Tourism

Sector
Overview

Nepal offers a unique comparative advantage for profitable and impactful investment in diverse areas of the tourism sector, including adventure, cultural, religious, and MICE (meetings, international conferences and events) tourism. Nearly 1 million recorded tourists visited Nepal in 2017 with an average receipt of about US$ 892 per arrival. Nepal has seen consistent growth rates in the number of tourists in the last 3 years with impressive growth rates of about 33%, 35% and 29% in 2015, 2016 and 2017, respectively. This has come about due to booming outbound market of emerging and neighbouring economies and from the sector receiving high priority from the government. The government’s Vision 2020 for the sector envisions to double the number of tourists to 2 million per year by 2020. Tourism is one of the priority sectors of the government in the National Trade Integration Strategy. Planned improvements in tourism infrastructure, especially with the new international airports in Pokhara and Lumbini, technology, and technical and vocational education will make the sector more attractive. Moreover, the market for domestic tourism has grown rapidly in recent years. According to the latest figures from the World Travel & Tourism Council, the sector contributed USD 1.9 billion (7.8% of GDP in 2017) to Nepal’s economy. The contribution is expected to reach USD 2.95 billion in the next decade, even by conservative estimates. The sector supports about half a million jobs directly and more than a million jobs indirectly. The Travel and Tourism Competitiveness Report 2017 ranks Nepal high in terms of price competitiveness (19th), international openness/ visa requirements (8th) and abundance of natural resources (27th). This represents an unparalleled opportunity for investors.

Sectoral
Opportunities

Hotel and Resorts
Adventures and Sports Tourism
Cultural and Religious Tourism
Meetings, Incentives, Conferences, Events (MICE) Tourism