Background: Homestay tourism has been practiced in many developing countries as a model of socio-economic empowerment of the people in rural villages. The government of Nepalhas also prioritizedhomestay tourismas one of the major pillars of the rural economy. Currently, there are hundreds of homestays and thousands of people have been involved in homestay tourism in Nepal. Homestay tourism might have different impacts on the households of homestay operators and their communities in rural villages in Nepal. Objective: This study aims to examine the role of homestay tourism on the socio-economic empowerment of rural people in Nepal. Methods: This study has adopted mixed-methods research. Quantitative method is the main method used in the study, however, qualitative methods have been used to triangulate and supplement the results of quantitative methods. The data were collected using individual interview from 73 homestay operators of seven different community homestays initiated before 2017 in Kaski District, Nepal. Findings: This study has revealed that the homestay tourism has created part-time employment opportunities and generated income in the households of the homestay operators, thereby, increasing the access of rural people to better food, health services, education, clothes, and in maintaining social responsibilities. It has also helped in empowering rural women with more employment opportunities and incomes. Homestay tourism has also encouraged the youths to migrate back to their rural villages. The amount of investment and the increased capacity of the homestays seem to return more income. The homestays have also increased the social network, social involvement, knowledge and prestige of the homestay operators and their families as well as improved the sanitation in the household and community as a whole. Conclusion: The homestay tourism has been instrumental in generating employment and income opportunities in the families of the homestay operators, thereby inducing socio-economic empowerment of the people in the rural villages in Nepal.
