Nepal's tourism sector supported 1.19 million jobs in 2023
Planned Expansion at Kathmandu Airport and Leadership Void May Impact Tourism Sector
Nepal's tourism sector generated Rs327.9 billion ($2.5 billion) and supported 1.19 million jobs, both directly and indirectly, in 2023, according to the World Travel and Tourism Council's annual report. The sector's contribution to the country's GDP was 6.6 percent, amounting to Rs358.9 billion ($2.7 billion). The report predicts that Nepal will create 1.22 million tourism-related jobs in 2024, representing 15.2 percent of total employment.
The economic activity generated by tourism includes hotels, travel agencies, airlines, and other passenger transport services, excluding commuter services. It also encompasses the restaurant and leisure industries.
The report highlights that domestic visitors were the biggest spenders, contributing Rs210.8 billion last year and projected to spend Rs226.8 billion this year, accounting for 71.5 percent of total tourism spending. Domestic tourism surged post the 2015 earthquake, with popular destinations including Pokhara, Chitwan, Annapurna Base Camp, Mardi, and Manaslu treks.
Mani Raj Lamichhane, director at the Nepal Tourism Board (NTB), noted the full recovery of domestic tourism, citing high hotel occupancies in key hubs. However, domestic tourism in Lumbini has declined due to poor road conditions, while domestic airlines report strong passenger traffic to destinations like Pokhara, Bhairahawa, and Bharatpur.
Buddha Air, Nepal's largest domestic carrier, operates 40 flights from Pokhara International Airport, with passenger numbers doubling in six months. The airline recorded its highest-ever single-day passenger traffic on April 14, flying 3,000 passengers. Most passengers are Nepali, followed by Indians.
International visitors spent an estimated Rs83.9 billion ($633.7 million) in 2023, with this spending projected to grow to Rs102.6 billion in 2024. Of the total expenditure, 83.4 percent was on leisure and the remainder on business. Nepal welcomed over a million tourists in 2023, driven by China's border reopening and record arrivals from India. The government aims to attract 1.6 million foreign visitors this year.
Challenges include the planned closure of Kathmandu's Tribhuvan International Airport for 10 hours daily from November 8 to March 31 for taxiway expansion, coinciding with the peak tourist season of September to November. This may reduce flight frequency and increase airfares. Subash Jha, spokesperson at Tribhuvan International Airport, stated that rescheduling would be difficult due to limited daytime parking slots but suggested using new international airports in Pokhara and Bhairahawa.
Additionally, the NTB has been without a leader for four months, affecting international promotional and marketing activities. Foreign tourist arrivals had previously crossed the million mark in 2018, reaching 1.17 million, and 1.19 million in 2019 before the COVID-19 pandemic severely impacted the sector. The number of tourists dropped to 230,085 in 2020 and 150,962 in 2021, before rebounding to 614,869 in 2022.