector. Income and employment generation are observed as the most fascinating impacts of rural tourism. The rural tourism
of West Bengal is an extraordinary experience dependent on several factors, such as a soothing climate, perfect location,
easy accessibility, and different types of customized tour packages.
The concept of Homestay has gained so much attention, especially in rural areas, in the last couple of years, as there is
hardly any better way to explore the incredible diversity and rural touch than a homestay. Different homestay options
include bungalows, havelis, and simple rural accommodation. The best way to learn about Indian tradition and culture is to
spend quality time with Indian families (Kulshreshtha & Kulshrestha, 2019). This valuable local awareness proves to be
immensely helpful in learning about rural culture. Several hosts feel honored to share valuable insights with their guests,
including their food habits, local sightseeing, and specialties, which can be experienced in a tour book. As there is a
significant distinction between the food cooked at home and food cooked in a hotel or restaurant, one cannot taste the
authentic actual flavor of the soil in a hotel food, but only in a home-controlled establishment the actual flavor of the rural
food can be relished.
Thus, rural communities and individual homestay owners benefit from this heavenly homestay concept. As many other
industries in rural areas are directly or indirectly related to homestay, this increased economic stability through homestay
positively impacts and creates substantial business opportunities for all these industry houses (Ogucha et al., 2015).
Nowadays, homestays are primarily found in remote rural areas and suburban areas, and the poor economy is primarily
observed in those places, so homestays help revamp the economic level of those backward areas and improve the economic
level of the rural people. Like other tourism sectors, rural tourism also has the potential to earn many businesses that can
create various economic opportunities for the village people. As per the economic multiplier model, multiplication in local
income will happen if tourist expenditure is spent within the boundary of the local area, and this will also generate a more
significant number of jobs in the local area.
This initiative of the state and central government to provide budget accommodation to foreign tourists under the homestay
concept is becoming very popular. Even private hotels and homestays are moving this forward. Under this initiative, a
person with several rooms in his establishment can rent rooms to tourists cheaper than hotels, and tourists will experience a
taste of the local food and culture.
Impact of Rural Tourism in West Bengal
As the income generated from tourism is more than what village people can get from agriculture, the acceptance level of
tourism in many rural areas has increased a lot. Due to the positive socio-cultural impact, rural people will move away
from their traditional values and beliefs and accept the positive aspects of modern culture, improving their health,
education, and livelihood (Kundu, 2012). Fairs and festivals in the village will benefit the rural people and the tourists
through the exchange of culture. There is a high demand for handicrafts and local agro products among tourists in rural
areas. As tourists mainly come to a village or rural area to experience the local values and traditions and purchase
handicrafts, the village people must conserve the rural culture and heritage.
Rural tourism has a brilliant economic impact that generally gives many advantages, such as foreign exchange earnings,
creating jobs, entrepreneurship, increased government revenues, and the conversion of agriculture to a contemporary
service industry. Rural tourism generates income for the village people by increasing their employment opportunities.
However, to provide the benefit of rural tourism to the village people, it has to be wisely maintained. As most of the
investors in the village in the forms of hotels, resorts, theme parks, etc., are from urban areas, the flow of the economic
benefits is observed to happen from rural to urban areas as being the investors, they will get hold of most of the revenues.
In this way, economic benefits might move to urban owners and entrepreneurs (Ray et al., 2012). There is a possibility that
a handful of employment will only be initiated for the village people because of their knowledge and information. To
exploit them further, rural people may not be adequately paid. Local handicraft products can be sold at a lower price in this
competitive market. Village areas may not benefit much from the multiplier effect on rural tourism. It has been observed
that improper linkage between rural tourism and local production houses is responsible (Sharpley, 2002).
Besides, on the one side, the local people can learn the standard of a better living from the tourists to lead a healthier life by
developing basic infrastructure like roads, healthcare, and electricity, maintaining proper hygiene and sanitation, and
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maintaining land and other natural resources in an environmentally friendly way, on the other hand, the tourist can hurt the
environment and ecology as various requisites of rural tourism such as transportation, infrastructure, increased population,
and deforestation, etc. will result in ecological deformation. Infrastructure developments are proven to deform the natural
enchantment, and environmental ecology is also distorted when hunting activities endanger the wildlife population.
Tourism activities like mountaineering, camping, and trekking can result in environmental degradation from human waste
disposal and the unhygienic release of sewage into water bodies.
Development of homestays and rural tourism
In contemporary times, the primary challenges are the requirement to conserve the ecology and natural environment, the
necessity for education, genuine recognition for rural people and tourists, and the demand to generate a popular campaign
encouraging people to engage in village tourism development. To increase the rural people's quality of life and maintain a
sustainable rural ecology, more attention must be given to improving the bare landscape and infrastructure, providing
occupational training, and promoting rural handicrafts (Chin et al., 2014).
Introducing a cooperative system can efficiently create a positive impact in rural areas and develop village tourism and
homestays. There are many ways to grow rural tourism and homestays.
First, an appropriate plan needs to be prepared according to the aims and objectives, which should be aligned with the
village's sociocultural and economic development.
Secondly, to increase tourism contribution and ensure rural livelihood security, the state or central government needs to
be approached.
Thirdly, proper coordination among different travel bodies and tourism houses is required.
Fourthly, transportation networks and basic infrastructure must be developed while maintaining sustainability in rural
areas.
Fifthly, it is urgent to enhance the role of the media in promoting rural tourism activities, including present and
potential village tourist destinations, as a contribution to the development of village tourism through advertisement and
promotion.
Sixth, improved healthcare infrastructure must be provided for privileged groups, such as older adults, adolescents, and
children.
Seventhly, to develop rural tourism and homestays and create permanent jobs for the village people, some necessary
measures like infrastructure development, hygiene and sanitation measures, and sustainable measures are to be
maintained (Kontogeorgopoulos et al., 2017).
CONCLUSION
To sum up, we can undoubtedly say that the present study has proved that homestay could produce supplementary
accommodation areas and a way for rural tourism promotion and its positive impact on the rural people, socio-culture, and
economy of the village areas. The study also found the hurdles to overcome for developing and promoting rural tourism.
More emphasis should be placed on forming policies for sustainable development and environmental protection measures
in rural and sub-urban areas. Both the state and central government can earn a lot of revenue and foreign exchange if
sustainable rural tourism projects are adequately nurtured, and this inflow of resources from the urban and suburban
economy to rural areas can stop the movement of village people to urban areas for employment and business opportunities.
LIMITATION AND STUDY FORWARD
Every research has limitations that can be focused on further study. Firstly, only articles that are written in English are
considered in the study. Secondly, a review of the literature is the method applied in the study. So, further study
considering more study and quantitative analysis methods need to be considered. A few areas, as depicted by Januja et al.,
2021 branding of homestays, entrepreneurship areas of homestays, and homestay owners' training and development can be
considered as future areas of study. The qualitative study will also be an area of future research, as it will involve
interviews with homestay owners and rural tourism service providers. More intensive research in rural tourism is needed as
sustainable rural tourism is one of the upcoming economic revolutions in the rural areas of our country.
CONFLICT OF INTEREST AND ETHICAL STANDARDS
The authors declare no conflict of interest and ensure that no unethical practices were followed during the study.
AUTHOR’S CONTRIBUTION
Study conception: Pratim Chatterjee, Subho Ghosh; draft manuscript preparation, analysis, and interpretation: Namrata
Chakrabortty, Pratim Chatterjee; all authors reviewed and approved the final manuscript.
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