CHAPTER-1

INTRODUCTION

1.1 GENERAL BACKGROUND

The word “Tourism” so popular today is derived from the French word
“Tourism” which originated in the 19th centuries. The word was popularized in the
1930’s,but the significance was not fully recognized until today when “Tourism” has
a wider meaning and significance. The word “Tourism” has several meanings. In
general, Webster’s New international Dictionary defines it as “Traveling for
recreation”.

We can say a person is a tourist if he goes out of his daily living zone to
satisfy his curiosity and his desire to know, to relax and recover his strength in
surrounding different from his usual environment, where as the city dwellers of any
country may travel to the outskirts of their own country for recreation. In a wide and
comprehensive term, to relax and to enjoy a change outside his country.

The travel agencies, hotels, trekking agencies, airlines, transport companies, guides,
banks etc. Tourism is the result of technical evolution In the transport and
communications by which it is the possible for people to visit countries and to
communicate to one another. And thus gradually lonely, peaceful and historical
places, as well as tourist spots are being search for, to pass the time of leisure,
retirement, off seasons of business, honeymoon, trekking, traveling, rafting and in the
mountaineering etc. This is how, tourism came into existence in the world.

1.2 EVOLUATION OF TOURISM IN NEPAL

Tourism in the part was limited to those who could travel on foot or trek, in the
face of great natural hazards because of lack of facilities such as road,
communication network and crude means of transport. Yet in those days though
Nepal is a land locked country tourism existed in some way or other. The
development of arts, architecture, culture and religion drew the attention of foreign
travelers, mostly scholars and people with missionary zeal.

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 Tourism in Nepal is said to be initiated during the Gopals, the first ruling dynasty in
Nepal . Begging impressed by Nepalese arts and architecture, many famous people
Nepal during the rolling period of lichhivis, Mallas and Ranas, but practically, tourism
in Nepal was imitated after the revaluation of 1951. The people were liberated and the
gates of Nepal were opened still wider for all foreign visitors. With the establishment
of Royal Nepal Airlines Corporation, the tourist inflow has increased considerably.
New hotels, travel agencies and restaurants were opened to promote tourism.

From the point of view of tourism, the great revolution of 1951 was a boon for Nepa
in realization of this fact , Ministry of Culture, Tourism and Civil Aviation was
established, in order to develop tourism by government sector. Also, NATA(Nepal
Association of Travels Agents) and HAN(Hotel Association Nepal) played a vital role
in development of tourism from its initial stage to the present stage.

In the present contest, the government and private sector jointly trying to develop the
infrastructure for the tourism, Nepal tourism board was established, Many
international chain of hotel were entered and organized different tourism promotional
activities such as ‘Visit Nepal 2020’, ‘Destination Nepal 2020’ and additional
different festivals were organized, which represent ‘Nepal as of its own’.

1.3 OBJECTIVES OF TOURISM

1. To promote tourism industries for their development as a major basis of
national economy as a result of the creation of self employment through
diversification and expansion of tourism by means of integration of ecotourism
and rural tourism with poverty alleviation for the improvement of living
standards of general public .
2. To develop Nepal as an attractive and major tourist destination by exploring,
conserving, developing and promoting tangible as well as intangible, natural,
cultural, biological and human made heritages.
3. To develop, expand and promote tourism by means of easy, safe, reliable and
regular air and land transportations.

2
 4. To sustainably use natural resources and means and protect the environment
while using natural resources and means in the course of development and
construction of tourism infrastructure.

1.4 REVIEW OF LITERATURE

This chapter highlights the literature that is available in concerned subject as to
my knowledge, research work and relevant study on this topic, review of
journals articles and review of project work performed previously. The review
of literature has been divided in two categories namely conceptual framework
and theories related to the topic and review of articles, books, and master's level
project work.

1.5 SCOPE OF TOURISM IN NEPAL

In Nepal, tourism is important not only because it is an important source of foreign
exchange but also a major employment generator. Directly and indirectly Nepalese
people are getting benefits from tourism, many people are getting employment from
this sector .as a part of cultural role ,of tourism ,the incentive to local crafts and
industries and artistic skills of the people is increased because of the demand for local
products. Folklore, tradition ceremonies, art and industry are revived because tourists
are interested in them. By the medium of tourism we can exchange knowledge and
create understanding among the people of the world. Tourism provided us an
opportunity to understand the society, habits, food and the way of life of the people of
different nation . Socially and culturally, it is a product which encourages intellectual
curiosity amongst people and nations and develops a healthy respect for another’s
beliefs and customs.

1.6 PROBLEMS AND PROSPECTS OF TOURISM IN NEPAL

1.5.1. Problems of tourism
In spite of tremendous importance and huge potentialities of developing tourist
in the country, it could not be developed rapidly on the account of the
following problems.
 The lack of attention paid by HMG to maintain standard in tourism
industry.

3
  Government steps towards individual are still unsatisfactory.
 Basic requirements needed for the development of tourism are still
inadequate.
 The lack of clear-cut and comprehensive National Tourism Policy.
 Manpower trained by training center HMTTC is still unsatisfactory.
 The lack of limited seats available in airlines for different destination.
 The lack of personnel security.
 The problems of Hawkers and Brokers.
 The one of great problem is pollutions.

1.5.2. Prospects of Tourism in Nepal

Nepal is probably one of the most fascinating and beautiful country in the world.
Tourists visit Nepal to experience the worlds famous Himalayan peaks, unique
architecture reserved in Ancient towns and the warm welcome of ever smiling people.
It posses numerous possibilities of developing tourist traffic because there are on the
country unique geographical features and cultural charms. The main features of
tourist possibilities in the country may be outlined under following points.
 Because of unique situation on the southern side of the mighty Himalayan or
Mountain, there are numerous scenic beauties in various sector of the county.
There are snow capes mountain peaks with grand glaciers sliding down
through narrow valleys. Some parts are bare rocky ranges with splendid
landscape, some parts are forested ranges with charming scenery, some parts
are spotted with pleasant lakes, springs and falls, some parts are carves by
several winding rivers and river lets jumping down through steep mountain
valley and Georges. These and many others are the alluring grandeurs of
nature on various mountainous parts of Nepal.

 There are many famous temples, stupas, holly centers and durbar squares on
various zones of Nepal. The temples of Katmandu valley are great religious
and cultural importance, because their walls and windows have been so carved
and painted as to present various arts culture and beliefs of the ancient people
on Nepal. There are also places of early kings on which are manifests several
cultural and architectural glories of ancient Nepal.

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  The main centers of great trousistic importance are Katmandu Paten,
Bhaktapur, Kritipur, Pokhara, Lumbini, Manang, Jomsom, Dhulikhel,
Helambu , Gosainkunda and so on.
 Furthermore, Nepal is a country where land route follower tourists feels
tremendous relief to be here and find peaceful surrounding and good
environment. Perhaps, it may be sue to the friendly Nepalese people and
hospitable by nature, the tourist will have no difficulty in adjusting in general.
These all are great attraction to tourists.

1.7 PURPOSE OF THE STUDY

The main purpose of this fieldwork study is as follows: -

a) To evaluate the trend of tourist arrivals and income generates through them.
b) To study the growth of tourism in terms of the development of various
branches like hotels, Airlines, Travel agencies, Trekking agencies and Rafting
agencies etc.
c) To highlight the employment generation provided by tourist industry.
d) To study problems and prospects of tourism.
e) To asses the efforts lf HMG for the development of tourism in Nepal.
f) To provide suitable policy and recommendation.

1.8 METHODS OF DATA COLLECTION

Attempts have been made to gather information from different reliable sources as
possible.
This report has been prepared according to the data availed by Hid Majesty
government Ministry of Culture, Tourism and Civil Aviation, Nepal Tourism board.
Besides various related books, research paper and publications from Tribhuvan
University of Kirtipur library are consulted, many suggestion and solutions to this
study are derived from foreign as well as local magazine, related to this sector.

This report id prepared in order to bring into the prominence to unsatisfactory position
of tourism in Nepal, the slow activities, the urgency of its development and some
important problems hindering its development.

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 CHAPTER - 2
RESULT AND ANALYSIS

2.1 PRESENTATION AND ANALYSIS OF DATA

The main objective of this chapter is to present and analysis all the information and
collected dada gets the result to meet the objective of the study.

Table: 2.1
Tourist Arrival (2005-2017)
Total Growth By Air Percent BY Land Percent of Average
Year Number Rate % Number Of Total Number Total Length of stay
2005 375398 -2.6 277346 73.9 98052 26.1 9.09
2006 383926 2.3 283819 73.9 98052 26.1 10.20
2007 526705 37.2 360713 68.5 165992 31.5 11.96
2008 500277 -5.0 374661 74.9 125616 25.1 11.78
2009 509956 1.9 379322 74.4 130634 25.6 11.32
2010 602867 18.2 448800 74.4 154067 25.6 12.67
2011 736215 22.1 545211 74.1 190994 25.9 13.12
2012 803092 9.1 598258 74.5 204834 25.5 12.16
2013 797616 -0.7 594848 74.6 202768 25.4 12.60
2014 790118 -0.9 585981 74.2 204137 25.8 12.44
2015 538970 -32 407412 75.6 131558 24.4 13.16
2016 753002 40 572563 76 180439 24 13.4
2017 940218 25 760577 81 179641 19 12.60
Total 8,258,360 156.5

(Source: Nepal Tourism Statistics 2017)

Average Tourists arrival per year =8258360/13 =635258.46
Average length of stay =156.5/13 = 12.03

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Analysis of data
Figure 2.1
Tourist Arrival Trend In Nepal 2008-2017

1000000

500000

0
2008 2010 2012 2014 2016
Year

The number of tourist arrival in Nepal is increasing progressively during the period
2008-2017. However, in the year 2008, 2013, 2014 and 2015 there are decline by –
5.0%, -0.7%,-0.9% and –32%.Even though the number of tourist arrivals are
increased but growth rate are decrease in different year. The average tourist visit per
year is 635258.46 but there highly decrease in year 2015 and 2008. The average
length of stay is 12.03 days but there have been comparative decrease in years 2008, ,
2009, 2012,2014 and all year there after in present. It may due to many responsible
factors they are:

 Airfare different between European destination in south Asia and India.

 Lack of publicity in international tourism market.
 Massacre of royal family.
 The fluctuation of Nepalese currency.
 The tourist disturbed by Gulf war.
 The moist problem of Nepal.
 The political revaluation and instability in Nepal.
 Increase in pollution and lack of facilities etc.
 The important factor is the lack of direct air-link between Nepal and
west Europe.

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 Table 2.2
Tourist Arrivals By Month Compratively
2016 AND 2017

Month 2016 2017 % Change

January 42235 62632 48.2
February 60821 84061 38.2
March 76444 106291 39.04
April 60214 88591 47.12
May 46683 62773 34.46
June 38852 55956 44.02
July 48115 42240 -12.21
August 66341 73778 11.21
September 74670 68634 -8.9
October 89281 112492 26.9
November 72990 99804 36.74
December 76356 82966 8.66
Total 753002 940218 24.86

Figure: 2.2
Tourist Arrivals By Month (2016 And 2017)

120000 2016
100000 2017
80000
60000
40000
20000
0

In this contain comparison of tourist flow in two year by details firm with given in
change and how increase and how decrease in view of flow.

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The given table shows that the tourism flow in Nepal is highly increase in 2016 and
2017 in Nepal. All most of countries a few number only low increase in the total
number of present increase by 24 in year 2016 comprising of 201

Table: 2. 3
Tourist Arrivals by Nationality
2016 and 2017 AD
Nationality 2016 2017 % Change
Australia 25507 33371 31
Canada 12491 15105 21
U.S.A. 53645 79146 48
Thailand 26722 39154 47
U.K 46295 51058 10.28
Netherlands 11453 13393 17
Sri Lank 57521 45361 -21.14
Bangladesh 23440 29060 24
Brazile 25171 24301 -3.45
China 104005 104664 0.63
France 20863 26140 25.32
Germany 23812 29918 26
India 118249 160832 36
Italy 9911 11840 0.19
Japan 22979 27326 19
South Korea 25171 34301 36.27
Myanmar 25796 30852 20
Spain 12255 15953 30.17
Others 119245 174460 46.30
Total 764531 946235 24

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 Table 2.4
Tourist Arrivals By Purpose Of Visit (2016 And 2017 )

Purpose of Visit 2016 2017 Total %Change

Holiday Pleasure 489451 658153 1147604 34.5
Treaking & Mountaineering 66490 75217 141707 13.12
Business 24322 - 24322 ------
Pilgrimage 82830 141033 223863 70.26
Official 21310 - 21310 -------
Conv. Conf 12801 - 12801 -------
Others 55797 65815 121612 18
Total 753001 940218 1693219 25

Figure 2.4
Tourist Purpose Of Visit 2016/2017

Offical Conv. Conf Others

1% 1% 7%
Pilgrimage 13%

Business Hiliday Pleasure

2% 68%
Treaking
&Mountaineerin
g
8%

TOURIST ARRIVAL BY PURPOSE OF VISIT

It is noted that tourist visiting Nepal indicates that there main purpose of visit
as sightseeing and pleasure (Holyday pleasure) and second main purpose of
visit as trekking and mountaineering. In between two year 2016 and 2017,

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68% of overall tourist visited in Nepal for holyday purpose, where as 8%
visited for trekking and minimum number of tourist are for convent and
office purpose, it covers only 1% and 1x %. The government and private
sector may due to lack of publicities and facilities provide it.

Table 2.5
Tourist Arrivals By Age Group & Sex
2016 VS 2017
Age Group 2016 2017 % Change
1-15 Yrs 29825 35332 18.46
16-30 Yrs 154960 217143 40.12
31-45 Yrs 218479 292827 34.02
46-60 Yrs 199139 244342 23
61 & Over 130627 141316 8.18
Total 733030 930960 27.00
Male 399091 509585 28.00
Female 353911 430633 22.00

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Figure:2.5
Tourist Arrival By Age Group &Sex 2016 Vs 2017

Thousands
2017 600
2016
400

200

01-15 Yrs 16-30 Yrs 31-45 Yrs 46-60 Yrs 61 &Over

The increment nature of gross foreign exchange earning is one of the main
contributions of tourist industry to national economy. There is no stability in foreign
exchange earning in between year 2003-2017. The average foreign exchange earning
from tourism
is $329291.4 per year ,but in the years 2005-2006 the earning is lower than the
average earning .In the fiscal years 2005,2006, 2011, and 2016 there are decreases in
the growth rate of foreign exchange earning by –2.1,-1.6,-9.9 and –27.8 percentage
respectively. It may be due to the many responsible factors like:
- The decrease in the number of arrival of tourist
- The fluctuation of money market in the world.
- The increase in price of airfare, Hotels, Restaurant, Transportation etc.

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Table 2.6
Gross Foreign Exchange Earning From Tourism

Year Nepali price

Total(Rs)
Ea Earning us$(000) Growth Rate%
2003 10369409 134245 -
2004 12337977 168136 25.3
2005 11814853 164644 -2.1
2006 11710893 162086 -1.6
2007 12645761 180165 11.2
2008 20339890 314275 74.4
2009 27959800 365106 16.2
2010 28138600 379022 3.8
2011 24610800 341485 -9.9
2012 30703820 380374 11.4
2013 34210576 390264 2.6
2014 46374900 471769 21.4

2015 53428800 544100 15.2

2016 41765400 392700 -27.8

2017 58526918 551000 40.03

Total 424938397 4939371 180.13

Average foreign exchange earning per year =$4939371/15=329291.4

In this table of 2003 to 2017 the growth exchange earning amount is shown. Above
the figure the amount of 2003 is $134245 from this year the rate is at increasing and
decreasing period. Now at the average earning rate from 2003 to 2017 is $ 329291.4 .

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Figure 2.6
Gross Foreign Exchange For Tourism
2003-2017

180000000
160000000
140000000
120000000
100000000
US$

80000000
60000000
40000000
20000000
0

0 3 0 5 0 7 0 9 1 1 1 3 1 5 1 7
20 20 20 20 20 20 20 20
year

The increment of growth foreign exchange rate is up and down according to the
figure 2.6. The gross foreign exchange for tourism amount in 2003 is $134245. But
in the case of 2005 the foreign exchange gross rate is at increasing rate which is
$16464. But the decreasing rate of 2005 is -2.1%. In this way from 2003 to 2017
the growth exchange rate for tourism is up & down which shown above the figure.

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CHAPTER - 3
SUMMARY AND CONCLUSION

3.1 SUMMARY
Tourists travel different places in order to satisfy their wants. To gain new knowledge
and to explore new places are the main theme of traveling .The experience gained by
early enterprising navigators like Columbus, Magellan, Vasco-de-Gama etc are highly
remarkable. Though it was hard to imagine in ancient time it has become very popular
with the rapid development of different from of transportation specially the air –ways.
Tourism is anything, which is designed for the pleasure and comfort of tourists.

Although, Nepal is a small and poor country but rich in resources and natural beauties.
Nepal has wider prospect in promoting tourism because it is probably one of the most
fascinating and beautiful country in the world. Nepal also posses immense possibilities
of developing tourist traffic offering various materials sceneries, unique geographical
features, cultural charm, interesting festival etc which are the basic factors of
developing tourism. Hence, it is no doubt, that there is a great scope of developing
tourism in Nepal.

In real sense, tourism in Nepal can be traced only after democracy 1951.Prior to this
foreigner who visited with tourism purpose were very limited in number. Tourism is
important not only for earning foreign exchange but also important for unemployment
problem, balance of payment strengthening, diplomatic relationship, cultural
exchange, trade diversification etc. Thus it has become one of the very essential
factors to uplift our national economy.

Total tourist arrival was 940218 in 2017 representing increase of over the previous
year. Tourist Arrival by nationally give in all most countries and all are increase with
highly percentage.

In order to promote and encourage tourists, visit Nepal year 2017 was organized in the
joint venture of the His majesty’s Government & the private sector. Whose main
target to receive 5,00000 tourist in this year and lengthen their stay. However the

15
actual data is not available but it is estimated that almost 4,63000 tourist have visited
in this duration.

However the decrease inflow of international tourists can be traced back to insecurity
feeling raised during the period. Besides inadequate or insufficiency of facilities are
also responsible factor for that considering its growing importance in the context of
Nepal. To eradicate difficulties and lack in the facilities in this sector, HMG and
private sector should have taken concrete steps in developing and in breaking through
this strategic problem in tourism.

3.2 CONCLUSION
Regarding the importance of tourism in Nepal, different concrete steps have been taken by
government as well as by private sectors. Tourism has been given a significant place in National
place as such a separate ministry of tourism was formed in 1977 and also Nepal tourism Board was
formed in 1998 destination Nepal 2002.

In the last 13 years the average tourist visit per year is 635258.46 and the average
length of stay is 12.03 days and the average foreign exchange earning is $329291.4.
The tourist duration is still shorter. It is due to inadequate resort center, shopping,
outdoor report, recreational activities, sightseeing, programs, package tour etc.

16
 BIBLIOGRAPHY

Agrawal, G.R. (1999), Marketing In Nepal Kathmandu: M.K. Pblisher And Distrib
Utors
Armstrong, P. & Kotler, E. (2001). Principles of Marketing, New Delhi: Prentice Hall
of India Pvt. Ltd.
Chaudhary, R. P. (1990). Advance Marketing, First Edition,Varanasi: Trimurthy
Prakashan.
Kafle, G. D. (2002). Marketing Management. Khanal Books And Stationery,
Minbhawan, Kathmandu
Katler, W.(1997). Marketing Behaviour Executive Action, (Homewood And
Decisions, New Jeresey: Prentice Hall Inc,
Kotler, P. (2003). Marketing Management, Pearson Education (Singapore) Pvt. Ltd.
India Branch
Ministry of Culture, Tourism & Civil Aviation Planning & Evaluation Division
Research & Statistical Section Singha Durbar, Kathmandu
William, L. & Eugene, J. K.D (1962). Managerial Marketing, Perspective And View
Points, Homewood, Ii, Irvin

Website
www.tourism.gov.np

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 APPENDICES
APPENDIX 1
A CASE STUDY ON MARKETING PRACTICE OF IMPLEMENTATION OF
TOURISM IN NEPAL

Dear respondents .
I am a student of Bachelore’s degree in business studies (BBS) Shanker Dev Campus,
Tribhuvan University . I am conducting a research on “A CASE STUDY ON
MARKETING AND IMPLEMENTATION O F TOURSIM IN NEPAL” .This study
is carrying out for academic purpose only. I assure that all the provided information
will be kept confidential and only aggregate analysis will be done
.
Q.No.1 Do you know how many tourist arrival
 Satisfied
 Most satisfied

Q.No.2 Tourist arrivals by month compratively

Satisfied
most satisfied
Not satisfied

Q.No. 3 How many Country's tourist arrivals by nationality

Australia
Canada
USA
Thiland
UK etc.

Q.No. 4 Are you currently Travelling ?

 Yes
 No

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Q.No 5 What additional features would you like tourism sector?
 Travelling
 New place
 Trekking
 Food
Q.No. 6 What factors influence the choice of Tourism ?
 Advertisements
 Family influence
 Experience
 Peer suggestion
 Personal

Q.No. 7 Since when have you been starting the trekking and travelling ?
 Less than 6 months
 More than 6 months

Q.No.8 What was the source of information for the present Toursim??
 Friend
 Television
 Newspaper
 Relatives
 Others

Q.No. 9 In your opinon how effective was the advertisement appearing on outsource?
 Very much
 Average
 Below average

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