Blessed with diverse natural treasures and unique cultural heritage, Nepal holds tremendous potential in tourism. With the improving infrastructure and growing supply side in tourism, Nepal needs to get well-deserved attention. Targeting two million IVAs (International Visitors Arrivals), an ambitious national campaign Visit Nepal 2020 was launched with the high hope to unleash the vast potential. However, the Covid-19 pandemic took a heavy toll on Nepal’s tourism. With the gradual recovery, the number of IVAs is expected to reach around one million in 2023.
Tourism is one of the few ever-growing industries in the world. Despite having tremendous potential, Nepal is not being able to reap the benefits of tourism that the destination deserves. Tourism is the economy that evolves from the movement of people when they travel from one place to another. Easing access to destinations is one of the most important parts of tourism to flourish. Being a multidimensional and multi-sectorial industry, tourism plays a greater role in helping a wide range of supply chain businesses like transport, handicrafts/souvenirs, and food and beverages to thrive. This creates impactful potential interactions with other economic sectors developing sustainable backward and forward linkages. Nepal needs to emphasize more actions for tourism development, expansion, and promotion now.
In Nepal, local communities are contributing a lot to preserve unique natural and cultural heritages safeguarding biodiversity and traditions. Undoubtedly, tourism has played a significant role in the livelihoods of local communities. Be it the Sherpas of Solukhumbu region, Thakalis of Mustang, Tharus of Chitwan, or Newars of Kathmandu Valley. Mananag, Mustang, Kathmandu, Lalitpur, and Solukhumbu are the highest earning districts in Nepal per capita where tourism is one of the most contributing economic sectors. The sector is not just a leading source of employment, particularly for women and youth, it also promotes peace and harmony and creates socio-economic inclusion for the most vulnerable regions. Probably, tourism is among the few economic sectors that promote peace and prosperity.
The industry is going through a very challenging time. Heavy investment was made before the Visit Nepal 2020 campaign which had a target of doubling the IVAs with the improved road and aviation infrastructure. Added two new international airports built in Bhairahawa and Pokhara have encouraged the private sector to invest more. Basically, the service providers of the industry had mainly asked for strong monetary and fiscal support in tax-free/rebate/relief, refinancing, concessional loans, incentives, policy amendments, and promotional support in business revival programs. To help survive the industry the Government of Nepal announced a few social, monetary and fiscal stimulus packages during the Covid-19 pandemic. But this could not help much as the schemes were neither sufficient nor implemented well on time. The industry needs support in protecting the livelihoods of workers and SMEs, fiscal support to companies, injecting liquidity and cash, and business revival-friendly policies. We need to consider that Nepal’s tourism is yet to be fully revived. The recent earthquake in western Nepal has shaken again the already weakened confidence of the private sector. The destination image is damaged with negative media mileage this time too.
Organizations like the Department of Tourism, Civil Aviation Authority of Nepal, Nepal Airlines, and Nepal Tourism Board should act more proactively and collaboratively for effective coordination and smart communication. Brand visibility is very important even during times of crisis. Destination Nepal needs to have more presence in the source markets with relevant and positive messages.
Crisis brings disruption but also gives way to innovation. This is the best time to rethink the way ahead of Nepal’s tourism. This could be the best time to explore new markets and new segments offering new and unique experiences. Striking the right balance on three levels- people, planet, and profit is very challenging and a necessary key intervention to achieve a positive impact while repositioning tourism in the post-Covid situation.
United Nations World Tourism Organization (UNWTO) has set a very relevant theme for World Tourism Day 2023 (September 27) – “Tourism and Green Investments”. The post-Covid tourism trends have indicated that the new visitors are and will be choosing for nature-based destinations, isolation-based activities, and less crowded locations more and more. The tourism revival growth seen in destinations like New Zealand and Maldives has proven this statement where tourist arrival has already surpassed the pre-Covid level.
Looking at the new demand Nepal need to be positioned more as the world’s one of the most pure, pristine, peaceful, safe, happy, and healing destination. There should be a very clear approach for Nepal in terms of rethinking to take a new lead in tourism. This involves engaging with multi-sector industries and the departments of the Government of Nepal to leverage Nepal’s reputation as a unique, high-quality destination. Without any hesitation or reservation, we have to create synergies among all the efforts of key players coming together for tourism and implementing an action-oriented clear strategy as survival is necessary for revival and sound revival creates a foundation to thrive sustainably.
It is high time to recalibrate tourism and such reinvigoration requires innovative ideation, phased and continued pro-active actions, revised policies, patience, synergy creation in the efforts of key stakeholders, and smart and authentic communication.
A clear vision, concrete strategy, and result-oriented action plan can help achieve the much-needed sustainable development goal through tourism. Rethinking tourism is to think to focus on the future. This is the right time to highlight the opportunity to rethink how we should do tourism now. This means putting people and the planet first and bringing everyone from all levels of government and business to local communities together around a shared vision of a more sustainable, inclusive, and resilient sector. Key actions to undertake while rethinking tourism.
Understanding the Changing Trends
Global tourism is shifting from traditional fixed itineraries to self-made customized packages, a guide-based sightseeing tour to the sight-feeling engagement, advance bookers and backpackers to flashpackers, guidebook base selling and searching to app surfing, established destination to the exotic destination and easy to travel destinations, group tours to solo tours, comfort and luxury-based activities to experience seeking enthusiasts.
Strengthening the Supply Side
Nepal can not increase tourist arrivals without increasing its supply side in the following three sectors, a) Increasing flights of Nepal Airlines to have direct larger connection in major source markets; b) successful operation of two newly built international airports immediately, and c) quality Human resources through training of at least 15,000 human resources each year. Besides this, increase air seats connecting to major source markets by encouraging new/added airlines to connect to the destination, and encourage charter flights connecting with big tour operators, event organizers, and spiritual gurus.
Generating Demand in the Source Markets
Nepal as a destination brand needs to be positioned with a distinct and continued message of “Life Time Experiences”. For this, there is a need to create messages specific to the market, weather/climate, food, stories of adventure, and spiritual tours and communicate to new markets and new segments in the old markets. Diplomatic missions, Nepali Diaspora, mass media both traditional and digital, Nepal-loving clubs/communities, and travel fairs, marts and exhibitions can be the most effective channels to communicate the right offers to the right segment.
Upscaling Existing and Emerging Destinations
Nepal has limited financial resources to invest in the development of destinations. So, for now, need to focus on upscaling and beautifying the existing and emerging destinations where the basic investment is already made. Also, basic services in the major tourist sites like trail maintenance, putting signages, building and managing toilets, beautification, and digitizing the services should be added.
Creating Collaboration and Synergizing the Efforts
Tourism is a multisectoral and multidimensional economic sector. It cannot be developed in isolation. So, this is the time to set a mechanism under the coordination of the Ministry of Culture, Tourism and Civil Aviation Authority of Nepal to yield the expected results with better coordination and collaboration. An effective structure, under the direct convenorship of the Prime Minister, with the high-level representation of key government ministries including the Ministry of Home Affairs which manages immigration services, the Ministry of Foreign Affairs which works on economic diplomacy and provides visa services in various source markets, Ministry of Forest and Environment which manages all the national parks and conservation areas, Ministry of Physical Infrastructure which is responsible for building and maintaining roads to major destinations across the country can produce the better result.
Incentivizing Stakeholders through Policy Reforms
Without proper incentives at the initial stage, a business can not thrive. Incentivizing incoming airlines by providing them subsidies in fuel, landing, parking and charter flights, and incentives to the tourism service providers bringing high value and high volume visitors, and incentivizing green investments can certainly bring positive results in the immediate future.
Ensuring Safety Concerns and Building Resilience
Over the decades we have seen that “a crisis” is temporary but “crises” are permanent. So, an automated rapid response mechanism is also necessary to navigate the destination during and after the crisis. Tourism is one of the few vulnerable industries in the world and at the same time, it is one of the most resilient industries too.
The decade of 2020-2030 can be the decade of the dominance of a tourism-led economy. As we synergize our efforts to restart tourism, we must think about redesigning ensuring sustainable destination development and responsible business practices where tourism benefits are shared by all. Tourism becomes sound and sustainable when destinations are developed and cared for by all key stakeholders and benefits are shared. Nepal has the potential to be one of the top 10 tourist destinations in the world with the right internal preparedness, position the destination strength in the markets rightly, and promote sustainability to build better resilience.
Joshi is the Director General at the Confederation of Nepalese Industries. He is the former CEO of the Nepal Tourism Board.
