TourismTrendsand Opportunities

Considering the post-earthquake and pre-pandemic period, ranging from 2016 – 2019, the tourist arrival in Nepal grew by a CAGR of 16.7%. As the tourist arrival in Nepal reached 614,148 in 2022, the tourism industry can be expected to bounce back in 2023, with tourist arrival reaching pre-pandemic levels at approximately 950,000 Beyond 2023, tourist arrival can be expected to grow at 16 7% per annum, the growth rate pertaining between 2016 and 2019. Meanwhile, the tourism and hospitality industry in Nepal is evolving and several new trends, some of which are explored below, have emerged.

Domestic Tourism on the Rise

The trend of Nepalis traveling for leisure within the country has been on an upward trajectory For the last 5 years, domestic tourists have been the biggest source of revenue for popular destinations such as Pokhara and Chitwan Spending by Nepal’s domestic tourists made up 56% of the industry’s total revenue of NPR 240.7 billion in 2018. The pandemic has further demonstrated the importance of domestic tourism. Kalinchowk, Manang, Chandragiri, Rara lake, Shey Phoksundo, Upper Mustang, Mardi Himal, Langtang, and Kanyam have become some of the popular destinations which weren’t truly discovered and travelled before. Social media has had a massive influence on attracting tourists to these destinations. People get influenced by destinations trending on Tiktok and Instagram and are influenced to visit such places. There is also a growing trend of youths wanting to travel, and they tend to spend more on food and drinks Tour companies have utilized social media to a great extent offering great packages for these places while making it much easier to access with their vehicles or tour guides The international travel restrictions and other restrictions in different countries caused by the pandemic have also had a big part in encouraging people to travel domestically The government has relied heavily on foreign tourists, but it is very important to put more emphasis on domestic tourism.

Meetings, Incentives, Conferences and Exhibitions (MICE)

Considering Nepal’s geographical location between two of the biggest economies of the world, India and China, Nepal has a huge potential for MICE tourism, attracting Indian and Chinese corporates. When booking trends for big Indian corporates are observed, they tend to prefer Thailand or European destinations. Nepal can rebrand itself as a MICE destination The high-value corporate clients can contribute significantly to Nepal’s tourism industry as MICE visits can be extended for leisure. MICE can provide adequate Return on Investment (ROI) for the capital-intensive hospitality industry in Nepal

Adventure Tourism

Adventure tourism is one of the most popular forms of tourism in Nepal. Being home to eight of the top ten highest mountains in the world and some of the most beautiful landscapes which are only reachable on foot, trekking in Nepal is a unique experience with 1,153,793 tourists visiting Nepal just for this purpose between 2015 and 2020. Nepal has a plethora of different adventure activities to offer such as mountain biking, bungee jumping, rock climbing, bird watching, mountain flights, ultralight aircraft flights, paragliding, zipline and rafting

Previously, adventure tourism was mostly comprised of international tourists. However, there has been a growing interest among domestic tourists in adventure tourism as well.

Casino Hospitality

Lately, investors have been drawn to casino tourism Numerous luxury hotels with casinos have opened in the cities near the Indian border Since casinos are banned in all but 3 states (Goa, Sikkim,

Daman) in India, Nepal is an accessible option for Indians who want to gamble in casinos Additionally, the ban on alcohol in the state of Bihar, which borders Nepal, has also increased the flow of Indian tourists. There are 5-star hotels with casinos emerging near the Indian border in places such as Bhairahawa, Nepalgunj, Lumbini, and Birtamode Hotel Mechi

Crown and Hotel Kingsbury, new 5-star hotels have also opened in Jhapa near the Kakarvitta border. Soaltee Westend has opened in Nepalgunj and Hotel Pawan Palace has opened in Lumbini. Hotel Centurion, another 5-star property with a casino is currently under construction in Biratnagar. All these hotels are strategically built near the Indian border which takes only a short drive to reach

Staycation

COVID-19 has contributed greatly to this trend of staycations, where people visit places for leisure within a day trip from their homes. After several periods of lockdown during 2020 and 2021, there has been a rising demand for domestic tourists to spend their weekends at nearby hotels for leisure COVID-19 has also encouraged people to focus more on experiences and thus are willing to pay a higher price for luxury hotels and the privacy it offers As the threat of COVID-19 reduces, the increasing trend of staycation might be reduced as domestic tourists seek to travel internationally