Unit – 2 within that country. The geographical setting is the national territory.
It
Domestic and International Tourism
2.1 Domestic Tourism
Meaning
Domestic tourism is being undertaken by a resident of any
country within the boarder of his/her nation for example, when a
Nepalese visits any part Nepal then his tour is treated as domestic
tourism.
Domestic tourist designates any person who travels within the
country where he recites to a place other than his usual place of the
residence for at least 24 hours or 1 night for a purpose other than
exercising a gainful activity and which may be classified under one of
the following headings.
a. Leisure (recreation, holiday, health, study, religion and
sport)
b. Business, family, mission and meeting.
There is not yet any internationally accepted definition of
domestic tourism. However, three elements that is place of residence,
geographical setting of travel and duration of travel are common to the
definition normally in use. With regard to place of residence most
countries regard domestic tourism is travel by a country’s residents
is indicating many places within the country that draw attention of the
domestic tourist’ duration of travel is an important element in a number
of definitions. Two further elements are common to the definition of
domestic tourism. That is distance traveled and travel motivation. With
regard to distance traveled, some specify a minimum distance. The
distance may be between 40 Km to 160 Km. the concept of the travel
motivation is considered important by most of specialists. The domestic
tourist is generally considered as a person traveling for a purpose other
than earning activities. Sometimes, domestic tourism is only considered
as holiday or leisure travel only. The tour organized within the boundary
of a nation is called domestic tourism. Fit embraces getting the
entertainment and pleasure by visiting various spectacular places of the
nation. The persons involved in this tourism generally use domestic
language which is common to all, home currency or domestic currency
and health benefits or facilities.
2.2 Features/Characteristics of Domestic Tourism
Domestic tourism historically speaking, is in fact the first form
of tourism that was practiced and today, it continues to account for the
most part of this activity by far. It is the organization of tour within the
boundary of a country. The persons involved in this tourism are
domestic tourists. They aim in either to takes rest, discover new things,
meet others or to have a unique experience from the tour. In general,
there are two categories of the persons in tourism point of view. One
who can be tourists and another who can only receive them. UNWTO
economists estimate that at the global level domestic tourism represents.
a. 73% of total overnights in. b. 74% of arrivals and 69% of overnights
at hotel and c. 89% of arrivals and d. 75% of overnight in other
accommodations or non – hotel. There statistics enable us to foster on
following features of domestic tourism:
i. Domestic Tourists have Information’s About the Locations:
Domestic tourists know various information’s about the destination,
language, its custom, lawns, climates and culture. Domestic tourisms
are more demanding, especially when ii comes to the quality of
product and also with regard to their consumer protection right.
Discovery encountering others, experiencing something unique states
a very wide diversity of the destinations and tourism activities.
Similarly, domestic tourism is practiced more in a sedentary than
distant destinations.
ii. Domestic Destinations are Nearer: Domestic destinations are
nearer to the home of tourist visits are more frequently done. In
this tourism there are more repeat stays, notable with the family
and especially in rural region, with many urban residents. Land
transport is predominantly used by the domestic tourists that are
88% compared to 51% for international tourism.
iii. More use of land Transport and Low Cost of Trips:
Domestic tourism is organized by the tourists themselves or
organizer to visit nearer destination. Domestic travelers seek the
best price quality ratio or often the lowest possible price In all
segments of tourism value chain that is accommodation, tourism
activities and shopping. In this tourism tourists are going to
return the selected accommodations several times. They are
using the resources available in destination many times. For
important, works. They may stay for longer period, many times
they use land transport to bring the things they require from
destination. Sometimes, they also seek non-hotel
accommodations.
iv. Knowledge and Proximity of the Destination: Domestic
tourism involves knowledge of social composition that must be
given to the traveler who involved in it. Certain social categories
are much more highly represented in domestic tourism. There
categories are families, children, and teenagers, seniors, disabled
persons, and households with modest but stable incomes. In this
tourism, knowledge about diversity in demand of tourism
products as well as the activities that have been undertaken there
at the destination can be developed. Information about the
potential destinations nearby are possible there by domestic
travelers to collect. Similarly, they enhance the provenance of
family exist in different regions or in national territory.
Domestic tourism's pattern of growth and profile
2.3 Pattern of Growth
Domestic or internal tourism can bring various changes in
country. For instance, India relies on internal tourism by 70% so as
China. Therefore we should also give emphasis on internal tourism for
sustainable tourism development in Nepal. Nepal is rich in natural and
cultural heritage where more than 80% people live in the rural areas.
More villages have various tourism resources unique nature of ethnicity
cultures having different festivals traditions values languages customs
etc. unless we are capable to harness internal tourists as well as foreign
tourists we cannot transform overall socio economic and cultural
changes in our society. It is identified that the flow of domestic tourists
in the villages like Sirubari Ghalegaon, Pashgoan, Bandipur and
Ghandruck and so on in the last few years have proved that we can go
forward enhancing internal tourism using local products and skills and
uplifting living standard of rural people.
Major destinations for domestic tourists are Kathmandu,
Pokhara,Chitwan, Lumbini , Palpa ,Makwanpur, Nagarkot and
Dhulikhel. On an average, about 50,000 to 60,000 domestic tourists
travel annually to pokhara and chitwan.
Domestic travel spending generated 64.5% of direct travel &
tourism GDP in 2013 compared with 35.5% for visitor exports (i.e.
foreign visitor spending or international tourism receipts.
Domestic travel spending generated 59.0% of direct travel &
tourism GDP in 2014 compared with 41.00% for visitor exports (i.e.
foreign visitor or international tourism receipts)
Domestic spending seems shrinking (i.e. 59.0%) in 2014 as
compared to the data of 2013 (i.e. 64.5%). But data earlier to 2013
shows consistent increase in domestic spending on travel with
intermittent sluggishness. While there seems decline in domestic
tourism the number of outbound (going abroad) Nepali tourist increased
by 10 percent according to the data form ministry of tourism. Possibility
of the continuous increase in domestic travel spending is more evident
from the statistics by UNWTO in 2013 that says “domestic travel
spending is expected to grow by 8.7% in 2014 to NPR773 bin and rise
by 4.2% pat to NPR 116.1 bin in 2024.world travel and tourism council
found to be a bit ambitiously projecting the domestic travel growth i.e.
“domestic travel spending is expected to grow by 8.5% in 2015 to NPR
83.8 bin and rise by 33% pa to NPR115.1 bin in 2025. Visitor exports
are expected to grow by 1.1%in 2015 to NPR 54.3 bn and rise by 6.0%
pa to NPR 97.3 BIN IN 2025.
According to the report
 Last year in Nepal’s domestic tourism travel and tourism
contribution to GDP was 59 percent and international
tourism contributed 41 percent.
 Domestic tourism income in 2014 was Rs. 77 billion and 30
million
 It is projected that in current fiscal year 2015 domestic
tourism will grow by 8.5 percent
 Income report has projected to reach Rs. 83 billion and 80
million.
The popular destinations for Nepali travelers in 2011 were
Thailand Indian Singapore Malaysia among others. It is great news that
Nepal is have started traveling more than ever. Hoteliers have also
reported a good business during the lean season and the credit goes to
domestic travelers.
2.4 Profile
Majority of domestic tourist in Nepal found as
 Urban dwellers
  Younger travelers By promoting internal tourism the rural people can be utilize local
resources products human resources share ideas and examples and
 Like to travel in a group
cultures with others. Such activities help them to generate employment
 Stay in a budget hotel opportunities and bring changes in their living standard. In Sirubari and
 They belong to household with modest but stable Ghalegaon one can observe sensual changes in the lives of local people
incomes within few years times. It could be impossible for more than fifty years
of such changes.
 They spend less compared to international tourists but
overall volume of expenditure is significantly high. Challenges

Prospect of Domestic/Internal Tourism Though internal tourism is potential in Nepal but it has several
constraints to overcome. At first the requirement of basic infrastructure
In the past people used to travel form one place to another for
are the key factors to develop to enhance domestic tourism i.e. access
pilgrimage or for economic and social ties. However at modern age due
of roads trail accommodations communication facilities health resources
to the raise of modern class in the urban communities of Nepal they are
security and sanitation etc. secondly to develop domestic tourism Nepal
excited to visit various villages those which have unique culture and
government has to introduce new holiday pay act HPA to all the
beautiful nature of internal tourists development of course the own
government employs every year. Such kind of holiday pay act can play
homeland is certainly the easiest and affordable tourist destination for
prominent role to enhance internal tourism form micro meso to macro
Nepalese. Easiest in the sense that Nepali language is widely spoken
level development throughout the kingdom. Accordingly to A.K.
throughout the country but cultures are different in many societies. If we
Bhatia, the movement of mass tourism ws launched from the west
go there the tourist arrival statistics in model tourist villages we find
especially from England when the holidays with pay act (1938) were
majority of visitors are Nepali national. For instance within eight years
signed. Holiday pay act must be the prime issue of consideration for all
times 7,198 tourists visited Sirbubari village. Out of this figure 5858
the tourism experts and concerned authorities besides Nepal government
visitors are internal tourists. The above figures indicate that only 1340
tourism related institutions and organizations like NTB NATTA, TAAN
foreign visitors have visited Sirubari till the date.
,HAN, NMA, NARA and tourism experts should focus to identify
Therefore it reveals that almost 81% visitors are internal tourists. various tourist destinations of Nepal from terai, hilly region areas and
Similar type of internal tourist flow is observed in Ghalegoan and other bring them into publicity. Majority of the cities and villages of Nepal
remaining model villages. Each and every villages of Nepal can be possess uniqueness to each other in terms of natured and culture.
valuable tourists’ destinations and can attract enormous internal tourists.
 No doubt Nepal has immense resources to promote tourism to
lead for economic prosperity of the country. However the country has
been unable to identify the priority sectors and implement policies
accordingly. But time has come to knock our doors to give emphasis on
internal tourism. Tourism industry has suffered a lot for many years due
to the political conflict of course we must try to increase3 the arrival of
foreign tourist s at large level within our country to explore our hiding
treasures internal tourism. Along that we can promote introducing
holiday pay act. It can be a new attempt for making new Nepal. Besides
agriculture and water resources tourism in one of the crucial and
potential sectors which can be lead to the country for social-economic
and cultural prosperity.
2.5 International Tourism
Meaning/Concept
International tourism is indicating peoples travel globally out of
their region and own country. It means a temporary movement of people
from the resident place to another place for different reasons such as
recreation, health, business or some other reasons. The benefit of
international tourism is that it generates foreign exchange to the
countries. It also promotes intercultural exchange between individuals
of different nationalities. International tourism is organizing tour to visit
the different region and attractive places in the world. International
inbound tourists are the number of tourists who travel to a country other
than that in which they have their usual residence but outside their usual
environment for a period of not exceeding twelve months and whose
main purpose in visiting is other than an activity remunerated from
within the country visited. When the number of tourists are not available
the number of visitors which includes tourists same day visitors cruise
passenger and crew members in shown in stale. International tourism is
representing the total number of arrivals in different countries through
land, air, railway and number of tourists staying in hotel of different
destinations located in different countries of the world. International
tourism got momentum after the Second World War.
United Nations and world tourism organizations, “International
tourism is travel to a country outside of one’s residential country. The
purpose for visit is not for business purposes and last for less than 12
months. Additionally the tourist must spend at least one night in the
commercial or private accommodations. It is the travel by pleasure
outside of our home land.” An international tourist is a visitor to a
country which is not his home land and the purpose of his visit is for
personal pleasure not business or religious purpose.
2.6 Generating and Destination Regions of International
Tourism
International tourism arrivals and departures are concentrated
into relatively few countries mainly in Europe and North America. This
produces an unbalanced picture that favors developed western
economies and disadvantages of the developing world which is left to
complete for long market and this accusers for a minor of the total
market.
1. Generating Regions: The major tourism generating countries are
there in high man consumption stage of economic development,
although as countries reach the drive to maturity stage they become
significance generating markets. For any particular destination
country, a typical list of the top generating markets would contain
neighboring state together with at least one from a list containing
Germany, the UK, Japan, USA, Russia, Turkey, Malaysia and so
forth. However, it is clear that by 2030’s A.D if not earlier, both
china and India will become major generating countries. In part of
generating countries is explains by conflicting trend,
a. The importance, through decaling of short time travel to
neighboring countries which represents up to 40% of total
international trips.
b. A substantial growth in long term travel is possible due to both
Consumer demand for new, more exotic destinations and the
response from the travel industry to package long term
destinations. Aircraft technology and management can now
deliver these at a price and length of journey acceptable to the
consumer. This many however, be tempered by demand
responses to climate change.
2. Destination regions: The region where people are admirous to visit
for getting leisure, pleasure, entertainment or serving the purpose of
earning money is destination region. Destination regions located in
the world can be described in many ways. The post war period has
been marked by the rapid emergences of the East Asia and pacific
region (EAP) has an international tourism destination, largely at the
expense of the America and Europe. However there are many places
in the world which are spectular for drawing attention of many
international tourists. But studying destination regions country wise
is quite cumbersome. Thus, to make our study simple it is better to
focus on regions.
i. East Asia and the Pacific Regions (EAP region): The EAP
region which also includes south Asia had a share of less than
1% of international tourism. By 2010 A.D, this share was
approaching 22%. The key to the region’s success is due to the
following reasons or causes:
 A number of rapidly developing countries with large
populations.
 Well managed airlines based in the region and emergent
budget airlines.
 An exotic culture world class natural attraction quality
tourism and infrastructure such airports.
 Dynamic societies with positive welcoming attitudes to
tourism including emergent destinations such as china and
Vietnam.
 Favorable exchange rates
 Competitively priced inclusive course
 High quality accommodation product.
ii. Europe: Its traditional pre-eminence in international tourism has
been eroded since the 1960 A.D. while Europe still has the
largest volume of international arrivals; growth has been at a
slower rate than regions such as East Asia and the pacific
regions. The trend of new destination regions taking market
share from Europe is clear and will continue in future. None-the-
less, Europe still dominates world tourism flows simply because
it contains:
 Many of the world’s leading generating countries.
 A number of relatively small but adjacent countries.
 Generating considerable volume of a cross boarder travel.
 Mature travel and transport industry.
 Natural and cultural attraction of world Caliber
 Many themed attractions such as Disney land Paris
 Attractive capital cities
 Emerging destination such as former eastern bloc countries
 A variety of tourism products from winter sports holiday.
 A mature tourism infrastructure including the channel tunnel
and other transport developments.
 Highly trained personnel
 A pan European currency Euro
 An integrated industrial base which is important for business
tourism.
Elsewhere in the world, the American accounts for a significant
share of international tourism activities with an increasing volume of
inbound travel to supplement the huge domestic market, but this masks
major differences between the USA and Canada On the one hand, there
locates the economically much less prosperous Latin American country.
The North American domestic market has benefited from the fall in
outbound travel resulting from the fear of the tourism. In Africa, due to
prevailing political instability and poor infrastructure tourism growth is
relatively slow. The majority of arrivals are in North Africa, but the
newly emergent and politically acceptable South Africa is shifting the
emphasis of tourism. In the Middle East, the stop go nature of peace
process inevitably has an impact on tourism demand and supply.
Tourism generating regions are source areas for tourists or
where the largest numbers of tourists are coming from. We can identify
characteristics of these regions that stimulate demand for tourism such
as a favorable climate or high level of economic development. Likewise
we can identify characteristics of regions that would facilitate demand
such as good relative location and a high level of accessibility.
Tourist generating region are important in helping us understand
why certain people may be more likely to travel and where theoretically
this information may be used to create new opportunities for people to
travel. Specifically if we understand the barriers to travel for a particular
region, we can begin to develop strategies to overcome these barriers. In
practical terms, tourism marketers use this information if a destination
identifies its largest potential tourist market then it will be able to
develop a promotional campaign targeted that audience.
 Tourist receiving regions are important in helping us understand
why certain places have successfully developed as destinations this
information may be used a sand example for other places also seeking to
develop tourism.
International agencies such as the UNWTO use regions to
examine trends in the global tourism industry. The UNWTO identifies
Europe as both the single largest tourist generating region and largest
receiving regions. As of 2009 the Europe region accounted for 55
percent of international tourists and 52 percent of international tourist
arrivals. The importance of Europe as both a generating and a receiving
region has been declining with the emergence of new tourists and new
destinations although the economic troubles of 2009 contributed to a 4
percent decline in international tourist arrivals the UNWTO repotted
that Europe posted one of the largest rates of decline among receiving
regions.
There are numerous factors influencing demand from the tourist
generating area. These are in terms of
1. Economic determinants
2. Social determinants and
3. Political determinants.
“An individual may be motivated to travel the ability to do so
will depend on a number of factors related to both the individual and the
supply environment”. 28 (R.K Malhotra 1997)
1. Economic Determinants
a) Personal income
b) Distribution of income and
c) Value of currency
a. Personal Income: It is the availability of the finance. This is the
most evident influencing tourism demand. Incomes and
expenditures are closely linked and as a result of that
 When price increases demand decreases and income in
creases
 When demand decreases and income increases the price
remain the same resulting in increase in demand.
b. Distribution of Income: Distribution of income within a tourist
generating region is likely to affect tourism demand and supply.
For example twisted income distribution in Nepal where there
are relatively few wealthy and many poor households is likely to
limit the proportion of people who can afford to travel
internationally. These people can be big business owners who go
on a holiday
c. Furthermore Exchange Rates: have a far accomplishment
influence on tourism demand from generating area and
international tourism. It is highly vulnerable to exchange rate
variations that every the cost of a holiday significantly. “it is
widely acknowledged that both domestic and international
tourism make an economic contribution to a destination that
tourism has positive and negative economic impacts and that it
brings benefits and costs to a destination . Economical options
are often preferred while dealing with cost of travel as more
money is needed at the cost of product. Before an individual
 decides to travel or gests a reason to travel the very first thing to
be considered is the money. This will enhance the success of the
journey. For example people will want to enjoy to their optimal
level therefore will chose luxury products which comes at a
higher cost. These higher costs are often conversed through
competitive prices as supply is high and sometimes exchanges
rates supports and as a result tourist from Australia, New
Zealand, America get more on their dollar value which simply
means the rupees diminishes and they have more money to
spend in Nepal. Thus it leads to a change in tourism demand and
supply.
2. Social Determinants
They also influence tourism demand. This includes demographic
variable for example the age structure a 60 year man would prefer a
very discreet area where he can be along by himself from all; the noise
and when compared to a 15 year old kid who want to enjoy his holiday
with lots of fun and will want to have a blast. Thus there is a gap which
often applies on the type of travel product people chose the behavior
people demonstrate and the surrounding nature of an individual. Theses
together have a major impact on the demand.
The impact of education level can also be a determined of both
employment natures and income earning potential for this type of
practice. The stage in the family life cycle has a bearing on the
availability of time and disposable income available for tourism.
Holiday entitlements leads increase in the demand since holidays are
being paid and every individual wants to relax and have some timed off
from their daily life. There are other factor such as home ownership
occupation ethnic group crisis and threats such as terrorism epidemic
diseases and natural disasters such as the tsunami which hit Japan
recently and it leads to decrease in tourism demand since people will
now try to restructure their houses and use the money which has been
saved for a holiday.
3. Political Elements
Political elements such as government tax policies and controls
on tourist spending influence the tourism demand and supply. There are
approaches taken by government to influenced demand to a great extent.
For example exchange control currency exports prohibition taxation
visa regulations and many more. Many governments have used tourism
as a source of tax revenue because when tourist comes to Nepal they are
given the tourist price and not the local price and in this way certain
percentage of tax being paid goes to government as tax revenue.
Subsequently the demand at a tourist destination is influenced by
economic and political factors. The dominant among these are the price
of the tourism product and services and its quality. In today’s world
every individual as going for cheaper products since the of living is very
high. In a tourism industry the suppliers have to be very well with the of
price their goods but due to price competition and oligopoly companies
operating in countries it is required to stay in the price limit. According
to Burkart & Medic 1981 tourism suppliers such as in the
accommodation and transport sectors may well price their goods and
services independently but a close watch on the behavior of their
competitors is clearly necessary. Thus when there is a lot of competition
the price goes down and the customers benefit. In order to control the
price of goods and services the government intervenes in between and
gives a fixed price for these companies to operate.
Equally as demand increases it influence the supply level of the
tourism industry. This factor is known as the geographic factor. These
factors are mainly seasonality and attraction. Tourism
Demand goes up and down throughout the year. This temporal
peaking pattern is called seasonality.
The supply is influenced as the seasonal pattern affects the
occupancy rate of accommodation. For example during the peak season
the accommodation is almost full meaning that there is not enough to
cater for that season which results in the rise of price. On the other hand
since tourism supply is perishable at off peak season business is lost in
tourism regions seasonality leads to seasonal employment and the
correlative seasonal unemployment causes welfare problems. Attraction
is also one of the key supply elements in the tourism sector. Without
attractions there is no tourism.
Primary natural attractions man made and purpose built
attractions are the elements of attractions. Good attraction makes a
particular place famous which influences supply. For example Nepal is
very famous for Himalayas and heritages art and artifacts and known as
a paradise and hence a lot of tourists visit Nepal just because of these
attractions. The magic of Nepal’s natural beauty is matched only by the
world famous friendliness of its people and their diverse captivating
culture. Thus geographic factor also influences the supply in terms of
seasonal employment and other attractions.
In addition destination factors are another factor which
influences the supply on tourism regions. There are many elements of
the destination factors but the main aspects of destination factors are’
quality of the products’ and ‘ technology’ the quality of the products
provides the main image of a particular company. According to peter
Keller & Thomas beiger people who has less leisure time has more
money therefore prefer expensive high quality products and services
which are to be developed personally and in a time saving manner.
Media also plays an important part while promoting the products
for particular company. For example at the tourist generation region rich
people look at the advertisements on the internet and prefer for the high
quality expensive product but he breaches the destination region they do
not find the products to their expectations. Sophistication in technology
also plays a major part in the supply influences of the tourist regions.
Technology influences job which relates to less man power leads to
saving for a particular company. For example computer reservations
systems which replace manual booking where by cost and time are
saved. On another hand when high technology advertisements are
created with special effect advertisement itself created maximum
attraction. For example three dimensional (3D) videos are shot for room
views alpine bushes white water adventure and mountains to maximize
attraction. Thus technology and media influences the supply of the
tourism industry.
To conclude it is indeed true that where there is a demand there
is supply and hence sometimes supply do create demand. These are
always determined by some factors which influence the demand and
supply of the tourism industry. Some of these factors are individual
preference, economic factor and others. The supply is also determined
by geographic factor technology and media. This is very much evident
in the tourism industry. Thus according to Oliver Goldsmith “life is a
journey that must be traveled no matter how bad the roads and
accommodations.”
2.4 Pattern of Growth and Profile
Nepal climbed 10 sports to be ranked 102nd position in terms of
travel and tourism competitiveness index (TTCI) 2015 AD. Largely due
to the purchasing power parity of tourists becoming a key factor in
attracting tourists.
The index analyzes the performance of 141 economies and
explores how the travel and tourism sector has responded to economic
security and health shocks over recent decades. “Understanding the
nature and extent of the sector’s resilience to shocks is important as a
strong travel and developing economies alike world economic forum
(WEF) mentions in its report.
Published every two years two years the report rank economies
on the basis of 14 parameters business environment safety and security
health and hygiene human resources and labor market information and
communication technology (ICT) readiness prioritization of travel and
tourism international openness price competitiveness environment
sustainability air transport infrastructure ground and port infrastructure
tourist service infrastructure natural; and cultural resources and business
travel.
Spain leads the travel and tourism competitiveness ranking in
2015 followed by France and Germany. The report shows Nepal is
competitive in terms of pricing as the country is ranked in the 23rd
position in price competitiveness. Nepal was ranked 25th in natural
resources and 59th in prioritization of travel and tourism. It however
hared poorly on three parameters environment sustainability (133rd),
ICT readiness (126th) and cultural resources and business travel
(123rd).
As per the report Nepal has poor ranking for cultural resources
and business travel. The ranking is based on different criteria like
number of UNESCO world heritage sites large stadiums and number of
international association meetings taking place in country among others.
Nepal is ranked at 113th position in terms of safety and security
meaning the country needs to do more to create safe and secure
environment for foreign tourism.
The report suggests that Nepal needs to improve air connectivity
as it stands in the 106th position in air transport infrastructure. Similarly
it needs to make transportation efficient and accessible to key business
centers and tourist attractions as it stands at 119th position in ground
and port infrastructure and ensure sufficient quality accommodation
resorts and entertainment facilities as it is ranked in 118th position in
tourist service infrastructure.
According to the report major trend in travel and tourism is
shifting demographics. “the number of over-60s in the world is
projected to rise from 900 million in 2010 to almost 1.4 billion by
2030.elder travelers tend to require higher standards of quality and
sophistication, to have somewhat larger budgets and these demographic But big worries remain whether Nepal will be on the world
accounts for 40 percent of travel but 60 percent of wealth” the report tourism map after the great earthquake that has destroyed most of the
stated. tourism infrastructure including major heritage sites, which are the
(Nepal Ranks 102th among major tourism draw.
Travel and Tourism (T & T) Competitiveness Index: 141 countries)
The report published biennially by the Swiss-based world
economic forum ranked Nepal 7th in terms of the purchasing power
parity among 141 counties surveyed.
T & T Policy and Natural and
Enabling enabling Cultural
Environment Infrastructure With the exchange rate going in favor of foreign visitors tourists
Conditions Resources
get Rs 100 for s1 and the stronger US dollar has made Nepal one of the
cheapest destinations for travelers.
Business Prioritization of Air Transport Natural Resources
Environment Travel & Tourism Infrastructure Nepal Ranks 25th Backed by the strength of increased tourists purchasing power or
Nepal Ranks 110th Nepal Ranks 59th Nepal Ranks 106th
devaluation of Nepali currency against the US dollar the global report
has ranked Nepal 23rd in terms of the price competitiveness destination.
Cultural
Safety and International Ground and Port Resources and In terms of the travel and tourism competitiveness in the South
Security 113th Openness 81th Infrastructure Business Travel
119th 123th Asia, Nepal trails behind India (52nd), Bhutan (87th), but ahead of
Pakistan (125th) and Bangladesh (127th), according to the report.

Health and
Price Tourist Service Due to growing investment in the country’s tourism industry and
Competitiveness Infrastructure
Hygiene 86th 23th 118th enhanced service levels, Nepal’s competitive ranking has improved
significantly for the last couple of years.

Human Resource Environment Tourism is among the worst hit areas by the current disaster that
and Labour Sustainability
Market 96th 133th throws both opportunities and challenges. “The tourism recovery will
not be far if there is government commitment to address the sector in a
Source: World Economic Forum
more practical way.
ICT Readiness
126th Nepal is ranked 29th among the 141 countries in terms of the
number of would heritage natural sites 16th position in terms of the
natural tourism digital demand and 25 in natural resources. But branding
of these products has not been so effective. Nepal’s effective marketing
to attract tourists also stands poor at 78th in the global ranking.
The government has not accorded priority for the development
of tourism. The report question the government’s priority to Nepal’s
travel and tourism stands 51st in the world.
In 2013 Nepal was ranked 52nd in terms of the government’s
prioritization of the travel, and tourism industry. Safety and security of
tourists has also been a matter of concern. The report ranked Nepal
113th in terms of security.
The worst part is that quality of air infrastructure is deteriorating
by the year. In 2013 the country’s air transport infrastructure was ranked
at 121st and within two years the quality of air transport infrastructure
dropped to 128th position.
In terms of the quality of roads Nepal is ranked 115th while in
terms of tourist service infrastructure it is ranked 118th.
The report said the country is not open when it comes to the
openness of bilateral air service agreements.
The top five performers in the Asia-pacific are: Australia (7th)
Japan (9th) Singapore (11th) Hong Kong (13th) and New Zealand (16th).
However the most significant growth in international arrivals is
observed in South East Asia thanks in part to its regions price
competitiveness and the rapid expansion of its middle class.
Nepal’s travel and tourism sector directly generated 487,500
jobs last year representing 3.5 percent of the total employment in the
country the world travel and tourism council (WTTC) said.
This figure is estimated to grow 4.0 percent to 506,500 in 2015
according to a report published by the WTTC. Entitled travel and
tourism economic impact 2015.
However the number of direct jobs created by the tourism
industry is down from the 504,000 jobs created in 2013. Tourism
supported jobs include employment by hotels travel agents airlines and
other passenger transportation service and also the activities of the
restaurant and leisure industries directly supported by tourists.
By 2025 Nepal’s travel and tourism will account for 681,000
jobs directly up 3 percent per annum over the next 10 year’s according
to the global report. In terms of absolute contribution to job creation by
the travel and tourism sector Nepal is ranked 38th among 184 countries.
Among south Asia countries Nepal comes behind India (second place)
and Bangladesh (23rd place) but ahead of Sri Lanka (42nd place) in job
creation by the travel and tourism sector.
The direct contribution of Nepal’s travel and tourism to GDP in
2014 was Rs.83.7 billion or 4.3 percent of the GDP. This is forecast to
rise 5.4 percent to Rs. 88.2 billion in 2015. The direct contribution of
travel and tourism to the GDP is expected to grow by 4.4 percent per
annum to Rs. 135.7 billion by 2025 the report said. Money spent by
foreign visitors in a country (or visitor exports) is a key component of
the direct contribution of travel and tourism. In 2014 Nepal generated
Rs.53.7 billion in visitor exports. In 2015.
 This is expected to grow by 1.1 percent and the country is
expected to attract 997, 00 international tourist arrivals.
The London based council said in its annual report that by 2025
international tourism arrivals in Nepal are forecast to total 1.62 million
generating expenditure of Rs97.3 billion. Nepal is far behind in capital
investment in the travel and tourism sector compared to other countries.
The country is ranked 130th in terms of attracting investment in tourism
India Sri Lankha and Bangladesh are ranked fourth 68th and 73rd
respectively in South Asia region on this score.
Nepal attracted capital investment of Rs15.7 billion in 2014.
This is expected to swell 12 percent in 2015 and 5.2 percent annually
over the next 10 years to Rs 29.2 billion in 2025.
Leisure travel spending (inbound and domestic) generated 85.5
percent or Rs111.9 billion of the direct travel and tourism GDP last
year. Business travel spending accounted for 14.5 percent (Rs19.1
billion) and is expected to grow 10 percent in 2015 to Rs21 billion.
2015 ANNUAL RESEARCH: KEY FACTS
Employment: Direct Contribution: In 2014 total contribution of
Travel & Tourism directly supported 487, 500 jobs (3.5 % of total
employment). This is expected to rise 4.0% in 2015 and rise by 3 .0%
pa. to 6,81,000 jobs (3.9 of total employment) in 2025.
Employment: Total Contribution: In 2014, the total contribution of
Travel & Tourism to employment, including jobs indirectly supported
by the industry, was 7.5% of total employment (1.059, 000 jobs). This is
expected to rise by 4.4%. In 2015 to 1,105,000 jobs and rise by 3.1% pa.
to 1,494,000 jobs in 2025 (8.5% of total).
Visitor Exports: Visitor exports generated NPR53.7bn (25.2% of total
exports) in 2014. This is forecast to grow by 101% in 2015. And grow
by 6.0% pa., from 2015-2025 (23.8% of total).
Investment: Travel & Tourism investment in 2014 was NPR 15.7bn, or
3.6% of total investment. It should rise by 12.0 % in 2015, and rise by
5.2% pa. over the next ten years to NPR 29.2bn in 2025 (4.6% of total).
All values are in constant 2014 prices & exchange rates
International Tourism Arrivals: The Changing Regional Picture Percentage
Share of International Arrivals by UNWTO Region

GDP: Direct Contribution: The direct contribution of travel & tourism

Region 1950% 1960% 1970% 1980% 1990% 2000% 2005% 2010
to GDP was NPR83.7bn (4.3% of total GDP) in 2014 and is forecast to Europe 66.5 72.5 70.5 68.4 63.5 57.8 54.8 50.7
use by 5.4% in 2015 and to rise by 4.4% par. From 2015-2025 to American 29.6 24.1 23.0 18.9 18.8 18.4 16.6 15.9
NPR135.7bn (4.8% of total GDP) in 2025. East Asia &
Pacific (EAP) 1.0 1.3 3.6 7.8 12.1 16.6 19.3 21.7
GDP: Total Contribution: The total contribution of travel & tourism (Including South
Asia)
to GDP was NPR171.6bn (8.9% of GDP) in 2014 and is forecast to rise
Africa 2.1 1.1 1.5 2.5 3.4 3.9 4.6 5.3
by 5.8% in 2015, and to rise by 4.5% pa to NPR281.5bn (10.0% of Middle East 0.9 1.0 1.4 2.4 2.1 3.3 4.8 6.4
GDP) in 2025.