Figure 39. Extent that limited internet connectivity hinders growth of tourism enterprises

The Karnali Tourism Master Plan 2020/21-2029/30 identified the following weaknesses of the tourism sector resulting to low volume of tourists and tourism receipts: (MoITFE 2020) (i) poor conditions of roads transportation/connectivity; (ii) inadequate tourism services and facilities including skilled human resources; (iii) inadequate infrastructure for health and safety measures, facilities and services; (iv) lack of adequate tourism information; (v) lengthy and complicated permit getting process for the tourists; (vi) lack of coordination between public and private sectors for the promotion and marketing of the Karnali tourism; and (vii) expensive destination due to high air tariff, camping based accommodation, high vehicle rental cost, lack of local produces and lack of local skilled guides and trekking agencies for ground handling.

Inability of Province 2 to attract more tourists and increase tourism receipts generally revolve around the lack of recreational facilities, accredited hotels, organized travel tour operators, tour transport facilities, and publicity and promotion (PPPC 2020). Tourists in Province 2 are mainly Indian pilgrims who arrive with their own bus arranged by Indian operators going up to Muktinath. Most of them bring their own food or do their own cooking since there is no certified Hindu vegetarian food in the province.

6.5.2 Limited internet connectivity

Limited internet connectivity was perceived by all respondents in Province 2 to be a hindrance to growth. In Karnali, 88% of the respondents said that limited internet connectivity was a serious to moderate problem. About 75% of the Lumbini respondents rated it as serious to moderate problem.

Figure 39. Extent that limited internet connectivity hinders growth of tourism enterprises

Tourism enterprises felt that unstable internet connection and limited access to broadband internet discourage tourists from staying in the area for a longer period. Likewise, it hinders their marketing effort as well as the set-up of online payment system that benefits Nepalese enterprises instead of Indian and Chinese operators.

Market players like eSewa, Khalti, Fonepay, and others have initiated the digital payment system in collaboration with banks but uptake has been hampered by government restriction on transaction limit to NRs.5.000, NRs.10.000, and NRs.50.000 at one time, daily and monthly payments respectively (R. Acharya 2021).

Improved connectivity as well as utilization of digital technologies can also improve efficiency across the supply chain.