Tourism and Economic Growth in Nepal

Nepal is famous destination for pilgrimage due to its prominent, glorious and prideful historical places. Lumbini being birth place of Lord Buddha and Pashupatinath, a center of faith for Hindunism is major among many important places. Lumbini is found as most visited pilgrimage by foreigners. It was visited by 1,552,586 persons out of them 80.6% were Nepalese while 10% Indians and 9.4% from other countries. February was the most preferred month of Lumbini visit. Similarly, the 124,180 visitors from third country visited the Pashupatinath.

These year development plan (2017-2018) aimed to increase the length of stay in Nepal by tourist was 14 days by 2017. It was ranging from 8 to 13.5 days in the past. The analysis of length of stay of 400.000 tourists estimated it as 12.6 days in the year 2017.

Infact, 2017 seems remarkable improvement in tourist arrivals. Tourist arrivals increased by 25% compared 2016. Out of total tourist arrivals, five countries occupy more than 50%. The proportion of tourist from these countries are India (17.1%) China (11.1%) USA (8.4%), United Kingdom (5.4%) and SriLanka (4.8%). Seasonality exists in tourist arrivals. The highest number of arrival in observed in October followed by February. There is no major change in sex and age group of tourist arrivals. By Sex male (54%) and about two third arrivals were of age category 16-45(74%) in year 2017.

Revenue from tourism sector is observed from foreign currency exchange made by tourists and tourism industries as proxy of income. NRB report shows total foreign currency exchange (less return) for 2016/017 stood at Nrs. 58,526,918 thousand (around 551.000 thousand US$).This is almost 40% higher than previous year 2015/016. This increase in currency income due to increase in tourist arrival brings per tourist per day expenditure at 54 USD. Tourism sector of Nepal is organized and managed with partnership of Government, private sector, household, professional and NGOS. Tourism industries play pivotal roles in tourist service management, increasing revenue, All total 1101 (star and tourist standard Hotels) are operated in 2017, with bad capacity 39833 per day. Travel agency, tour guide, tour operations, trekking agencies, rafting agency and guides all one in increasing number in trend. In 2017 the number of registered Travel agencies reached up to 3824 and trekking agencies are 2637.

GDP

The contribution of tourism to the GDP of Nepal has been significant. It has contributed in more than one way including through foreign exchange earning, increase in production of all varities opening up of new institution and range of service sectors. The GDP of Nepal was NRP. 68.8 billion Which was almost 3.9% of total GDP in 2013 from the direct contribution of travel and tourism in Nepal. And there is forecast to grow up by 9.8% in 2014 and after that continuously rise by 4.9% pa every year from 2014-2022. In the same way travel and tourism has directly supported 504000 jobs to local and national wise and the indirect economic employment was 1,112,000 jobs, this is expected to rise by 6.5% in 2014 and expected to rise by 6.0% pa from 2012-2022.(council, 2014).

Thus, in Nepal tourism is not only important economic sources of foreign currency but also a major employment generation.

Benefits and Recommendation

The article his identified a number of knowledge about management and development the must be explored in order to ensure a better planning are understanding as well as implementation of tourism and economic growth of Nepal. Nepal can get various benefits on advantage by promoting the tourism sector as follows:

1. Earn foreign currency and income gaining jobs in the economy.
2. Creates an opportunity for various employments in the country.
3. Contribution in development infrastures.
4. Improve of living standard of Nepalese people.
5. Tourism provides the opportunities for development of existing business and services throughout country and international level.
6. Local economic will be increased and the economic of local business will be established and employment would be developed.
7. Economic as well as social, cultural, environment etc. advantages would be established and developed.

Some recommendations and potential suggestions on tourism and economic growth are:

• The need to develop and explored tourism in order to able to conclusively determine the role of tourism and economic growth of Nepal.
• The need to develop tourism policies and practices that ensure the implication and distribution of tourism for betterment of economic growth of Nepal.
• National efforts to ensure that tourism activities carried out sustainably and meet economic socio-cultural and environmental objectives.

Conclusion

This article was prepared for better understanding of tourism and economic growth in Nepal and probable perspective of tourism activities in Nepal. In other words, it can be continued that there is a long run relationship between tourism performance and economic growth of Nepal.

Overall fact that, the tourism of Nepal needs an upgrading in all its service and areas. If that is done, then only the tourism and economic growth of Nepal would be better and the lifestyle of people of Nepal will change as well. The fact that, the tourism of Nepal still reties on old and primitive ways.

The articles suggest that there is a important role of tourism performance on economic growth of Nepal. The main contribution of this article is in information providing the role of tourism on economic growth.

Nepal has great opportunities to make money from tourism sector. Nepal has to utilize all the resource and advertise the tourism sector in get more benefit from tourism sector for the economic growth of Nepal.

References

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