Chapter III REGISTRATION, RECOGNITION AND GRADING OF TOURISM TRADE RELATED ACTIVITIES

(1) Every category of tourism trade in the tourist destination shall be registered, recognised and graded in accordance with the procedures set out in the rules made under this Act from time to time. (2) The rules issued under sub-section (1) may in particular make provision,- (a) as to the standard and norms of the tourism trade intended to be registered under the Act; (b) for the charging of annual or other periodical fees for registration, recognition, renewal and grading; (c) for the issue and display of certificates of registration and the display of signs indicating that a tourism trade is registered; (d) for the inspection of tourism trade and for powers of entry for that purpose; (e) for requiring the criteria in accordance with which the classification or grading is carried out; (f) for the publication of any criteria so determined; (g) as to the form and contents of the register or registers to be maintained under the rules and as to the tourism trade to be registered therein; (h) benefits or incentives available for registered or graded tourism trade; and (i) such other supplementary and incidental provisions as the Government may find necessary or expedient. (3) No person shall conduct or operate any of the tourism trade in any tourist destination with respect to which the rules and regulating such tourism trade is made under this Act, unless such category of tourism trade is registered, recognised or graded: Provided that a person who is carrying on any category of tourism trade on the date of commencement of the rules regulating such category of trade may continue to carryon such trade if he has made application for registration, recognition or grading under this Act unless it is rejected: Provided, further that where a tourism trade is registered by Government of India, such tourism trade may be exempted from registration and grading under this Act. The tourism operator of such facility shall provide a copy of the certificate of registration or grading, as the case may be, issued by Government of India to Department of Tourism. On verification of such certificate, the Department of Tourism may exempt such tourism trade from the requirement of registration or grading under this Act. (4) Any person found contravening sub-section (3) with respect to any tourism trade after expiry of one year from the date of commencement of this Act, shall be guilty of an offence and on conviction be liable to a fine not exceeding rupees ten thousand . 1[(5) Any person or Organisation who having been found to be conducting or operating a category of tourism trade requiring mandatory registration or recognition under sub-section (3), without such valid registration, and having been subjected to an initial penalty or warming for such non-compliance under sub-section (4), continues to contrivance the provisions of sub-section (3), shall be liable to further penalties and administrative sanctions to be imposed by the prescribed Authority in accordance with such procedure as may be prescribed. (a) For the first such instance of contravention, such person shall be liable to a monetary penalty as may be prescribed, Authority may order the suspension, for a period which may extend to three months of any existing trade license or No Objection Certificate (NOC) from local authorities held by such person for the tourism trade concerned or may direct such authorities to suspend the same. (b) For the second such instance of continued contravention, such person shall be liable to a monetary penalty, which shall be significantly higher than that for the first instance of continued contravention, as may be prescribed. In addition, the prescribed authority may order the suspension, for a period which may extend to six months of any existing trade license or No Objection Certificate from local authorities held by such person for the tourism trade concerned or may direct such authorities to suspend the same. (c) For the third or any subsequent such instance of continued contravention, such person shall be liable to a monetary penalty, which shall be significantly higher than that for the second instance of continued contravention, such penalty shall be as may be prescribed. The prescribed authority shall order the cancellation or termination or direct the concerned local authorities to cancel or terminate, any existing trade license or No Objection Certificate held by such person for the tourism trade concerned: Provided that, no such monetary penalty or administrative sanction shall be imposed without giving the person concerned a reasonable opportunity of being heard. The rules shall also prescribe the criteria for determining continued and repeat offenses and the appellate mechanism.] 1. Substituted by Act 61 of 2025 w.e.f. ...................

1. (2) The rules issued under sub-section (1) may in particular make provision,-
   • (a) as to the standard and norms of the tourism trade intended to be registered under the Act;
   • (b) for the charging of annual or other periodical fees for registration, recognition, renewal and grading;
   • (c) for the issue and display of certificates of registration and the display of signs indicating that a tourism trade is registered;
   • (d) for the inspection of tourism trade and for powers of entry for that purpose;
   • (e) for requiring the criteria in accordance with which the classification or grading is carried out;
   • (f) for the publication of any criteria so determined;
   • (g) as to the form and contents of the register or registers to be maintained under the rules and as to the tourism trade to be registered therein;
   • (h) benefits or incentives available for registered or graded tourism trade; and
     • (i) such other supplementary and incidental provisions as the Government may find necessary or expedient.
2. (3) No person shall conduct or operate any of the tourism trade in any tourist destination with respect to which the rules and regulating such tourism trade is made under this Act, unless such category of tourism trade is registered, recognised or graded: Provided that a person who is carrying on any category of tourism trade on the date of commencement of the rules regulating such category of trade may continue to carryon such trade if he has made application for registration, recognition or grading under this Act unless it is rejected: Provided, further that where a tourism trade is registered by Government of India, such tourism trade may be exempted from registration and grading under this Act. The tourism

operator of such facility shall provide a copy of the certificate of registration or grading, as the case may be, issued by Government of India to Department of Tourism. On verification of such certificate, the Department of Tourism may exempt such tourism trade from the requirement of registration or grading under this Act.

1. (4) Any person found contravening sub-section (3) with respect to any tourism trade after

expiry of one year from the date of commencement of this Act, shall be guilty of an offence and on conviction be liable to a fine not exceeding rupees ten thousand .

1[(5) Any person or Organisation who having been found to be conducting or operating a category of tourism trade requiring mandatory registration or recognition under sub-section (3), without such valid registration, and having been subjected to an initial penalty or warming for such non-compliance under sub-section (4), continues to contrivance the provisions of sub-section (3), shall be liable to further penalties and administrative sanctions to be imposed by the prescribed Authority in accordance with such procedure as may be prescribed.

1. (a) For the first such instance of contravention, such person shall be liable to a monetary penalty as may be prescribed, Authority may order the suspension, for a period which may extend to three months of any existing trade license or No Objection Certificate (NOC) from local authorities held by such person for the tourism trade concerned or may direct such authorities to suspend the same.
2. (b) For the second such instance of continued contravention, such person shall be liable to a monetary penalty, which shall be significantly higher than that for the first instance of continued contravention, as may be prescribed. In addition, the prescribed authority may order the suspension, for a period which may extend to six months of any existing trade license or No Objection Certificate from local authorities held by such person for the tourism trade concerned or may direct such authorities to suspend the same.
3. (c) For the third or any subsequent such instance of continued contravention, such person shall be liable to a monetary penalty, which shall be significantly higher than that for the second instance of continued contravention, such penalty shall be as may be prescribed. The prescribed authority shall order the cancellation or termination or direct the concerned local authorities to cancel or terminate, any existing trade license or No Objection Certificate held by such person for the tourism trade concerned: Provided that, no such monetary penalty or administrative sanction shall be imposed without giving the person concerned a reasonable opportunity of being heard. The rules shall also prescribe the criteria for determining continued and repeat offenses and the appellate mechanism.]

¹ Substituted by Act 61 of 2025 w.e.f. ...................

The tourism operator who is conducting or operating or intends to conduct or operate any category of a tourism trade in a tourist destination shall within six months from the date of commencement of the rules with regard to such category of tourism trade, apply to the prescribed authority for registration, recognition and grading of tourism trade in such manner and in such form and along with such fee as may be prescribed.

(1) On receipt of an application for registration, recognition or grading of any tourism trade, the prescribed authority shall cause inspection under sub-section (3) and if it is of the opinion that the requirements for such registration, recognition and grading, as the case may be have been complied with, register, recognise and grade such tourism trade. Where the prescribed authority is of the opinion that the rules have not been complied with, it may refuse to register, recognise and grade the tourism trade for the reasons to be recorded. (2) The prescribed authority shall verify an application for registration, recognition and grading of a tourism trade within ninety days following the date of receipt of such application. (3) Before registering, recognising or grading of a tourism trade, the prescribed authority,- (a) shall inspect the tourism trade or shall cause the tourism trade to be inspected through an authorized officer or Government agency; (b) may call for a report from any authorized officer or Government agency appointed for the purpose of assisting them in taking decision on registration, recognition or grading; (c) may make or cause to be made such further investigations in regard thereto as it considers necessary. (4) On the registration, recognition or grading of tourism trade, the prescribed authority shall issue to the tourism trade a certificate in the form prescribed.

1. (2) The prescribed authority shall verify an application for registration, recognition and grading of a tourism trade within ninety days following the date of receipt of such application.
2. (3) Before registering, recognising or grading of a tourism trade, the prescribed authority,-
   • (a) shall inspect the tourism trade or shall cause the tourism trade to be inspected through an authorized officer or Government agency;
   • (b) may call for a report from any authorized officer or Government agency appointed for the purpose of assisting them in taking decision on registration, recognition or grading;
   • (c) may make or cause to be made such further investigations in regard thereto as it considers necessary.
3. (4) On the registration, recognition or grading of tourism trade, the prescribed authority shall issue to the tourism trade a certificate in the form prescribed.

(1) Before or as soon as possible after the publication of any rules under sub-section (1) of Section 8 requiring the registration, recognition and grading of any class of tourism trade, the Department of Tourism shall establish a cell for maintaining records of tourism trade registered, recognised and graded under this Act.

1. (2) The Department of Tourism shall also maintain the records and notify from time to time the tourism trade that are registered recognized or graded by Government of India.

The Department of Tourism shall publish, once in a year or at such other intervals as the Government may direct, a list of tourism trades that have been registered and recognised together with such information as it thinks proper in relation to the grades and standards of such facilities and any other matter of interest to tourists.

(1) Whenever it comes to the notice of the prescribed authority and if it considers that there has been a failure in respect of a registered and recognised tourism trade to comply with any of the prescribed conditions or requirements regarding registration, recognition or grading, the prescribed authority may give notice to the tourism operator of such tourism trade requiring him to comply with the conditions or requirements, within a period not exceeding thirty days of such notice, failure of which shall render the registration, recognition or grading liable for cancellation.

1. (2) The tourist operator of a registered and recognised tourism trade in respect of which a notice has been issued under sub-section (1) shall, before the expiry of the period specified in the

notice, make written reply to the prescribed authority giving reasons as to continue the registration and recognition.

1. (3) If, upon the expiry of the period specified in a notice given in terms of sub-section (1), the prescribed authority considers that the condition or requirement has not been complied with and that no good reason has been shown as to why the tourism trade concerned should remain registered and recognised, it may cancel the registration and recognition of the tourism trade, and give notice of cancellation to the tourism operator.

(1) The prescribed authority may at any time on inspection done by it or any authorised officer after giving a tourism operator a reasonable opportunity of making written representations in the matter, re-grade the tourism trade if, in its opinion, reasonable and sufficient grounds exist for doing so.

1. (2) The tourism operator whose tourism trade has been graded may, subject to such conditions and accompanied by such fee as may be prescribed, apply to the prescribed authority in the prescribed form and manner for the re-grading of the tourism trade.
2. (3) The prescribed authority shall consider any application made under sub-section (2) and give its decision and take action as it considers appropriate.

Recognition or grading certificate obtained with regard to any tourism trade under this Act shall be renewed once in every five years in such manner along with such fee as may be prescribed in the rules issued with respect to such tourism trade.