GLOBAL COLLEGE OF MANAGEMENT

MID-BANESHWOR, KATHMANDU

NEPAL

TOURISM INDUSTRY: IMPORTANCE, PROSPECTS AND PROBLEMS IN NEPAL

Project Work of Economics

Submitted To: Submitted By:

Hom Nath Poudel Name: Aashrit Shrestha

Faculty of Economics Class: 11

Section: K

Roll No: 2

Shift: Morning
 TABLE OF CONTENTS

S No. Headings Page No.

1 Introduction 1
2 Introduction of tourism industry 2
3 Importance of tourism industry for overall development of nation 3
4 Potentiality or prospects of tourism industry development in Nepal 4-6
5 Problems faced by tourism industry or causes behind low 7-8
development of tourism industry in Nepal
6 Ways or remedies to develop tourism industry in Nepal 8
7 Conclusion 9
 INTRODUCTION

Our country Nepal is rich in natural beauties, gifts, resources, and wonders. There are many
places and things of cultural, historical and religious importance. Tourism being one of the
mainstays of Nepalese economy is also a major source of foreign exchange and revenue. The
snowcapped mountain peaks beautiful water resources, the green forests of hypnotic beauty, flora
and fauna, etc. attracts many tourists every year.

Nepal is a suitable place to promote tourism. Nature has given us many things which are liked by
tourists. Some tourists come here to enjoy natural beauties and wonders. Some of them visit our
country for trekking and climbing mountains. Some want to learn something about our history,
culture, religion and so on. We can see that some tourists come here to enjoy their holidays.

Nepal is the country of the Mount Everest, the highest mountain peak in the world, and the
Birthplace of Gautama Buddha- Lumbini. Mountaineering and other types of adventure tourism
and ecotourism are important attractions for visitors. There are other important religious
pilgrimage sites throughout the country for the followers of various sects and religions.

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 INTRODUCTION OF TOURISM INDUSTRY

The tourism industry, also known as the travel industry, is linked to the idea of people travelling
to other locations, either domestically or internationally, for leisure, social or business purposes.
It is closely connected to the hotel industry, the hospitality industry and the transport industry,
and much of it is based around keeping tourists happy, occupied and equipped with the things
they need during their time away from home.

Tourism offers a wide range of benefits, including economic benefits for countries attracting a
large number of visitors, due to the money they spend not only on their actual stay, but also in
local businesses. It also provides a large number of jobs for people working in the transport and
hospitality industry, among others. Moreover, tourism has the potential to improve relationships
between nation-states or businesses, to create opportunities for entertainment and recreation, and
to improve the value of a currency. It can also open up cultural exchange opportunities, while for
tourists; it can lead to improved happiness, well-being and education.

Tourism is the largest industry in Nepal and it is the largest source of foreign exchange and
revenue. Nepal has great potential to become a top destination for tourists as the nation is famous
for its snowcapped mountains, abundant flora and fauna, exciting trekking routes and rich cultural
and religious diversity.

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 IMPORTANCE OF TOURISM INDUSTRY FOR OVERALL
DEVELOPMENT OF NATION

Tourism is vital for the success of many economies around the world. There are several benefits
of tourism on host destinations. Tourism boosts revenue of the economy, creates thousands of
jobs, develops the infrastructure of the country, and plants the sense of cultural exchange between
foreigners and citizens. In Nepal also there is great importance of tourism industry due to
following reasons:

1) Source of foreign currency:

Foreign currencies are very important for the country and tourism is the main source of
foreign exchange in Nepal. If Nepal can earn more foreign currencies it can uplift its
economic status at large extent.

2) Conservation of arts and culture:

Tourists are attracted towards our arts, culture, traditions, historical sites, monuments etc.
which ultimately helps to preserve our culture.

3) Generates employment opportunities:

Tourism industry creates direct or indirect employment opportunities to skilled, semi skilled,
and unskilled human resources. This includes people working as guides, load men for tourists
during trekking and other adventures.

4) Increase in government revenue:

Tourism industry helps in development of industrial and business development hence it is the
source of governmental revenue. Government revenue is earned from taxes, visa fee and
royalty.

5) Business and industrial development:

Business and industries have been developed through the income generated from the tourism
industry. Cottage industries have been generating income through tourists visit in Nepal.
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 POTENTIALITY OR PROSPECTS OF TOURISM INDUSTRY
DEVELOPMENT IN NEPAL

Nepal is a naturally beautiful country. It is also called the Swtizerland of Asia. Apart from
being an attractive destination for adventure, Nepal’s pleasant climate and ever welcoming
nature of Nepalese show there is a tremendous prospect of tourism ahead in Nepal. Thus, the
prospects of Nepal for tourism industry can be outlined as follows:
1) Cultural/Festival Tourism:

The ethnic and cultural diversity of Nepal is

unparalleled considering its size in the world
map. There are 125 ethnic groups who speak
123 different languages and follow more than
10 different religions in the tiny Himalayan
nation. Nepal shows unity in diversity.
Participating in the local festivities gives
visitors an insight into the life of the

Nepali people and makes their stay in Nepal

more colorful. Hence, in preserving the large
number of cultures and festivals Nepal can
promote the future prospect of tourism in the
Himalayas.

2) Mountain Tourism:
Trekking and mountaineering is the heart of
tourism in Nepal. Of the world’s 14 highest
peaks above 8,000 m, eight of them crown
Nepal’s north. The fascination of scaling these
mountain peaks draws the huge crowds of
visitors from abroad. Most of the travelers in
Nepal are very much familiar about the popular
trekking and peak climbing routes. Unlike those
popular routes, there is huge potential to go for
exploring virgin territory of the Himalayas in
Nepal. If mountain tourism is comprehensively
promoted there is massive potentiality to
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develop tourism in Nepal.
3) Pilgrimage/Spiritual Tourism:
Another lucrative area of promoting Nepalese tourism lies in exploring pilgrimage
destinations scattered throughout the nation. Nepal has numerous ancient pilgrimage sites.
The Kathmandu Valley alone houses the famous Pashupatinath Temple, Swayambhunath
Stupa and several other pilgrimage sites. Moreover, there is high potentiality of
developing spirituality tourism as the Himalayas have always been considered the seat of
spirituality since ancient times.

4) Adventure Tourism:

Beyond mountaineering and adventure trekking, Nepal is also popularly associated with
various sorts of adventure world. The traveler can taste the adventure of Paragliding in the
beautiful city of Pokhara.

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There are high potentialities of going to Sky Dive, Boating, Fishing, Angling, and Canyoning.
To the top of all these adventures, Bungee Jumping at the gorge of the Bhoti Kosi River gives
the ultimate thrill. Motivating the world travelers towards these adventures, Nepal can benefit
tremendously. Nepal’s natural beauty and perfect geographical locations are ideal space for
seeking huge potentialities of tourism in Nepal.

5) Hospitality Tourism:

The hospitality sector is important bedrock of promoting Nepal in the international arena.
Despite Nepal’s hotel industry is providing world class hospitality to visitors it is not the end
of the story. Nepal’s remote villagers are well recognized because of their innocent, friendly,
hospitable and ever welcoming behaviors. Understanding the etiquette of the traditional
hospitality of rural parts of Nepal and receiving them magnificently lure the attention of
visitors in Nepal. So, exploring those hospitable and friendly behaviors of Nepalese in the
remote parts of Nepal can drag the huge crowds of visitors in those regions of Nepal and
thereby change the direction of Nepal tourism.

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 PROBLEMS FACED BY TOURISM INDUSTRY OR CAUSES
BEHIND LOW DEVELOPMENT OF TOURISM INDUSTRY IN
NEPAL

Though Nepal is culturally, naturally and geographically rich, here are some problems and
challenges to promote the tourism industries. Some of the problems and challenges to promote
and develop the tourism are as follows:

1) Lack of transport and communication facilities:

Nepal is a developing and economically poor country. So, it has not been able to facilitate
proper transportation and communication facilities. Therefore, the tourists face difficulties
in travelling to the place they desire.

2) Lack of good quality hotels:

Tourism industry in Nepal is not being able to establish good quality hotels and lodges for
tourist. Regarding other places where the tourists visit the hotels are not well managed. So,
tourists face difficulties regarding their safety and comfort.

3) Problem pollution:
Though Nepal is highly rich in natural resources, environment pollution is increasing day
by day, especially in the urban areas, major towns and cities of Nepal. Due to the growing
population, the number of tourists arrival and average duration of their stay is said to be
declining remarkably.

4) Lack of recreation facilities:

About 35% of the tourists come to Nepal for recreation purpose but the means of
recreation are limited. Due to tis tourists easily get bored. Thus, this is also one of the
major problems of tourism Industry.

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5) Deterioration of art and culture:
Nepali is world famous for its art and culture. But nowadays these aspects are being
diminished. Moreover, Nepal is also prone to natural disasters. The massive earthquake of
25th April, 2015 has damaged almost all the national and cultural heritage.

WAYS OF REMEDIES TO DEVELOP TOURISM INDUSTRY

IN NEPAL

The following are the remedies to develop tourism industry in Nepal:

1) Accessibility of transport and communication: Transport and communication facilities

should be made easily accessible all over the tourist destination of the country.
2) Development of new recreation centers: The tourism industry should be focusing on
increasing the recreational means for the tourists as per their interest and culture.
3) Use of local resources: Since the tourists like to use the local goods during their travel,
those goods should be produced with the locally available materials.
4) Expansion and strengthening of financial institutions: The marketing as well as banking
facilities need to be increased and made tourist friendly.
5) Provision of secure transportation mechanism: The government should insure and use
secure and reliable domestic air transportation so that frequent accidents are stopped.
6) Conservation of ancient art and culture: Rennovation and conservation of the ancient arts,
sculptures, cultural and religious heritage should be emphasized.
7) Establishment of quality hotels and lodges: The hotels and lodges should be tourist
friendly while their safety and security should be ensured.

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 CONCLUSION

Tourism industry is the base of Nepalese economy. Nepal is known as prime destination for
tourists due to its natural beauty, unique culture and cultural heritage. Depite tourism industry
has great prospects, Nepal still has various problems. As every problem comes with a
solution, problems of tourism industry can be solved through combine effort of government
and citizens.