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22 June 2026

Tourism Ministry Unveils Ease-of-Doing-Business Reforms for Hospitality Sector

The Ministry of Tourism has outlined a series of regulatory and digital reforms aimed at reducing compliance burdens, simplifying hotel classification, improving data systems and supporting investment across India’s tourism and hospitality sector

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Key Details

The consultation focused on reducing compliance burdens in the hospitality sector through self-certification, digital documentation, improved sectoral data systems and support for emerging tourism segments.

Reform Area

What Is Changing

Hotel Classification

Shift from inspection-based classification towards self-declaration mechanisms

Regulatory Simplification

Delinking hotel classification from certain licensing requirements

Digital Compliance

Introduction of an Entity Locker integrated with DigiLocker

Tourism Data Systems

Creation of a national database of hotels, homestays, guides and tour operators

Emerging Tourism Segments

Greater policy focus on homestays, experiential tourism, events and amusement parks

Investment Facilitation

Discussions on approvals, land availability and tourism infrastructure development

Visitor Experience

Efforts to improve visa facilitation and reduce friction for international travellers


Summary

The Gist: Simplifying Hospitality Regulation and Tourism Investment

The Ministry of Tourism convened a high-level consultation with industry associations to identify reforms that can improve the ease of doing business in India’s tourism and hospitality sector. Discussions centred on regulatory simplification, digital compliance systems, investment facilitation, and support for emerging tourism segments as part of a broader effort to strengthen India’s tourism ecosystem.

Moving Towards Self-Declaration and Faster Approvals

A major reform discussed during the consultation was the transition from traditional inspection-led hotel classificationtowards a self-declaration framework. The Ministry also announced the delinking of hotel classification from certain licensing requirements, reducing administrative burdens and allowing businesses to operate without classification-related processes affecting core regulatory approvals.

Building Digital Compliance Infrastructure

To reduce repetitive paperwork and improve verification processes, the Ministry plans to introduce an Entity Lockerintegrated with DigiLocker. The platform will allow tourism enterprises to securely store and share verified business documents across government systems. Alongside this, the Ministry is developing a national tourism databasecovering hotels, homestays, tour operators and tourist guides to support evidence-based planning and sector monitoring.

Supporting New Tourism Segments

The consultation highlighted the growing importance of homestays, experiential tourism, live events, and amusement parks as emerging drivers of tourism growth. Industry representatives also discussed the need for coordinated action between the Centre and states to improve approvals, land access, and infrastructure support for tourism projects.

Improving the Visitor Experience

The Ministry indicated that discussions are underway with other government departments on measures that can improve the overall travel experience, including visa facilitation, smoother entry processes and reducing friction for international visitors. These reforms are intended to strengthen India’s competitiveness as a global tourism destination.


What is an Entity Locker?

An Entity Locker is a digital document repository designed for businesses. Similar to DigiLocker for individuals, it allows enterprises to securely store, manage and share verified licences, registrations, certificates and other compliance documents with government agencies, reducing paperwork and duplication.


Policy Relevance

  • Advances ease of doing business in tourism by reducing compliance requirements and simplifying hotel classification processes.

  • Accelerates digital governance through the introduction of Entity Locker and integrated document-verification systems.

  • Supports investment in hospitality infrastructure by addressing approval bottlenecks and regulatory complexity.

  • Recognises emerging tourism segments such as homestays, experiential travel and events as important growth drivers.

  • Strengthens evidence-based policymaking through the creation of a comprehensive national tourism database.

  • Improves destination competitiveness by combining regulatory reform with efforts to enhance the visitor experience.


Relevant Question for Policy Stakeholders: How can the proposed self-declaration framework maintain service quality and consumer confidence while reducing compliance burdens for tourism and hospitality businesses?


Follow the Full Release Here: Reforms to Make India a Globally Competitive Tourism Destination

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