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ADVERTISING ACTIVITIES PRACTICED IN TOURISM SECTOR BY NEPAL TOURISM

BOARD IN NEPAL Submitted By

Thesis · December 2008

DOI: 10.13140/RG.2.2.32097.68966

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 CHAPTER - I
INTRODUCTION

1.1 Background of the Study

These have been amazing changes in technology, transportation and
communication in the latter half of the twentieth century. The geo-political
stability has been accompanied by economic affluence for many citizens in
industrialized and developing countries throughout the world. These changes have
triggered the development of a number of few industries. One of these industries,
tourism has quietly emerged to become an important force in many societies and
economies in various parts of the world. Through, not usually thought of as a
single cohesive industry, the growth of tourism since World War II has been
dramatic (Eadington and Smith, 1994).

Tourism has emerged as an industry which according to World Tourism

Organization in 1989, generated approximately 74 Million jobs in its direct and
service oriented industries, such as airlines, Hotels, Travel services and
publication. Tourism has become a major employer in industrialized countries.
Tourism is frequently replacing manufacturing, distribution or extractive industry.
In developing countries the shift typically has been from an agrarian economic
base to a tourist economic base by passing and industrial pass altogether
(Eadington & Smith, 1994: 17).

Tourism is not always an unmixed blessing. Tourism policies are often expensive,
capital intensive, given excessive foreign exchange leakage and subject to well
documented negative social effects. Yet these same policy mistakes are made over
and over again (Kamal Pradhan, 1997: 21).

1
Tourism is said to be a great industry an industry engaged in people’s leisure by
creating recreation opportunities for their money. The great age of automation and
industry has made if possible for people to have more 'Leisure' and 'Money' to buy
'pleasure' thus tourism thrive.

International Tourism has begun to attract attention as one of the loading growth
industries and international instrument of economic development and of
international trade of developed and developing counties. This is due to its main
fold healthy effects on economic, social, cultural political and educational fields.

Tourism is an Industry which evolves several forms of business activities is the

world. The tourists involve the transfer of payment from one country to another
and there by contribute to the national income. The tourism industry has become a
major source of foreign currency earning for under developed countries.

Throughout history people have traveled for many different reasons. Tourism as
an industry, however, began to flourish after the Second World War, with per
capital incomes in the developed countries increasing significantly accompanied
by the development of efficient mass air transport. The tourism industry is the
largest in the world and is a complex one.

The industry consists of a wide range of enterprises supporting the mass

movement of people across varied areas within a country and across international
boundaries, including a variety of outlets for hotels, airlines tours operators etc.

The tourism industry sells a unique product often called an invisible import. The
product may be sold and consumed locally, but it is consumed by foreigners i.e.
the external market. Nepal is one such popular destination for tourists from all
over the world (Ajaya Stapit, 1996: 228).

2
Nepal is a landlocked, developing and agricultural country having an area of
147181 square kilometers. It is situated between china in north and India in east,
west and south. It lies between 80015’- 88015’ east longitude and 26020’-30010’
north longitude. The length is 880 km and breadth is 144 km to 240km.
Physically, Nepal has divided into three regions (a) Terai (b) Mountain (c)
Himalayan. The total land of Nepal constitutes 15 percent Himalayan region, 68
percent Mountain, 17 percent is Terai.

Nepal has different types of climate. Nepal is popular for its beauty consisting of
snowcapped Himalayan, more than 700 varieties of singing birds, jumping river,
rivulets wild forest, calm and quiet lakes, healthy and peace climate and lot of
friendly smiles and cooperation of Nepalese villager. Nepal has become the center
of attraction as a tourist destination due to its beauty and world famous mountain
range. Nepal has also various specialty of its own. In fact Nepal’s rich culture
heritage has been major source for attracting on increasing number of tourist from
all over the world.

Nepal has been a unique tourist destination in south Asia region. Nepal is called
tourists paradise on earth i.e. Shangri-La. Tourism industry includes business units
engaged in tourists lodging, motel, hotel, restaurant, resort, travel agency etc.
Tourism was unknown to Nepal till 1950. With the drawn of democracy in 1950
Nepal opened its door to outside visitors. Nepal prepared a master plan for the
growth and development of tourism in 1972. The department of tourism was
transformed into the tourism development board in 1995 to be operated by the
private sector. It is expected this step would greatly enhance the efficiency of
tourism promotion activities. Nepal is also the member of the International Union
Official Travel Organization (IUOTO) and other world organization. Besides,
several tourism related association like Hotel Association of Nepal (HAN), Nepal
Association of Travel Agent (NATA), Trekking Agents Association of Nepal

3
(TAAN) and Pacific Area Travel Associates (PATA) were formed to support
tourism industry.

Advertising is both a means of communication as well as an important tool of

promotion. Communication is an integral part of daily life of the human beings. In
the business world, effective transmission of communication is a vital seed.
Advertising is non-personal presentation of marketing message through various
media such as newspapers, magazines, cinema, outdoors, posters and signs, direct
mail, radio, television, catalogues etc. For the development of tourism sector
advertising plays a vital role. So there is no doubt that one of the most important
factor for the development of tourism sector in Nepal is advertising which will
help the visitor to get the information of different destination in Nepal which will
make the flow of visitor and increase the economic sources of the country as well
as people of that place not only this but also help in development of infrastructures
of that place and many more. Thus this can be done only by the advertising
through different ways.

Tourism industry must be planned, marketed and the policy must be regularly
implemented within working groups of Nepalese community as a whole. At
present due to the rapid development of communication most of the people of
would desire to travel. Moreover a high mobility has developed many forms of
traveling for recreation, sightseeing, business and education.

Tourism industry has played important role to communicate idea and technology
from one place to another. Tourism industry facilitates to setup friendship,
exchange views, knowledge, culture and so many things around the world.

4
1.2 Statement of the Problem
Tourism sector is of great importance for Nepal but there are still lots of problems
in tourism industry. A new tourist spots are available for tourists. The spots are
not very much developed. There are shortages of infrastructure necessary for
proper development of existing as well as feasible tourist places. There are also
problems of environment pollution, transportation, communication, sufficient
trained manpower, accommodations, publicity, proper medical facilities, hygiene
and cleanliness which are hampering the growth of the tourism industry in Nepal.
In case of culture tourism, world heritage sites are not properly maintained. In this
context, examination to what extent tourism has been effective on advertising
activity for it promotion in Nepal.

1.3 Objectives of the Study

The main objectives of the present study are to examine and analyze the
advertising activities practiced in tourism sectors by NTB in Nepal.

Especially the objectives of the study are as follows:

i. To evaluate effectiveness of advertising for attaining and retaining the
market on tourism business in Nepal.
ii. To review the development of tourism sector in Nepal by advertising
activities.
iii. To identify and analyze the main problem of advertising in tourism sector
in Nepal
iv. To give some suggestion and recommendation for improvement of
advertising of tourism sector in Nepal.

1.4 Research Methodology

The study is based on library research and the secondary data collected from
booklet, bulletin, magazine, newspaper and other research work in the document

5
section of Tribhuwan University library and some other institutions. But primary
data will also be collected and used as per the requirement. Data analysis will be
done with help of tables, and their interpretation pie chart, bar diagram so on and
so far. Some statistical method will be used to present data and finally these data
as are interpreted to reflect the true presentation of the study.

1.5 Limitation of the Study

Each and every study has its own limitation. The study subject to following
limitation:
i. The study is based only in secondary data and information.
ii. This study deals with tourism industry in Nepal and includes only hotel
industry, trekking agency, travel agency and airline business.
iii. This study deals only with the advertising activities practiced in tourist
sector by NTB.
iv. This study is based on the data available from 1998 to 2005.
v. This thesis is written for partial fulfillment of requirement of master’s
degree of business study.

1.6 Organization of the Study

The study is organized in the following chapters:

Chapter I: Introduction
It deals with introduction of the main topic of the study like general background,
statement of the problem, objectives and significance with limitation of the study
and other introductory frame work.

Chapter II: Review of Literature

It deals with review of available relevant studies. It includes the conceptual review
and review of the related books, journals and the published and unpublished
research works as well as thesis.

6
Chapter III: Research Methodology
It deals with methodology of the study i.e. research carried out in this size and
shape. For this purpose various financial tool and statistical tool are defined which
will be used for the analysis of the presented data.

Chapter IV: Data Presentation and Analysis

It deals with the presentation and analysis of all the relevant collected data.
Analysis is done as per described in chapter 3 and the major findings. This chapter
is the heart of the study.

Chapter V: Summary, Conclusion and Recommendations

It contains the summary, conclusion and recommendations on the basis of the
study.

7
 CHAPTER - II
LITERATURE REVIEW

"The world should no longer regard tourism merely as a business but as a means
by which men may know and understand one another, human understanding being
so essential in the world at this Time" - Gustabo Ding, Mexico.

2.1 Introduction to Tourism

The word "Tourism" has been derived from the French word "Tourisme" literally
means to travel to the related fields which originated in the 19 th century. Later, this
word was popularized in the decade 1930s but its significance was not fully
realized. ‘Tour’ is known as journey from place to place for pleasure. Tourism has
been defined in various ways. Some author describes Tourism as system tourism is
a system of four inter-related part market, travel destination and marketing,
Marketing is service related to the customer. The second segment of Tourism is
travel which includes where when and how to go. The definition of Tourism
identifies the several characteristics of tourism as mentioned below.

 Tourism involves complex set of interrelationships between people, places

and products.
 These interrelationships evolve thought the transportation of people of
various destinations outside of their normal place of residence and their
stay at those destinations.
 The duration of the visit must generally be of as short term nature.
 Tourism is essentially a pleasure activity it’s that it doesn’t involve related
travel even if the associated income is not earned is the destination, region
or country.

8
Herman V. Schullard, on Austrian Economist is the year 1910 gave one of the
earliest definitions of tourism. He defined if as the sum total of the operators,
mainly of an economic nature, which directly relates to the entry, stay and
movement of foreignness inside and outside a certain country, city or region.”

Tourism an umbrella concept has a history dating back to 1811, or before and
continues to change in definitions. The term tourism encompasses travels away
from home and the businesses and people who save them by expediting or
otherwise making the travel easier or more entertaining.

Similarly Huwmiker Welts and Krab Kart defined tourism as follows “Tourism is
the total relationships and phenomena linked with the stay of foreign persons is a
locality on condition that they do not rattle there to exercise a major permanent or
temporary activities a lucrative nature.” From the above facts tourism is knows as
a visit a person from one place to another place for their want.

International Association of Scientific Experts in Tourism (IASET) further added

few points to make it clear. Tourism arises from a movement of people and their
stay in various destinations. There are two in all Tourism “The journey to the
destination and the stay including activities at the destinations.” The journey and
the stay take place outside the normal place or residence and work, so that tourism
gives rise to activities which are distinct from those of the resident and marketing
populations of the places. The movement to destinations is of to temporary short
term characters, with intention to return within a few days few weeks or months.
Destinations are visited for the purpose other than taking up permanent residence
or employment.

9
2.2 Important of Tourism
Tourism is a fundamental and desirable human activating for having satisfaction.
Tourism credits friendship and understanding among nations and acts as a medium
though which we can share knowledge and create understanding among the people
of the world.

The modern tourism is an instrument of human education it is becoming more

powerful tool of education and of collective and individual culture. So, tourism
provides us an opportunity to understand the society, habits, food dress and the
way of life of the people of different countries.

Socially, and culturally, Tourism is a product which encourages intellectually

curiosity amongst people and nations and develops a healthy respect for other
countries customs. Thus, it keeps a peaceful relation ship between nations.
Tourism also play a large part is keeping family an friends us contact, and permits
students and teaches to be part of Educational exchange programmers as part of
cultural role of tourism the incentive of local crafts and industries an artistic skills
of local people is increased because of the demand for local products.

2.3 Tourism Development in Nepal

In the case of Nepal Tourism has a long history. Although history of civilization
us Nepal stretches back to thousands of year, but she has been recently opened to
visitor from different countries of the world. Nepalese history was confined to the
history of Kathmandu Valley. According to legend, today's Kathmandu Valley
was a great lake. Later great monk name Manjushree came form Tibet and
mediated on the peak of Chover. Having got insight, he cut Chover hill, there by
making a gorge so as to empty the lake.

10
Thus, Manjushree was the first traveler to visit Nepal. Nepal is the holy birth place
of Lord Gautam Buddha and he has born in to 245B.C. Lord Buddha and he
pupil visited Kathmandu valley around 6th century of 7th Kirat King named
Sthumko. The Emperor Ashok of India visited Nepal as a pilgrim his daughter
Charumati married with the king Devpal of Devpatan and the Emperor Ashok has
erected four Buddhist Staupes of four corners of Lalitpur. The golden as of Nepal
started in 400AD when Lichhivi dynasty came into power. Many foreigners
visited Nepal during Lichhivi period at this period the great emperor of Tibet.
Strong Tson Gonbu, arrived Nepal during the role of Aushuverma and married the
Nepalese princess Bhrikuti. The Chinese visitors Huen Trang described in his
travel records the Kailshkut Bhauran, and Mangriha. Where the Malla Dynasty
came into power there was a significant development in the field of art and
culture. The Krishna Mandir Nayat pol, palace of 55 windows, temple of
Pashupati Nath, so many Hindu temples and Stupas of Buddha were built during
this period. During Malla dynasty Kathmandu city is renowned as the city of
temples. In 1769, the Shah King Prithivi Narayan Shah ascended to the Throne
and gave birth to a unified kingdom of Nepal.

Again the period between 1845 - 1945 was gloomy period in the history of Nepal.
In this period Rana ruler handled the administration of the country at their own
personal will. Rana rulers are totally responsible for non development of tourism
industry in Nepal. The Rana feared that tourism might bring political
consciousness among the Nepalese people. In this period Jung Bahadur Rana, the
first Prime Minister of Nepal, visited England and other European countries in
1850. The Ranas had maintained hard secular policy as regards tourism. At that
time foreigners were not allowed to inter Nepal and very few who visited we
permitted merely due to political reasons rather than on consideration of
developing tourism. Even the Indian people were not allowed to visit Nepal freely.
A large number of Indian pilgrims visited Nepal and that only one the occasions of

11
Shivaratri, Bala Chatudashi, and the permission to stay in the country during that
was only for these days. The Rana rulers had maintained good relation with the
British Government. At that period some British and King George V of England
visit Nepal for hunting purpose.

As a result of popular revolution of 1950 initiated under the leader of late king
Tribhuvan a party system of government was set up which gave freedom to Nepal
and Nepalese people from the Rana rule. After revolution, the gates of Nepal were
opened to all foreigners. In 1952 a sizeable number of tourists visiting Nepal were
recorded. In 1953, Tenging Norge Sherpa and Sir Edmend Hillary successfully
climbed the highest peak Mr Sagar Matha. Nepal was further intending the
diplomatic relations with other world organizations such as UNESECO, WHO,
FAO etc. After obtaining membership to the UNO, Nepal gradually became
known to the outside world.

Another important happening was the coronation of late king Mahendra on 2 nd

May 1956, which played a vital role to attract the international travelers towards
Nepal. Establishment of “Tourism Development Board “in November 1957 can be
called as a milestone in the history of Nepalese tourism. Then Nepal gradually
became the member of different world tourism organizations such as International
Union of Official Travel Organization (IUOTO), South Asian Travel Commission
(SATC), Pacific Area Travel Association (PATA) and American Society of Travel
Agent (ASTA).

Other factors which are responsible for the development of history of Tourism are
Nepal’s vast natural beauty, rich cultural heritage(Kathmandu, Patan, Bhaktpur
Durbar Square, Swayambhu Nath, Changunarayan, Bouddha Nath) scenario
resorts such as Kathmandu Valley, Lumbini, Pokhara, Tansen, Gorkha, Helambu,
Chitwan, Palpa, Surkhet etc.

12
It has highest snowcapped peaks as Mt Everest, Kanchajanga, Makalu, Dhaulagiri
and Annapurna which are 800 meter in height. Persons who want to visit Nepal
usually get opportunity to see distinct places and wild life resources such as one
horn rhinoceros, leopard, wild deer and other creatures. We have a wide variety
tastes and interests of visiting tourists. There is a high scope of developing tourism
industry in Nepal. Today foreigners consider Nepal as a land of Yeti and homes of
gods.

Nepal had improved a great deal in industry during 1950 to 1965. The number of
tourists increased from 562 in the year 1952 to 9,388 in the year 1965. Similarly
the foreign exchange from tourism in 1965/66 was US $ 399. The tourism sector
was transferred from the Department of construction and communication works to
the Ministry of commerce and industry in 1967. During the period 1960/1963 the
government policy was formulated to increase accommodations facilities, improve
transportation system and hotel providing modern facilities. Tourism industry was
taken as one of leading foreign exchange earners and sources of government
resource. The policies were to follow a regional development strategy for
generating employment of local levels and develop market for the exploration of
new tourist sport. Follow a liberal policy on entry formalities and make, use of
simplified or selected procedure in custom clearance. Safeguard natural
environment and presence the geographical cultural and artistic beauty of the
country.

Nepal has excellent prospect for tourism development. The rich cultural heritage,
enhancing diversity of tribes and communities and heart warming parade of beauty
go to prone that there in ample justification for developing this sector.

The history of planned development efforts in promoting tourism by Nepal

Government of Nepal stated only with the first five years plan in 1956. During the

13
planning period, the historical, cultural and geographical attractions of the country
were emphasized not only to promote tourism but also to spread its growth beyond
the valley of Kathmandu, to other post of the country along the lives
recommended in the tourism master plan. The fifth plan had therefore incorporated
wherever possible the some set of programs contained in the Master plan as a
second phase tourism development programs.

2.4 Tourism Marketing

The most important function of marketing is to bring an awareness of them
product in the minds of the consumers in the market areas. This is done by way of
development in one of the element mix and it is unimportant tool for marketing.
The term development is interpreted and defined in many ways. Basically, the
purpose of development is to influence the potential customers and as trade
intermediaries (travel agents, tours operators reservation services hotels and
charter brokers), through communication to think and to act in certain manners.
Tourism marketing is defined in a numbers of ways “systematic and co-
coordinated efforts inserted by the National Tourist Organizations and the tourist
enterprises at international, national and local levels to optimize the satisfaction of
tourists, grouped individuals, in view of the sustained tourism growth”. So tourism
marketing is the joint effort of the components involved in it. No tourism planning
or programmers will be successful without joint efforts.

Marketing is defined as the meeting point between buyer and sell. It is the most
convenient place for the buyer and seller. It is the time or place when and where
the ownership if the product is transferred. In this way market is used to describe
the buyers and potential buyers of each product such as vegetable market, fish
market. Tourism market is where the tourism products are sold. As tourism
product is intangible and there is no transfer of ownership, it only to provide
service. . Tourism product does not move, so in tourism market, only buyer and

14
seller are possible to meet and transaction is completed as and where they meet.
So selling and buying is done where the buyers are. In other words, market in
tourism is described as the buyers and potential buyers. The market in tourism is
described as the place where customers both potential and actual are located, as
USA market, European market.

2.4.1 The Product in Tourism

A product may be defined as “the sum of the physical and psychological
satisfaction it provides to the buyers. Product is the object or item for sale. It is
produced modified or processed. This is the thing the customers buy. It is the ideal
or object developed by the organization to offer to the customer’s service, facility.
Hair cut, mango, a cup of tea etc.

Products are either tangible or intangible. Tangible goods are produced. It can be
sum, touched, measured and customers can test before purchasing. In tangible
products are services. Here production and consumption are simultaneous and the
end result is often simply experience rather then a tangible good. Services are
products purchased through an exchange transaction that does not confer
ownership but permits access to and use of a service, usually at a specified time is
a specified place for a specified purpose.

Tourism product includes tangibles and intangibles. For example hold room, beds,
linen are tangible, while room cleaning security privacy is services. In the same
way mountain, people, heritage sites are tangible while security safety, trust,
pleasure are intangible, A tourism product is and thing that can be offered to
tourist for attention, acquisition or consumption. It includes physical objects,
services, personalities place, organizations and ideas. General a tourism product is
designed as an augmented product, which is the totality of benefits that the tourists
services or experience. There, a tourism product is an amalgam of what a tourist

15
does and experiences. It includes that secrecies he uses and products he purchased
during his trip. So the products we deal are tourism is attraction, accommodation
transport and sources” (Ananda Ghimire, 2004: 54).

2.5 Advertising
In the modern world, where there is the monopolistic competition, industry cannot
be successful without advertisement and publicity. Therefore, tourist industry also
cannot progress without attractive advertisement and publicity. For the attraction
of tourist arrivals, it is necessary to introduce or advertise the Nepalese history,
culture, environment, scene and scenery etc. In the world wise context through the
magazine, internet, and other means of publicity and advertisement this can at as
stimulant to motivate and attract the tourist, but there means of advertisements are
rise in our century. So, most of the tourists around the world are still not familiar
about the paradise of Nepal. That is why our country is still unsuccessful is
attraction tourists from the countries of the worlds.

According to American marketing Association (AMA), “Advertising is any paid

form of non-personal presentation and promotion of ideas, goods and services by
identified sponsors”.

“Advertising is the means by which we make known what we have to sell or what
we have to buy” (Frank Jeffkins, 1980: 3).

“Advertising presents the most persuasive possible selling message to the right
prospects for the products or services at the lowest possible cost” (William J.
Stanton/Michale J. Etzel/Brue J. Walker, 1978: 304).

Above definitions of Advertising emphasize on the selling objective of the

company. It says that the advertising planning and implementation are done to

16
secure more sales with less cost contribution. But unlike the salesman who sells in
a face-to face or even voice-to-voice situation, advertising is just a broadcast
fashion to numbers of prospects whose identity may or may not be known, and
who may be close at hand or distance.

Advertising includes those all the efforts made to inform and present a non-
personal, sponsor-identified message about product, services or the company. This
message called advertising can be verbal or visual, and is disseminate through one
or more medium. Advertising is a past of promotion. In the word advertising is
being pronounced everywhere. The word advertising itself is being advertised

2.5.1 Evolution of Advertising

There was also the need and existence of advertising in the ancient period. The
difference is that there were not the mess media at that time. It is said that the
development of the advertising started with the civilization and started to
communicate with cash other.

Advertising by word of mouth is probably the earliest form of advertising because

verbal skills were developed first. Advertising was given the commercial status the
day man entered into the process of exchange.

Since the knowledge of advertising and art of printing were not developed, in early
days advertising was passive and was in limited use. The earliest forms were
signboards and writings on the walls of prominent buildings. Shouting loudly
about the price and description of the article to be sold was the only method of
attracting public attention. The effect of the old type of advertising was not
attractive and dynamic as it is today. With the publication of newspapers and
development of the modern techniques in printings work got a boost.

17
It is said that the first printed advertisement in English appeared in London in
about 1473 by the writer William cocks ton, which was tacked on church doors
announcing a prayer book for sale. Similarly the first newspaper advertisement
appeared on the back of London newspaper in 1650 offering a reward for the
return of 12 stolen horses. Then illustrated advertisements appeared for coffee in
1652, chocolate in 1657 and tea in 1658 and again the direction of the
advertisement was limited.

During the 16th century, newspaper was the longest form of ferrying advertising
and these newspapers were first published in the form of news letters. “The first
newsletter was started in 1622 in England. The second half on the 16 th century
witnessed newspaper in the form of news books. It can be said that by the middle
of the 17th century, there were special advertising periodicals. It has been recorded
that excellent news books were published around 1675, by the end of 17th century
newspapers were well established in England, under carrying advertisements as a
regular basis” (C.N. Sontakki, 1976: 29).

“Modern advertising is a product of industrial revolution of the 18 th century in

1760, before transportation and communication were developed; means of public
expression were limited. But the desire to broadcast ideas were analyzed there,
although early attempts to influence the action of his follows go back to the
beginning the off-recorded history” (Collers’ Encyclopedia 1976:106).

By the year 1920 adverting in America and England had been developed well and
professional zed somehow. Another significant milestone in the field of
advertising was noticed when advertising was introduced in broadcasting media.
Though Macorny invented radio in 1895, broadcasting of advertising in radio hat
to wait another 25 years, so, the first radio advertisement had been broadcast in
1920. Then in the same year first professional advertisement has been broadcasted

18
from the KDKA radio station established in Petersburg. –Modern History of
adverting –With Reference from the articles of (Dr. Sunrendra Mohan Joshi,
Bigyapan Ko 525 Barsha, AAAN Semrika, Published on AAAN 8thGeneral
Meeting).

Television was invented in the mid of 19th century as the most powerful
communication tool. In 1949, first television commercial was located in England.
Television was working as the most powerful medium form advertisement until
few years back when the computer technology has not been reached to this stage.
But today, in the developed country, internet advertisement has become even more
popular and it can after some years probably could take the place of television
medium. But again, television still more effective medium for advertisement than
press and radio due to its audio-visual facility.

Increasing attention and interest in this direction, gave rise to a class of advertising
experts who were specialized to advice about the technique of advertising to the
businessman regarding their advertising their advertising programmed.
Remarkably huge amount of money was spent in both the purchase of advertising
place and developing suitable advertising materials. The process was further
accelerated by modernization of the newspapers with huge circulation, which
created political and social consciousness among the people. Every available
space, every form and every form and every opportunity was used for advertising
purpose. Illustrations were made to make it aesthetically pleasing.

“The age old principle of “covet emptor” prevailed among the consumers and
hence the advertising was thought to be untruthful. People did not believe the
advertisement message. Buyers were cautions in buying the advertised goods. To
counteract this feeling manufactures highlighted brands to the consumers. So, 19th
century saw the concept of brand advertising. This facilitated the development of

19
magazines both weeklies and monthlies the brands. This is the period that
welcomed widow and counters display exhibitions and trade fairs” (NTV
Introduction Card: 10).

Up to First World War, the newspaper and magazines were considered as the
principal media of advertising. During the period of Great Depression of 1930s,
there were less business activities and it is known as the slump period. After
second world was there was a keen competition between manufactures. On one
hand, it tried to generate internal economy and on the other hand it tried to seek
newer methods of developing markets. Man new forms involved with advertising
came into existence during this period. Advertising was developed on systematic
lines. Widespread use was made of modern photography and art printing. The
most typical development was cinema slides and electric signs.

“During the Second World War people were informed of war developments
thought short films, and thus, a new form of advertising was developed. Now film
advertising has become popular and it has got a huge significance in developing
countries like India, Burma, and Pakistan and even in Nepal also” (B.N. Ahuja,
and S.N. Chhanbra, 1995: 56).

“Television has a powerful means of advertising from 1950. It has grown in its
importance with its color presentation and it is going to rule advertising world.
There are major indoor colorful advertising media. The outdoor advertising
similarly here has been development in traveling displays, sky-writing, in addition
to the earlier means like poster, printed displays and sandwiched-men” (C.N.
Sontakki,1976: 29).

20
2.5.2 Role of Advertising in Modern Business World
Advertising is primarily a means by which sellers communicate to prospective
buyers about the worth of their goods and services. Advertising is not a game, toy
or a racket. It is a basic tool of marketing for stimulating demand and for
influencing the level and character of the demand. It has economic, social and
psychological functions (S.A. Chunawalla/K.C. Sethia, 1997: 32).

Economic Function
All the advertisement has to do9 it to sell a product or service. This the
advertisement accomplishes by communicating properly and effectively, by
communicating the right message, put across through brilliant and persuasive
language, making use of appeals to different human motives. Advertising inclines
customers favorably to the products, it affects their attitudes. So advertising
performs the economic function by being an art of persuasion.

Advertising not only markets the products, but also a corporate ethos, a corporate
philosophy by giving memorable corporate stories reaching deeper into the public
psyche than a bare recitation of performance statistics.

Social Function
Advertising has affected not the core cultural values but the subsidiary cultural
values. For example, to get married is a core cultural value. Advertising cannot
effectively change it by telling people that you do not marry. Yes, to marry late
and not at an early age is a subsidiary cultural value. Advertising can definitely
affect it. It can persuade people marry late.

Advertising is a mirror of the society in which it operates. It reflects the cultural

values of that society. Successful advertising is consistent with the cultural values
of a given society. Yes, it can transfer some cultural value of one society to

21
another society at a given point of time. Its cross-cultural impact will depend upon
the universalization of appeal.

Advertising invests a new product with confidence – confidence about its function,
quality, price and availability. Advertising promises a quality and forces
manufactures to live up to the promised quality. So advertisement brings about
consumer welfare by two-fold method:

1) By improving standard of living.

2) By improving product quality.

Advertisements for social causes like cancer prevention, anti-dowry campaign,

family planning etc. make us socially responsible. Advertising protects the
consumers by educating them and by forcing the manufactures to maintain a
quality and be fair. Advertising respects the ethics of the prevalent society.

Psychosocial Function
Advertising is closely linked to consumer behavi9our. So it affects the personality
of the consumer, his concept of self, his attitudes, beliefs and opinions, his life-
cycle and life-style etc. adverting appeals to our physiological and psychological
motives. Its appeals may be rational or emotional.

The whole job of advertising is to perform certain communication jobs with

greater speed, volume and economy that can be done by any other means. This
pragmatic approach to advertising is fundamental, and must be accepted before
any plans for measurement can be formulated (Rothor, 1999: 190).

22
Here are the roles of the adverting or what adverting can actual do or why we
indeed advertise ,which offer a broader idea of the versatility and value of
adverting (Frank Jeffkins, 1980: 3-11).
 To announce a new product or services
 To expand the market to new buyers
 To announce a modification
 To announce a price change
 To announce a new pack
 To make a special offer
 To invite inquiries
 To sell direct
 To test a medium
 To announce the location of stockiest
 To obtain stockiest
 To educated consumers
 To maintain sales
 To challenge competitors
 To remind
 To retrieve lost sales
 To please stockiest
 To please the sales force
 To recruit staff
 To attract investors
 To export
 To announce trading results

2.5.3 Advertising Trend in Nepal

It is not declared that from when the advertisement trend got started in Nepal.
However, it is said that to convey king’s addresses to the country from the very

23
beginning, a media was used. It is assumed that after some time this trend became
the media of advertising. Above mentioned trend was the advertisement for the
non-business advertisement is gain with the dealer business.

In 1908 B.S. the Prime Minister Unga Bahadur Rana had brought a press in his
visit to England, which was called “Gidde Press”. But further this press was used
to print envelops, tickets, and government bulletins only so, this press could not
run the business in ht field of advertisement. “Nepal Manoranjan Pres” of Thahiti
was the beginner press in the field of advertisement in Nepal. In 1919 B.S.
advertisement of a book named “Mochasiddi” was printed in this press. This is
said to be the first advertisement in the history of Nepal. In 1945 B.S. a book
named “Gorkha Hashya Manjari” is published in “Bharat Jeevan Press” of
Banarash. In this book an advertisement of monthly Nepali Magazine named
“Gorkha Bharat Jeevan” was printed. In the history of Nepalese advertisement
another advertisement was printed in 1956 B.S. in the last page of book named
“Nalopakhyan” published by “Pundit Kapildev Sharma” an advertisement of
monthly magazine “Sudhasager” was printed.

“Gorkhapatra” was started on printed on weekly basis from Baisakh 24 th 1958 B.S.
In the first edition of “Gorkhapatra”, in the editorship of Pundit Nardev
Motikrishna Sharma published by “Pashupati printing press”, an advertisement
was printed. Then after, different magazines in Nepali language appeared.

Since 20th Chaitra 2007 B.S. Nepal Radio now name changed to Radio Nepal
started its transmission. After that time transmission of commercial advertisement
started. Initially “Ratna Recording Corporation” was providing the advertisement
services and used to deposit the accumulated sum of money to Nepal Radio.
Nowadays Radio Nepal has its own advertisement services.

24
From 29th Shrawan, 2042 B.S., Nepal Television has started its rail transmission. It
may be assumed that day television advertisement is started in Nepal. The time
period of trial transmission of Nepal Television was up to 14th Poush, 2042 B.S.
From this day “Nepal Television Corporation”: was formed and started its
transmission regularly. Now “Nepal Television Corporation” is 15 year old and
out of its total transmission time 9.5% of time is taken by advertisement. In this
transmitted. In these years of time, advertisement in Nepal television has obtained
great deal of success.

“Some multinational companies with foreign collaboration have good and

attractive advertisement like the advertising of Coca-Cola, Pepsi-Cola, Liril, etc. in
Nepal a small percentage of the population own a television set because of their
poor economic condition. It can be said that only the 39% of the total population
can only watch the national program on N.T.V.” (NTV Viewer Server Record
2051).

Cinema exhibition was started from 2006 B.S. in Nepal. It was not sure that which
was the first advertisement slide that was exhibited by cinema hall. But, it is
assumed that the exhibition of advertisement slide started after establishment in
2007 B.S. It is assumed that first of all non-commercial advertisement slides was
exhibited by cinema hall.

Nowadays, hoarding board, display board, wall advertisement posters and Pam-
plating, making are the normal media of advertisement. Visiting cards, invitation
cards are also the media of advertisement (Mr. Krishna Dahal, Nepal ma Bigyapan
ko 136 Barsha, AAAN Smarika AAAN 8th General meeting, 2055 B.S.).

2.5.4 Advertisement Effectiveness

The effectiveness of advertising can be understood by the changing attitudes and
behavior of the customers. Advertising has become the powerful device for

25
increasing sales and at the same time, large sum of money are spent on it. In the
face to mounting advertising costs, on the one hand, and a squeeze on profitability,
on the other, top managements are increasingly concerned about the cost benefit of
advertising in the operation of a business.

“This concern is understandable, for advertising is one of the few, if not only, item
of expenditure is a company’s balance sheet that can’t be measured in terms of its
specific contribution towards its sales and profitability. An advertising manager,
ideally, should be able to do this; but in most cases, he can’t. This apparent lack of
accountability of advertising is increasingly becoming untenable today.
Advertising, therefore, has to prove its contribution to the total marketing efforts
like any other allocation of corporation resources; or else advertising expenditure
will run the risk of being set arbitrarily or even slashed drastically” (B.S.
Rather,1980:189).

The value of advertising cannot be determined unless its role and function are
understood. The unaccountability of advertising, in most cases arises from a lack
of appreciation of what advertising can or cannot be.

Advertising should be viewed as a part of total marketing effort of a company. The

glib answer to the question: why do companies advertise? Is: To sell products. But
in recent times, increasing number of advertising personnel has been frankly
saying that advertising cannot actually sell products. Supporting this view, the
association of national advertisers, U.S.A., defined advertising as a mass paid
communication, the ultimate purpose of which is to impart information, develop
attitude and induce action beneficial to the advertiser (which may lead to sale of a
product or service.) advertising is in fact only one on the series of tools on the
marketing communication mix-the other tools are personal selling, retailer
recommendation, special sales promotion, publicity etc. the job of advertising is to

26
perform certain communication jo9bs with greater speed, volume and economy
(B.S. Rather, 1980: 190).

If all promotional tools are coordinated with each other and implemented
accordingly, it may sell the product too. The ultimate aim of advertising /
promotion is often to help raise the level of immediate sales. However the
objective that involves an increase in immediate sales is not operational in nature
in many cases for two reasons.

Advertising is only one of the many factors influencing sales and it is difficult to
isolate its contribution to those sales. The other forces include price, distribution,
packaging, product features, competitive actions, and changing buyer needs and
tastes, it is absolutely difficult to isolate the effect of advertising. Evaluating
advertising only by its impact on sales is not practical.

“Advertising can be understood as the form of communication which aims at

bringing about some change in the behavior of the target audience, particularly the
potential buyers or non-buyers towards the product or services advertised. A
generally theoretical model seeks to intently a step-wise behavioral progression of
non-buyers towards buying action. This is the progression from awareness to
comprehension. From comprehension to favorable attitude. From favorable
attitude to conviction and finding actual purchased of the product concerned,
which can be presented in the diagram to answer how advertising convert from
potential customer to actual one.
Awareness

Comprehension

Favorable Attitude

Conviction

Actual purchased of advertised product

27
It is open to question if this model represents what actually happened in the real
life for one thing. Actual purchase occurs as a result of many factors and
advertising is only one of them. Sometimes advertising can do its job and bring the
customer to the retail outlet, but if the distribution plan of the company is uneven
and retail doesn’t have stocks of the products, purchase may not result. Simply
advertising stimulates the potential buyers to go to the stores to buy actual
advertised products. In general, advertising is done in expectation of tangible gains
such as favorable attitudes, better image of the firm and increased sales. To get the
maximum result from promotion, all promotional tools have not unique
characteristics and are complementary” (R. K. Shrestha, 1998: 124).

It is true that sometimes the effect of advertising can not be measured directly in
terms of sales. Therefore, advertising objective could be stated in terms of
communication goals, such as awareness of the product or adorability of attitudes
towards it.

The advertising is only one part of the marketing mix. It alone can not sell the
product. There are many other factors-product quality, price, packaging, and
product. Therefore it is rather different to establish a direct link between an
advertiseme3nt and its effect on the sales on product.

As the Nepalese management is still in underdeveloped stage, Nepalese

manufactures are not in a position to spend much amount in the advertising
research to judge the effectiveness of advertising on their products. Manufactures
feel investing in research is waste of money; instead it can be used for other
promotional methods. So no manufacturer here can say definitely that how
effective their advertising campaign and promotion are or what are the impact
being seen in sales of their product due to promotion / advertising.

28
Advertising testing can be done either before (pre-testing) or after (post-testing)
the advertising has run in ht media to avoid costly mistakes, to predict the relative
strength of alternative advertising strategies, and to increase their efficiency (S. A.
Chunawalla and K.C. Sethia, 1997: 748).

Testing costs more money to the advertisers and in our country spending of such
huge amount on advertising testing is not practical though the amount spent on it
will save them from making costly mistakes. Feedback in advertising, advertising
research, is very useful, even it means some extra expenditure for the advertiser. It
helps to out how and what advertising fails or succeeds.

2.6 Research Gap

This is a research gap between the present research and the previous research. The
previous researches generally focus and the growth trends and foreign exchange in
tourism sector only but not on the advertising activities practiced in tourism sector .

29
 CHAPTER - III
RESEARCH METHODOLOGY

3.1 Introduction
Research Methodology is the over all framework for when how to conduct,
process, analysis and present data and diagram to find answer of this research
problem /question/ objective research is concerned with secondary as well as
primary data.

The main objective of this research is to evaluate promotional activities associated

with the Nepalese tourism and its future prospects. Secondary data are presented
with suitable table and diagrams to facilitate this research. Research methodology
also includes research design, population and sample, nature and sources of data,
data collection procedure and statistical procedure of analysis.

3.2 Research Design

Research design is the plan structure and strategy of investigation conceives so
also to obedient answer to research question and control variance. A well settled
research design is necessary to fulfill the objective of the study. Research design
adopts a definite procedure and techniques that the study and it propound the way
for research viability.

In this study a descriptive research design has been followed to make the study
more authentic and reliable by way of using the available data is systematic
manner.

30
3.3 Population and Sample
Nepal Tourism Board (NTB)/Government of Nepal Ministry of Culture, Tourism
and Civil Aviation, Hotel industry, Trekking Agency, Travel agency and air line
business of Nepal in tourism sector are considered as a population and sample of
primary and secondary data. For research purpose of a secondary data from fiscal
year 1995-2004 is taken as sample random sampling is used to take interview in
primary data and hotel industry, Trekking Agency, Travel agency and airline
business is taken from Katmandu.

3.4 Nature and Sources of Data

The entire secondary data used in this study are basically of the following nature:
 Tourist arrivals statistical data from 1995 to 2004
 Tourist arrivals statistical data by month from 1995 to 2004
 Tourist arrivals statistical data by Age n Sex from 1995 to 2004

The present study is primarily based upon Secondary data and Primary data. The
main sources of secondary data are Nepal Tourism Board (NTB)/Government of
Nepal Ministry of Culture, Tourism and Civil Aviation, Hotel industry, Trekking
Agency, Travel agency and air line business and various published newspapers
and magazines. Primary data are collected from HAN, NATA, TAAN and airline
business within the Kathmandu valley.

3.5 Data Gathering Instruments

The present study is based upon the secondary data and primary data, so they are
collected directly from the related published materials and magazines as well as
from NTB /GN.

31
3.5.1 Data Collection Procedures
The procedures employed in this study are, first of all bibliography cards are
prepared by visiting various libraries and collection of related published materials.
The necessary secondary data are collection using appropriate technique.

3.5.2 Data Analysis

In this analysis of data appropriate tools have been used to make the analysis more
effective, convenience, reliable and authentic. In the analysis process data will be
analyzed using descriptive and graphical methods.

In descriptive analysis the data has been presented in an appropriate way with the
help of percentage, tables graphs and chart .The graphical presentation being self-
explanatory simplest and the most convenient form. On the basis of analysis and
interpretation, major findings conclusions have been draw and subsequently
recommendations are made.

32
 CHAPTER - IV
DATA PRESENTATION AND ANALYSIS

In this chapter the data collected are tabulated, analyzed and presented in a
reasonable and wise manner. The data presentation and analysis are based on the
primary and secondary source of information.

4.1 Marketing Trends of Tourism in Nepal

The flow of Tourist and length of their stay show the promotion of the tourism and
effectiveness of the advertisement in the Tourism sector by NTB and Government
of Nepal.

Today in the field of marketing, more priority is given to the needs of customers
and satisfies them. The present concept calls for a customer orientation backed by
integrated marketing aimed at generating customer satisfaction and long run
consumer welfare as the key to attaining success (Kotler, Phillips, 1972: 46-54).

The challenges of marketing go beyond the success of business. It must also serve
the goals of society. Marketing share in the problems and goals society and it’s
contributed extended well beyond the formal boundaries of the firm.

Tourism being the fastest growing and most competitive industry in the world,
should be marketing properly. There are a number of destinations competing with
each other to get a bigger share of the market (Bhatia, 9994: 137). Hence Tourism
marketing is regarded as a central point of whole Tourism activities.

Today all direct and indirect promotional activities to sell destinations are related
to Tourism marketing and it effects all the operation of tourism.

33
Tourism marketing is defined as the “Systematic and Co Ordinate efforts exerted
by the NTO and /or the tourist enterprises at international, national and local level
to optimize the satisfaction of tourists group and individuals in view of the
sustained tourism growth (Bhatia, 1994:142).

According to Krippendorf “marketing tourism is to be understood as systematic

and co-ordinate execution of business policy by tourist undertaking whether
private or state , at local , religion ,national or international level to achieve the
optimum satisfaction of need of identifiable consumer group and in doing so to
achieve an appropriate return”.

Hence, there is a need for tourism marketing with proper planning sound policies.
How ever, tourism industry doesn’t seem to apply marketing approach for its
promotion and development adequately (Anand and Bajracharya, 1985:1).

Because of the competitive global scenario and ever expanding tourism industry,
the market of the tourism product needs greater attention. Only those countries
which have aggressive marketing strategy have been able to attract a greater
number of tourists. Thus effective marketing is a must for the successful running
of the tourism industry.

According to Pokharel “We are undertaking very limited marketing actives while
other countries with more resource are spending Hugh amount of money on
aggressive marketing of their destinations”.

In this regard prominent businessman Mr. Yogendra Shakya commented by

saying “We have done practically nothing as far as promotion is concerned. The
ministry of tourism has no budget for promotion “in Nepal, even one five star
rated hotel spend Rs. 30 million annually for the publicity at international level but

34
due to lack of budget government is not able to make sufficient publicity even in
visited Nepal year 98 also.

The sluggishness is promotional efforts in Nepal further indicated by the fact that
“the expenditure made in publicity is too poor the not more effective in both
quality and quantity. The ministry of tourism published brochures and booklets
about tourism only in a few languages and that also in limited copies , there is a
lack of advertisement in the foreign papers .In such a situation, most of the visitor
are unknown about Nepal.

“Nepal lack the most essential market information focused on its product, while
the most relevant material is produced at considerable cost and dubious impact,
Fair Participation, in the absence of proper information material to flow up
interest poorly staged as it often is appears less than effective and probably a
waste of money. At the same time there was an urgent need for Nepal to work
against increasingly critical world media coverage on ill effects especially on
mountain tourism. By inviting journalist, Nepal should convey the fact that it is
taking serious steps toward improving matter, but need help to do so (Ministry,
1984: 102).

Another serious challenge faced by the tourism sector in Nepal is the level of
competition. To quote the say of Alwis “My friend in the travel industry in Nepal
talked of the glorious days, barely a decade ago when a trekking tour was sold to
visitors for US$80 per day on the average. They now lament that it is sold for only
US$18per day on the average (Alwis, 1997: 8).

In view of Alwis “This certainly is not the result of the lack of demand for Nepal’s
unique tourism potential or a lack of adequate number of “Un-market” visitors out
there in the market place. It is the result of unhealthy competition between the

35
travel agents, the hoteliers, the tour operators (trekking rafting and other), the
protection of the sky and the like.

They also claim that it is the lack of specialization, lack of product quality
improvement diversification of product and inadequate delivery of quality service
“In this respect the government of Nepal should have clear police to discourage
cut-throat competition in the hotel industry and thereby attract quality tourist “

Negative report on Katmandu has adversely affected the tourism industry and
Nepal’s Image. To counter the negative effects a planned approach is needed
which could regain our lost reputation.

In this context Mishra says “Say Good bye to Shangri –La was published in
Newsweek of 4th October 1993 issue. It has definitely affected the tourism
especially qualitative tourist. However, in my opinion, the correct information
about Kathmandu valley came in time and we should tack it in a positive way
instead of being defensive. Had it not been published in such a renewed journal, it
would not have been grave concern to all conscious people of Nepal and abroad.

Air accessibility is also a hurdle in Nepal. Strait expressed,” We need to tack

concrete steps with respect to tourism marketing in other to boost arrival. But there
is a problem of air seat capacity.

Nepal should allow more international airline to come to Nepal and encourage the
national carrier to compete internationally. It would certainly increase the number
of tourist arrival.

For the promotion of quality tourism in the country ,infrastructure and services
should be improve properly “For most countries , including Nepal one of the most

36
essential conditions for the successful promotion and development of tourism is
the existence of adequate infrastructure and qualified human resources.

All good marketing begins with the costumers and embed with the customer.
Nepal's a tourist destination officer a unique product and unparalleled
opportunities for marketers who want to tack on the challenge. It just means that
both Nepalese operators and their partner in Asia need to work harder and be
innovative if they are to achieve yields that Nepal’s tourism operation deserves.

While formulating the tourism strategy, it is essential “that our tourism marketing
keep abreast with fast changing trends, particularly the changing trends in tourism
market … Tourism marketers should be quick to respond to the changing
economic scenario in the world. Hence, development of Nepal should tack in to
account promotional and marketing issues as well as deal with the inherent
problems and challenges.

4.2 Marketing Efforts for Tourism Development in Nepal

Nepal has initiated various efforts to promote tourism and market her as a
sustainable destination. In other to boost up tourism promotional activities, Nepal
has participated in various international fairs/ exhibitions, conferences/seminars
/meeting in different countries. Table no 4.1 shows Nepal’s Participation in
international tourism and trade fairs/ exhibitions meeting etc., science 1987. Nepal
g\has actively participated in PATA annual conference and WTO general
assembly. Other actively participations of Nepal in international event include
ITB fair , Berlin , WTM London BIT Milan ,JATA Tokyo CMT fair Stuttgart ,
ITE Hong Kong , ATM Singapore etc and travel show held in different parts of
neighboring India . In addition, Nepal has organized cultural programmed food
festival Nepalese handicraft exhibitions etc in different travel trade exhibitions

37
held in major cities of Asia, Europe and USA as part of the promotional
campaigns.

Ad/Promotion Campaign / Sales Mission

Nepal launched tourism promotional visits in some major cities like Pairs, London
and Frankfurt in September 1989 with the joint effort of the government and travel
trade associations HAN, NATA, TAAN similarly, promotional campaigns were
also made in the year 1991 and 1994 “A public private joint sales mission headed
by the minister of tourism and civil aviation organized a number of interaction
programmers in all major cities of south Africa on May 1996. A similar mission
organized a workshop in Madrid to apprise their Spanish counterparts of the
Nepalese tourism scenario in November 1996.

Familiarizations
In order to promote tourism more effectively, Nepal has organization
familiarizations trial for foreign travel counterparts, tour operator, journalists, film
crews, media personal and other important personalities from time to time. Some
of these tours were jointly organized with Nepal Airlines and the private sectors.
Generally, such Familiarizations tour inviting personalities from Australia, Span,
USA, Thailand, Japan, Germany, France, Tibet, Belgium, UK, Canada, and Hong
Kong etc

Development of Sales / Promotional Aids

The government has made promotional film photo and slides of important tourism
side/ products of Nepal in various years. Some of these films were prepared under
joint ventures with other agency like NTB, NAC,PATA etc, Besides these the
government has published a wide rang of promotional advertisement introducing
Nepal is various media like tourism Asia ,Geo, Washington Post Times of India
Navabharat Times , Well Street Journal, Trivial Scene Asia, Safari India, Thai In

38
flight magazine etc. Similarly, some advertisement through the stat TV and ZEE
TV has been made especially in 1998 to promote the Visit Nepal Year 1998.

Publications/ Brochures
His majesty’s Government of Nepal has been continuously publishing various
types of promotional brochures, posters stickers of important tourism interest
place in various years and distributing them both within and outside the country as
a major promotional effort.

Evolution of Total Marketing and Promotional Efforts

In terms of expenditure, Nepalese efforts in marketing and promoting the
destinations and products and service might look satisfactory. However the
pertinent issue is whether Nepal has been promoted adequately in the originating
markets. In this respect, there was hardly any satisfactory result. Much of these
marketing efforts were made with in the country itself which may indicate low
effective external, marketing. The overall tourism arrival may be growing but it
certain segment decline has also been notice (For Example German tourist were
found to declining in recent year. But Nepal has not done anything to analysis the
particular segment and lunch promotional measures adequately). Familiarization
tours and promotional tours are not conducted on the basis of market potentiality
and prospect. In 1997, Nepal made a promotional visit to South Africa but it so far
could hardly be termed as a tourism market. Such effort may not be unnecessary
but priority should have been accorded to major market first. The private sector
effort also lacked co-ordination and seemed to be done. On a haphazard and ad-
hoc basis Nepal’s promotional and marketing efforts still the punch and
purposiveness and significant improvement are necessary.

Visit Nepal Year 1998

Officially declare by NG “Visit Nepal 1998” was policy priority for Nepal to
uplift the quality of product and services offered to our visitors (VNY’98, Official

39
Trivial Manual, 1998: 9) through this effort Nepal endeavored to achieve higher
from tourism.

The visit Nepal ‘1998 campaign was mooted in the early 1992 when Nepal start a
planned approach to tourism related infrastructure development and involvement
of local communities in resource management. Officially, it was declared in
April1996. It seeks to achieve some specific objectives (Image Nepal, 1998: 3).

 Lengthen the average duration of stay.

 Increase the average spending per visitor.
 Reposition Nepal as unique tourist destination by improving the quality of
product and services.
 Involve local people in the management of tourist resources.
 Create widespread local awareness about tourism and its benefits.
 Diversify Eco-Friendly and value based tourism products.
 Establish measure to ensure regional development through tourism and
 Private an impetus to improve and develop infrastructure and effectively
deal with environmental issue.

Theme and Slogan of VNY 1998

The theme for the visit Nepal ’98 was “A sustainable habitat through sustainable
tourist “which reflects the environmental imperative Nepal need to observe while
caring out development activities. Similarly, In view of the amazing diversity of
nature attraction and living culture heritage Nepal is being promoted as “A world
of it own in the international tourism market.

A visit Nepal 1998 (VNY’1998) main committee was constitutes to coordinate

policy for the campaign. A special VNY’98 coordinate committee had been
formed under it to formulate action plan and strategies as well as ensure

40
coordinate in the programs to be implemented by six action committees. These
programs were in the following areas:
 Infrastructure development.
 Product improvement and development.
 Event and special activities.
 Environmental improvement.
 Publicity and promotion
 Transport

Trend of tourism in Nepal

Modern tourism in Nepal started two

41
 Table 4.1
Marketing Efforts in Tourism
No of participant Ad/promotion Familiar Development of Sales Publications /Brochures
in international Campaign ization /Promotional Aids
meeting sales Mission Tour
14 - - 1 Video Film Brochures 1, 85,000 pcs. posters
39,000pcs
12 - - - Broachers 1, 86,000 pcs.
Poster 40,000 pcs.
16 yes - 1. Video Film -
- Nepal got coverage in
various int’ travel
magazine and newspaper
14 - 3 - -Published travel advertisement in
18 different travel magazine
44,300 brochures booklet poster
etc published
14 yes 1 - Advertised in 6 different national
and international print media
11 yes - - Advertised in 14 different
national and international print
media
8 - 1 -Update innovates and Printing of poster, sticker.
release varieties of
tourism info materials in
different languages.
1. Video Film
9 yes 1 Made reprint of two
promotional video films
- A fund for promoting
Nepal had been allocated
/ release to various
Nepalese Embassies and
mission based in
Germany, USA, France,
UK,, Belgium, Japan and
Thailand
13 - 5 1. Video Film 11 New tourism brochures
2. Video Film Reprint publication.
17 yes 5 -
Source: Department of Tourism Nepal Government

42
 Table 4.2
Tourist Arrivals (1995-2004)
Year Total By Air By Land Average
Number Growth Index Number % of Number % of Length of
Rate % Total Total Study
1995 363,395 11.3 5,881 325.035 89 38,360 11 11.27
1996 393,613 8.3 6,370 343,246 87 50,367 13 13.50
1997 421,857 7.2 6,827 371,145 88 50,712 12 10.49
1998 463,684 9.9 7,504 389,008 86 35,676 14 10.76
1999 491,504 6.0 7,954 421,243 86 70,261 14 12.28
2000 463,646 -5.7 7,504 376,914 81 86,732 19 11.88
2001 361,237 -22.1 5,846 299,514 83 61,723 17 11.93
2002 275,237 -23.7 4,458 299,514 79 56,808 21 7.92
2003 338,132 22.7 5,472 218,660 81 62,694 19 9.60
2004 385,297 13.9 6,236 275,438 77 87,962 23 13.51
Source: Nepal Tourism Statistics2006 (Government of Nepal)
Figure 4.1
Tourist Arrivals (1995-2004)

From the table 4.2 and the figure 4.1 is in clear that a total number of 363395,
tourist listed Nepal during 1995 representing an increase of 11.3% over the year
like wise, 393613 during 1996 increasing by 8.3%, 421857 during 1997 increase
by 7.2%, 463684 during 1998 increase by 9.2%., 491504 During 1999 increase by
6.0%. In 2000, 2001 & 2002 total number of tourists was decrease by -5.7%, -
22.1% & -23.7% respectively. But again is fiscal year 2003 & 2004 a total number

43
of tourist visited Nepal was 338132 & 385297 with an increase of 22.7% &
13.99% respectively.

44
 Table 4.3
Tourist Arrivals by Month (1995-2004)
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
1995 22,207 28,240 34,219 33,994 27,843 25,650 23,980 27,686 30,569 46,845 35,782 26,380 363.,395
1996 27,886 29,676 39,336 36,331 29,728 26,749 22,684 29,080 32,181 47,314 37,650 34,998 463,684
1997 25,585 32,861 43,177 35,229 33,456 26,367 26,091 35,549 31,981 56,272 40,173 34,116 491,504
1998 28,822 37,956 41,338 41,087 35,814 29,181 27,895 36,174 39,664 62,487 47,403 35,863 463,686
1999 29,752 38,134 46,218 40,774 42,712 31,049 27,193 38,449 44,117 66,543 48,865 37,698 491,504
2000 25,307 38,959 44,944 43,635 28,363 26,933 24,480 34,670 43,523 59,195 52,993 40,644 463,646
2001 30,454 38,680 46,709 39,083 28,345 13,030 18,329 25,322 31,170 41,245 30,282 18,588 361,237
2002 17,176 20,668 28,815 21,253 19,887 17,218 16,621 21,093 23,752 35,272 28,723 24,990 275,468
2003 21,215 24,349 27,737 25,851 22,704 20,351 22,661 27,568 28,724 45,459 38,398 33,115 338,132
2004 30,988 35,631 44,290 33,514 26,802 19,793 24,860 33,162 25,494 43,373 36,381 31,007 385,297
Source: Nepal Tourism Statistics2006 (Government of Nepal)

45
 Table 4.3 gives the picture of month wise tourist flow is Nepal from fiscal year1999 to 2004. It is
found that the month of October, November, December and March is the highest tourists flow
month of the year. In which 463,686 & 491504 (highest) tourists flow at fiscal year1998 & 1999
respectively and lowest in 2002.

Table 4.4
Tourist Arrivals by Sex & Age Group (2039/40-2062/63)
Year Sex Total Age Group
Male Female 0-15 16-30 31-45 46-60 61 & Over
1995 224,769 138,626 363,395 22,878 106,603 120,212 76,647 37,055
(61.9) (38.1) (100) (6.3) (29.3) (33.1) (21.1) (10.2)
1996 233,055 160,558 393,613 22,185 94,924 116,307 89,751 70,446
(59.2) (40.8) (100) (5.6) (24.1) (29.5) (22.8) (17.9)
1997 251,358 170,499 421,857 23,840 121,286 126,828 107,111 42,792
(59.6) (40.4) (100) (5.7) (28.8) (30.1) (25.4) (10.1)
1998 267,871 195,813 463,684 26,763 122,103 151,846 121,190 41,782
(57.8) (42.2) (100) (5.8) (26.3) (32.7) (26.1) (9.0)
1999 286,161 205,343 491,504 30,967 150,307 155,985 113,314 40,913
(58.2) (41.8) (100) (6.3) (30.6) (31.7) (23.1) (8.3)
2000 266,937 196,709 463,646 19,136 119,816 148,063 125,140 51,491
(57.6) (42.4) (100) (4.1) (25.8) (31.9) (27.0) (11.1)
2001 213,465 147,772 361,237 14,608 95,801 115,678 93,621 41,529
(59.1) (40.9) (100.0) (4.0) (26.5) (23.0) (25.9) (11.5)
2002 174,710 100,758 275,468 12,425 67,774 99,622 67,017 28,630
(63.4) (36.6) (100.0) (4.5) (24.6) (36.2) (24.3) (10.4)
2003 204,732 133,400 338,132 16,056 78,357 99,740 5,753 58,226
(60.5) (39.5) (100.0) (4.7) (23.2) (29.5) (25.4) (17.2)
2004 255,303 129,994 385,297 38,734 84,125 128,267 6,920 37.251
(66.3) (33.7) (100.0) (10.1) (21.8) (33.3) (25.2) (9.7)
Source: Nepal Tourism Statistics2006 (Government of Nepal)

From the table 4.4 and Figure 4.2 it is clear that total number of tourist i.e. Male and
Female in fiscal year 1998 &1999 is the highest flow of age group 31-45.

46
 Figure 4.2
Tourist Arrivals by Sex (1995-2004)

Table 4.5
Tourist Arrivals by Purpose of Visit (1995 - 2004)
Year Holiday Trekking & Business Pilgrimage Official Conv. Others Total
Pleasure Mountaineering Conf.
1995 183,207 84,787 21,829 5,257 20,090 5,272 42,953 363,395
(50.4) (23.3) (6.0) (1.4) (5.5) (1.5) (11.8) (100)
1996 209,377 88,945 25,079 4,802 20,191 5,824 39,165 393,613
(53.2) (22.6) (6.4) (1.2) (5.1) (1.4) (10.0) (100)
1997 249,360 91,525 27,409 4,068 24,106 5,181 19,565 421,857
(59.1) (21.7) (6.5) (1.0) (5.7) (1.1) (4.6) (100)
1998 261,347 112,644 24,954 16,164 22,123 5,965 21,271 463,684
(56.4) (24.3) (5.4) (3.5) (4.8) (1.2) (4.6) (100)
1999 290,862 107,960 23,813 19,198 24,132 5,599 19,574 491,504
(59.2) (22.0) (4.8) (3.9) (4.9) (1.2) (4.0) (100)
2000 255,889 118,780 29,454 15,801 20,832 0 17,291 463,646
(55.2) (25.6) (6.4) (3.4) (4.5) (0.0) (3.7) (100)
2001 187,022 100,828 18,528 13,816 18,727 0 22,316 361,237
(51.8) (27.9) (5.1) (3.8) (5.2) (6.2) (100.0)
2002 110,143 59,279 16,990 12,366 17,783 (0.0) 58,907 275,468
(40.0) (21.5) (6.2) (4.5) (6.5) (21.4) (100.0)
2003 97,904 65,721 19,387 21,395 21,967 0 111,758 338,132
(29.0) (19.4) (5.7) (6.3) (6.5) (33.1) (100.0)
2004 167,262 69,442 13,948 45,664 17,088 (0.0) 71,893 385,297
(43.4) (18.0) (3.6) (11.9) (4.4) (18.7) (100.0)
Source: Nepal Tourism Statistics2006 (Government of Nepal)

47
 From the table 4.5 it is clear that total number of tourist arrival in fiscal year 1998 and
1999 is the highest flow for Holiday Pleasure.
Table 4.6
Tourist Arrivals by Major Nationalities (1995 - 2004)
Nationality 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Australia 9201 9720 10227 11132 11873 12189 10455 7159 7916 9671
(2.5) (2.5) (2.4) (2.4) (2.4) (2.6) (2.9) (2.6) (2.3) (2.5)
Austria 3852 4162 3986 4603 6377 5221 4164 3140 3025 4341
(1.1) (1.1) (0.9) (1.0) (1.3) (1.1) (1.2) (1.1) (0.9) (1.1)
Canada 5047 5480 6245 7136 7578 8590 7068 3747 4154 4825
(1.4) (1.4) (1.5) (1.5) (1.5) (1.9) (2.0) (1.4) (1.2) (1.3)
Denmark 4629 4454 4322 4781 4577 4847 3854 2040 2178 2633
(1.3) (1.1) (1.0) (1.0) (0.9) (1.0) (1.1) (0.7) (0.6) (0.7)
France 19208 19913 21573 21992 24490 24506 21187 13376 15865 18938
(5.3) (5.1) (5.1) (4.7) (5.0) (5.3) (5.9) (4.9) (4.7) (4.9)
Germany 33971 24963 22374 23862 26378 26263 21577 15774 14866 16025
(9.3) (6.3) (5.3) (5.1) (5.4) (5.7) (6.0) (5.7) (4.4) (4.2)
India 117260 122512 133438 143229 140661 95915 64320 66777 86363 90326
(32.3) (31.1) (31.6) (30.9) (28.6) (20.7) (17.8) (24.2) (25.5) (23.4)
Italy 10267 10258 11034 12864 12870 11491 8745 8057 8243 12376
(2.8) (2.6) (2.6) (2.8) (2.6) (2.5) (2.4) (2.9) (2.4) (3.2)
Japan 25360 28923 35038 37386 28893 41070 28830 23223 27412 24231
(7.0) (7.3) (8.3) (8.1) (7.9) (8.9) (8.0) (8.4) (8.1) (6.3)
Netherlands 8681 8718 9214 14403 17198 16211 13662 8306 8443 11160
(2.4) (2.2) (2.2) (3.1) (3.5) (3.5) (3.8) (3.0) (2.5) (2.9)
Spain 7129 8658 8621 8832 9370 8874 5897 5267 8265 11767
(2.0) (2.2) (2.0) (1.9) (1.9) (1.9) (1.6) (1.9) (2.4) (3.1)
Switzerland 5981 6961 10630 664 8431 6230 5649 3352 3246 3788
(1.6) (1.8) (2.5) (1.4) (1.7) (1.3) (1.6) (1.2) (1.0) (1.0)
Sri Lanka 1172 5758 4021 11031 12432 16649 9844 9805 13930 16124
(0.3) (1.5) (1.0) (2.4) (2.5) (3.6) (2.7) (3.6) (4.1) (4.2)
U.S.A. 24655 25155 30056 35092 39332 40442 32052 17518 18838 20680
(6.8) (6.4) (7.1) (7.7) (8.0) (8.7) (8.9) (6.4) (5.6) (5.4)
U.K. 26768 29466 29998 35499 36852 37765 33533 21007 22101 24667
(7.4) (7.5) (7.1) (7.7) (7.5) (8.1) (9.3) (7.6) (6.5) (6.4)
Others 60214 78511 81080 84388 94192 107383 90400 66920 93287 113745
(16.6) (19.9) (19.2) (18.2) (19.2) (23.2) (25.0) (24.3) (27.6) (29.5)
Total 363395 393613 421857 463684 491504 463646 361237 275468 338212 385297
(100) (100) (100) (100) (100) (100) (100) (100) (100) (100)
Source: Nepal Tourism Statistics2006 (Government of Nepal)

48
Table 4.6 gives the picture of Nationalities wise tourist flow in Nepal from fiscal year
1995 to 2004. It is found that the India, Germany, France, UK, and USA, are the highest
tourist flow Nation in the fiscal year 1998 and 1999.

4.3 Marketing of Nepal Tourism Board

Like wise NTB have done lets of marketing program for the promotion of Nepalese
tourism in different foreign countries like Europe, American, Asia etc. such as dream
works Nepal in Korea that is Nameste Art exchange enbibilition, Nepal participated is
vakantiebeurs, Netherlands, Nepal at the daily telegraph advert is travel and sports show
is London. Nepal at advertise is travels erupo is Chicago limited states. A Nepalese
tourism entrepreneur is Bangkok fair. NTB concludes Nepal promotion compels is south
India successfully. NTB also make Nepalese tourism promotion is Russia. For the growth
of internal tourism NTB, have done lots of promotion programmed is different pall of the
Nepal. Such as Nepal open paragliding championship in Pokhara, pokhara marathon,
Meghauli Mahatsod Kathmandu Advertise rally shiva Ratri, the night of shiva, Tenzing
Hillary Everest Maraltion, Ghodejatra festval, Buddha Jayanti Thuryn (TAAN) tracking
agants association of Nepal mount Bike championship, Bagmati River festival
International music day celebration Mithila Mahostsav in Janakpur so on an so for.

NTB came up with a new department in the form of "Public relations and publicity"
Since 2006 January onwards NTB came up with a new department in the form of "Public
Relations and Publicity". Realizing that public relations, perhaps the most misunderstood
part of marketing communication, can the effective tool, NTB decided to come up with a
new department, which previously was being done by a section of the marketing
department. NTB wants to develop public relations as a process by which positive image
and customer preference for Nepal could be effectively created through third-party
endorsement.
The PR and Public department would thus perform the activities related to press relations,
publicity and corporate communications. The aim of press relations is to place

49
newsworthy information into the international and national news media to attract
attention ton Nepal as a holiday destination. The product publicity wants to secure
editorial coverage as opposed to paid space by giving new information on new products,
events etc. on Nepal. Similarly promoting understanding of the organization to the
stakeholders would also fall into its domain. The department would thus be guide by the
objectives of creating publicity about tourism attractions of Nepal in inter/national arena;
maintaining good public relations with inter/national tourism stakeholders; and assisting
to synergize NTB's overall effort in tourism promotion by helping marketing and
promotion department in particular and other department/stakeholders in general.

Under these broad goals the department has four key areas of delivery which are:
 Under these board goals the department has four key areas of delivery which are:
 Facilitating tourist inside Nepal.
 Enhancing the communication
 Publishing the promotional collaterals

4.3.1 New Nepal Tourism Brand

The new tourism brand with the slogan "Unlash Yourself" tagline "Naturally Nepal" and
sub-tagline "Once is not enough" was introduced is early 2006. With a lot of consumer
research and trade consultation process the brand was being introduction. The basic thrust
of brand development was to develop was to develop BRAND NEPAL as an
international tourist destination and regain consumer confidence in the international
markets by concentrating on marketing the experiential product clusters. Naturally Nepal
is a simple expression that repackages Brand Nepal in a positive light.
Once is not enough' not only accurately captures the tourists' emotions at the airport's
departure gate but also serves as a decision making tool that enables the Nepali tourist
industry - individually & collectively - to focus on customers retention rather than
acquisition. It moreover address the composition of our total number of tourist where

50
nearly 40% are repeat visitors, means Nepal abundance beauties and diversities are for
multiple times. It is a destination for multiple reason and prosperous vision.

The Re-launching of Brand Nepal has been done for the five business reasons
 More compelling-repackage the divers, existing product offerings
 More tourist-increasing the number of tourist visiting Nepal
 More money-increase the revenues to the nation.
 More focus-align the NTB's stakeholders and the Nepal tourist industry to a
common future.
 More consistency-define branding guidelines and investment vehicles for building
a low-cost international consumer brand in the very competitive tourist industry.

Over the next 10 years, Brand Nepal will be promoted as "The next-generation mountain
destination for weekend breaks, adventure holidays and lifetime experiences" for 'People'
who live cosmopolitan cities and travels internationally.

New Nepal Brand is expected to be instrumental in addressing the needs of all the
existing and emerging tourist of our target markets. Series of campaign activities tied up
in the branding process will ultimately keep Nepal on great competitive edge. The new
branding concept will cover entire activities that Nepal has been offering to the world
with a new dimension. The thrust of new brand is to reinvent Nepal's diversity, modernity
and cultural heritage. Nepal, country of the highest mountains on Earth as deepest gores,
also known as the land of living Goddess and the origin of Buddhism m in the world,
today shares its abundance beauty with rest of the world, with a New Brand, its natural
image called Naturally Nepal- once is not enough.

This new tourism brand is first of its kind created with professional expertise in the
tourism history of Nepal. This new tourism brand is absolutely backed by the research

51
and surveys, hence has lot of ingredients to support for the yield subject to availability of
matching resources and requires environment.

This from the above study of responsible for promoting Nepal is domestic and
international market is working towards repositioning market is cooking towards
repositioning the image of the country as a safe destination. The board sis established to
works as a professional and dynamic NTO to address the pressing need by designing
specific brand image of Nepal as a travel destination and promotional campaigns
government of Nepal has established a well defined funding mechanism through
collection from the airport to finance the promotional effort of the board.

4.4 The Effectiveness of Adjusting on Tourism Business in Nepal

We make a great study on the tourist arrivals by year month age & sex as well as the
promotional activities done in different place inside and outside the county. But if we go
in details about the promotion activities i.e. advertising done by the NTB in tourism
sector we can easily find the effectiveness of advertising on tourism business in Nepal.
Lets compare the tourist Arrival in year 1997, 1998, 1999 & 2000 we can easily find that
the number of tourist in 1998 is greater them the others years become of promotional
activities. We know that 1998 was the Visit Nepal 1998. In this year these was lots of
promotional activities in and outs of the country. Nepal was known as Visit Nepal 1998
so, the growth rate of tourist was increase by 909% but in 1997 it was increase only by
7.2%. In 1999 it was increase by 6% but in 2000 it was decrease by -5.7% which can be
more clear by bar diagram.
Figure 4.3
Growth Rate of Tourist Arrival

52
In the same way if we compare by month we will find in 1998 the increase rate of tourist
is higher then in 1997 & 1999 & 2000 is also become of promotion activities i.e. “Visit it
Nepal 1998”.

As we compare by sex. The flow of tourist in 1998 & 1999 is greatest then in 1997 &
2000 the reason is the some which can be clearer by the pie-diagram by sex.

53
 Figure 4.4
Tourist Arrival by Sex

2000 1997 1997

2000

1999 1998 1998

1999

Male Female

The effective of growth is the tourist not only become of the promotional activities but
also of political situation of Nepal. But more over the effect goes is the promotional
activities.

Above study shows that NTB has to make more effeteness on the adjusting & promotion
activities for attaining and retaining the market on tourism business in Nepal.

Again if we go through the study of tourist arrivals by nationality from fiscal year 1995 to
2004. The majority of tourist visiting Nepal from India every year USA holds the second
position and UK in third place. Similarly Germany and France hold the fourth and fifth
position respectively. Similarly Italy Switzerland, Australia, Canada, Japan, China etc
held a good position regarding to tourist using to visit Nepal but why rest of other
nationals could not hold the good position ? Answer is same become of not good
promotion done by NTB in those of the nation by about Nepal the destination of world.

Similarly if we go through the study tourist Arrivals by purpose of visit we can easing
find out that low rate of tourist flow the purpose of pilgrimage although Nepal is famous
for its culture heritage, history in the world but tourist flow is low because of poor

54
promotional activities by NTB and Nepal government which can be more clear by pie-
diagram.

Figure 4.5
Tourist Arrival by Purpose of Visit

Although NTB in lunching the different promotion activities in different, foreign country
like Americas, Asia, Europe, and Africa to as well as in different place of Nepal but it
seen not to effectiveness so, NTB, Nepal government of ministry of culture, Tourism and
civil Aviation must a most to the effective of advertising. NTB and Nepal Government of
CTCA must realize that what they are doing for the promotion of tourism in Nepal is not
enough. The alternative way must be study by the NTB as well as government.

The main problem of advertising in tourism sector in Nepal is that NTB & Nepal
government must focus their advertising in each and every port of the world not is a
certain place, so that each and every body of that place can easily know the country
Nepal to known as, beauty of nature, kingdom of Himalayan , Birth place of Buddha.
Country of Mt. Everest, not as the state of India and part of Tibet. For this, NTB & Nepal

55
government must select the effect way of advertising. Today world is IT world. So, the
electronic media through the Net basis which can be more fruith full and effectiveness.

Thus from the above data analysis and study we come to conclude that NTB have to do
excise a lot in the promotional activities i.e. advertise in those area where the advertising
is lack behind and it is quit hope full that NTB is typing its best to attract the tourist by
lunching different promotion activities is further future.

4.5 Major Findings

In Nepal, there was no tourism planning till 1956. The history of tourism planning
started when the First–Five–Year plan (1956-61) came into existence. The review of
first five -year plan to ninth five-year plan revealed that various planned efforts were
made for the tourism development in Nepal. Tourism development has continuously
been accorded a high priority and as a result, substantial investment in infrastructure and
tourism facilities like hostels, airports roads, power, and sanitation were made in
destinations attracting the visitors to meet ever-increasing demands. Besides, special
promotion programs and use of high tech communications was planned for the
promotion of tourism as mentioned in the Ninth Five-Year plan.

The study also attempted to evaluate the overall tourism marketing efforts made by the
government of Nepal. The study showed that the overall marketing situation in Nepal is
sluggish due to various reasons such as lack of adequate publicity and promotion, lack
of marketing information, level of unhealthy competition, lack of air accessibility etc.
Hence, in order to boost up the tourism industry of Nepal, infrastructure and services
must be improved properly as well as tourism marketers should be kept abreast of the
fast changing trends in the world tourism markets and be quick to respond to the
changing economic scenario of the world.

Regarding marketing and promotional efforts made by the Nepalese government in the

56
tourism sector, the study found that, although the marketing and promoting the
destinations, products and services looked satisfactory, Nepal’s promotional and
marketing efforts lack the punch and purposiveness and significant improvement are
thus necessary.

Similarly there is an increasing trend regarding tourist arrivals. In 1998 a total of

463684 tourists visited Nepal representing an increase of 9.9% over 1997. Likewise, the
tourists arrival rate increased by 7.2% in 1997, 6% in 1999. It decreased by -5.7%,-
22.1%, -23.7% in 2000, 2001, & 2002 respectively.

Regarding tourist arrivals by sex in 1998, male visitors comprised 57.8% of the total
arrivals while female visitors comprised 42.2% of the total. Likewise in 1999, male
visitors comprised 58.2% while female visitors accounted for 42.8% of the total tourist
arrivals.

Similarly, regarding tourists arrivals by age groups, in 1998, the highest share was
recorded by the 31-45 years age groups (32%), followed by 16-30 yrs (26%) and 46-60
yr. (26%). Tourists of different continents visit Nepal. In 1998, tourist arrivals to Nepal
were 52% from Asia, 32% from Western Europe, 9.3% from North America and 3.2%
from the Australia and the Pacific. In addition, tourists of different nationals also visit
Nepal. In 1998, the highest number of tourist arrival was from India comprising 30.8%
of the total and registering an increase of 7.3% over 1997.

Similarly, tourists from overseas visiting Nepal were: Japan (8%), USA (7.7%), UK
(7.6%), and Germany (5.1%). In 1998, the arrival of overseas tourists increased by 9.9%
in comparison to 1997. In 1997, this increase was only 6.4% over the year 1996.

In Nepal majority of tourists came for Holiday/Pleasure purposes. In 1998, a total of

261347 tourists came to Nepal for recreational purposes, which was an increase of 4.8%

57
over 1997. Likewise, Trekking and Mountaineering was second in purpose.

Tourist season was found to be in the month of January, February, March, September
and October to December. In 1998, October was the month when the highest number of
visitors came to Nepal.

Because of the competitive global scenario and ever expanding tourism industry, the
market of the tourism product needs greater attention. Only those countries which have
aggressive marketing strategy have been able to attract a greater number of tourists.
Thus marketing is a must for the successful running of the tourism industry.

NTB undertaking very limited marketing activities while other countries with more
resource are spending huge amount of money on aggressive marketing of their
destinations.

The ministry of tourism has no budget for promotion in Nepal, even one five star rated
hotel spend Rs.30 million annually for the publicity at international level but due to lack
of budget government is not able to make sufficient publicity even in Visited Nepal year
98 also.

58
The sluggishness in promotional efforts in Nepal further indicated by the fact that the
expenditure made in publicity is too poor, not more effective in both quality and
quantity. The ministry of tourism & NTB published brochures and booklets about
tourism only in a few languages and that also in limited copies, there is a lack of
advertisement in the foreign papers. In such a situation, most of the visitors are
unknown about Nepal.

Nepal lack the most essential market information focused on its product, while the most
relevant material is produced at considerable cost and dubious impact, Fair
Participation, in the absence of proper information material to flow up interest poorly
staged as it often appears less than effective and probably a waste of money. At the
same time there was an urgent need for Nepal to work against increasing critical world
media coverage on ill effects especially on mountain tourism. By inviting journalist,
Nepal should convey the fact that it is taking serious steps toward improving matter, but
need help to do so.

59
 CHAPTER-V
SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary
There is no doubt that today’s business era is the age of advertisement and publicity.
Every corner of the world is filled with shining advertisement posters, hoarding and E-
advertising. Any business sector cannot sustain without the sufficient advertisement and
publicity. Advertisement starts even before the business concept emerges.

It is true that advertisement plays a big role in the field of marketing of any product or
services. Large and very successful organizations are making expenses of huge amounts
on advertising of the products and services. A remarkable portion of marketing budget
is devoted to advertising. Advertisement has become a means of very easy and prompt
mass communication. Any organization can communicate its mission, objective service
and product to its target market.

The amazing changes in technology, transportation and communication in recent years

throughout the world have triggered the development of tourism industry. Many
countries have chosen consciously the path of developing large scale tourism as major
national activity.

Tourism has been so much emphasized in Nepal that it is regarded as a means of

achieving economic development. Nepal has many tourist destinations and their
exploilaties offers a wide range of comparative advantages. There is a great possibility
of tourism industry in Nepal due to her specific natural and cultural heritage.
Marketing tourism is to be understood as systematic and co-operative execution of
business policy by tourist undertaking whether private or state at local, religion, national
or international level to achieve the optimum satisfaction of need of identifiable

60
consumer group and in doing so to achieve an appropriate return.

There is a need of tourism marketing with proper planning and sound policies. However
tourism industry does not seem to apply marketing approach for its promotion and
development adequately.

In addition the study also examined advertising activities practiced in tourism sector by
Nepal Tourism Board. The study has been completed by using secondary data which
were collected from the Nepal Tourism Board & Ministry of Tourism & civil Aviation
(Annual Statistical Report 2005).

5.2 Conclusion
The current challenge of marketing Nepal as a holiday destination lies not only in
enhancing visitors' number but also equally on improving the destinations image towards
a quality destination. Due to the stagnant demand for the Nepalese tourism production
since the last half-decade, perception has emerged over Nepal as a low cost destination.
The competition among the domestic service providers has in fact given upper hand to
the consumers and international operators by raising their bargaining power.

The other reality however is the wide international media exposure this year due to which
there has been gradual interest from the market. Ironically, this increased base of
consumer awareness and interest towards Nepal has been thwarted by the bottleneck of
air accessibility. The growing intention to visit Nepal proves the fact that Nepalese
tourism too is resilient in nature. Additionally its product attractiveness is unique and has
a strong market appeal. On the positive note, this is in fact an opportunity to build back
destination image.

The goal of NTB marketing programs basically lies in enhancing visitors' numbers,
increasing the average stay and spends in Nepal. To attain the same the past strategies in

61
marketing programs has been to approach dozen of markets simultaneously and thinly
spread resources so as to averse risk across a range international markets and minimize
the impact of any changes in the domestic or a single international travel market.

However with the growing realization for focused and targeted marketing for result, NTB
is making certain strategic shifts in its marketing approaches from this year by
concentrating more on the comparative advantage markets. This would mean working on
those markets where there would be significant and visible return on its marketing
investment. For that matter those markets would be selected where there is a high price
elasticity of demand.

Similarly a new approach would be to sub-brand a destination with in the country and
promote it for the entire year. This is to establish better product market linkage and
strengthen the sub-brand image of Nepal.

Due emphasis shall be given for continuation of successful programs of the past by
engaging stakeholders and leveraging partnerships with them and equally by
consolidating on value and growth markets.

5.3 Recommendations
Based on the findings of the study, the following recommendations are made for an
advertising activities practiced in Tourism sector of Nepal.

5.3.1 Tourism Development Policy

There is a conspicuous absence of long term perspective policy in the field of tourism
encompassing all aspects of tourism development. It is of the crucial importance that the
NTB and NG should come forward with a long term integrated policy in the tourism
sector. The development strategy for the tourism sector should be based on the principles
of low cost, higher level of productivity, improvement in efficiency of infrastructure and

62
promoting competition.

While planning for the future in the tourism sector, it is important to be vigilant of the
changing trends of the tourists and their tastes etc. The tourism policy should aim to
attract more tourists from Western Europe, the USA and Canada. The visa and permit
regimes should be made easier. New tourism projects should be worked out for the
quality development of domestic and international tourism in the nation.

5.3.2 Tourism Infrastructures

Tourism in Nepal is constrained by bottleneck of transport development, resulting from
the lack of air transportation networks linking it with major tourist originating countries
and the capacity limitation of NAC. The immense potentiality of tourists from Japan,
Australia and the Pacific Countries and Western Europe demands air links, preferably
direct links between those Countries and Kathmandu. Therefore, scheduled flights to
these destinations should be increased as much as possible. Further possibility of
introducing an open-sky policy should be explored attracting more and more regional and
international airlines to operate in the country. Further, the second International Airport
should be visualized for landing of large aircrafts.

Airports are literally gateways to the country. The efficiency and facilities provided by
the airport form a lasting impression on the foreign visitors. Therefore, services at the
Tribhuvan International Airport should be made more efficient and less troublesome.
Facilities should be developed to provide at least the minimum level of services as
required by the International Standards. Besides, proper policy measures should be
undertaken to develop auxiliary services such as taxi and other local transportation
systems, cultural centers etc.

Various Hotels and lodges catering to the need of different segments of the tourists must
be encouraged by providing the special incentives to them by NG. Further, these hotels

63
and lodges should be classified and be made mandatory to obtain a license for operation
from the ministry of Tourism. This will help to maintain standardization.

For the promotion of quality tourism in the country, infrastructure and services should be
improved properly. For most countries, including Nepal, one of the most essential
conditions for the successful promotion and development of tourism is the existence of
adequate infrastructure and qualified human resources.

5.3.3 Promotional Strategy

Promotional marketing has a tremendous influence on the foreign visitors’ choice of
destinations. Nepalese marketing strategy has remained more or less static in terms of
innovation, spread, imagination, new techniques and coordination. Lack of aggressive
international promotional drive has been as one of the constraints in tourist promotion in
the country. So, Nepalese embassies abroad as well as NAC’s offices and its sales agents
in overseas countries tourism industry. Further, a national image building and dynamic
marketing plan in key markets should be launched by pooling resources of the various
public and private agencies.

Tourism in Nepal heavily influenced by seasonality factor resulting mainly from the
dominance of the country of origin of the tourists. So, to iron out the seasonality factor,
strategy should be developed to diversify tourism by country and by purpose other than
traditional ones. More and more tourists from South Asia and the pacific should be
attracted, and new areas of tourism should be explored such as cultural tourism, wild life
tourism and specific summer and winter tourism. Further the government must give
emphasis on the development of new types of tourism sports as Rock Scaling, Gliding,
Rafting, High Himalayan Skiing along with new trekking routes, lakeside recreation,
curative tourism etc. While diversifying tourism, conscious attention should be paid to
the aesthetic, environmental and socio-cultural integration of tourism projects.

64
5.3.4 Manpower Development
Human resource development is of vital importance in a service industry like tourism. In
this context, the establishment of Hotel Management and Tourism Training Centre
(HMTTC) in the late 1970’s has been an important step towards producing tourism
supportive manpower in the country. So, in order to produce more trained manpower,
different measures should be undertaken for the improvement of human resources to
guarantee professional services in the field of tourism. Since 1998, the HMTTC institute
has been recognized by the Tribhuvan University and Pokhara University to offer the
complete course of Hotel Management (Bachelor Level) to overcome the expected
shortage. The centre should be financially strengthened and functionally expanded to
meet the growing needs of manpower for tourism sector.

5.3.5 Organizational Structure

Present organizational structure i.e. The NTB (Nepal Tourism Board) is established for
the promotion of tourism in Nepal. It spends a substantial amount abroad for the
promotion of Nepal as a tourist Destination. However it is not able to mould itself into a
marketing and developmental institution with well-defined targets. It is therefore,
recommended that the NTB should give special attention to improve Nepalese Tourism
intensively (qualitative) instead of an extensive (quantitative) growth. Further, effort
should be made by the NTB to convert Nepal as a prime tourist destination under
universal limelight.

5.3.6 Research Needs

Comprehensive knowledge of the pattern of tourist arrival, their length of stay, purpose
of visit etc. is extremely important to understand the tastes and demands of the tourists
visiting the country. It helps to make crucial decisions regarding the policies to be
promoted in the country. Hence, a system should be developed to have a regular sample
survey of tourist arrival on an annual basis. In this aspect, the NTB has to resolve
establishing a tourism Research and Development Division to carry out research on

65
various aspects of tourism and to evaluate the tourism impact in the country and abroad.

In addition to the above recommendations, the government of Nepal should promote

Domestic Tourism, protect environment, impose friendly regulations in the tourist areas,
properly maintain the roads to the tourist areas, and afford convincing incentives to
tourism industry.

All good marketing begins with the customer and embed with customer. Nepal is a tourist
destination offer a unique product and unparalleled opportunities for marketers who want
to tack on the challenge. It just means that both Nepalese operators and their partner in
Asia need to work harder and be innovative if they are to achieve yields that the Nepal’s
tourism operation deserves.

While formulating the tourism strategy, it is essential that, our tourism marketing keep
abreast with the fast changing trends, particularly the changing trends in tourism market.
Tourism marketers should be quick to respond to the changing economic scenario in the
world. Hence, development of Nepal should take in to account promotional and
marketing issues as well as deal with the inherent problems and challenges.

66
 Appendix - 1
Marketing Efforts in Tourism

No of participant Ad/promotion Familiar Development of Sales Publications /Brochures

in international Campaign ization /Promotional Aids
meeting sales Mission Tour
14 - - 1 Video Film Brochures 1, 85,000 pcs. posters
39,000pcs
12 - - - Broachers 1, 86,000 pcs.
Poster 40,000 pcs.
16 yes - 1. Video Film -
- Nepal got coverage in
various int’ travel
magazine and newspaper
14 - 3 - -Published travel advertisement in
18 different travel magazine
44,300 brochures booklet poster
etc published
14 yes 1 - Advertised in 6 different national
and international print media
11 yes - - Advertised in 14 different
national and international print
media
8 - 1 -Update innovates and Printing of poster, sticker.
release varieties of
tourism info materials in
different languages.
1. Video Film
9 yes 1 Made reprint of two
promotional video films
- A fund for promoting
Nepal had been allocated
/ release to various
Nepalese Embassies and
mission based in
Germany, USA, France,
UK,, Belgium, Japan and
Thailand
13 - 5 1. Video Film 11 New tourism brochures
2. Video Film Reprint publication.
17 yes 5 -

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 Appendix -2
Tourist Arrivals (1995-2004)
Year Total By Air By Land Average
Number Growth Index Number % of Number % of Length of
Rate % Total Total Study
1995 363,395 11.3 5,881 325.035 89 38,360 11 11.27
1996 393,613 8.3 6,370 343,246 87 50,367 13 13.50
1997 421,857 7.2 6,827 371,145 88 50,712 12 10.49
1998 463,684 9.9 7,504 389,008 86 35,676 14 10.76
1999 491,504 6.0 7,954 421,243 86 70,261 14 12.28
2000 463,646 -5.7 7,504 376,914 81 86,732 19 11.88
2001 361,237 -22.1 5,846 299,514 83 61,723 17 11.93
2002 275,237 -23.7 4,458 299,514 79 56,808 21 7.92
2003 338,132 22.7 5,472 218,660 81 62,694 19 9.60
2004 385,297 13.9 6,236 275,438 77 87,962 23 13.51

68
69
 Appendix - 3
Tourist Arrivals by Month (1995-2004)
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
1995 22,207 28,240 34,219 33,994 27,843 25,650 23,980 27,686 30,569 46,845 35,782 26,380 363.,395
1996 27,886 29,676 39,336 36,331 29,728 26,749 22,684 29,080 32,181 47,314 37,650 34,998 463,684
1997 25,585 32,861 43,177 35,229 33,456 26,367 26,091 35,549 31,981 56,272 40,173 34,116 491,504
1998 28,822 37,956 41,338 41,087 35,814 29,181 27,895 36,174 39,664 62,487 47,403 35,863 463,686
1999 29,752 38,134 46,218 40,774 42,712 31,049 27,193 38,449 44,117 66,543 48,865 37,698 491,504
2000 25,307 38,959 44,944 43,635 28,363 26,933 24,480 34,670 43,523 59,195 52,993 40,644 463,646
2001 30,454 38,680 46,709 39,083 28,345 13,030 18,329 25,322 31,170 41,245 30,282 18,588 361,237
2002 17,176 20,668 28,815 21,253 19,887 17,218 16,621 21,093 23,752 35,272 28,723 24,990 275,468
2003 21,215 24,349 27,737 25,851 22,704 20,351 22,661 27,568 28,724 45,459 38,398 33,115 338,132
2004 30,988 35,631 44,290 33,514 26,802 19,793 24,860 33,162 25,494 43,373 36,381 31,007 385,297

70
 Appendix - 4
Tourist Arrivals by Sex & Age Group (2039/40-2062/63)
Year Sex Total Age Group
Male Female 0-15 16-30 31-45 46-60 61 & Over
1995 224,769 138,626 363,395 22,878 106,603 120,212 76,647 37,055
(61.9) (38.1) (100) (6.3) (29.3) (33.1) (21.1) (10.2)
1996 233,055 160,558 393,613 22,185 94,924 116,307 89,751 70,446
(59.2) (40.8) (100) (5.6) (24.1) (29.5) (22.8) (17.9)
1997 251,358 170,499 421,857 23,840 121,286 126,828 107,111 42,792
(59.6) (40.4) (100) (5.7) (28.8) (30.1) (25.4) (10.1)
1998 267,871 195,813 463,684 26,763 122,103 151,846 121,190 41,782
(57.8) (42.2) (100) (5.8) (26.3) (32.7) (26.1) (9.0)
1999 286,161 205,343 491,504 30,967 150,307 155,985 113,314 40,913
(58.2) (41.8) (100) (6.3) (30.6) (31.7) (23.1) (8.3)
2000 266,937 196,709 463,646 19,136 119,816 148,063 125,140 51,491
(57.6) (42.4) (100) (4.1) (25.8) (31.9) (27.0) (11.1)
2001 213,465 147,772 361,237 14,608 95,801 115,678 93,621 41,529
(59.1) (40.9) (100.0) (4.0) (26.5) (23.0) (25.9) (11.5)
2002 174,710 100,758 275,468 12,425 67,774 99,622 67,017 28,630
(63.4) (36.6) (100.0) (4.5) (24.6) (36.2) (24.3) (10.4)
2003 204,732 133,400 338,132 16,056 78,357 99,740 5,753 58,226
(60.5) (39.5) (100.0) (4.7) (23.2) (29.5) (25.4) (17.2)
2004 255,303 129,994 385,297 38,734 84,125 128,267 6,920 37.251
(66.3) (33.7) (100.0) (10.1) (21.8) (33.3) (25.2) (9.7)

71
 Appendix - 5
Tourist Arrivals by Purpose of Visit (1995 - 2004)
Year Holiday Trekking & Business Pilgrimage Official Conv. Others Total
Pleasure Mountaineering Conf.
1995 183,207 84,787 21,829 5,257 20,090 5,272 42,953 363,395
(50.4) (23.3) (6.0) (1.4) (5.5) (1.5) (11.8) (100)
1996 209,377 88,945 25,079 4,802 20,191 5,824 39,165 393,613
(53.2) (22.6) (6.4) (1.2) (5.1) (1.4) (10.0) (100)
1997 249,360 91,525 27,409 4,068 24,106 5,181 19,565 421,857
(59.1) (21.7) (6.5) (1.0) (5.7) (1.1) (4.6) (100)
1998 261,347 112,644 24,954 16,164 22,123 5,965 21,271 463,684
(56.4) (24.3) (5.4) (3.5) (4.8) (1.2) (4.6) (100)
1999 290,862 107,960 23,813 19,198 24,132 5,599 19,574 491,504
(59.2) (22.0) (4.8) (3.9) (4.9) (1.2) (4.0) (100)
2000 255,889 118,780 29,454 15,801 20,832 0 17,291 463,646
(55.2) (25.6) (6.4) (3.4) (4.5) (0.0) (3.7) (100)
2001 187,022 100,828 18,528 13,816 18,727 0 22,316 361,237
(51.8) (27.9) (5.1) (3.8) (5.2) (6.2) (100.0)
2002 110,143 59,279 16,990 12,366 17,783 (0.0) 58,907 275,468
(40.0) (21.5) (6.2) (4.5) (6.5) (21.4) (100.0)
2003 97,904 65,721 19,387 21,395 21,967 0 111,758 338,132
(29.0) (19.4) (5.7) (6.3) (6.5) (33.1) (100.0)
2004 167,262 69,442 13,948 45,664 17,088 (0.0) 71,893 385,297
(43.4) (18.0) (3.6) (11.9) (4.4) (18.7) (100.0)

72
 Appendix - 6
Tourist Arrivals by Major Nationalities (1995 - 2004)
Nationality 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Australia 9201 9720 10227 11132 11873 12189 10455 7159 7916 9671
(2.5) (2.5) (2.4) (2.4) (2.4) (2.6) (2.9) (2.6) (2.3) (2.5)
Austria 3852 4162 3986 4603 6377 5221 4164 3140 3025 4341
(1.1) (1.1) (0.9) (1.0) (1.3) (1.1) (1.2) (1.1) (0.9) (1.1)
Canada 5047 5480 6245 7136 7578 8590 7068 3747 4154 4825
(1.4) (1.4) (1.5) (1.5) (1.5) (1.9) (2.0) (1.4) (1.2) (1.3)
Denmark 4629 4454 4322 4781 4577 4847 3854 2040 2178 2633
(1.3) (1.1) (1.0) (1.0) (0.9) (1.0) (1.1) (0.7) (0.6) (0.7)
France 19208 19913 21573 21992 24490 24506 21187 13376 15865 18938
(5.3) (5.1) (5.1) (4.7) (5.0) (5.3) (5.9) (4.9) (4.7) (4.9)
Germany 33971 24963 22374 23862 26378 26263 21577 15774 14866 16025
(9.3) (6.3) (5.3) (5.1) (5.4) (5.7) (6.0) (5.7) (4.4) (4.2)
India 117260 122512 133438 143229 140661 95915 64320 66777 86363 90326
(32.3) (31.1) (31.6) (30.9) (28.6) (20.7) (17.8) (24.2) (25.5) (23.4)
Italy 10267 10258 11034 12864 12870 11491 8745 8057 8243 12376
(2.8) (2.6) (2.6) (2.8) (2.6) (2.5) (2.4) (2.9) (2.4) (3.2)
Japan 25360 28923 35038 37386 28893 41070 28830 23223 27412 24231
(7.0) (7.3) (8.3) (8.1) (7.9) (8.9) (8.0) (8.4) (8.1) (6.3)
Netherlands 8681 8718 9214 14403 17198 16211 13662 8306 8443 11160
(2.4) (2.2) (2.2) (3.1) (3.5) (3.5) (3.8) (3.0) (2.5) (2.9)
Spain 7129 8658 8621 8832 9370 8874 5897 5267 8265 11767
(2.0) (2.2) (2.0) (1.9) (1.9) (1.9) (1.6) (1.9) (2.4) (3.1)
Switzerland 5981 6961 10630 664 8431 6230 5649 3352 3246 3788
(1.6) (1.8) (2.5) (1.4) (1.7) (1.3) (1.6) (1.2) (1.0) (1.0)
Sri Lanka 1172 5758 4021 11031 12432 16649 9844 9805 13930 16124
(0.3) (1.5) (1.0) (2.4) (2.5) (3.6) (2.7) (3.6) (4.1) (4.2)
U.S.A. 24655 25155 30056 35092 39332 40442 32052 17518 18838 20680
(6.8) (6.4) (7.1) (7.7) (8.0) (8.7) (8.9) (6.4) (5.6) (5.4)
U.K. 26768 29466 29998 35499 36852 37765 33533 21007 22101 24667
(7.4) (7.5) (7.1) (7.7) (7.5) (8.1) (9.3) (7.6) (6.5) (6.4)
Others 60214 78511 81080 84388 94192 107383 90400 66920 93287 113745
(16.6) (19.9) (19.2) (18.2) (19.2) (23.2) (25.0) (24.3) (27.6) (29.5)
Total 363395 393613 421857 463684 491504 463646 361237 275468 338212 385297
(100) (100) (100) (100) (100) (100) (100) (100) (100) (100)

73
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