Tourism Earnings Hit Record High in Nepal

Nepal has seen a record-breaking year for tourism, earning Rs 76.55 billion in the first 11 months of the current fiscal year, according to Nepal Rastra Bank. This surpasses the previous high of Rs75.37 billion set in 2018-19. A significant factor in this growth is the appreciation of the US dollar. By the end of 2024, Nepal may get 1.2 million tourists in the year.

Key Factors Driving Growth:

• Exchange Rate Impact: A weaker domestic currency has made Nepal a more attractive destination for international tourists, driving up visitor numbers and spending.
• Growth of Infrastructure: The expansion of international chain hotels and a shift towards digital payment systems have contributed to the increase in tourism revenue.
• Length of Stay and Spending: Tourists are staying longer (an average of 13.2 days) and spending more (approximately $41 per day).

Challenges Ahead:

• Airport Closure: Tribhuvan International Airport will be closed for 10 hours daily from November 8 to March 31, impacting peak tourist season.
• Leadership Vacancies: The Nepal Tourism Board has been without a head for four months, affecting promotional efforts.
• Air Safety Concerns: Persistent issues with air safety may deter high-end tourists. The European Commission’s ban on Nepali airlines due to safety concerns remains in place since 2013.

Future Outlook

Despite challenges, the future looks promising with a government target of 1.6 million foreign visitors this year. Industry insiders believe this is attainable with strategic marketing and infrastructure development. Economic growth is also expected to be bolstered by increasing tourist arrivals, with predictions of reaching 4.9 percent growth in the next fiscal year.