New Delhi-The Ministry of Tourism, Government of India classifies operational hotels under various Star and 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 and tax benefits from 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.