Tourism (Businessage Monthly)

Shopping Tourism

Ignored shopping tourism endangers local handicraft, writes Navin Singh Khadka

It was always an ignored chapter. And it continues to be so even after a research has pointed it out. And that is the reason why the official statistics still projects the average tourist spending at not even 45 US Dollars per day.

So, what is missing? Shopping tourism, of course. If a study conducted by Marketing and Research Group (MARG) Nepal Private Limited in 1997 is to be believed, the average spending of a tourist in Nepal is US Dollar 90 and not 45 US Dollars or even less as the government statistics have it.

Why the difference? MARG did not miss out shopping tourism to calculate the average spending of a tourist like the official calculations did. Interestingly, the research found that only two percent of the inbound tourists visit Nepal as a shopping destination, while 80 percent of the visitors end up shopping in this Himalayan Kingdom.

"Given the fact that 80 percent of the inbound tourists ended up doing shopping, even if not planned, Nepal could attract more tourists to come here mainly for shopping which could range from Nepali handicrafts to expensive perfumes," notes the report of MARG.

Of the nearly 1600 tourists it interviewed, MARG found that majority of visitors were involved in sightseeing (90 percent) and shopping (80 percent) activities. "You get world class stuff in Nepal at a cheaper price. Rolex watches are cheaper in Nepal," said many interviewees to MARG.

Despite the shopping fact, tourism has been, at least theoretically, confined to few activities: Sightseeing of the mighty Himalayas, scenic beauties, cultural heritages, wildlife if not taking part in the adventure feats.

But there may be others with different priority. Many visitors, immediately after arriving in the capital, have one question to ask: Where are the shopping arcades? Indian tourists — who comprise more than 30 percent of the annual inbound tourists — upon arriving in the capital start looking for the Super Market.

Different tourists, different tastes. Although Nepal has established itself as a destination for adventure souls and nature observers, shoppers have also begun to throng the Himalayan Kingdom.

"The findings of MARG is very important as it sheds light on the contribution of shopping tourism in the earnings of travel industry," says R.R. Pandey, a member of Nepal Tourism Board.

And it is due to the undermined shopping tourism in Nepal — that goes unrecorded — the average expenditure of a tourist per day has been recorded as 44.2 US Dollars in the 1998 directory.

The difference could well be due to the fact that all monetary transactions made by the visitors need not be through Nepal Rastra Bank — the Central Bank. More so, in case of shopping where foreign currencies are readily accepted.

It isn’t only the souvenirs that comprise of shopping tourism. For the Indian tourists — who are one third of the total arrivals — "shop till you drop" seems to be their travel mantra as they visit Super Market to buy different imported goods.

The growth of Bishal Bazaar Company in the last 24 years speaks it all. The company, that had 30-40 shops in the beginning, now has 350 shops — all doing brisk business. "Above 60 percent of Bishaal Bazaar’s business depends on tourists — especially the Indians," says Bharat Lal Shrestha, Chairman of the Bishaal Bazaar Company. "Besides purchasing souvenirs, these tourists buy ready-made goods, suitings-shirtings, ornaments, perfumes and even electronic goods."

The establishment of other departmental stores and mini markets in touristic areas as New Road — mostly visited by Indian tourists — also speaks volume about the growth of shopping tourism.

While the imported goods in the super markets continue to beckon Indian tourists, handicrafts and curio products have always attracted visitors from almost all over the world. A stroll at the Darbar Square and you will know it all. There used to be times when a couple of handicrafts shops used to cater to the needs of tourists. Today, open air handicraft shops have simply mushroomed in the entire space of the Basantapur Darbar Square.

The curio shops that were once confined to the freak-street, have now sprouted in places like Thamel and Thahity further expanding the tourist-spending prospects. Yet, shopping tourism has not been able to find a place in the official record. And that has led to a chain reaction.

Cashing in on the growing shopping tourism, imported goods, especially handicrafts that could be produced locally, have inundated the market. With unchecked foreign handicraft from India and Tibet encroaching the Nepali market, the fate of local products looms large.

To quote local Nepali entrepreneurs, at such places, foreigners, who have been running business there, import the Nepalis-styled goods. "As they are imported and are not made of original raw materials — like the Nepalese goods are — they are relatively cheaper," they say.

Besides invading the local markets, such imported goods — labeled "made in Nepal" — have also fetched good international market thanks to the unregulated borders in the north and south.

As a result, Nepali handicrafts are losing market while foreign made products — the imitated version of Nepali goods — are prevailing endangering the reputation of Nepal’s original handicraft.

Those in the handicraft industry state their helplessness. "When every one is free to sell the imported products, how can our genuine crafts be preserved?" they ask. Handicraft Association of Nepal (HAN) charges the government of not being able to control foreign encroachment in the Nepali handicraft industry.

According to the HAN’s records, more than 1295 million Rupees of handicraft was exported by Nepal last year. But this figure does not account only for the domestic Nepali handicrafts. Informed sources believe that the major segment of the export is covered by imported handicrafts that were exported from Nepali market with the Nepali label.

The prime culprit endangering the fate of Nepalese handicraft, experts say, is the government’s undermining attitude toward shopping tourism. None of the record maintained by the Ministry of Tourism and Civil Aviation cites shopping as the purpose of inbound-tourists.

Even as the more than two decade long "mis-recorded" data of the average spending of a tourist per day was wronged by MARG’s survey last year, the findings of the research group still remain somewhere in the government files — unheeded.

Result: Shopping tourism is grossly neglected. Bearing the brunt is the valuable local tourism related products dominated by look-alike foreign made goods — readily available at a much cheaper price.