After investing in restaurants in Kathmandu and Pokhara and having numerous conversations with Nepali tourism entrepreneurs, I have reached the sobering conclusion that the country's tourism industry is in a difficult situation. We hope for better business every year, but the reality is frustratingly unchanged. Even with Nepal's unmatched geographic and cultural advantages, the country's tourism sector is still unable to realize its full potential.
Unrealized potential of Nepal
Nepal is a tourist haven. It is home to the Buddha's birthplace, Mount Everest, the highest peak in the world, and seven other notable peaks that attract hikers and adventurers from all over the world. From the Everest Base Camp to the breathtaking lakes of the Annapurna region, its trekking routes offer unparalleled natural beauty paired with a wealth of diverse cultures. Nepal is well-positioned for thriving tourism thanks to its geographic and cultural resources.
Positive Aspects: Friendly service and expanding facilities
Atithi Devo Bhava, or "the guest is god," is embodied by the people of Nepal, and tourists frequently cite their warmth as one of the highlights of their trip. The sector truly benefits from the warmth and friendliness of Nepali hosts. Numerous foreign hotel chains have recently opened locations in Nepal, indicating the market's growth and interest.
Negative Aspect: Policy and infrastructure failures
Beyond these advantages lies a more troubling reality. Luxury travelers are a crucial market that can greatly increase Nepal's tourism industry's earnings, but the country struggles to draw them. Why? The infrastructure is just inadequate. The only international gateway to Nepal, Tribhuvan International Airport, is poorly run and disorganized. This is the initial impression that guests get, and regrettably, it is not very good. The majority of global hotel chains are centered in Kathmandu, which restricts the spread of visitors. Due to the tendency of tourists to remain in the capital, other regions' economic benefits are diminished.
The price difference on domestic flights is one of the most obvious problems. For instance, a 25-minute flight from Kathmandu-Pokhara-Kathmandu can cost US$250 for foreigners and US$80 for Nepali nationals. International flights, such as those to Bangkok-Kathmandu-Bangkok, cost between US$300 and US$400, but domestic flights can cost almost as much, making domestic travel unaffordable for tourists. This pricing structure deters travelers from visiting other stunning regions of Nepal, including the approximately 10,000 diplomats and expatriates who reside in Kathmandu. Rather, they choose more affordable and easily accessible foreign locations, like Bangkok or Delhi. As a result, hotels and businesses in Pokhara, Chitwan, and Lumbini lose potential clients.
Problem with international connectivity and Nepal Airlines
Compared to private airlines like Thai Airways, Korean Air, and Cathay Pacific, Nepal Airlines, the country's flag carrier, is more costly and less dependable. The nation's reputation was harmed by frequent delays and a small fleet. In order to increase connectivity and cut expenses, if I were in charge, I would push for the purchase of additional aircraft through government-to-government agreements and operate the airline at break-even.
Why does this matter in the bigger picture?
The whole tourism ecosystem is impacted by high travel expenses. When travelers spend a large amount of their budget on airfare, they will unavoidably spend less on lodging, dining, shopping, and sightseeing. This restricts revenue for nearby companies and impedes economic expansion in regions that rely heavily on tourism.
An urgent appeal
Why isn't the government taking immediate action to address these basic issues? To fully unlock Nepal's tourism potential, it is imperative to invest in infrastructure beyond Kathmandu, improve airport management, enforce fair and transparent domestic airfare policies, and revitalize the national airline.
The world is in awe of Nepal's natural beauty and cultural legacy. It now requires the foresight and dedication to transform these benefits into inclusive, sustainable tourism growth.
(Mr. Giri is a restaurant investor in Kathmandu and Pokhara, as well as an experienced strategic business consultant specializing in cross-border payments and recruitments.)
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