The Origin Country of Tourists

According to the Nepal Tourism Board (NTB), European tourists made up the largest share of tourists in Nepal in 2021 There were 25,305 European tourists in 2021, a decrease of 30% compared to 2020. There was a massive decline of 67 8% for Chinese tourists with Nepal welcoming only 6,196 tourists in 2021 compared to 19,257 tourists in 2020. A total of 22,853 tourists arrived from the USA, with another 64,673 tourists arriving from India and 5,044 tourists arriving from Bangladesh in 2021. Arrivals from these three countries saw an increase compared to the arrivals from 2020.

India will remain the largest market for Nepal due to close cultural and religious ties Nepal has not been able to attract many Bangladeshi tourists due to VISA issues at the Kakarvitta border of Nepal Despite Bangladeshis receiving an arrival visa at the border, they first need an Indian transit visa which is only granted if they already have a visa from Nepal. Solving this issue would allow Nepal, specifically the Eastern part, to tap into the large market of Bangladeshi tourists. The average tourist arrival as a % of total tourists from 2012-2021 based on country of origin is shown in Figure 2.

Seasonality

Figure 3 presents the total number of tourist arrivals to Nepal by month from 2017 to 2022. The figure shows that October and November witness the highest number of tourist arrivals to Nepal, making them the peak months, followed by March On the other hand, we can see that the months of May through July are the off seasons with the least number of tourists visiting the country

Tourist Expenditure and Revenue from Tourism

Figure 4 presents the total revenue from tourism from 2015 to 2021. During this period, the total revenue from tourism increased from USD 497.84 million in 2015 to USD 724 34 million in 2019, with a

Cumulative Average Growth Rate (CAGR) of 7.8%, before falling to USD 112 51 million in 2021. The average amount a visitor spends over the length of their stay has seen a steady decline of CAGR of 3 2% rom 2015 to 2021. This could indicate that Nepal is attracting more budget travelers and backpackers who tend to spend less to stay for a longer period. While a higher volume of tourists who spend less can contribute to increased tourism revenue in the industry, this could have a negative environmental and social impact on major tourist destinations across the country. Conversely, a declining average visitor spend could also be related to an appreciating USD, because of which tourists can get the same service for a lower USD value The only exception to the declining average visitor spend is during 2020 when the average visitor spend was the highest at USD 981.5.

This can be largely attributed to increased safety concerns where tourists paid extra for added comfort and safety

Further, the average length of stay has increased by a CAGR of 2.8% from 2015 to 2021. As seen in figure 5 and 6, the change in length of stay approximately aligns with the USD to NPR exchange rate When the USD appreciates, tourists can spend more in Nepal with the same amount of USD, making their stay in Nepal cheaper and encouraging tourists to stay longer in the country