Presentation
on
Unit 2
Tourism in Nepalese
Economy
Meaning of Tourism
• In its broadest sense, the tourism industry is the total of all businesses that directly provide
goods or services to facilitate business, pleasure and leisure activities away from the home
environment.
• It is a comprehensive industry involving many industries such as hospitality, transportation,
tourist destinations, travel companies, and more, by focusing on tourism, which is defined as
people travelling and staying in places outside their usual environment for less than one year in
a row for leisure, business, health or other reasons.
• The tourism industry, also known as the travel industry, is linked to the idea of people travelling
to other locations, either domestically or internationally, for leisure, social or business
purposes. It is closely connected to the hotel industry, the hospitality industry and the transport
industry, and much of it is based around keeping tourists happy, occupied and equipped with
the things they need during their time away from home.
• A complex concept, which includes several fields of activity: travel agencies, airlines, hotels
and restaurants, entertainment activities, professional associations and tourism state bodies.
• One of the largest industries in the world. It emerged to satisfy the human need to travel to and
see different places as part of the service sector, including hospitality (e.g., accommodation,
restaurants), transportation (e.g., airlines, car rental), travel facilitation and information (e.g.,
tour operators, tourist information centers), and attractions and entertainment (e.g., heritage
sites and traditional and cultural events).
Emerging concepts of Tourism
• Rural tourism
• Agro tourism
• Medical tourism
• Eco-tourism
• Space tourism
• Home stay tourism
• Other local specific tourism
Importance of Tourism in Nepalese economy
• Contributes to the economy (GDP)
• Employment (including women & youth)
• Foreign exchange earnings
• Helps in meeting SDGs
• Sector wise multiplier and positive spill-over effects etc
• Eradicate extreme poverty and hunger
• Economic growth both at the national and local levels
• The development of tourism infrastructure can benefit the livelihood of the poor
through improvement in tourism-linked service sectors, including transport and
communications, water supply, energy and health services.
• The construction of roads and tracks to remote areas for tourists also improves access
for school-age children and for teachers;
• Local resources mobilization (home stay, rural tourism, indigenous art and culture, etc.)
• Promote gender equality and empower women
• Promotion of public-private partnership
Importance of Tourism in Global Scenario
• Tourism contributes to the socio-economic development of least
developed countries, landlocked countries and island developing
countries through foreign exchange earnings and the creation of job
opportunities;
• Tourism stimulates the development of the transport infrastructure,
which facilitates access to and from the least developed countries,
landlocked countries and island developing countries;
• Tourism stimulates internal and external trade and strengthens supply
chains;
• Tourism promotes the integration of isolated economies with regional
and global flows of trade and investment;
• Tourism creates decent and productive work for youth and provides
opportunities for bilateral, multilateral and sub-regional cooperation
among countries
Tourism status in Nepal
Arrivals by 2020 2021 % change
Air 183130 150625 -17.5
Land 46955 337 -99.2
Total 230085 150962 -34.3
Average length of stay 15.1 15.5
Sex
Male 124048 105410
Female 106037 45552
Tourist Arrivals by age Groups and Purposes
Arrivals by age group 2020 2021
0-15 years 9768 11142
16-30 years 43403 30713
31-45 years 67829 64164
46-60 years 61874 35351
60+ years 47211 9036
Not Specified 0 556
Purposes 2020 2021
Holiday/Pleasure 139202 100843
Pilgrimage 28530 11172
Trekking & Mountaineering 35893 15549
Others (official, religious, business, etc.) 26460 23398
Prospects of Tourism in Nepal
• Bio-diversity due to its unique geographical position and altitudinal variation.
• Situated between China in the north and India in south as the sources of tourist
• Nepal has ethnic and language diversity
• Religious places
• Mt. Everest, Himalayan range and eight of the worlds fourteen 8,000m peaks,
• Diverse landscape, beautiful natural scenery, protected areas with diverse flora and
fauna, fast flowing rivers, year-round pleasant weather.
• Number one destination for mountaineers and trekkers, white rafting, largest
assortment of aerial, terrestrial and aquatic sports.
• Rich Culture: Multi-cultural, multi-ethnic; multi lingual yet harmonious society;
unique Newari architecture of Kathmandu valley,
• Limbini and other UNESCO world heritage sites;
• Kumari-the Living Goddess;
• More festival than days in a year;
• Tourist friendly and hospitable people
Effect of Trade Liberalization on Tourism
• GATS and WTO Reforms to achieve higher demands for services
began in 1992:
• Efforts to remove licensing and quota requirements
• Reduce tariffs, liberalize investment laws,
• Restructure the tax system and privatize a number of state owned
enterprises (SOEs)
• Moved towards integration with the global economy:
• Country’s active participation in numerous international organizations
and trade agreements.
• Nepal’s membership in WTO in Upon accession, Nepal assumed a
large number of general and specific commitments.
Challenges in tourism Development
• Insufficient infrastructures
• Inadequate investment in tourism sector
• Limited air connectivity and weak national carrier
• Poor coordination among different agencies
• Weak public-private partnerships
• Scarcity of resources for massive publicity and consumer promotion
• Tourism patterns limited to only in a few geographic areas
• Environmental pollution
• Weak national flyer
• Unable to reap benefits from intra-regional tourism
• Failure to provide attractive and incentive packages to travelers from
India and China compared to competing destinations
