Four-Year Tourism Business Plan: Surya Bahadur Ghimire 2024 (Projected)
Background
Located at the foot of the Himalayas in South Asia, Nepal is a beautiful landlocked country. It is known for its rich cultural heritage, comfort and ecology, making it an attractive destination for tourists worldwide Despite its potential, the project faces challenges such as infrastructure constraints, tourism and management, political injustice, natural disasters, and ensuring environmental sustainability.
This is an ambitious announcement from the government side projecting to make the tourism sector’s contribution to the national GDP by 10 per cent, increase tourist spending capacity from $48 to $125, create direct jobs for 1 million in the tourism sector and restore Nepal’s position as a top tourist destination. This initiative aims to improve the quality of tourist services in line with the Nepali culture of "Atithi Devo Bhava" (Guest is God) and attract more foreign tourists to the country. The government is promoting domestic tourism with the slogan "Nepal Ghumaun, Nepal Chinaun."
Tourism can boost economies by generating foreign currency, creating jobs, and building capital for countries, making it a short-term and long-term contributor to GDP. Nepal Tourism Board plays a crucial role in initiating private stakeholders and authorised public agencies in fulfilling the government projection. This comprehensive plan provides a four-year roadmap to strengthen Nepal's tourism sector and promote the country as a top tourist destination in the world, following the theme of government.
Overview of the Nepalese Tourism Sector
The tourism industry in Nepal plays a vital role in the country's economy, as it contributes to employment generation and foreign exchange earnings. The government policies and regulations are designed to focus on sustainable tourism development, cultural heritage preservation, and environmental conservation. Nepal has much to offer its visitors, such as trekking in the Himalayas, exploring religious and cultural sites like Kathmandu Valley, and experiencing wildlife tourism in national parks. It is a virgin destination for adventure lovers globally.
In the year 2023, most of the tourists (62.5 per cent) visited Nepal with the purpose of holiday celebration and pleasure. Similarly, 15.2 per cent of tourists came for adventure, including trekking & mountaineering, 13.1 per cent for pilgrimage and 9.2 per cent for other purposes.
Nepal boasts of Heart-pounding treks, exhilarating white-water rafting, serene wildlife safaris, and cultural exploration amidst ancient temples. However, the journey hasn't been smooth. Political instability and natural disasters like the 2015 earthquake impacted tourist arrivals. The recent COVID-19 pandemic delivered another negative blow, but Nepal's resilience shines through. Tourist numbers are steadily rising again, with the government actively promoting sustainable practices for long-term success.
The Ministry of Culture, Tourism and Civil Aviation (MoCTCA), with the support of SNV/Nepal, commissioned the World Tourism Organization (UNWTO) to formulate a guiding National Tourism Strategy Plan with a 10-year horizon and a 5-year Action. The National Tourism Strategy Plan (NTSB) 2014-2023 was categorised into two phases, Phase 1 (2014 to 2018) and Phase 2 (2019 to 2023). On December 25, 2022, the Ministry of Culture, Tourism and Civil Aviation unveiled the strategic framework designed for the Nepal Tourism Decade 2023-2032, aiming to bring 3.5 million tourists in the next 10 years.
Prime Minister Prachanda has set a target of doubling tourist arrivals to 20 lakhs by 2024. To achieve this, he has urged the activation of the Tourism Decade program and infrastructure development. This positive trend in tourist arrivals is a ray of hope for Nepal's tourism industry and signals expectations for continued growth and prosperity in the coming years.
Developed by a four-member expert panel led by the former Nepal Tourism Board (NTB) CEO Prachanda Man Shrestha, the framework has set ambitious targets such as increasing tourist spending to USD 125 daily from the current USD 48, creating 1 million direct jobs in the tourism and increasing the sector's contribution to national GDP from 6.7 to 10 per cent. The government has planned to bring the tourist numbers to pre-pandemic levels by 2024 and increase arrivals in each subsequent year by 15 per cent.
In the next decade, tourism campaigns will be organised across different provinces of the country. The preparation year for these campaigns was 2023, and the campaign year will be 2024 in Bagmati Province, 2025 in Gandaki Province, 2027 in Lumbini Province, and 2028 in Madesh Province. The campaigns will be organised in Sudur Paschhim, Province 1, and Karnali Province in 2029, 2030, and 2031, respectively. In 2026 and 2032, national-level programs will be held to guide the overall development of tourism while promoting sustainable tourism practices and community involvement. A campaign with the slogan "Visit Nepal, Know Nepal" will be conducted to promote domestic tourism. Local festivals, cultures, jatras, and tourist destinations will be promoted, and the expansion of inter-provincial aviation services will be encouraged.
The Ministry of Culture, Tourism, and Civil Aviation (MoCTCA) is responsible for overseeing tourism activities and granting permits. Regulations are in place to cover various areas, such as trekking, mountaineering, and eco-tourism. Both tour operators and tourists must be familiar with these regulations to navigate the permit processes and ensure adherence to environmental and cultural preservation standards.
According to the Ministry of Finance's Economic Survey 2079/80, the average stay of tourists in Nepal did not exceed 15 days in the past decade, except for 2020 and 2021. These two years coincided with the COVID-19 pandemic, during which the average stay of tourists in Nepal reached 15 days.
Tourists’ length of stay Year Days
2022-13.1 Days
2021 15.5 Days
2020 15.1 Days
Average expense per visitor Year Expense
2022 $40.5
2021 $48
2020 $65
Tourism Earnings Year Expense
2022 $326.28m
2021 $112.50m
2020 $217m
SWOT Analysis
SWOT analysis is a strategic planning tool that assesses the Strengths, Weaknesses, Opportunities, and Threats of a business. It can be applied to the tourism sector in Nepal to evaluate its present position and prospects.
Strength: (S)
· Nepal has unmatched natural products, 8 mountains above 8,000m out of 14 globally.
· Rich cultural heritage, including UNESCO World Heritage sites. Multi-culture, multi-ethnic; multilingual society, feast and festivals, living goddess; humble people,
· Landscapes: Himalayas, forests, plains and pristine lakes, rapid-flowing rivers.
· The ultimate adventure tourism sector is booming: trekking, mountain climbing, white water rafting, wildlife safaris etc.
· The largest assortment of aerial, terrestrial and aquatic sports.
· A strategic location between India and China offers opportunities for trade and tourism.
· Protected areas with abandoned availabilities flora, fauna,
· Unique topology (Climate variance from lowland to highland in the same season.)
· Cheaper destinations can be branded in comparison to competitor neighbours.
Weaknesses: (W)
· Limited accessibility due to undeveloped transport infrastructure.
· Hiking and climbing depend on the season.
· Environmental pollution and waste management challenges.
· Perceived political instability affecting tourist confidence.
· Poor marketing and branding efforts compared to regional competitors.
· Youth forces are draining out of the country to sustain livelihood.
· Trained manpower is lacking, resulting in a scarcity of resources for massive publicity and consumer promotion.
· Weak public-private partnerships.
· Limited air connectivity and weak national carriers.
· Tourism education and awareness programs are very primitive and weak.
Opportunity: (O)
· The government has prioritised the tourism industry.
· Emerging trends in ecotourism and sustainable travel globally.
· Growing demand for experiential tourism and cultural exchange.
· Operations of newly constructed international airports to attract more tourists.
· Potential improvements in services through government support.
· Untapped markets in Asia, Europe, and North America.
· The establishment and operations of several Chain hotels can accommodate quality tourists.
· Creating new tourist circuits beyond popular destinations.
· Attract new airlines to fly to Nepal with a liberal air services agreement.
· Promoting spiritual and natural tourism like yoga, meditation etc.
Threat: (T)
· Natural disasters such as earthquakes and floods.
· Competition from neighbouring countries in the region.
· Geopolitical conflicts affecting international travel.
· Climate change impacts on Himalayan ecosystems and tourist activities.
· The negative impact of mass tourism on local culture and environment.
· Global economic crises after COVID-19 and continuous wars between powerful countries.
· Environmental degradation issues.
Strategies Based on NTB's Scope
The Nepal Tourism Board (NTB) is the only legal national tourism-promoting organisation playing a crucial role in promoting, branding and managing tourism in Nepal with a collaboration between private and public stakeholders in (the PPP) model. To develop effective strategies that leverage NTB's scope, it is essential to understand tourism. The country has several key destinations, each with unique attractions that appeal to diverse travellers.
One of the primary strategies based on NTB's scope involves marketing or promoting Nepal's iconic destinations. Kathmandu, the capital city, is a cultural hub famous for its UNESCO World Heritage Sites like Durbar Squares, temples, and stupas such as Swayambhunath and Boudhanath. Pokhara, with its serene lakes and stunning views of the Annapurna range, attracts adventure seekers and nature enthusiasts. Besides, destinations like Chitwan National Park, famous for its wildlife safaris, and Lumbini, the birthplace of Lord Buddha, provide unique experiences that can be marketed to different segments of travellers.
Adventure tourism represents another critical aspect of Nepal's tourism landscape. Strategies can focus on promoting activities such as trekking in the Himalayas, including iconic trails like the Everest Base Camp trek and the Annapurna Circuit. Adventure sports like paragliding in Pokhara, rafting in the rivers, and mountain biking in the rugged terrain present opportunities for adrenaline junkies. NTB can collaborate with adventure tour operators to ensure the safety and sustainability of these activities while enhancing their appeal to both domestic and international tourists, coordinating with the government and its concerned departments.
Community-based tourism initiatives provide an opportunity to empower local communities while promoting sustainable tourism practices. NTB can collaborate with grassroots organisations and homestay networks to offer authentic cultural experiences that benefit host communities economically and socially. Encouraging responsible tourism practices, such as minimising environmental impact and respecting local customs, can contribute to long-term sustainability and positive destination branding.
Leveraging NTB's scope requires a comprehensive understanding of Nepal's tourism landscape, including its key destinations, attractions, and challenges. Strategic initiatives should focus on promoting iconic destinations, enhancing adventure tourism offerings, addressing infrastructure limitations, fostering community engagement, and advocating for sustainable practices.
Challenges within Nepal's tourism landscape must also be addressed in strategic planning. Infrastructure limitations, including inadequate road networks and airport facilities, can hinder accessibility to remote areas and limit tourist arrivals. Moreover, political instability and natural disasters pose risks to the tourism industry. Strategies aimed at mitigating these challenges may involve lobbying for infrastructure development projects, implementing crisis management plans, and diversifying tourism products to reduce dependence on specific regions or activities.
By aligning these strategies with NTB's objectives and functions and increasing the scope and dimension of working strategies as per the Nepal Tourism Board Act, 2053, Nepal can boost its tourism industry while preserving its unique cultural and natural heritage.
Key Performance Indicators
A total of 1,014,876 international tourists visited Nepal in 2023, as per the data published by the Nepal Tourism Board. The government has planned to bring the tourist numbers to pre-pandemic levels by 2024 and increase arrivals in each subsequent year by 15 per cent.
The number of tourists who visited Nepal each month in 2023, along with a four-year tourist arrival projected plan, is listed below:
Table 1: Projected numbers of Tourist visiting Nepal from 2024 to 2027 (Surya Bahadur Ghimire) | ||||||
Arrived in 2023 | Arrival in 2024 | Arrival in 2025 | Arrival in 2026 | Arrival in 2027 | ||
Months | Real Visitors | 15% increment | 15% increment | 15% increment | 15% increment | |
January | 55,074.00 | 63,335 | 72,835 | 83,761 | 96,325 | |
February | 73,255.00 | 84,243 | 96,880 | 111,412 | 128,123 | |
March | 99,426.00 | 114,340 | 131,491 | 151,215 | 173,897 | |
April | 98,773.00 | 113,589 | 130,627 | 150,221 | 172,755 | |
May | 77,703.00 | 89,358 | 102,762 | 118,177 | 135,903 | |
June | 72,250.00 | 83,088 | 95,551 | 109,883 | 126,366 | |
July | 57,726.00 | 66,385 | 76,343 | 87,794 | 100,963 | |
August | 67,153.00 | 77,226 | 88,810 | 102,131 | 117,451 | |
September | 91,012.00 | 104,664 | 120,363 | 138,418 | 159,181 | |
October | 117,306.00 | 134,902 | 155,137 | 178,408 | 205,169 | |
November | 108,630.00 | 124,925 | 143,663 | 165,213 | 189,995 | |
December | 96,568.00 | 111,053 | 127,711 | 146,868 | 168,898 | |
Total Visitors | 1,014,876.00 | 1,167,107 | 1,342,174 | 1,543,500 | 1,775,024 |
Figure 1: Projected the increment of visitors by a minimum of 15 per cent every year for 4 years.
As the candidate for the CEO of Nepal Tourism Board, my financial performance indicators would focus on several key areas to ensure the sustainable growth of the tourism sectors as
· Allocation of budget
· Diversification of Revenue
· Optimization of cost
· Investment in infrastructures
· Initiative for sustainability
· Monitoring and evaluation of financial performance
· Adopting the global market trends and practices
· Setting Risk management strategies
· Strong collaboration between Private and Public Partnerships
· Organizing International Marketing & Promotional Campaigns
· Digital transformation in tourism
· Crafting Capacity building programs
· Performance Metrics and Accountability, etc.
Nepal Tourism Board should focus action-oriented performance on the following 17 pillars of tourism with the consultation of stakeholders and tourism experts.
These 17 pillars are the key performance indicators in fulfilling the theme of the projected plan plotted in Table no 1.
Pillar 1: Business Environment
Pillar 2: Safety and Security
Pillar 3: Health and Hygiene
Pillar 4: Human Resources and Labour Market Qualification of the labour force
Pillar 5: ICT Readiness
Pillar 6: Prioritization of T&T
Pillar 7: International Openness
Pillar 8: Price Competitiveness
Pillar 9: Air Transport Infrastructure
Pillar 10: Ground and Port Infrastructure
Pillar 11: Tourist Service Infrastructure
Pillar 12: Natural Resource
Pillar 13: Cultural Resources
Pillar 14: Non-Leisure resources (Tourists)
Pillar 15: Environmental Sustainability Climate Change Exposure and Management
Pillar 16: Socioeconomic Resilience and Conditions
Pillar 17: T&T Demand Pressure and Impact
The following procedures will be applied to fulfil the target of 4 years business plan:
Preparing a goal framework and splitting 4 years (48 months) of tenure into 8 parts. Delivering the project among the concerned departments and making a specific review of progress every 3-3 months and sharing a progress report to the concerned authorities for suggestions, support and information as,
1st 6-month’s progress report
2nd 6- month’s progress report
3rd 6- month’s progress report
4th 6- month progress report
5th 6- month progress report
6th 6- month’s progress report
7th 6- month’s progress report
8th 6-6-month Final progress report (Review all 4 years’ performance and handover the progress report to the upcoming team)
Marketing, Promotion, and Branding Strategy
Nepal’s branding strategy focuses on positioning the country as more than just a destination. It aims to showcase Nepal as a transformative journey of self-discovery, cultural immersion, and natural wonder. Nepal strives to remain true to its roots while embracing innovation and prioritising sustainability. The ultimate goal is to become a globally recognised and beloved travel brand that inspires and enriches the lives of all who visit.
NTB's integrated approach to marketing, promotion, and branding catalyses driving tourism growth in Nepal, unlocking new opportunities for economic development, cultural exchange, and mutual understanding. As Nepal continues to enchant and inspire travellers globally, NTB should remain committed to showcasing the country's beauty, diversity, and hospitality on the global stage.
Nepal Tourism Board has launched a branding Nepal theme for five business reasons along with:
· More compelling repackage of the diverse, existing product offering
· More tourists increase the number of tourists visiting Nepal
· More money increases the revenues to the nation
· More focus on aligning NTSB's stakeholders and the Nepali tourist industry to a common future
· More consistency defines branding guidelines and investment vehicles.
The following strategy will be implemented to market, promote and create the brand of tourism:
- Additionally, NTB collaborates with travel agencies, tour operators, and airlines to provide attractive packages and deals that make Nepal an appealing destination for travellers worldwide. The board also organises promotional events, roadshows, and familiarisation trips to increase awareness and interest in Nepal as a tourism hotspot.
- NTB's branding strategy focuses on positioning Nepal as a unique destination, emphasising its rich history, spiritual significance, and eco-friendly tourism initiatives. To differentiate Nepal from other tourist destinations, NTB aligns its brand with values of sustainability, authenticity, and cultural immersion. The board aims to attract travellers seeking meaningful experiences by showcasing Nepal's cultural richness and eco-friendly initiatives.
- With a holistic approach integrating marketing, promotion, and branding efforts, NTB endeavours to elevate Nepal's tourism industry, driving economic growth, fostering cultural exchange, and preserving the country's natural and cultural heritage for future generations. NTB continuously refines its marketing, promotion, and branding strategies to adapt to evolving market trends and consumer preferences.
- Emphasizing experiential marketing, NTB seeks to immerse potential tourists in the unique sights, sounds, and flavours of Nepal, inspiring wanderlust and compelling travellers to choose Nepal for their next adventure. Collaboration with influential travel bloggers, vloggers, and social media influencers amplifies NTB's message, tapping into niche markets and demographics resonating with Nepal's offerings.
- The board also aims to brand and promote every tourism product with a unique theme or slogan that can create the image of that product or destination. For example, "Naturally Nepal, Once is not enough" is the tourism brand of Nepal. It is necessary to create such different slogans for different products.
- "Explore Nepal: Where peace meets adventure."
- "Nepal where mountains touch the sky and rivers sing."
- "Nepal is a land of endless adventure."
- "Nepal: Tapestry of Culture, Music of Nature."
- "Nepal: Let your soul fly in the land of Everest."
- "Unravel Nepal: where every moment is an epic adventure."
NTB places a strong emphasis on authenticity and inclusivity when it comes to branding. This is done by celebrating the cultural diversity and warm hospitality of Nepal. Through showcasing the stories of local communities, artisans and entrepreneurs, NTB highlights Nepal's heritage and promotes sustainable tourism practices. By harnessing the power of technology and data analytics, NTB identifies emerging markets and areas for improvement, ensuring that its marketing, promotion and branding efforts remain relevant and impactful.
Nepal’s branding strategy focuses on positioning the country as more than just a destination. It showcases Nepal as a transformative journey of self-discovery, cultural immersion, and natural wonder. Nepal aims to balance tradition and innovation, prioritise sustainability, and become a globally beloved travel brand that enriches the lives of all visitors.
Product Development
Tourism is one of the crucial industries for Nepal as it boasts a diverse range of natural, cultural, and historical assets. Product development is an essential aspect that helps to improve the tourism offerings for visitors by providing them with unique and unforgettable experiences. This process also plays a significant role in contributing positively to the local economy. The tourism product development procedure should follow the five characteristics:
Intangibility, heterogeneity, perishability, inseparability, and ownership.
Though the creation of a tourism product is a complex process, by developing tourism products, Nepal can preserve its rich cultural and historical heritage while providing excellent services and experiences to tourists.
The following Table 2 shows the steps of creating tourism products:
Primary Inputs (Resources) | Intermediate Inputs (Tourism Facilities) | Intermediate Output (Tourism Services) | Final Output (Tourist experiences) |
Human resource | Accommodations | Vehicle parking service | Social contacts |
Material | Transport terminals | Tour guide service | Business contacts |
Equipment | Vehicles/Ships/ Boats/Airbuses/ Ferries. | Hospitality at serviced accommodations/ hotels/ restaurants. | Satisfaction/Memories |
Fuel/Energy | Restaurants/Food Joints | Cultural performances | Recreation |
Agricultural product | Convention/ Shopping Centers. | Festivals/Events | Education |
Capital | Museums | Relaxation |
The process of producing a tourist product begins with basic inputs, such as materials, raw materials, energy, fuel, and agricultural inputs and then proceeds through the process of producing or building those inputs on top of this, there are intermediate products and gift shops. These facilities support and improve the visitor experience.
Investment in the network is then adjusted through specialist manpower, labour, technical services and packaging. These outcomes are services associated with the tourism industry, such as hotel rooms, restaurant meals, and guided tours. However, these items are part of the tourist product only when visitors see them.
For example, a hotel room is just a thing until a tourist stays in it and becomes part of the overall tourist experience. Similarly, to be part of the tourism product, visitors must prepare, serve, order and consume restaurant food.
The outcome is the intangible but highly valuable personal experiences that tourists absorb from their interaction with the tourist object. These experiences can include satisfaction, entertainment, accomplishing business goals, and strengthening personal relationships.
Risk Mitigating Measures
Effective risk mitigation measures are crucial for ensuring the safety and sustainability of Nepal's tourism industry. The country attracts millions of tourists annually, but it also faces various risks, such as natural disasters, political instability, and health concerns. To mitigate these risks, robust infrastructure development and maintenance are essential. Regular inspections of roads, bridges, and trekking trails can minimise the risk of accidents and injuries. Emergency response systems, such as helplines and medical facilities, should also be invested in.
The generic risk management processes for organisations and the community are based upon two enabling activities (communicate and consult and monitor and review) and five major activities: establish the context, identify risks, analyse risks, evaluate risks, and treat risks.
Comprehensive risk assessment and management plans are another crucial aspect of risk mitigation. By identifying potential hazards and vulnerabilities, tourism authorities can develop strategies to mitigate risks effectively. This includes implementing safety protocols for adventure activities like trekking, mountaineering, and rafting. Guides and travellers should also be trained on emergency procedures.
Effective communication and dissemination of information play a vital role in risk mitigation. Providing accurate and up-to-date information about potential risks, weather conditions, and safety guidelines can empower travellers to make informed decisions and take necessary precautions. This information should be provided through various channels, including websites, social media, guidebooks, and briefings by tour operators.
Collaboration and coordination among stakeholders are also essential for successful risk mitigation in Nepal's tourism industry. Cooperation between government agencies, tour operators, local hosting communities, and international organisations is necessary to address common challenges and implement standardised safety measures.
It is very easy to set up the projection programs with very ambitious thoughts. The government of Nepal has also announced the ambitious projection program of increasing the arrival of tourists’ minimum by 15% every year. This will simultaneously encourage several investments in all touristic services in developing the required tourism amenities to accommodate and facilitate the targeted tourists. There will be a huge national and international investment in several mega projects to meet the goal of the projected plan. There is always a great fear of huge losses if the government fail to achieve the projected target of tourist arrival in the psychology of the investors. This will create trauma of loss, economic collapse or global catastrophic risks to the investors, which is also in a high-risk index. The best risk mitigation method to get rid of this fear is to stimulate the domestic movement by encouraging the flow of national tourism, which is in the plan of the government in case of failing to tap the targeted flow of international tourism as per the projected figure. Fostering community resilience through sustainable tourism practices can help mitigate the socio-economic impacts of disasters and crises.
Nepal must focus on infrastructure development, risk assessment, communication, collaboration, and community resilience to enhance its capacity to manage and mitigate risks, thus promoting a safe and enjoyable travel experience for visitors while preserving its natural and cultural heritage.
Conclusion
I am a candidate for CEO of Nepal Tourism Board. In my opinion, formulating a comprehensive business plan will be the basis of our strategy to unlock the huge potential of Nepal's tourism industry. The gross domestic product (GDP) indicates economic growth. The tourism industry development is related to tourist arrivals, length of stay, and gross foreign exchange earnings from tourism. This strategy will be based on the principles of sustainability, inclusiveness and other activities. I will use Nepal’s unique cultural and natural heritage to create personalised experiences that meet the needs of different travellers while preserving the country’s heritage. Through coordination with local communities, government agencies and international partners, I will ensure that tourism development benefits everyone and drives economic growth and social vitality throughout Nepal.
My strategy is to initiate with the concerned government authorities to prioritise infrastructure development, marketing strategies and capacity building to enhance Nepal’s status as a top tourist destination globally, analysing the statements that are reflected in the SWOT analysis section.
The 17 pillars of tourism should not be neglected in transforming the level of present tourism scenarios of Nepal to the global demand. The risk mitigation factor is a very important and serious agenda to be discussed and focused on to achieve the ambitious target. There is a reciprocal relationship between tourism receipts and GDP. Tourism revenue and economic growth are causally related in both directions, indicating that these two factors are linked, and tourism development stimulates economic progress.
Together, we will pave the way to a successful tourism sector that will not only stimulate increasing income and employment opportunities but also contribute to per capita GDP growth, national tourism destinations and industries, productivity and economic prosperity results. This will celebrate and protect the rich cultural and environmental heritage of Nepal for future generations, fulfilling the ambitious dream of the stakeholders who are crafting the dream to be safe, happy and prosperous in this tourism industry.
…………………………………….
Mr. Surya Bahadur Ghimire
Candidate of CEO
Nepal Tourism Board
Email: suryaghimire1136@gmail.com
Cell: 9851136111
Date: April 18, 2024
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