NEFPORT ISSUE 49 – JUNE 2022
Tourism
FACTSHEET Contribution of tourism to GDP
3%267
Nepal’s tourism sector, which was greatly affected by the COIVD-19 pandemic, has finally begun to recover. While an increase in international tourist arrivals has been seen, it still remains below pre-pandemic levels. Policy support by government along with widening vaccine access and coverage provided a window of opportunity and created optimism for the revival of the tourism industry. With Nepal’s second international airport coming into operation and the increasing confidence among international travelers, the tourism sector is moving to resume normal operations while increasing capacity and employment. Throughout the COVID-19 pandemic period, Nepal’s domestic tourism has been supporting the country’s tourism industry. Furthermore, Nepal has been ranked 9th in the Asia-Travel-Index, which highlights the possibility of attracting foreign tourist as entrepreneurs continue to demand on easing immigration procedure to facilitate entry of tourist in Nepal. TOURIST ARRIVALS Nepal Throws Doors Open for Tourists Nepal threw its doors wide open to tourists, removing all prearrival testing requirements for fully vaccinated travelers in a bid to recharge its stagnant tourism industry. The policy was introduced as all COVID-19 controls in Kathmandu Valley were lifted following a sharp drop in the infection rate. Travelers who have not been vaccinated or have received only one jab need to produce a negative RTPCR test result, not older than 72 hours. Such provisions supersede all previous rules, including the quarantine requirement
imposed by government. However, incoming visitors are still required to fill out a travelers form issued by the COVID-19 Crisis Management Coordination Centre (CCMCC) at the point of entry.274 The tourism sector is expected to return to normal operation in the medium term. Tourist Influx on the Rise The arrival rate of foreign tourists to Nepal has increased by 159.9% in April 2022 as compared to the corresponding period of the previous year. A total of 58,348 international visitors came to Nepal in April of 2022, while the number was 22,450 in April 2021.275 In April 2020, only 14 foreign tourists visited the
Contribution to Employment
20%268 Tourist arrival (till January 2022 - April 2022)
137,095269 Nepal's Asia-Travel-Ready Index Rank
9th270 Credit to tourism sector
NPR 24.4 billion271 Security market turnover
NPR 6.1 billion272 % Of FDI in tourism sector
20.5%273
country due to the spread of the COVID-19 pandemic, while a total of 109,399 visited Nepal in April of 2019.276 Although the arrival of tourists has been increasing lately, highlighting the recovery of Nepal’s tourism sector, it is still below prepandemic levels. The less than anticipated rise in arrivals can be attributed to rising global tensions and the recent outbreak of new COVID-19 variants in China. Nepal Scores Mediocre on the Asia Travel-Ready Index Nepal scored 3.23 points (0 – 10; lower score indicates favorable conditions for tourism recovery) in the Asia’s Travelready (ATR) index calculated by the Economist Intelligence
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