Tourism in Nepal: Industry Details

The word TOURISM refers tour which is derived from the Latin word “TORNUS” . It means a tool for describing a circle of turner’s wheel (Bhatia, 2002). It is very important pleasure activity where tourists travel from one to another countries and one region to another region as well.And Tourism also involves money for getting services and time.So, it basically result for temporary visit or move from their place to other places.Therefore facilities provided to visitors to satisfy their wants and needs come in tourism activity.

Tourism is increasing expanding activity in national or international level.So nowdays it has become serious concerns for any national.

Nepal is a very small and natural beautiful country where almost 82 percent people are engaged in agriculture even though the agriculture sectors contribute only 55 percent on the gross domestic product and 50% of the total export. It is always put in the major or first priority in every periodic plan. And there is always huge budget amount for agriculture.

Get quality help now
Prof. Finch
Verified writer

Proficient in: Economy

4.7 (346)

“ This writer never make an mistake for me always deliver long before due date. Am telling you man this writer is absolutely the best. ”

+84 relevant experts are online
Hire writer

But the productivity is going always downwards because of structure problem raising in Nepal. For example Topographical conditions, lack of irrigation facility, lack of modern technical use and lack of commercialization. Like agriculture, manufacturing sector is also not very good in Nepal it has provided only 10 percent employment and it has only 20 percent contribution on gross domestic product.

There has a lots of investment and efforts to developed industrial sector but the result is always embarrassing. Nepal is a second richest county in the water after Brazil and has green forest everywhere.

Get to Know The Price Estimate For Your Paper
Number of pages
Email Invalid email

By clicking “Check Writers’ Offers”, you agree to our terms of service and privacy policy. We’ll occasionally send you promo and account related email

"You must agree to out terms of services and privacy policy"
Check writers' offers

You won’t be charged yet!

Even it much stronger in mineral resoures, because of low investment on it, lack of modern techniques, lack of investors and deforestation, Nepal is not able to utilize these resources and giving more contribution in Gross domestic product. There are three major sources of convertible foreign exchange in Nepal, they are : 1. Foreign aid 2.Merchandise export 3. Tourist expenditure. Tourist industry is expanding industry in Nepal because of its enormous potential. Nepal is one of the richest country in the world because of its historical history and natural beauty, some people use to call natural beauty and some people like to call unique museum in the world. It is situated 60 meters above from the sea level and up highest pick of the earth, that is Mountain Everest at 8848 meters and it has distance of around 150 kilometres.

And the country of God Buddha’s birth place where more than 70 languages spoken.It has the best sight seeing of the world. In Nepal, there are so many traditional festival celebrates highlighting various customs and beliefs, so here it can be seen Nepal has comparative advantages in development of tourism because of various attraction, like : natural topography for example Mountain Everest, attractive valleys, beautiful landscape and heritage. Because of huge amount of potential in the tourism, many country concerned it as best destination. The “Observer” and “Guardians” the famous British publication had straightly described Nepal is the second tourist place after New-Zealand from the prospective of tourism.

Nowadays, Tourism industry has concerned as one of the major industry in Nepal. More than 1.5 million people are engaged in Tourism industry as direct and indirect. According to the data Tourism contributes 3 percent in Gross domestic product and also tourism industry earning 15 percent foreign currency to total foreign currency and 30 percent of total revenue(NTB, 2005).Tourism providing the opportunities of employment, foreign currency earning, promotion of art and culture, promotion of local and small business like handicrafts, promotion of historical and regional places, increasement of per capita income, utilization of resources, welcoming of new-technology and ideas. But unfortunately, from couple of years the status of tourism industry was not going well, Because of the recession in the Nepalese economy, Moist fighting with the government and political instability. But there are some improvement in the tourism industry after celebration of “2011 tourist festival year”.

Policies of Nepal
(a)The first five year plan (1956-1961): This was the first five year development plan which was initiated in 1956 up to 1961, which had estimated budget was 576 millions for development,where the first priority was transportation and communication which held 36 percentage of total estimated expenditures. Agriculture and irrigation took second priority including development of village and it had 20 percent budget of total expenditure. This plan also focused on statistical tools but it was not so convinced.But the problem of first year plan was, because of high margin only two- thirds amount used in development target about 382.9 million only used.So, first five year plan missed a lots of it’s targeted at last it’s resulted was not satisfied. For example 1500 kilometers of highway construction were targeted but the only 570 kilometers were built in the first five year plan because of high margin.

(b) The second plan (1962-1965): The second five year plan came late because after parliament, the plan which was established under act of 1959 was suspended in 1960. the second plan was not established up to 1962 early, and it came for three years to recover.This plan had estimated budget of 615 million expenditure. This development plan had also put transportation and communication in first priority about 39 percent of total expenditure.Where tourism, development of industry and social services was second priority.There are some improvement in Tourism industry and development of industries, education, road construction and telephone installation and irrigation and some strong development in organization but even though main target were missed in the second plan as well. So, this plan was not satisfactory like first plan.

(c) The third five year plan (1965-1970): In the establishment of this plan, mainly involvement was local panchayat (society). Like previous plan, this plan had also main target in the development of transportation and communication in the top priority where agriculture,education, tourism, construction of road, telephone and tetrarch was second priority. This plan had estimated expenditure was about Nrs 1.6 billion which was far more than privious first five year development and second development plan. But here as well, the result was not satisfactory.

(d) The fourth five year plan (1970-1975): This plan had more than double estimated expenditures of the third five year plan, which had estimated plan about more than Nrs 3.3 billions. Transportation and communication had in the first priority like previous three plans was about 41.2 percent of total expenditures. Where agriculture was in 2nd top priority which had held about 26 percent of the total budget. In the process of making plan, government felt difficulties of statistical proper data, so local society have familiar with the main problems so in the third and fourth five year plan the involvement of local society( panchayat) was increased. And central government had carried most of the responsibilities.

(e) The fifth five year plan (1975-1980): In this fifth five year plan, first time the problem of poverty was addressed so there was not any main goal was mentioned which had estimated budget Nrs 8.8 billions. In this plan top priority was different than previous four plans, here the first priority was given agriculture development because 82 percent of total profession of Nepal was,increasing in food production, development in the sugar cane industries and development in tobacco agriculture had put in the The fifth five year plan, Where this plan mainly focused on increased in production and development of social services. The increasing population of Nepal was also the main reason poverty so controlled on it was also in the priority of the fifth five year plan. Where had lots of promotion and programmed introduced to control population of Nepal. As a result it had seemed far better results than previous four plan.

(f) The sixth five year plan(1980-1985): This plan had almost same priority with more than Nrs 22 billions. Agriculture had remained on the top priority where increased and development of the social services and tourism was second priority. But here, this plan had not ready to spend more on transportation and communication even though knew about importances of transportation and communications. As a result transportation had to stay in limit point but there had some areas if it could more investment on transportation, it would be more beneficial than to spent on agriculture and development of industries.

(g) The seventh five year plan (1985-1990): This plan had better statistical data to which helped to establish good seventh five year plan.It had Nrs 29 billion estimated expenditures, which had mainly encouraged to private sectors for participation in the economy almost Nrs 22 billion and local government had participated of Nrs 2 billion.And this plan had mainly focused on target of development and increasing in production of all sectors, providing opportunities for productive employment and anyhow fulfilling of certain level of basic needs of people. This was the first plan where the basic needs of people was also included, like food, cloth, shelter, education(primary school level education and skilled based education), freedom, fuel wood, health care, drinking water, and transportation for rural areas was also included in this plan.

Challenging factors for local hotel of Kathmandu

Kathmandu is the capital city of federal republic of Nepal. It is one of the big valley which is surrounded by big mountains and hills. The population of Kathmandu in 2012 at 1,006,656 and it’s municipal area is 50.67 square kilometres and it’s population density is 19,500 per km². The main attraction in Kathmandu from tourist point of views are: Kathmandu durbar square: It is situated in the main part of Kathmandu, where the attractions are Kathmandu’s temple which is build from 13th to 17th century, theTaleju temple, The Shiva Parvati temple and Maiju temple and also famous for local and unique handy-craft stuffs. Swambhhunath Stupa (Temple): It is one of the biggest Buddhist temple in Nepal which is situated on the top of the hill and also known as monkey temple because of a lots of monkeys available over the hill.

A golden spire crowning a conical wooded hill, Swayambhunath ancient and enigmatic of all the holy shrines in Kathmandu valley. Pashupatinath temple: The pashupatinath temple is situated near the only one international airport of Nepal. Pashupatinath temple is the one of the biggest temple for Hinduism which is dedicated to Lord Shiva. The non- hindus are not allowed to enter in the compound of temple but they can have good view of whole complex from the higher vantage point. Thousands of devotees gather in the mahashivaratri festival ( born day of Lord Shiva) from other countries as well. Nagarkot : Among all the places of viewing mountains in the kathmandu, Nagarkot is always considered as best place, which is located in 32km east of kathmandu. These world’s highest Mountains can be seen from Nagarkot: Mountain Everest (8850m), Manaslu (8463m),Langtang (7246) and Ganesh Himal (7111m). Nagarkot is the transit point of Helambu and Lang- Tang trekking and even Nagarkot is good for mini trekking itself.

2. Economic condition of Nepal : ( The Kathmandu post, 2011) Nepal economy has got some success in social sector and has increased per capita income but still its not enough for development of economic condition of Nepalese people which affected to the Hotel industries of Kathmandu, Here Nepal economy survey of 2011 shows that the avereage salary or income of Nepal has increased last year, It shows there is some increament in Nepal’s per capita income which was 561 dollar (Nrs 40,027) reached up to 645 dollar (Nrs 46,020) according to the last Fiscal year survey. This increasement in income has resulted to increased in consumption. And according to survey Saving compared to the gross domestic product (GDP) is expected to remain at a only 6.7 percent it is the lowest figure in 11 years. Its because of the rise in consumption expenditure, like petroleum products rate has increased 13.2 percent in only 8 months. Last inflation has changed the life style of Nepalese economy.

So, these poor per capita income of Nepalese people shows that they are always engaging in their work to earn money, to balance high increased rate of consumption, to save money which prove they cant effort to visit places, they do not have enough budget to visit other places accoridng to shows that for one night stay in The Everest Hotel of Kathmandu charges around £100 pounds (Nrs 14,000), In fact its more than three months salaries’s of Nepalese people. There are other cheap Hotel available as well from £25 pound but even though its hard to manage for local people, so it means Kathmandu’s Hotel are also effected by the Economic condition of Nepal, because they only can expect foreign tourists for stay in their hotel.Where as, in Developed country like England, France, Italy, USA etc has their own local customers. This Economic condition of Nepal is also concerned as major problem of Kathmandu,s Local Hotel of industries.

3. Transportation Problem: Nepal is landlocked country which is situated China in the North and India in the south.Nepal has so many mountains which is concerned as problems for roads and aviation are the major way or modes of transportation. In Nepal there are only two types of transport available in Nepal they are, Road transport and aircraft and Nepal has railtransport as well but for only about in 51 kms in one part of Nepal which is Janakpur. There is no any sea in Nepal so there is no sea transport which could be very cheap. In first five year plan (1956-1961) had given first priority to transportation . In 1951, in Nepal there was only 276 kms was established in Nepal but then it was increased in 15905 kms, where 4617 kms was black top roads, and gravelled road was build 3959 kms, 7329 erthen roads according to data of 2001.

Roads: Nepal total road network capacity is very low and only 43 percent of the population has acccess to all weather roads. Above 57 percent of the road network is concerned as lowland (terai) areas of the ocuntry, But according to the figure of 2007 transportation represented that the 17, 282 km road had already constructed in Nepal, and this transportation network has increasing by 5 percent almost every year. from last ten years data, it has faster growth up to 2002, and between the 2003-05 period an additional 575 km of road which is equivalent 3.5 percent of the existing length were built. But in the rural ares it seems growth faster than terai about 6.7 percent every year With this very poor condition of road network is effecting in the growth of Hill area and Mountain’s area as well, which effecting in countries economic condition, becasue of the poor condition of roads, tourists got embarrassing and lost their destination areas. Because of poor road transportation, Hotels industry of Kathmandu obligate to loss in their guests and lost in their business.

Air transportation : In the other side Nepal has only 42 local domestic national airport with one international airport. Most of the airports are green field of without proper navigation system. Lack of care and development plan it is not well use, The condition of an aeroplanes and helicopters are also not good. Which creates fears in the mind of tourists which reduces the tourists day by day, which is also major challenging for Kathmandu’s hotel.

© Railways : Railways is always easy and cheap transportation, Nepal neighbour’s country India has huge railways and make billions dollar in a year. But Nepal has just only 57 km total physical railways lines. Nepal Railways company owns only the 53 kilometre narrow – gauge rail line, which is divided in to two section the first one is from Janakpur (part of Nepal) to Jayanagar ( part of India) and second is again Janakpur to Baijalpura about 21 kilometre but which is still not operational. Lack of easy and cheap like rail transportation, tourists is not so much interested to visit Nepal. Even Kathmandu is central point for tourists losses every year.

Reasons for Losing tourists by Kathmandu’s hotel because of transportation sector mention below they are as follows : (a) Lack of suitable and well planned transportation policies and effective implementation strategy in transportation, (b) Not enough strong capacity held by local agencies, very poor monitoring, cheater constructor and not clear accountability of public sector agencies. (c) Depending on foreign assistance, poor resource mobilization from domestic in the transportation sectors. (d) Weak estimated budget passes from government that’s why around 60 percent road construction are built by foreign contribution. (e) Weak control and maintenance of transportation.

Electricity problem: Nepal is the second richest country in the water resources but still Nepal facing problem in hydroelectricity. Everyday electric current goes off for hours and Nepalese people are compelled to live in without electric lights. Lack of strong investors, proper plan and implementation is the main reasons. There were some hydroelectricity project but it became old and new effective plan hasn’t come yet. And current estimate of Nepal has approximately 40,000 MW capacity feasible hydro power but Nepal has able to develop only 600 MW of hydro power. The demand of electricity increasing per year by 10 percent.

In Nepal tenth five year plan (2002-2007) had main aim to development in the hydroelectricity and export to neighbor country India. But the fact is the load shedding has emerged as major problem of Nepal. In this situation Kathmandu’s Restaurant, pub, Club, cultural programme’s club and Hotels are not able to open upto late because of loadshedding Kathmandu has losses it’s glory night’s life. some big hotels of Kathmandu are using genetor even their cost is going high but for the local and small hotels they do not have option except closing business. Here we can see, one loadshedding table of Kathmandu which had published in Yalamandu post of Kathmandu.

Barriers to travel: In the other side, the uncontrollable barriers is also concerned as challenges of Kathmandu’s Hotel. There are so many reasons that people do not want travel extensively or do not want at all. And this barriers to travel are divided in to six categorized. They are following as : (a) Cost: cost is very important factor for travelers. It the cost of travel is reliable and manageable It can be motivated factor for People, But the same time If people feel the cost of travel is expensive not manageable so in this condition people do not want travel. Cost seems main reason for staying in home. According to survey in on the subject matter, In the United states fifty percent of the people can not go for holiday because of High costs. and above ninety percent of people from India who does not prefer to go holiday because of High costs. so this cost factor also applies for Kathmandu hotel, because it reduces the customer as result reduces demand of Kathmandu’s Hotel as well. (b) Time : Time is very important factor to motivate for travelers, Many people do not travel because they can not manage the time or they do not have time to visit. Majority people they do not leave their work or business for vacations reasons.

Time is also concerned as challenges factor by Kathmandu’s Hotel. (c) Health Limitation : Poor health people and physical limitation people do not travel because of restriction to visit. Especially for old ages people they do not want travel because of their poor health reasons. Which is also one of the demotivated factor or can say reduces factor for demand of Kathmandu’s Hotel. (d) Family stages : Some times the interest in travel also depends upon what type of members have in family, for example parents of small baby’s they do not prefer to travel because of their obligations.And also if parents health are poor so young people do not travel to look after their parents. Widows and singles sometimes do not travel because of the lack of travelling companions. (e) Lack of interest : This is also major concerns challenges for Kathmandu’s Hotel. Some people they do not have interest to travel, they only like to work and stay home. (f) Fear and Safety : Nowadays It has become main reason not to visit in Nepal, that is fear and safety. War in country, fighting, kidnapping and negative publicity of country or place can be create fear in the mind of travelers, like plane high jacking, violence in airport, bomb blasting.

Cite this page

Tourism in Nepal: Industry Details. (2016, Apr 02). Retrieved from

👋 Hi! I’m your smart assistant Amy!

Don’t know where to start? Type your requirements and I’ll connect you to an academic expert within 3 minutes.

get help with your assignment