Tourism Sector

Nepal has reached to the point of relatively stable political and economic environment after strong political instability. Hence, the country's tourism industry is experiencing a steady growth to attract investments. According to a research, travel and tourism industry currently contributes 9.4 % of the GDP and provide employment opportunities to 70,000 people. In 2013, the investment tourism and travel is about $157 million and the rate of investment is expected to grow by 4.9 % per annum for a period of 1 decade.


Predominantly, investment opportunities in tourism industry has been basically divided into two segments - investment in (i) capital intensive luxury infrastructure and services mostly catering to travelers with deep pockets and (ii) opportunities in micro-entrepreneurial tourism activities like teashops, guest houses.


The existing stage of the industry has created a huge gap in the middle market tourist segment, opening up huge entrepreneurial opportunities. This segment can be defined as middle class population travelers: those who do not want to compromise on quality and hygiene but want it at an affordable price. Within this middle market segment, there are emerging opportunities to capitalize on the bourgeoning domestic travelers' boom. Domestic travel spending generated about 66 % of direct travel and tourism GDP in 2013 compared with 36.3 % from foreign visitors. Domestic travel spending is expected to grow by 9.8 % in 2013, whereas foreigners travel spending by only 2.9 %. For an industry that had been designed by the foreign tourist, the growing influx of domestic travelers has been a wake-up call.


With rising disposable income and increased awareness, more middle market domestic travelers are opting for adventure activities and interaction opportunities with rural culture and nature in unique destination; places that give them a wholesome experience with comfortable accommodation facilities. A great example is a home stay facility.