TOURISM IN NEPAL
Nepal is one of the world’s most popular tourist destinations. The
conflict dampened tourism to Nepal though now it is rebounding. In 2007 tourism
to Nepal reached levels not seen since before the conflict with half a million
visitors entering the country, contributing 2-3% of GDP. This number is
expected to further increase if peace and security are maintained by the new
government.
The government of Nepal is actively involved in promoting tourism,
recognizing its ability to bring in foreign exchange as well as employment.
Tourism is recognized as a labor intensive industry which employs both skilled
and unskilled workers. The Nepal Tourism Board (NTB) estimates that the average
tourist spends nine to ten days in Nepal, spending roughly $31 a day.
Tourism as a sector can contribute in a more meaningful way to the
goals of economic growth and poverty reduction. Tourism investment should be
promoted for small and medium enterprises to boost local investment, capital
formulation and value added. Through all the various value chain interventions
tourism has the potential to unlock all types of economic activity from the
goods and services used by each tourist, to the suppliers which serve the
above, and on down. Each tourist is estimated to support about 9 jobs in Nepal
through value chain interventions.
There is scope for even greater levels of tourism. At present
tourism is confined to certain areas of the country and the absorptive capacity
of tourist spending in the economy is low. If the government considers tourism
a priority industry, a national plan to promote tourism should be
developed which promotes private investment in the sector in order to widen the
reach of the benefits of tourism. However, attempts to spread tourism should
focus on viable tourism centers rather than politically motivated investments
(eg, proposed international airport in the Terai).