A study on the role of Travel Agencies and Tour Operators in the Development

of Sustainable Tourism in Nepal

1. Introduction

Tourism is a collection of activities, services and industries that provide a travel experience
including transportation, accommodation, food and beverage, retail, stores, entertainment and
other hospitality services for individuals or groups away from home.
According to Macintosh (1986) and Goldner (1990) Tourism is the sum of phenomena and
relationships arising from the interactions between tourists, business suppliers, host governments
and host communities in the process of attracting and hosting those
visitors and others.

Tourism is a type of activity that involves a person or group of people travelling away from their
home or community for leisure or business purposes. It is distinct from travel, which is composed
of travel but cannot be classified as tourism. To be considered as a tourist, a person must meet
three criteria: they must be outside of their usual environment (i.e., non-residents); they must be
travelling for a purpose (e.g. leisure, business, entertainment, or adventure); and they must not
spend more than one year in the area (i.e. no more than one year, but may spend the night). The
tourism industry is one of the most rapidly expanding industries in the world. Every year, millions
of individuals travel to and from various destinations around the globe to experience the wonders
of the world. Technology has further facilitated the expansion of the tourism industry, allowing
for access to and exploration of intricate regions of the globe.

Tourism in ancient Nepal

Nepal has been visited by tourists in one form or another since ancient times. Manjushree, a
Chinese explorer, is credited with making Kathmandu Valley habitable for humans by cutting
down Chovar Hill with his sword and allowing the water to flow out of the valley. This is
believed to have made Manjushree the first tourist to visit Nepal. In the 3rd century BC, Lord
Buddha's birthplace, Lumbini, was visited by Ashok, the Emperor of ancient India, and the Ashok
Pillar was constructed there. Gautam Buddha also visited Nepal in the 7th Kirat King's reign,
according to Satyal (1988) and K.C. The licchavi period is one of the most significant from a
tourist point of view. It's thought that the art and culture that flourished during this time inspired
Chinese explorers to come to Nepal and create stories about it (Satyale, 1988). Princess Bhrikuti's
marriage to King Amshverma in 592 AD, and then to the king of Tibet in 629 AD, led to the
formation of special relationships between the two countries. Nepal was seen as the only way to
visit China through Lhasa, and to travel from Lhasa to India via Nepal. This resulted in an
increase in the number of people coming to Nepal. In 629 AD, the Chinese traveler, Huang-
Tsang, went to India and then back to China in 643 A.D., also visiting Lumbini. The Licchavi
period (2045 BC-1480 AD) saw several prominent Buddhist preachers visit Nepal. During the
Malla regime, Hindu holy men from India travelled to Nepal for pilgrimage purposes.
Additionally, European Christian missionaries travelled to Nepal to spread Christianity (Chhetri,
Rayamajhi 2061). In general, the ancient foreign tourists visiting Nepal were from China, Tibet,
India, and Europe, who visited for both religious and commercial reasons. Nepalese merchants
visited Lhasa for business purposes, while the Tibetan merchants came to Nepal for their own
business purposes. These religious and commercial motivations played a significant role in the
development of tourism in Ancient Nepal.

Tourism after unification of Nepal

In 1812, Captain Kirkpatrick wrote an account of the kingdom of Nepal. After 1816, a British
Resident was appointed to Kathmandu to help build relations between the two countries. In 1850-
51, Jung Bahadur's visit to Britain brought Nepal to the attention of Europe. During this time,
several British botanists and naturalists visited the country. King George V and Prince of Wales
went to Nepal to hunt in the Terai forests in 1911 and 1921, respectively. The first record of
foreign visitors to Nepal comes from Percival London's book 'Nepal', which lists a total of 153
Europeans, mostly British, who visited the country over a 44-year period from 1881 to 1925.
Despite these visits, Nepal was shut off from the outside world for 104 years due to the despotic
policies of the Rana oligarchs.

Present State of Tourism

The Nepali economy is heavily reliant on tourism, which is estimated to contribute 2.9% of GDP
in 2009. The direct employment in the tourism sector is estimated to be 88,000, while the travel
tourism economy, which includes traditional travel tourism industries, tourism-related investment,
and public expenditure and export of goods, accounts for 7.8% of GDP and 506,800 workers, or
5.8% of total employment. Additionally, tourism contributes 6.5% of total foreign exchange
earnings. According to the World Travel and Tourism Council (2009), the tourism sector accounts
for 3.4% of GDP, with private and foreign investment making up 10.6% of total investment.

In 2019, Nepal's tourism industry generated a revenue of $700 million, equivalent to 8% of the
country's Gross Domestic Product (GDP). More than 1 million Nepalese were directly employed
in the hospitality, trekking, and mountaineering sectors, while many more indirectly benefited
from the influx of visitors.
Nepal’s tourism industry has never faced such a severe decline as it has during this pandemic,
with only 230,000 tourists visiting the country in 2020—down from the peak years of the conflict
and below the level of 2015’s Earthquake-Blockade.

Major Types of Nepalese Tourism

Natural Tourism: Exploration of conservation areas through walking or riding through the forest
or on the mountain or beach, navigating in rivers and lakes, and exploring the sea, as well as
observing the flora, flora, and fauna and other natural attractions, including mountaineering and
trekking, as well as hiking and cycling. Paragliding and sight-seeing are also popular activities.
Waterfalls and caves can be explored, as well as cannoning. Bird watching and jungle safari are
also popular activities, making Nepal an ideal destination for all types of adventurous tourism.

Cultural tourism: Living with indigenous peoples involves engaging in day-to-day activities and
participating in a wide range of cultural activities, including music, dance, and visual arts,
religious ceremonies, festivals, lifestyle, and subsistence through rural tourism services, such as
homestays and farm stays.

Agro-Eco-Tourism: Tourism that helps protect the environment and promote sustainable
development by visiting rural communities and getting involved in farming, livestock, hand-
crafting, and other traditional farming activities.

Historical tourism: Visiting special sites is a great way to explore Kathmandu Valley's rich
cultural heritage, which is represented by seven UNESCO World Heritage sites. These sites cover
the full range of historical and artistic achievements that make Kathmandu Valley a world-
renowned destination. Among the UNESCO World Heritage sites is the Durbar Square (Hanuman
Dhoka) in Kathmandu, the Patan (Bhaktapur), the Buddhist Stupas (Swayambhu/Bauddhanath),
and the Hindu temples (Pashupati/Changu Narayan). Another UNESCO World Heritage site is the
birthplace of the Lord Buddha in Lumbini, where one of Ashoka's commemorative pillars was
erected. Today, the site is being developed as a center of Buddhist pilgrimage, with archaeological
remains connected to the birth of Buddha forming a central feature.

Health Tourism: Nowadays, people are turning to tourism for a variety of reasons, like fitness,
preventing illness, staying healthy, finding new age remedies, and finding alternative treatments
to manage stress. This kind of tourism can involve visiting religious sites with communities and
taking part in rituals and healing sessions with healers or shamans. Even though animism and
shamanism are still practiced in Nepal, it's becoming more and more common for people to travel
abroad for healthcare. People from all over the country, including Bhutan and Bihar, as well as
West Bengal and Uttar Pradesh, are still coming to Nepalese hospitals for treatment.

Religious Tourism: If you're a Vedic or Buddhist, you've probably heard of "faith tourism". It's
when you travel for the sake of your faith, for a pilgrimage, for missionary work, and for other
reasons. For example, if you're a Buddhist or Vedic, you need to visit the two holy places in
Nepal - Pashupatinat and Lumbini - at least once in your life. It's mentioned in their holy books.
Sports Tourism: Fishing and hunting are just the tip of the iceberg when it comes to outdoor
activities in Nepal. There's so much more to do, like canoeing, mountain climbing, elephant polo,
and paragliding - all of which require specialized training and equipment.

Scientific Research Tourism: Watching and learning about nature, like animals, plants, and
minerals, food sources, and ancient medicine, and how it can help protect biodiversity.

MICE and Education Tourism: The term MICE (Meeting, Incentives, Conferences, and
Expositions) is commonly used in the travel industry to refer to the specialized niche of group
tourism that focuses on the planning, reservation, and coordination of conferences, workshops,
and other events. This market is a major source of revenue for the travel industry, and Nepal is an
ideal location for training and workshops, as it is suitable for all seasons and has pleasant
weather. Individuals from all over the world can participate in and host this program here in
Nepal.

Sustainable Tourism

Sustainable tourism is still a bit of a mystery, even though it's been around for a while and has
been discussed by lots of people in the tourism industry (Butler 1999, Sharpley 2000, Wall 1997).
UNEP and UNWTO have the most popular definition of sustainable tourism, which is that it
considers all the economic, social, and environmental impacts of tourism, taking into account the
needs of people visiting, the tourism industry, the environment and the host communities. But the
term "sustainable" has been used in different ways and has caused a lot of confusion, depending
on what kind of study you're doing. Plus, you must define it on your own (Manning 1999) so it's
up to you to make your own interpretation.

When scholars study sustainable tourism, they typically focus on destinations and practices in
that field, which makes it challenging to generalize (see Gössling 2000). Sustainable tourism
should be achievable at local level, regional level, national level, and worldwide level (Hardy &
Beeton 2001). Scale, particularly global-local nexus, plays an important role (Duffy 2002, Milne
1998, Saarinen 2006). Previous studies tended to focus only on local and destination level
analysis (Saarinen, 2006). However, according to an analysis in Journal of Sustainable Tourism,
the most commonly employed research perspectives in 1993–1997 were tourism destination(s)
(23.6%), management(19.3%), and visitor(s) (17.4%). From 1998–2007, the focus shifted
towards stakeholders in the development of sustainable tourism. Furthermore, the research focus
shifted from the public to the private sector and from the visitors to the local communities (Lu &
Nepal 2009). This transaction highlights the need for sustainable tourism studies to cover all
areas, not just destinations but also the transaction process and the operation behind the tourism
industry.

According to Samy and El-Baramelgy (2005), sustainable tourism development is made up of

three parts: the environment, the economy, and the culture, and it's important to find a balance
between these three to make sure it's successful in the future.
Nepal is a great place to visit if you're looking to make some extra cash. It's home to some of the
world's most iconic tourist spots, like Mount Everest, the mysterious Yeti, Lord Buddha, Hindu
and Buddhist shrines, snow-capped mountains, rivers, lakes and waterfalls, a great climate, and
the mysterious Shangri-La image. Tourism is a key part of holistic tourism development, and it's a
great way to make some extra money. In 2017, Nepal welcomed 940,218 foreign tourists, which
was an increase of 24.8% from 2016. It's no wonder why Nepal is such a popular tourist
destination!

Sustainable tourism is a key component of the Global Sustainable Development Goals (SDGs) for
2030. Tourism plays a key role in the achievement of SDGs. In 2017, the UN declared the year as
the “International Year of Sustainable tourism for development”. According to the OECD in 2018:
“The main reason for combining three SDG objectives with tourism development goals is the
intrinsic local nature of tourism activities. Tourism is stimulated by the attraction of local
communities, heritage, and natural assets and facilities.”

To have a tourist experience, the tour operator or travel agency acts as an intermediary between
the tourist and their experience. Tour operators or travel agencies provide tourists with
packages, experiences, and services. The tour operating market is characterized by intense
competition, which has also raised questions about the sustainability of tourist destinations.
Tour operators are focused on increasing their profitability, which means that more and more
tourists are using their services to explore new places and discover new things.

The tourism industry in Nepal has gone through a rollercoaster ride in recent years due to a
variety of political and security factors. However, it is still one of the main pillars of the country’s
economy and the current government has put a lot of emphasis on it.

Nepal has a lot to offer as a tourist destination. It is home to some of the most ancient
archaeological sites of civilizations like Buddhists. When it comes to adventure tourism, there are
many beautiful places all over Nepal.

Tourist Destinations

Nepal is situated in South Asia, at the base of the middle Himalayas. It borders China's Tibet
Autonomous Region in the north and India in the East, West, and South. There are 14 highest
peaks in the world, 8 of which are in Nepal, which is why it's known as "the Kingdom of Snow
Mountains". It's at the crossroads of Asian civilizations and has a well-developed tourism
industry. The unique tourism resources of Nepal include Hinduism and Buddhism, old palace
buildings, and lots of colorful natural resources. It's one of the best places to go hiking in the
world! Here's a list of the top 10 tourist spots in Nepal.
 Geographically, tourism in Nepal has a narrow spatial scope. It mostly focuses on (a) the tourism
triangle defined by Kathmandu-Pokhara-Lumbini-Chitwan, and (b) the three main trekking areas,
namely, Annapurna, Sagarmatha (Everest) and Langtang (see map 4.1). About Importantly,
Kathmandu is the main tourist center, the only one with international air connectivity and
receives most of the tourists in Nepal. Pokhara, the second largest destination, received about
40% of the total number of tourists arriving. Chitwan, Nepal's main wildlife sanctuary, and
Lumbini– where Buddha was born – each receives about 16% of the total amount number of
tourists arriving. Trekking in Nepal attracts 24% of all tourists. The Annapurna region has about
60% of the trekkers and Sagarmatha and Langtang received 24 and 8 percent, respectively.
About 8 percent of all walkers go to other trekking areas, most of which are controlled (some of
which as Upper Mustang and Upper Dolpo are high value trekking areas) in mountain.

Almost all climbing areas are mainly inhabited by ethnic minorities and people of ethnic groups.
The poorest regions of Nepal are in the central hills and far west. The mountains only receive a
very small portion (about 0.5%) of tourists. Very Much of the country remains unexplored by
tourists. Mountain climbing is the beginning of tourism in Nepal. 2009, total of the 236
expedition teams that attempted to climb the various peaks, employing 2,598 people holder and
paid royalties of $3.7 million. Mountain climbing in Nepal Mountain climbing association on
peaks below 6000m. organizes 1,198 teams with 9,704 members.

2. Literature Review

Sustainable Tourism in Nepal

Even though the concept of sustainable tourism is well-established in many tourism areas and
has been discussed by numerous academics and practitioners (Butler 1999, Sharpley 2000, Wall
1997), the most accepted definition is that of the United Nations Educational, Scientific and
Cultural Organization (UNEP) and the United Nations World Tourism Organization (UNWTO)
(2005). This definition states that tourism must consider all current and potential economic,
social, and environmental impacts, to meet the needs of tourists, the tourism industry, the
environment and host communities. The ambiguity of the terms used to describe sustainable
tourism has resulted in a variety of interpretations and has led to a variety of misperceptions of
the concept, depending on the type of research conducted by researchers. As a result, the
definition of sustainable tourism must be defined case by case (Manning 1999).

In the field of sustainable tourism, researchers typically concentrate on destinations and

practices in that field, thus making it challenging to generalize. However, it is important to note
that sustainable tourism should be achievable at a local level, regional level, national level, and
at a global level. The concept of scale, particularly global-local nexus, is fundamental to the study
of sustainable tourism. Previous studies tended to focus on analysis at the local and destination
levels only (Saarinen, 2006). An analysis of research perspectives in 1993-1997 revealed that the
most employed research perspectives were tourism destination or products (23.7%),
management (19-19.3%), and visitor (17-17.4%). However, between 1998 and 2007, the
emphasis shifted to stakeholders in the development of sustainable tourism, and the research
focus shifted from the public to the private sector and from the visitor to the local community
(Lu, Nepal 2009). This shift in focus highlights the need for sustainable tourism studies to
encompass not only destinations but also the transaction process and the operational aspects of
the tourism industry.

To sum up, the concept of sustainable tourism is expansive and contingent upon the various
aspects of development that must be taken into consideration. From the point of view of tour
operators, sustainable tourism must focus on the three pillars of economy, profit, and people, as
well as the environment. Furthermore, when determining how sustainable tourism should be
applied, it is essential to consider all aspects to ensure that the needs of visitors, industry,
environment, and host communities are met.

Travel Agencies in Nepal

The modern advancements in communication and technology have had a significant effect on
the tourism sector. The internet has further altered the behavior and attitudes of travelers,
regardless of their level of experience. Tourists can now plan their trips more effectively by
visiting the destination in advance. They are now more concerned with their travel plans, even
though they have already been able to acquire a great deal of information from a variety of
sources, including the internet, newspapers, magazines, television, radio, and magazines, with a
particular focus on travel agencies.

A travel agency is a comprehensive service provider that provides a comprehensive package of

travel services, including prior knowledge of the destination, tickets, accommodation, meals,
transportation, communications, and tour packages, to ensure that a guest's stay is as enjoyable
as possible from the moment of their arrival to the day of their departure. The agency is
authorized to respond to the travelers' inquiries in the most effective manner and to ensure that
their holidays are as perfect as possible.

A travel agent is a body that has been approved by the tourism industry and adheres to the
established rules and regulations. To be considered a travel agent, a person must possess a
sufficient level of knowledge and experience in the tourism industry to meet the criteria set out
in Greygory, according to Abel (editor and publisher of Travel Trade, 1993b, 2).

At present, travel agencies are confronted with a great deal of competition within the open
market. This is largely due to the growing number of tourism professionals and entrepreneurs.
However, this could also provide an additional benefit to the traveler, as they have a wide variety
of options available to them. Consequently, it is expected that travel agents will be able to
overcome these challenges and remain competitive to acquire the desired customers.

According to System Analysis Research Corporation (SARC), to build a strong and influential
travel agency, it is necessary to appoint a qualified team of professionals who can fulfill the three
main roles of a successful travel agency: First, to satisfy all the needs of the visitors; Second, to
serve as a mediator to emphasize the essentials. Third, to keep the organization well-functioning
so that it can survive in the world of business. A successful travel agency will be one that is able
to capture a customer’s imagination and turn his or her dream into a reality, which in turn will
serve as a “word of mouth” to promote the good name of the organization.

Role of Travel Agencies in developing sustainable tourism

Nepalese travel agencies have been actively and significantly engaged in the promotion of
sustainable tourism in the country, both at their own level and in collaboration with the
government. However, the lack of financial support for development in any sector has been a
major issue for the country. It is widely accepted that the government receives funding from
external sources for the purpose of promoting sustainability, however, the funds are not being
mobilized in a timely manner. Despite this, travel agents have played a significant role in
promoting sustainable tourism, both in their own efforts and in collaboration with
environmental organizations.

Tour Operators in Nepal

Historically, tour operators have sometimes ignored their environmental and social obligations,
claiming that they act as intermediaries between customers, service providers and the
destination, and impacts are the responsibility of subcontractors or local authorities. While
stakeholders clearly share this responsibility, most tour operators now recognise that it is their
responsibility as intermediaries, working in close collaboration with both customers and tourism
service providers and suppliers (source: Budeanu (2005), Swarbrook (1999), Cochrane (2006),
Font & Cochrane (2005a)).
 Tour operators have a direct relationship with their customers, making them the primary
stakeholders in the tourism sector when it comes to promoting sustainability. This can be
achieved through providing travelers with information on the green tourism industry and
products, as well as providing them with preferential exposure to these activities. However, to
ensure that tour operators are involved in these types of developments, numerous studies must
be conducted on the sustainability of tourism and tour operators, such as those conducted by
Budeanu in 2005, 2009, and by Miller in 2010. Other studies include those conducted by Van
Wijk and Persoon in 2006, and by Xin and Chan in 2014.

In addition, numerous research papers suggest that tour operators are, in many respects, the
driving force behind the development of more eco-friendly forms of tourism (see to name a few,
Swarbrooke 1999; Frey & George 2010; Wagijk & Persoon 2006).

Tour operators have come to terms with the fact that they're responsible for a lot of the bad
things that come with tourism, since they're the ones who decide where people go and what
services they use. Nowadays, a lot of tour operators are taking a more hands-on approach and
starting to create eco-friendly policies and plans.

Role of Tour Operators in developing sustainable tourism

Tour operators have become increasingly aware of their responsibilities in terms of sustainability.
Tour operators have responded to the need to assess the role of tour operators in the industry
and evaluate their current efforts to mitigate the effects of their activities. Numerous
international organizations, industry associations, and governmental bodies have begun to
investigate this issue. As a result, tour operators have adopted a variety of initiatives to assess
the effects of their operations and enhance their performance (see Budeanu, 2005).

In addition, several international initiatives have been launched by NGOs and tour operators to
enhance the sustainability of the tourism industry. The most well-known of these is the TOI (Tour
Operator Initiative), which was launched in 2000 with the support of UNEP, UNESCO, and WTO
(Holden, 2006).

This initiative seeks to motivate tour operators around the world to adopt a corporate ethos of
sustainable development and to consider environmental, cultural, and social impacts as a
fundamental component of their tour design and operation, as well as the execution of their
business operations (see, tol.c. 2002, Fredericks et al., 2008; Tol.c. 2007a).
Theoretical Framework

Sustainable
Developmen
t

Tour Effective
operators Tourists Tourism
and Travel Satisfaction Marketing
agencies
RESEARCH METHODOLOGY

Data Collection

The data collection for this project is done by collection of some information from various

sources. They are mainly divided into two;

• Primary Data Collection

• Secondary Data Collection

Primary Data Collection:

The stage of primary data collection is done by the direct interactions through various steps in

the destination. This include the collection of information through

• Questionnaire

Questionnaire: A questionnaire is a research instrument consisting of a series of questions for the

purpose of gathering information from respondents.

Secondary Data Collection

This stage of data collection includes the collection of information through other secondary

mediums such as;

• Books
• Internet

• Magazines

Sample Design

Sample Size: The sample size was 50 travel agencies and tour operators.

Sampling Method: The sampling method used here is random sampling.

Sampling Area: The sampling area was travel agencies and tour operators based in Nepal.

5.3 Variables

Various factors determining the performance of travel agencies and tour operators in Nepal are as
follows.

• Affiliations with tourism organizations

• Online facilities

• Product knowledge of staff

• Efficiency of staffs

• Lack of qualification of staffs

• Presentation skill of the staffs.

• Punctuality of staff

• Effective communication.

• Commission from the service providers

• Destination services

• Socio-cultural factors

• Environmental factors.

• Internal organizational issues

• Political impacts

• Tax policies imposed by the government.

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Research Survey Questions