The Transformative Power of Tourism: Building Resilient Economies and Communities

Tourism is a powerful driver of economic growth and community well‐being. By generating income, creating jobs, and stimulating investment, tourism can transform local and national economies. Equally important, well‐managed tourism can strengthen resilience in communities by diversifying livelihoods, funding infrastructure, and fostering social cohesion (Gupta, 2024; Bertelli, 2024). This article presents a comparative analysis of tourism’s role in Bhutan, Costa Rica, and Switzerland, evaluates eco, cultural, and adventure tourism in the context of sustainability, and provides an in‐depth case study of Nepal. It highlights how tourism can support inclusive and sustainable development, especially in Nepal, by drawing on the latest data and research (post‐2021) throughout.

"Tourism, when managed sustainably, is not just a journey for visitors but a pathway to prosperity for communities."

Tourism and Economic Transformation: Bhutan, Costa Rica, and Switzerland

Bhutan: Bhutan pursues a strict “high-value, low-impact” tourism policy to protect its environment and culture. Tourism in Bhutan has been capped via high fees (the Sustainable Development Fee) and strict controls on visitor numbers. As a result, Bhutan’s tourism sector contributes only about 5% of GDP[1], but it is a key source of foreign currency and jobs. For example, the country reduced its high daily fee (from US$200 to $100) in 2023[2] to boost numbers. Bhutan’s strategy aims to ensure that tourism revenue supports conservation and local communities. 

With over 70% forest cover and a strong emphasis on Gross National Happiness, Bhutan strives for sustainable growth even as it seeks to expand tourism revenues[1][3]. This cautious approach highlights how tourism can be aligned with environmental resilience: it provides income and employment without endangering Bhutan’s fragile ecosystems or cultural heritage.

Costa Rica: In contrast, Costa Rica has embraced tourism as a cornerstone of its green economy. Beginning in the 1980s, the country enacted bold conservation policies (establishing protected areas and payments for ecosystem services) that reversed deforestation and fueled a booming nature-based tourism sector[4][5]. Today, Costa Rica is a world leader in ecotourism: tourism accounts for 8.2% of GDP and 21.3% of employment (direct and indirect)[6]. In 2023, 2.7 million visitors came to Costa Rica, and nearly 60% of them visited the country’s rainforests and parks[7]. These tourists spend money on local guides, hotels, and services, boosting rural economies and funding conservation. 

Importantly, the country requires sustainability certification for businesses and funnels tourism revenue into environmental protection. Costa Rica’s experience shows that ecotourism can drive both economic growth and environmental recovery: since the 1990s, it has increased forest cover to 57%[5] while simultaneously raising living standards in rural areas. Communities benefit from jobs (e.g. park rangers, guides, hospitality) and infrastructure improvements (roads, electricity), often financed by tourism taxes. By linking conservation to income, Costa Rica’s model illustrates how tourism can build resilient communities that value and protect their natural heritage.

Switzerland: Swiss tourism demonstrates how a mature economy leverages tourism for resilience and sustainability. Pre-pandemic (2019), Switzerland recorded 11.8 million international tourists, and tourism contributed nearly 2.9% of GVA and directly employed about 174,000 people (roughly 4.2% of total employment)[8]. Switzerland’s picturesque mountains and cities make it a magnet for travellers year-round. After the COVID-19 shock, Swiss tourism rebounded strongly thanks to robust domestic demand and innovation (e.g. Switzerland’s early focus on data-driven “resilient tourism” initiatives [9][10]). For example, the national “Swisstainable” campaign now promotes sustainability-oriented tourism development[10]. 

In practice, Switzerland encourages tourism businesses to adopt energy-efficient infrastructure, public transit for visitors, and year-round resort plans (to avoid seasonal unemployment)[11][10]. Canton and national agencies collaborate to distribute tourism beyond major cities, ensuring rural resorts and mountain villages share in tourism’s benefits[12]. Thus, Switzerland illustrates how tourism can diversify a high-income economy, preserve cultural landscapes, and enhance resilience by digitising services and spreading benefits to multiple regions.

Overall, these country examples show that tourism’s economic impact depends on scale and strategy. In Bhutan, strict limits mean tourism’s GDP share is small, but policies ensure the quality of growth and environmental protection[1]. Costa Rica’s pro‐environment approach has made tourism a major employer and conservation tool[7]. Switzerland combines tourism with innovation and planning to sustain rural livelihoods and reduce vulnerability to shocks[8][10]. 

In all three cases, tourism not only adds to GDP and jobs, but also builds community resilience: it funds infrastructure (roads, healthcare, education), generates foreign exchange (a buffer in downturns), and fosters social capital through community enterprises.

Tourism Typologies and Sustainability Contributions

Different forms of tourism contribute to sustainability in distinct ways. Ecotourism (nature-based tourism) focuses on low-impact travel to natural areas, emphasising conservation and education. By definition, ecotourism reinvests in the environment and local communities. For instance, Costa Rica’s ecotourism boom has supported forest protection, reforestation programs, and wildlife conservation[5]. Eco-tour operators often employ residents as guides, contributing to livelihoods. Cultural tourism (visiting heritage sites, festivals, and local communities) preserves traditions and identity while delivering economic value. Tourists spend on local crafts, performances, and cuisine, which creates a ripple effect through the economy[13][14]. Cultural tourism attracts visitors who pay for authenticity, generating revenue that can fund the restoration of heritage sites. As one analysis notes, “cultural tourism empowers local communities by creating jobs and supporting small businesses, ensuring that communities maintain a sense of pride and identity”[14]. In practice, cultural tourism encourages intergenerational knowledge transfer (as elders teach crafts to youths employed as guides or artisans) and can finance museums, performance halls, and archives.

Adventure tourism (e.g. trekking, mountaineering, rafting) adds an element of risk and excitement. This segment has grown globally, notably in mountainous and coastal regions. Adventure tourism generates income for remote areas through guiding services, porters, and homestays, but it also poses sustainability challenges (e.g. waste on high-altitude trails or safety hazards). If well managed, however, adventure tourism contributes to local economies by creating jobs and off-season income. 

For example, Nepal’s trekking and mountaineering industry employs thousands of guides, porters, and lodge workers. Adventure tourism can foster environmental awareness among travellers and fund local conservation initiatives (a portion of trek fees often goes to trail maintenance or park management). In many destinations (Switzerland’s Alps or Costa Rican rainforests), adventure tourism is closely linked to ecotourism, combining conservation messaging with outdoor activities.

"Nepal’s recovery after the earthquake and pandemic is living proof of tourism’s power to rebuild lives and livelihoods."

In summary, each tourism type advances sustainability differently: ecotourism prioritises environmental conservation and community-led stewardship; cultural tourism centres on socio-cultural preservation and community empowerment; and adventure tourism (when regulated) provides economic uplift to remote areas and can enhance environmental and cultural appreciation. The net effect depends on management: sustainable policies and community involvement ensure tourism supports, rather than undermines, long-term social, economic, and ecological health (Bertelli, 2024; IEREK, 2025).

Case Study – Nepal: Tourism, Economy, and Resilience

Nepal provides a telling case study of tourism’s transformative potential and challenges. Before 2020, tourism was a linchpin of Nepal’s economy. In 2019, over 1.16 million international tourists arrived, making tourism roughly 7–8% of GDP[15] and supporting about 1.16 million jobs[16]. Trekking, mountaineering, cultural sites (e.g. Lumbini, Patan Durbar Square), and religious festivals fueled growth. Small businesses (guesthouses, restaurants, travel agencies) proliferated in Kathmandu, Pokhara, and rural trekking hubs (Annapurna, Everest regions).

Economic Development and Employment: Tourism in Nepal drives foreign exchange (crucial in a country with high remittance outflows) and local employment. In 2019, travel and tourism generated US$1.3 billion in revenue (about 7.5% of GDP)[15]. It employed a significant portion of the workforce; for instance, a national survey noted that over 5% of Nepal’s tourism workers are self-employed[17], indicating many micro-entrepreneurs and family-run lodges. Additionally, tourism supports indirect jobs: local transport providers, construction (of hotels and trails), and handicraft producers. Rural areas benefit especially: trekking trails and guesthouse circuits inject cash into villages like Manang, Solu, and Dolpo. Nepal’s Tourism for Rural Poverty Alleviation Programme (TRPAP) was designed exactly to harness tourism for local development. 

TRPAP engaged communities in six districts (e.g. Everest, Langtang, Chitwan) to build tourism infrastructure and market community-based tourism products[18]. By promoting homestays and local guides, the program ensured that rural families – often marginalised – could capture tourism revenues directly.

Rural Upliftment and Inclusion: Community-based tourism models in Nepal have uplifted many villagers. Homestays in the Annapurna region allow farmers to earn income outside planting season, while keeping youth in villages. Studies show such initiatives improve standards of living and empower women (who often manage homestay operations). For example, local homestay networks train residents in hospitality and English, spreading benefits across remote communities (Lamichhane, 2025). Cultural tourism (e.g. visits to traditional Newari or Gurung villages) reinforces cultural pride and crafts production. Altogether, these inclusive tourism approaches help reduce rural poverty and urban migration by providing alternative livelihoods.

Post-Disaster and Post-Pandemic Recovery: Nepal’s tourism sector has demonstrated remarkable resilience after shocks. The 2015 Gorkha Earthquake (magnitude 7.8) devastated infrastructure in key trekking areas. An analysis by Rijal (2016) estimated an 11.5% loss to the tourism sector from the earthquake, with international arrivals dropping to a six-year low in 2015[19]. Many entire villages lost not only homes but also the guesthouses and temples on which local economies depended[20]. Nevertheless, the government and communities undertook rebuilding. Volunteer tourism (voluntourism) projects repaired trails and historical sites, and international aid helped restore hotels. By 2017–2018, tourist numbers had bounced back to pre-quake levels. As a travel industry report notes, by 2017, Nepal’s tourist count exceeded the 2014 level[21]. This recovery was supported by campaigns like “Namaste Nepal” (which donated travel profits to reconstruction), and by companies like Intrepid Travel funnelling funds into local projects[22].

Similarly, the COVID-19 pandemic severely hit Nepal. Cross-border closures halted international travel. In 2020–2021, travel and tourism’s GDP share fell from 7.5% (2019) to about 4.3%[15]. This collapse threw tens of thousands out of work – porters, guides, hotel staff – contributing to a nationwide unemployment and even poverty spike[23][16]. By April 2020, 18.7% of Nepalis were below the poverty line as the economy shrank[23]. The pandemic triggered a mass return of migrant workers from abroad, testing rural communities’ capacity. Yet by mid-2022, Nepal reopened and focused on revival. The government emphasised domestic tourism (camping, pilgrimages) during the 2020–21 lockdowns. According to recent reports, by 2023–2024, tourism began surging again: Nepal received 1.1 million international visitors in 2024, a 13% increase over 2023[24]. Tourism receipts hit an all-time high, giving a much-needed boost to growth[24]. Government incentives (e.g. easing visa rules, promoting special tour packages) and pent-up demand are driving the rebound.

Current Data and Trends: By late 2023, tourism’s recovery was evident. A recent analysis shows tourist arrivals in 2023 were around 964,000[25], and tourism’s direct GDP share rose from 1.7% (2021) to 2.1% (2023) according to one estimate[25]. More authoritative figures note that travel/tourism still contributed 4.3% of GDP in 2021[15], with expectations of returning to 2019 levels by 2024–25. The recovery has remained uneven: key pilgrimage sites like Lumbini saw high domestic traffic, while trekking circuits are rebounding as international flights normalise.

Inclusive and Sustainable Development Potential: Nepal’s experience illustrates both the promise and challenges of tourism-led development. The potential is vast: the Himalayas, cultural heritage (e.g. seven UNESCO sites), and biodiversity can attract millions of visitors. Tourism can diversify the economy (still heavily dependent on agriculture and remittances) and create jobs for youth and women. However, Nepal must address systemic challenges. Infrastructure deficits (roads, airports, electricity) limit access to many areas; seasonal and geographic inequalities leave some regions underserved. Environmental pressures are mounting: high-altitude trails face waste buildup, and climate change (melting glaciers, unpredictable weather) threatens mountain tourism. For example, increasingly volatile monsoons have sometimes stranded trekkers, and the retreat of Himalayan glaciers could diminish Nepal’s iconic landscapes over time (AP News, 2023).

Moreover, there is a risk of tourism benefiting a narrow elite unless consciously managed. Some resorts and tour firms are foreign-owned, which can leak profits abroad. To ensure inclusive growth, Nepal must strengthen community-based tourism initiatives and local value chains. Projects like the Community Homestay Network train villagers in hospitality, keeping revenues local. Empowering women and marginalised groups in tourism enterprises will broaden benefits. Finally, Nepal needs robust sustainability planning: enforcing environmental regulations (e.g. waste management on Everest trails), limiting tourist numbers in delicate zones, and promoting off-season tourism (cultural festivals in winter, spiritual tours) to reduce seasonality. If well directed, tourism can finance conservation parks, cultural preservation, and rural education (through taxes or fees earmarked for development).

In summary, Nepal’s tourism is already contributing to employment, rural livelihoods, and foreign exchange, and has demonstrated resilience in rebounding from disasters[19][24]. The country’s challenge is to harness this potential for broad-based, sustainable development. International examples show that strong policy frameworks and community engagement are key. Bhutan’s high‐value model and Costa Rica’s ecotourism success both highlight how aligning tourism with conservation and social goals yields long-term gains. For Nepal, continuing to integrate tourism with disaster recovery, poverty alleviation programs, and pro-poor policies will be critical (UNDP, 2013[18]).

Conclusion

Tourism can indeed transform economies and build resilient communities, but its impact depends on the model chosen. The cases of Bhutan, Costa Rica, and Switzerland illustrate a spectrum of approaches: from Bhutan’s conservative, sustainability-first stance[1], through Costa Rica’s nature-driven mass tourism with strong green credentials[7], to Switzerland’s data-smart, year-round tourism for community vibrancy[8][10]. Across these examples, tourism has generated employment, diversified income sources, and funded infrastructure, thereby enhancing economic and social resilience. Likewise, tourism types – from ecotourism to cultural and adventure tourism- each offer distinct sustainability benefits (conservation funding, cultural preservation, rural employment) when managed inclusively.

The case of Nepal underscores tourism’s double-edged potential. Tourism was a major income and employment sector; its collapse during the 2015 earthquake and the COVID-19 pandemic exposed vulnerabilities, but the sector has rebounded strongly once the crises abated[15][24]. Going forward, Nepal’s goal should be to make this recovery inclusive and sustainable. By investing in rural tourism infrastructure, supporting local entrepreneurship (homestays, guides, crafts), and enforcing environmental safeguards, Nepal can ensure that tourism uplifts disadvantaged communities and preserves its rich cultural and natural heritage. With deliberate planning and learning from global best practices, Nepal’s tourism industry can continue to be a driving force for economic growth, poverty reduction, and resilient development (Milner, 2025; Manandhar et al., 2023).

"Inclusive tourism, rooted in local communities, is the most resilient and equitable path to sustainable growth."

References

Bertelli, M. (2024, October 21). In Costa Rica, sustainable tourism is no longer enough for conservation. Mongabay. [7][26]

Gupta, R. (2024, May 3). Bhutan’s tourism dilemma: balancing economy and sustainability. The Diplomat. [1]

International Energy Resources Knowledge (IEREK). (2025, May 6). Cultural tourism economic benefits: Influence and evaluation. (Blog post). [14]

Manandhar, S., Chhetri, S., Regmi, S., Chhetri, S., & Dorji, T. (2023). The impact of the COVID-19 pandemic on the health and economy of Nepal. Public Health Challenges, 1(September). [15]

Milner, S. (2025, April 28). Nepal Earthquake 10 years later: Intrepid reflects on recovery efforts. Travel Market Report. [24][27]

Ministry of Culture, Tourism and Civil Aviation, Nepal. (2018). Tourism policy of Nepal.

Rijal, S. P. (2016). Impact of earthquake on the tourism sector in Nepal. Tribhuvan University Journal, XXX(2). [19]

United Nations Development Programme (UNDP) Nepal. (2013, April 8). Lessons learned: Nepal’s experience implementing the sustainable rural tourism development model of tourism for rural poverty alleviation programme. [18]

Organisation for Economic Co-operation and Development (OECD). (2022). Tourism trends and policies 2022: Switzerland. OECD Publishing. [8][10]

World Health Organization – Nepal (2020–2022). COVID-19 situational reports and economic surveys of Nepal.

World Travel & Tourism Council (WTTC). (2022). Economic impact report: Nepal. (Data on travel & tourism contributions).

 

[1] [2] [3] Bhutan’s Tourism Dilemma: Balancing Economy and Sustainability – The Diplomat

https://thediplomat.com/2024/05/bhutans-tourism-dilemma-balancing-economy-and-sustainability/

[4] [5] [6] [7] [26] In Costa Rica, sustainable tourism is no longer enough for conservation

https://news.mongabay.com/2024/10/in-costa-rica-sustainable-tourism-is-no-longer-enough-for-conservation/

[8] [10] [11] [12] OECD Tourism Trends and Policies 2022: Switzerland | OECD

https://www.oecd.org/en/publications/oecd-tourism-trends-and-policies-2022_a8dd3019-en/full-report/switzerland_64804ad3.html

[9] Swiss Tourism outlook 2023: Datafication for Resilient Tourism

https://hospitalityinsights.ehl.edu/swiss-tourism-2023

[13] [14] Cultural Tourism Economic benefits Influence and Evaluation - IEREK

https://www.ierek.com/news/cultural-tourism-economic-benefits-influence-and-evaluation/

[15] [16] [23]  The impact of the COVID‐19 pandemic on the health and economy of Nepal - PMC 

https://pmc.ncbi.nlm.nih.gov/articles/PMC12039740/

[17] [25] reviewofconphil.com

https://www.reviewofconphil.com/index.php/journal/article/download/1037/1060/2077

[18] Lessons Learned: Nepal's Experience Implementing Sustainable Rural Tourism Development Model of Tourism for Rural Poverty Alleviation Programm | United Nations Development Programme

https://www.undp.org/nepal/publications/lessons-learned-nepals-experience-implementing-sustainable-rural-tourism-development-model-tourism-rural-poverty-alleviation

[19] [20] nepjol.info

https://nepjol.info/index.php/TUJ/article/view/25563/21359

[21] [22] [24] [27]  Nepal Earthquake 10 Years Later: Intrepid Reflects on Recovery Efforts 

https://www.travelmarketreport.com/packaged-travel/articles/nepal-earthquake-10-year-anniversary-tourism-recovery