Strive For Higher Tourism Growth

There is no denying that tourism is one of the main sectors supporting Nepal’s economy. The contribution of tourism to the country’s gross domestic product (GDP) is believed to hover only around six per cent. However, this is the second largest source of foreign exchange earnings of the nation after the remittance sector. Tourism’s significance also lies in the fact that it contributes to creating employment opportunities and assisting varied supplementary industries. It is cheering that the nation’s tourism industry has kept bouncing back gradually over the past three years following the disappearance of COVID-19. The country’s tourism business suffered an unprecedented setback in 2020 and 2021 with a drastic fall in visitor arrivals. Lockdowns and other restrictions imposed to check the transmission of the pandemic had devastative impact on every sector, especially the tourism business. 

Arrival scenario

The importance of tourism was widely realised when tens of thousands of people lost their jobs to the pandemic. The foreign exchange reserve was reduced at an alarming rate, with tourism activities coming to a grinding halt. Many tourism entrepreneurs and employees were displaced from this potential sector. However, the country’s tourism scenario began showing signs of recovery with the arrival of 2022. The country received well over 1.15 million foreign tourists in 2024. The figure is marginally less than that of the pre-pandemic level. In 2023, the country welcomed about 1.01 million tourists while the number was recorded at 6, 14,869 in 2022. In 2019, the country was able to play host to more than 1.19 million international travellers. In 2018, the nation attracted around 1.17 million foreign visitors. 

India has been the largest tourist source market for Nepal. The data released by the Nepal Tourism Board (NTB) indicates that altogether 317,772 Indians visited the country by air last year. This figure is a drop of 0.68 per cent as compared to the previous year. Numerous factors were responsible for the decline. Recurring road accidents killing Indian travellers and rain-induced disasters contributed to the fall in the number of Indian tourists. Air crashes and exorbitant airfare hikes were also responsible for this. 

Despite this, many more Indians visit Nepal overland routes every year because of porous open border and cultural similarities. The world-famous Pashupatinath Temple in Kathmandu and Muktinath Temple in Mustang witness a large number of Indian pilgrims every year. In recent years, young Indians have been found showing their interest in hiking, trekking and mountaineering activities as well. With improved air connectivity between Kathmandu and various Indian cities, it has become easier for bilateral tourism promotion. But travellers have now been forced to pay higher airfare as flight numbers have been slashed with the start of expansion and upgradation of the Tribhuvan International Airport (TIA). As the task of airport expansion is scheduled to be completed by the end of forthcoming March, the situation is expected to return to normalcy. The TIA will be in operation with an additional capacity. 

In 2024, the United States of America (USA) was the second biggest tourist generating market for Nepal, with a total of 111,216 Americans arriving in the nation. Although the USA and Nepal are not physically close, the inflow of Americans into this South Asian nation has been on the rise. They come here to experience adventure activities like trekking and mountaineering. They are also keenly interested in wildlife safari and cultural tours. As Nepal and the USA do not have direct air connectivity, the American travellers come here via New Delhi and other transit points. 

Despite being an immediate neighbour of Nepal, China was the third biggest tourist source market for the country. A total of 101,879 Chinese tourists entered Nepal last year. China’s economic slump after COVID-19 is suspected to have been one of the main reasons for the slackness in the Chinese outbound tourist market. During Prime Minister KP Sharma Oli’s recent official visit to China, the Chinese government promised to facilitate the movement of its citizens into Nepal. It is worth mentioning that Chinese tourists visit Nepal even in off-season. The northern neighbour has announced to mark 2025 as the Visit Nepal Year in order to encourage more Chinese tourists to visit the country. Chinese government is preparing to organise various events at the national and local levels for this. This initiative is anticipated to be helpful for Nepal to have more Chinese tourists in the days to come. 

The overall scenario of tourist arrivals in Nepal looks quite encouraging. With a gradual revival of the tourism sector, the nation’s earnings from tourism has increased to Rs. 82.33 billion in the fiscal year 2023-24 from Rs. 62.3 billion in the fiscal year 2022-23. The foreign exchange reserve has also become much stronger in the current fiscal year than that of the previous years. However, the arrivals are not adequate considering the investments made in the tourism industry. Hoteliers say that hotels and resorts in Nepal now offer accommodations for more than 3.6 million tourists every year.  

Direct jobs

Meanwhile, the National Hotel and Restaurants Survey, conducted by the National Statistics Office, shows that the country’s hospitality sector generates more than Rs. 326 billion annually. The survey report mentions that the country now possesses 142,223 establishments which include hotels, lodges, resorts, homestays, hostels, restaurants and party venues. They have created a lot of direct jobs. They have also supported the national economy indirectly.  

The government needs to come up with solid plans to attract more international tourists into the country. There should be a proper coordination among the federal, provincial and local governments to boost the tourism industry. New destinations and products are required to be developed in order to make tourists stay longer within the country. It is necessary to lay focus on developing better tourism infrastructure. This alone will help generate more jobs and contribute to the national economy.

(The author is a former deputy executive editor of this daily.)