Economy and Tourism

Economy 

Nepal's Economy 

At a glance...

• GDP (2010): $15.11 billion with 3.5% growth
• Agriculture (33% of GDP) provides a livelihood for 75% of the population 
• Pulses, jute, sugarcane, tobacco, grain Industry (16% of GDP)
• Carpets, pashmina, clothing, cement, cigarettes, sugar, soap, manufactured goods, hydroelectric power
• GDP per capital: $1,200 (2010) or #208 in the world
• 25% of population lives below the poverty line and 46% under-employment rate

 

 

Economic Prospects:

Main challenges: political instability, landlocked, civil strife and labor unrest, susceptibility to natural disasters, severe shortage of skilled labor, increasing overpopulation and strain on the “carrying capacity” of natural resources

Economic potential: Tourism, harnessing hydropower (42,000 MW of feasible capacity)

Nepal – Global Perspective

Receives substantial foreign aid from India, the United Kingdom, the United States, Japan, and the

European Union (EU) as well as multilateral organizations--including the World Bank, the Asian Development Bank, and the UN Development Program. 

Source: ("The economy of Nepal," 2011), (Travel Document Systems, 2010)     

Nepal economy in the news

The Himalayan Times

Economic Growth 

Nepal Tourism 2011
"Because once is not enough"

Nepal Tourism 

 "Tourism in Nepal"

"The tourism in Nepal involves a large section of its general population. It constitutes the largest service industry of the Himalayan country. Nepal tourism is bolstered by the presence of the highest mountain in the world-Mount Everest. The country also is home to 8 of the10 highest mountains on earth. Nepal acts as a veritable magnet for persons following an active lifestyle. Mountaineers, rapellers and ski professionals regularly visit the country to hone their professional skills. The tourism industry in Nepal is responsible for a large portion of the foreign exchange coming into the country.

The tourist industry in Nepal employs 42% of the total working population in Nepal. It is the main source of economic sustenance after agriculture. Many Nepali people depend upon foreign tourists for their livelihood. The growth of organized tourism in Nepal has given rise to higher wages of the Nepali population depending upon tourist activity for their economic sustenance. Responsible tourism is practiced by the government to ensure that environmental degradation does not occur as a by-product of tourist activities." (2009).

Objectives:

1. Establish Nepal as a choice of premier holiday destination with a definite brand image.
2. Improve and extend tourism related infrastructures in existing and new tourism sites.
3. Enhance the capacity of service providers.
4. Build community capacity in the new areas to cater the need of the tourists.
5. Promote domestic tourism for sustainability of industry.

Strategies:

1. Focusing marketing and promotion activities on regional and emerging markets
2. Exploration of new tourism potential market segments
3. Highlighting the tourism brand: Naturally Nepal once is not enough!
4. Enhancement of air connectivity with the regional, emerging and potential markets
5. Lobbying with the government for sufficient budget allocation to improve and expand tourism related    activities infrastructures in existing and new tourism areas.
6. Attract and encourage private sector for investment in tourism sector
7. Capacity building of human resources involved in tourism
8. Lobbying with the government for effective intervention in domestic tourism development e.g. Amendment in the Transportation Act.
9. Promotion of Domestic Tourism by endorsing Leave Travel Concession ( LTC) by the government.
10. Organize major sports/events in association with tourism associations and stakeholders through out the NTY 2011.( At least one event in a month )

(Trek and Tour Nepal, 2010), (International Centre for Sustainable Development, 2010)