Abstract
Homestay agrotourism practice in Nepal is popular since prehistoric times, with the motto of Atithi Devo Bhava, Guests are God. Homestay agrotourism enterprises are particularly prevalent in several Mid-hill regions of Nepal. Bandipur in Tanahu is famous for well-preserved Newari culture and organic farming. Ghalegaun is also another attraction for homestay agrotourism activities. Sirburai in Syangja and some places in Kaski are known for homestay agrotourism. Homestay agrotourism enterprises contribute to the socio-economic and cultural impacts on a community’s people. Â This research employed a descriptive design to analyze the socio-economic and cultural impacts and challenges of homestay agrotourism enterprises in Nepal’s mid-hill regions. This study employed mixed-methods research. Qualitative and quantitative data on homestay agrotourism in Nepal were collected and analyzed from various secondary sources. Data from the secondary documents were collected and analyzed. The secondary documents were research reports, thesis reports, newspaper articles, and case studies done in the mid-hill regions of Nepal, particularly Lamjung, Kaski, and Syangja districts. The study found that the homestay agrotourism activities in the mid-hill regions of Nepal have had a positive impact on the socio-economic lives of local people by creating employment, enhancing economic status, and empowering women. It has helped them enhance their living standards. Women involved in homestay agrotourism activities are socially and economically empowered. On the contrary, this enterprise is at risk of decline as well due to low engagement of youth and high engagement of senior people, fathers, and mothers. It has challenges and problems as well. Lack of hard and soft infrastructure, poor roads, lack of digital support, lack of regular government monitoring and incentives, unfavorable government rules, etc., are the major challenges. The study concluded that the majority of people socio-economically and culturally benefited from the homestay agrotourism operations in the mid-hill regions of Nepal.
Keywords: Homestay, agrotourism, endogenous development
Homestay agrotourism activities have been practiced from prehistoric times in Nepalese societies with the motto of Atithi Devo Bhava, meaning Guests are God (Khanal & Shrestha, 2019). Promoting travel experiences that highlight Nepal’s agricultural heritage, customs, and goods is known as agrotourism in the country. Farms, plantations, and rural areas are visited by visitors who want to learn about farming methods, engage in farming activities, and experience the local way of life. Agrotourism through homestays provides visitors with a range of experiences (Dhami & Rouniyar, 2024). It is considered one form of rural tourism. (Apaza-Panca et al., 2020). Agrotourism enterprises are particularly prevalent in the Mid-hill regions of Nepal, which are located between the Himalayan peaks and the Terai flanks. These regions are known as agriculturally productive landscapes in the country owing to their geographical importance (Gurung & Karki, 2020). Several mid-hill regions in Nepal are popularly known for homestay agrotourism activities. Bandipur in Tanahu is famous for well-preserved Newari culture and organic farming-based tourism experiences (Gurung & Karki, 2020). Ghalegaun is also another attraction of homestay agrotourism activities, especially for Gurung community-led homestays (Nepal, 2022). Sirburai in Syangja is known for community-based homestay agrotourism featuring participatory farming experiences (KC % Dhakal, 2022). Dhap in Kaski district is famous for permaculture and traditional farming experiences (Paudel & Zhang, 2021). These mid-hill regions demonstrate how community-led homestay agrotourism enterprises have successfully integrated agricultural practices with tourism experiences, preserving local cultural and social values (Gurung, 2021).
Homestay agrotourism has shown remarkable capabilities for rural development across the globe, especially in mountainous areas with rich histories of agriculture (Streifeneder, 2016). In Europe, it is well-documented that agrotourism helps conserve traditional farming while providing an added source of income (Tew & Barbieri, 2012). The same trends can be seen in Asia, where agrotourism projects have mitigated rural depopulation in places like Bali (Cole, 2007) and the Philippines (Cruz, 2018).
Endogenous development gives us an important way to examine agrotourism’s opportunities in these regions. Contrary to externally driven development models devising a framework for growth, endogenous approaches rely on local knowledge systems, cultural values, and community participation (Bebbington, 2020). This is noteworthy in Nepal’s mid-hills, where traditional farming practices are still coupled with strong social networks shaped by rural life (Gautam & Andersen, 2021). These types of community-based agrotourism services are usually organized through cooperatives or village committees, which try to integrate these local assets with external tourism markets (Nepal et al., 2020).
It is important to consider the development of homestay agrotourism in Nepal’s mid-hills in the context of the nation’s larger community-based tourism movement. Many rural communities have attempted to replicate participatory tourism approaches after models such as the Annapurna Conservation Area Project proved successful (Nepal & Chipeniuk, 2022). However, the deeper integration with agricultural systems and increased potential for year-round economic activity set agrotourism apart from traditional trekking tourism (Thapa et al., 2021). According to preliminary research, these businesses can reduce seasonal unemployment and raise farm incomes by 30–40% (KC & Dhakal, 2022).
Another important aspect of agrotourism’s growth is its impact on gender dynamics. Although more women are working in the hospitality industry, structural obstacles frequently restrict their ability to make decisions and receive financial rewards (Gautam & Andersen, 2021). Youth involvement is still uneven, with many young people considering foreign job opportunities to be more alluring than agrotourism (Thapa et al., 2020). These trends bring up significant issues regarding the social justice and long-term sustainability of the existing agrotourism models. Less is known about new initiatives in more remote locations, even though case studies are available for well-known locations like Bandipur and Ghalegaun (Nepal, 2022). Additionally, there aren’t many studies that have looked at how various governance models impact enterprise outcomes or how agrotourism planning is incorporating climate change adaptation (KC et al., 2021).
Almost 40% of Nepalese live in mid-hill regions of Nepal, with some difficulties in these areas, and community-led homestay agrotourism plays a great role as a means of endogenous development of those populations (Gurung & Karki, 2020). While some communities struggle with unequal benefit distribution and cultural commodification (KC & Dhakal, 2022), others have effectively used agrotourism to improve livelihoods and preserve cultural legacy. Rich agricultural traditions and cultural assets found in Nepal’s mid-hill areas could theoretically support vibrant homestay agrotourism businesses (Nepal, 2022). Many communities, meanwhile, have structural obstacles that restrict their capacity to make good use of these assets. Studies show that women and young people often participate in fewer decision-making processes and have unequal access to financial gains (Gautam & Andersen, 2021). Furthermore, the commercialization of tourism activities sometimes compromises the very cultural traditions and agricultural practices (Thapa et al., 2021). In the Nepalese setting, it may generate a conflict between cultural preservation and economic growth that is still not fully comprehended.
Many studies show effective projects in well-known locations like Bandipur and Sirubari (Gurung, 2021), but there are few comparative studies looking at why similar models fail in other communities with comparable resources. Second, while women’s roles in these businesses help empowerment, the gendered aspects of agrotourism participation remain undersold (Paudel & Zhang, 2021). Third, few studies have methodically examined how young people view and interact with agrotourism as a reasonable livelihood choice against foreign employment (Nepal & Chipeniuk, 2022). 2021).
There are various ways in which community-led agrotourism has unequal effects. Economically speaking, some households report substantial income diversification, while others only see minor advantages or even drawbacks, like a greater workload without commensurate pay (Gautam & Andersen, 2021).
Both the Agricultural Development Strategy (2015) and the Government of Nepal’s Tourism Policy (2009) acknowledge the potential of agrotourism; however, local implementation is still uneven (MOAD, 2015). Furthermore, because changing weather patterns impact both agricultural productivity and tourism seasons, climate change adds even more uncertainty (Paudel & Zhang, 2021).
The endogenous development approach emphasizes the use of local knowledge systems, cultural value systems, and community-led processes as alternatives to traditional, externally driven development models (Abdallah, 2025). It focuses on utilizing the locally available natural, financial, and social resources for development. The Resource-Based View (RBV) explains agrotourism success through unique, inimitable resources like indigenous farming knowledge, cultural heritage, or scenic landscapes (Barney et al., 2001). For example, Nepal’s organic tea farms or Gurung homestays gain a competitive advantage by leveraging rare, non-replicable assets (traditional practices, community bonds) that competitors cannot easily copy, ensuring sustainability.
Nepal has implemented the National Tourism Policy 2008, envisioning Nepal as an attractive, scenic, and safe destination on the world map by conserving and promoting Nepal’s natural, cultural, and man-made heritage. The policy has the goal of improving the living standards of the people by significantly increasing the tourism sector’s contribution to national income through the sustainable use of national heritage in tourism activities (Nepal Government, 2008).  Agrotourism is acknowledged as an alternative farming activity that can diversify small-scale farmers’ operations and generally help the sustainable development of a rural economy, underscoring the importance of government support for the sustainable growth of small-scale farms. As a result, to create a sustainable agrotourism destination, agrotourism strategies must take into account small-scale farmers’ perspectives as well as their comprehension of government policy decisions   (Litheko, 2022).
This paper argues that homestay agrotourism not only emphasizes good health and environmental protection but also creates economic opportunities for poor farmers, unemployed youths, and women. That is why Tourism Vision 2020, Tourism Policy 2007, and National Tourism Strategy Paper (2018-34) have given more focus to rural tourism in general and agro-tourism in particular. However, there are many challenges, such as proper management of agro-tourism farms, road accessibility, better health care facilities, and evidence-based policies related to organic farming and agro-tourism marketing. Finally, this paper suggests performing different activities such as garden visits, harvesting and farm stay, farm restaurants, leisure fishing, highway landscape, agro-diversity conservation, and marketing of local organic products for developing and promoting agro-tourism in more potential destinations (Kaini, 2019).
Homestay Agrotourism faces some pressing challenges that may hinder it. A study carried out in Golestan found that weak physical infrastructure, environmental risks, water scarcity, and remoteness from urban areas challenged the development of agrotourism activities (Hosseini et al., 2025).
Homestay agrotourism enterprises support the uplifting of the socio-economic status of community people. A study carried out in Nepal found that Tharu women engaged in agrotourism enterprises were socially and economically empowered. Not only women, but most of the residents of the location got rid of the Kamaiyas (bonded laborers) practice and Sukumbasi (Tharu, 2023)
Agricultural tourism, or agritourism, creates jobs for household members, diversifies farming activities and sources of revenue, and lowers the household’s reliance on nature. This study uses Binary Logistic regression analysis to conduct a direct survey of 450 agricultural households in the Mekong Delta, Vietnam. The findings indicate that influencing factors include the following: support for local government policies; membership in farmer associations, unions, and extension clubs; awareness of the benefits of agritourism; a variety of production models; Internet access; education level; and membership in tourism associations, travel organisations. Distance between farms and agritourism destinations (Ho et al., 2022)
This study employed mixed-methods research. Qualitative and quantitative data on homestay agrotourism in Nepal were collected and analyzed, sourced from different secondary documents.
Data from the secondary documents were collected and analyzed. The secondary documents were research reports, thesis reports, newspaper articles, and case studies done in the mid-hill regions of Nepal, particularly Lamjung, Kaski, and Syangja districts.
This chapter presents the results and discussion based on the sourced data from the secondary documents of field surveys conducted by different researchers regarding homestay agrotourism in Kaski, Lamjung, and Syangja districts of Nepal.
Table 1: Homestay agrotourism facilities in Madi Rural Municipality in Kaski District
| Location | Number of homestays | Capacity (Beds) | Price Rate (NPR) | Distance from Pokhara (Km) |
| Madi 1 Sikles | 35 | 280 | 1100 | 22 |
| Madi 2 Tanting | 15 | 120 | 1200 | 18 |
| Madi 3 Yangjakot | 9 | 100 | 1200 | 20 |
| Madi 5 Thulswara | 11 | 60 | 1100 | 9 |
| Madi 11 Bhachowk | 8 | 32 | 1150 | 21 |
| Madi 6 Chipli | 6 | 40 | 1100 | 16 |
Source: (Tiwari, 2025)
Table 1 illustrates 6 points of homestay agrotourism facilities in Kaski district. The dataset shows that the maximum number of homestays are operating in Sikles, with 35 homestays and 280 beds. Fifteen homestays are in Tanting with 120 beds, 9 in Yangjakot with 100 beds, 11 homestays in Thulswara with 60 beds, 6 homestays with 40 beds, and 8 homestays in Bhachowk with 32 beds. These are the centers near Pokhara city for experiencing the homestay agrotourism experience.
A study conducted in Kaski disclosed the socio-economic impact of homestay agrotourism on the lives of local people, particularly homestay operators and community people.
Table 2: Impact of homestay agrotourism on local people/economy
| Impact on local people | Percentage (Approx) | Description |
| Income generated | 60% | Families generated income from tourism services sold to visitors |
| Boosted local business | 30% | Visitors purchased goods and services that helped boost business |
| Increased job opportunities | 10% | Jobs for local people increased due to boosted businesses. |
Source: (Tiwari, 2025)
Table 2 shows that the homestay agrotourism impacted the socioeconomic status of people positively, generating income, supporting local businesses, and creating jobs for local people. The biggest impact is on generating income, about 60%, which helps improve overall livelihoods. Around 30% of the impact is on boosting local businesses related to agrotourism, which helps local people become financially strong.
Impression of homestay agrotourism in income diversification
Tourists staying at a homestay experience different tastes in agricultural foods. Rural tourism in Nepal has developed, that positively impacted the income level and well-being of local people by creating job opportunities (Kafle, 2023).
Figure 1: The share of income sources in total household income
Source: (Ministry of Culture, Tourism and Civil Aviation, 2020)
The figure highlights that 15% of the total income of a household is from the homestay enterprise, 25% of the income is from various jobs, and 20% of the income is from wage labor.
Homestay agrotourism enterprises are popular in Nepal due to the abundance of natural resources that invite tourists to experience. Tourists get exhilarated to see farmers’ crazy involvement in rice planting during the summer season (Pandey & Pandey, 2013).
The socio-economic and cultural impressions of homestay agrotourism
Homestay agrotourism activities in Ghalegaun in Lamjung were started back in 2001, opening the homes for homestay purposes by 12 homeowners. Currently, 46 families are running homestays in 2025. They welcome tourists to their homes, kitchens, and farms, serving traditional Gurung meals, local vegetables, and presenting typical Gurung cultural performances, like Gurung Ghatu and Rodhi dances. They bid welcome and farewell to visitors with a Tika and flowers. Local organic foods are the attraction of Ghalegaun, which over 30000 tourists visit this place every year (Gurung, 2025).
The homestay agrotourism activities in Ghalegaun have contributed to increasing the income of local people who run homestay activities. It enhanced their living standard due to the financial strength they gained from the homestay activities. Kamal Ghale, who has been operating homestays for the last 15 years in Ghalegaun, expressed that his earnings from business have made his life comfortable and easier due to the handsome income (Sen, 1970).
The economic condition of people involved in the Magar Homestay at Naruwal, Lamjung improved due to their access to employment opportunities created by the homestay. Many youths worked as nature guides, housekeepers, cooks, drivers, and wage-based workers through the homestay, which helped to reduce the poverty rate there. People can manage their household expenditure with the income they earn from the homestay. The homestay promoted not only the economic status of people, but it also promoted the local cultures. It helped share cultural values with visitors because visitors wanted to experience local culture locally. Local people and guests got a chance to interact with one another, which helped them be empowered (Magar, 2021).
Homestay agrotourism operators have made financial accumulation through it. Most of the operators at Sirubari homestay in Syangja are financially strong. They invest earned money in other productive areas, due to which they experience no financial burden. Unfortunately, youth engagement in homestay agrotourism is not satisfactory. Most of the youth migrated to urban areas from rural that directly impacted the homestay business. Most of the people involved in homestay activities are the mother and father. Agrotourism has some negative impacts as well, but it has not been seen in Sirubari homestay (Thapa, 2005).
Women’s empowerment through homestay agrotourism
Many women engaged in homestay tourism activities, particularly in the mid-hill regions of Nepal, are empowered. They are financially independent, heading their families and supporting Nepal’s economy. They received the opportunity to know others’ language and culture, which helped them express their views and emotions with others through the means of communication (Sureis, 1970). Homestay agrotourism operators of Sirubari homestay got the opportunity to increase their knowledge and share their experiences, which empowered them (Thapa, 2010).
Challenges of homestay agrotourism in Nepal
Homestay agrotourism in Nepal is flourishing as compared to the agrotourism of some decades ago. However, it faces some challenges. Particularly, homestay tourism, part of agrotourism, is not yet the centre of attraction for foreign tourists due to poor hard and soft infrastructure development in rural areas. Poor roads, lack of appropriate transportation, electricity, clean drinking water, and digital connection have challenged foreign tourists in experiencing agrotourism in Nepal. Additionally, the Constitution of Nepal, Schedule 5, Schedule 6, and Schedule 8 allow the three levels of Government to collect service fees, which creates confusion and an unjustified practice of fee collection that discourages foreign tourists (Kafle, 2023). Skilled people can produce high outputs in this sector, whereas many homestay operators are not well-trained, which may lead to weaknesses in homestay tourism (Upadhaya, 2011).
Figure 2: Challenges faced by homestay operators
Source: (Tiwari, 2025)
Figure 6 highlights that regulations and permits issued by the government challenge homestay agrotourism activities the most. Nearly 60% of challenges are linked to the regulations and permits of the government. About 20% of challenges are linked to seasonal fluctuations in bookings. Additionally, the nearby largest hotels offering comparatively more amenities challenge the homestay operations.
Table 3: Problems faced by tourists in Nepal
| Problems | Respondents | Percentage (%) |
| Infrastructure (roads, communication) | 81 | 64.3 |
| Market | 60 | 47.6 |
| Information centers and tourist guides/languages | 57 | 45.2 |
| Unstable government policies on tourism development | 22 | 17.5 |
| Occurrence of natural disasters | 27 | 21.4 |
| Seasonal tourism | 21 | 16.7 |
| ATM/ money exchange | 23 | 18.3 |
| Sanitation/Pollution | 65 | 51.6 |
| Others (culture, hospital, security/rescue) | 37 | 29.4 |
Source: (Dhakal, 2021)
The table reveals that infrastructure, roads, communication, and accommodation are the top problems (64.3%) for tourists in Nepal. The second problem is the lack of a competitive tourism market (60%), and the third one is the lack of an information system and tourist guide (57%).
Homestay agrotourism enterprise is an effective tool to enhance the socio-economic status of people in the community. This study found that the majority of homestay operators and others who took up a comparative advantage from it in mid-hill regions of Nepal were economically capable because employment opportunities were created. This finding is supported by the research conducted in Spain in 2020 by Cynthia Milagros Apaza-Panca and her team (Apaza-Panca et al., 2020b). However, contrary to this finding, homestay agrotourism activities are managed by the majority of senior people, fathers, mothers, and elderly people, meaning that youths have migrated to urban areas and abroad. Youth engagement in homestay agrotourism activities in Nepal is declining. It may cause the decline of this enterprise in the future. These findings are supported by the findings of the research carried out at Sirubari homestay in Syngja by Pierre Waltera and his team in 2018.
This study found that homestay agrotourism in Nepal is flourishing; however, it is confronting various challenges too. The major challenges are related to geographical, seasonal, government policy level, lack of monitoring, and hard and soft infrastructure. These findings are supported by the research conducted by Sujan Lamichhane and his team in Nepal in 2024 (Lamichhane et al., 2024).
So, these research findings support homestay agrotourism enterprises in Nepal for the socio-economic improvement of people, for which a balanced policy-level intervention from government bodies is needed, and substantial effort from operators and youth engagement are necessary for the productive results of the homestay enterprises.
Homestay agrotourism refers to tourism that combines the experience of visiting new, scenic geographical landscapes with the experience of local socio-economic and cultural practices and values. It comprises the taste of local foods and local socio-cultural traditions. The homestay agrotourism practices in the mid-hill regions of Nepal have impacted the socio-economic standing of local people positively. It has increased the economic status of homestay operators and other community members by creating jobs and opportunities that have helped them improve their living standards. Local people in the mid-hill regions are financially empowered through homestay agrotourism. Local foods and cultural values are promoted. It has created an opportunity, particularly for women’s empowerment. Women involved in homestay agrotourism got to be financially independent, share their views with guests, and be involved in a cross-cultural environment that helped them gain information, knowledge, and skills. Homestay agrotourism is flourishing in mid-hill regions of Nepal; however, it has challenges as well. Most of the youths migrated to urban areas and abroad in search of the best income sources, due to which fathers and mothers are obliged to operate homestay activities. Additionally, the government’s unstable regulations and poor hard and soft infrastructure added further challenges.
This study implies that the endogenous development approach in operating homestay agrotourism activities in a host community is effective, so it needs to be followed in the future. The use of local socio-cultural resources and the local people’s knowledge and skills in operating homestay activities brings a substantial impact on the lives of local people. Government agencies are responsible for policy intervention to address the challenges the homestay operations face.
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