<strong>CAAN</strong> <strong>Souvenir</strong> 2010In 1962, when <strong>Nepal</strong> first started to keep records <strong>of</strong> datarelated to tourism, there were only 6,179 tourist arrivals inthe country. This figure rose to 509752 in 2009, registeringa growth <strong>of</strong> nearly 8250 percent in the 47 year period,despite suffering two major slumps: one between 1992 and1993 and the other between 1999 and 2002.Economic Contributions from Tourism SectorThe total foreign currency earnings from the tourism sector isabout NRs. 27960 million in 2008/09. This amount is 40% <strong>of</strong> total value <strong>of</strong> merchandise exports, 6.5 % <strong>of</strong> total foreignexchange earnings and nearly 3 % <strong>of</strong> the GDP (MoF, 2010).The historical data on foreign exchange earnings from tourismshows that the share <strong>of</strong> tourism is declining due to the increasingshare <strong>of</strong> remittance income. However, in terms <strong>of</strong> GDP itsshare is in between 1.4 to 4.1 during past 35 years (MoF,2010).Source: MoF, 2010If we see the purpose <strong>of</strong> tourists for visiting the country nearlyone third are for pleasure, 21 % are for the purpose <strong>of</strong> trekkingand mountaineering, 10 percent are for pilgrimage 8 percentFigure 3: Tourist Arrival by Regions in 2009for <strong>of</strong>ficial, 5 % for business 1 % for meeting and seminarand 21 % for other purposes (figure 2).15Source: MoF, 2010Among the total tourists the share <strong>of</strong> Asia is highest. Nearly56 % tourists come from Asia. In terms <strong>of</strong> single nation touristsfrom India is highest. The share <strong>of</strong> Indian tourists is 18.4 % andthe share <strong>of</strong> African tourists is very low i.e. 0.2 % (Figure 3).Overall tourist arrivals declined from 1999 to 2002 andrecovered in two phases from 2003 to 2004 and 2006 to2008. The decline was caused by the deteriorating image<strong>of</strong> <strong>Nepal</strong> as a safe destination, owing to the then internalconflict due to Maoiest insurgency and regional andinternational incidents such as September 11 terrorist attacks,war in Afganisthan (Haslett, 2001) were some factors.The recovery on the other hand was caused partly by the12 th Anniversary Publication
16intrinsic resilience <strong>of</strong> the tourism sector (its ability to bounceback quickly) added by a slew <strong>of</strong> measures put in place bythe government and <strong>Nepal</strong> Tourism Board in cooperationwith private sector (Adhikari, 2005 and Asia Tribune, 2004).The signing <strong>of</strong> the Comprehensive Peace Agreement and theeventual joining <strong>of</strong> the government by the CPN-Maoistsopened the way for international tour operators and Westernembassies to put <strong>Nepal</strong> back on their list <strong>of</strong> safe destinations.The economic performance <strong>of</strong> the tourism sector for the mostpart mirrored the decline and recovery trends <strong>of</strong> inboundtourism between 1998 and 2008. Similarly gross foreignexchange earnings closely followed the overall tourist arrivalsnumbers during 1998-2009. Looking the past trend <strong>Nepal</strong>Government’s goal <strong>of</strong> attracting 1 Million visitors by thecoming year 2011 needs more efforts from the side <strong>of</strong> thegovernment and private sector.Conclusion and RecommendationsThe declining and recovery phases associated with inboundtourism to <strong>Nepal</strong> in the last decade has underscored thatnews or travel authorities related to crimes, diseases, wars,political unrest, hazards and disasters can have serious impacton the number <strong>of</strong> tourist arrivals in <strong>Nepal</strong>. Therefore it isimportant to manage a crisis, whenever or whatever it occursin the following way.l Initiate confidence or image building measures followinga crisis quickly in several fronts-with travel trade, the media,embassies, tour operators etc. Press trips to change publicperceptions to build confidence; transparency incommunications; formation <strong>of</strong> crisis action cell and meetingon travel advisories are important measures. As a means<strong>of</strong> counteract the existing negative streams <strong>of</strong> news, it isimportant to give out accurate and balanced informationwith frequent updates through trusted mediums and outlets.l The government should insist that the embassies discussbeforehand the content <strong>of</strong> travel advisories with theauthorities <strong>of</strong> <strong>Nepal</strong> including <strong>Nepal</strong> Tourism Board, orat the very least follow the guidelines stipulated in theGlobal Code <strong>of</strong> Ethic for Tourism (UNWTO, 2001). Thisis especially important for <strong>Nepal</strong> because <strong>of</strong> theirgeneralizing effect, and also because they tended not tochange with time and did not paint the full picture. Sothere needs to be struck a balance between the embassies’right to inform their citizens about security situations andthe host country’s tourism development imperatives.l Familiarization trips <strong>of</strong>fer one way to correct an imageproblem by bringing journalists and international touroperators to see for themselves true situation <strong>of</strong> <strong>Nepal</strong>following a crisis period. As the saying goes, “seeing isbelieving!”.l Promoting domestic tourism during a time <strong>of</strong> crisis throughinformation dissemination <strong>of</strong> safe travel options, discountprice schemes etc. A country with robust domestic tourismis better able to weather difficult crisis situations.l Organize special events such as International MountainBiking Competition, Everest Marathon, and InternationalMountain Film Festival etc.l Schemes and programs aimed at boosting inbound tourismin the lean months (January-February and May-June-July-<strong>CAAN</strong> <strong>Souvenir</strong> 2010August) need to be designed and implemented to removethe seasonality <strong>of</strong> tourism.l As nearly 80 % <strong>of</strong> the tourists arrive in <strong>Nepal</strong> by air, it isvery important to focus on the civil aviation sector. <strong>Nepal</strong>needs to invest in infrastructure development, especiallyin regional airports, short-take-<strong>of</strong>f –and-landing strips andhelicopter services. It needs to revive and revitalize <strong>Nepal</strong>Airlines Corporation by removing politics from the business<strong>of</strong> flying the national carriers on long haul strategic routessuch as Western Europe.l As <strong>Nepal</strong> is located between two fastest growingeconomies in the world (India and China), it needs toposition itself strategically to benefit from their growths.Thus needs to lobbying with China government to extendthe railway line from Lahsa to Kathmandu while at thesame time lobbying with the Indian Government for similarconnectivity.l The government, with collaboration with stake holders,must commit to maintaining peace and security in thecountry. It needs to focus on main political agenda i.ewriting <strong>of</strong> the constitution within a specified time period.While it may take some time for the dust to settle-i.e. forbandas or political/civil unrest to end given that the countryis in transition- the government should, take all precautionsand measures to see to it that the situation does not getout <strong>of</strong> hand or blow up, damaging <strong>Nepal</strong>’s image as asafe and secure destination in the regional and internationalmarkets.l <strong>Nepal</strong> needs to reclassify types <strong>of</strong> tourists possible herebased on the typologies <strong>of</strong> the tourists visiting <strong>Nepal</strong>, anddevelop tourism products and services for each <strong>of</strong> thesetypes <strong>of</strong> tourism to cater to each typology <strong>of</strong> tourists.ReferencesAdhikari, R. (2005) Building Confidence in Tourism Through CrisisManagement, Policy Paper 9 ICIMODAdity, A and Shrestha, A. (1998) Indian tourists in <strong>Nepal</strong>: The potentialand pitfalls <strong>of</strong> accelerated neighborhood tourism from the South. DraftReport, United Nations Research Institute for Social Development, GenevaAsian Tribune (2004) After Myanmar, <strong>Nepal</strong> to host Buddhist summit.URL: (retrieved on 11 March, 2009)Haslett, M (2001) Afghanistan: the pipeline war?URL: (retrieved on 25March 2009)Horzog, M. (1952) Annapurna. Great Britain: Jonathan Cape.Hunt, J. (1953) The Ascent <strong>of</strong> Everest. London: Hodder and StoughtonMinistry <strong>of</strong> Tourism and <strong>Civil</strong> <strong>Aviation</strong> (2007) <strong>Nepal</strong> Tourism Statistics2007National Planning Commission (1997) The Nineth Plan (1997-2002).GoNNational Planning Commission (2002) The Tenth Plan (2002-2007).GoN.Satyal, Y.R. (2000) Tourism Monograph <strong>of</strong> <strong>Nepal</strong>, Adroit PublishersThe Hindu (2002) <strong>Nepal</strong> Launches Campaign to promote tourism. URL:(Retrieved on 11 March 2009)UNWTO (2001) Global Code <strong>of</strong> Ethics for Tourism. URL: (Retrievedon 15 March, 2009)*Associate pr<strong>of</strong>essor o f Economics and Head <strong>of</strong> the Department<strong>of</strong> Economics at Patan Multiple Campus, Tribhuvan University <strong>Nepal</strong>.12 th Anniversary Publication