Nepal Investments in Travel & Tourism Accounted for 4.9% of Total National Investments, Suggests Timetric
15 Aug 2012 • by Natalie Aster
The Nepalese travel and tourism industry contributed 8.8% to national GDP in 2011, and accounted for 7.5% of the country’s total employment, supporting 963,000 jobs in total. According to the World Travel & Tourism Council (WTTC), investments in travel and tourism in the country reached NPR12 billion (US$137.2 million) in 2011, which represents 4.9% of total national investments. During the review period, the total number of trips undertaken by Nepalese residents increased from 13.6 million in 2007 to 16 million in 2011, registering a CAGR of 4.27%. This growth was primarily attributable to factors such as an increased propensity for leisure travel among the country’s urban residents, improved infrastructure, government initiatives to increase domestic tourism, and attractive tour packages offered by travel service providers.
According to the report “Travel and Tourism in Nepal: Key Trends and Opportunities to 2016” by Timetric, in 2011, the Nepalese government launched the ‘Nepal Tourism Year 2011’ campaign, with the aim of attracting one million international tourists. To ensure the success of this initiative and enhance Nepal’s tourism image in international markets, the government promoted the country in key source markets by developing a positive brand image, increasing air service frequency and allocating a higher budget for infrastructure improvements. The government targeted key source markets such as India, China, the US and Western Europe for promotions and this policy resulted in strong growth in arrivals from these regions. Furthermore, travel suppliers such as hotels, airlines and tour operators offered discounts, while some tour operators teamed up with airline and hotel operators to offer attractive travel packages to tourists at competitive prices. All these initiatives led to significant growth in inbound arrivals, with approximately 730,000 inbound tourist arrivals recorded in 2011, an increase of 21.3% over 2010 levels.
Travel and Tourism in Nepal: Key Trends and Opportunities to 2016
Published: July, 2012
Price: US$ 500,00
Following a period of significant decline, domestic tourism volumes in Nepal recovered after Maoists signed a peace treaty with the government in 2006, and the number of domestic tourists visiting various destinations within the country then increased gradually. Pokhra and Chitwan are the most popular destinations among the country’s domestic tourists, with each attracting a significant number of tourists annually. Currently, the Nepali government is focusing its efforts on increasing domestic tourism by improving tourism infrastructure and promoting key tourist destinations through campaigns. Moreover, the Nepal Tourism Board (NTB) is choosing internationally renowned individuals to act as goodwill ambassadors to promote tourism in domestic and international markets. In addition, tour operators are offering special discounts on domestic tour packages, especially during the New Year and festival seasons, in order to maximize the revenues generated during these seasons. Government measures to improve tourism infrastructure and an increasing propensity for leisure travel among the urban population are expected to drive demand for domestic tourism in the country over the forecast period.
More information can be found in the report “Travel and Tourism in Nepal: Key Trends and Opportunities to 2016” by Timetric.
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