Tourism

Trekking With and Without a Cost

- By Navin Singh Khadka

Many of the mushroomed trekking agents — most of them concentrated in the capital city — are still having sleepless nights. Their "insomnia" began earlier last year when the government, in its latest Budget Statement, declared the cancellation of trekking permits in Sagarmatha, Annapurna and Langtang regions allowing free of cost trek in the highlands. No sooner the government declared its new trekking policy, trekking agents under the banner of Trekking Agents Association Nepal (TAAN) cried foul. Whatever reason the protesting entrepreneurs have in reality, they have a handy drum to beat against the official decision to scrap off trekking permit in the three most popular trekking routes: The deteriorating ecology in the Nepali highlands.

Already under tremendous human pressure — both by locals and tourists — the opposing agents claim that the free of cost trekking provision will invite more back-packers further denting the already threatened state of the trekking areas.

"As a result of the new provision, we will see many such trekkers who will spend 10 US Dollars a day but will cause the ecological disturbance worth 20 US Dollars," says Pemba Sherpa, Former President of TAAN. "Besides, the government will also be losing the revenue it used to collect from trekkers as trekking fees."

The officialdom, however, points at the renewed visa fees as the "compensation" for the scrapped off trekking fees. Even if the government will not be collecting five US Dollars from each trekkers like it used to in the past, it has now increased the minimum visa fees from 15 US Dollars to 30 US Dollars.

Before, the minimum charge was for 15 days while the revised fee is for two months. "But it is well understood that almost all tourists do not stay more than two weeks," experts say. According to official statistics, average stay of tourists has been recorded at 12 days.

"But how will the government compensate the loss caused by the ecological disturbance due to the increase in lower bracket tourists?" tourism entrepreneurs ask. "There is no doubt that the official move will beckon cheap tourists into our country," claims Yangkila Sherpa, another former President of TAAN. "And that will further brand Nepal as a cheap destination."

Government officials are confident that the move is positive. According to Dr. Shankar Sharma, a member of National Planning Commission, the decision was taken only after a detailed study for six months on the issue. "If the permit is enforced in all the routes, what will be the meaning of permit as such?"

Ministry of Tourism and Civil Aviation, Department of Immigration and National Planning Commission reportedly brainstormed before scrapping off the trekking permit provision.

"It’s a supportive move for tourism industry," says Shankar Koirala, Joint Secretary at Marketing Promotion Division under the Ministry of MoTCA. "The days of hassling for the trekking permit in the three routes are over."

But other problems will crop up in the new arrangement, say trekking agents. "Who will be responsible on the tourists’ whereabouts?" asks Pemba Sherpa. "How will the government locate the missing tourists in case of emergencies. Most of them, under the new arrangements, will be trekking on their own without any trekking agents."

Agrees Koirala, "The monitoring mechanism, no doubt, is weak. We will have to take help of the Village Development Committees and the District Development Committees in this regard."

But more than the troubles tourists will face, it is most of the trekking agents who are already in troubled waters. With more than 450 registered trekking agents vying for survival in the cut-throat market, most of them had been supporting themselves earning commission from trekkers for having acquired the trekking permits for them.

The permit used to be a good excuse for trekking agents to rope in tourists — who used to knock at the agents’ doors for the official document — in their business packages. No more.

Now, only those who have good market stronghold and have innovated products can operate trekking packages, tourism experts say. "If it is just for the sake of trudging along the highland trails, why should trekkers go through an agent?" they ask.

Those, who have not been doing the real trekking business and have been in the market only because of the trekking permit, are sure to fizzle out, says Tek Chandra Pokhrel, a senior tourism entrepreneur.

Moreover, the "no trekking permit" policy, is sure to shoot up the number of visitors in the already crowded areas like Annapurna and Everest regions that have seen more than 60,000 and 20,000 trekkers respectively in 1999.

Since both the private sector and the officialdom have failed to develop new touristic areas, it is the same established routes that will continue beckoning adventure souls. Trekkers back home convey the news about the products they saw in this Himalayan Kingdom, generating more visitors for the same areas — that have already come under tremendous human pressure.

That was one of the reasons why Dr. Harka Gurung, a noted scholar, in his key note address in the 12th Pacific Asia Travel Association’s Eco Tourism Conference last month, pointed out the over-concentration of nature-based tourism activities at certain areas across the Kingdom.

International Tourism Market and Nepal

 - By Hari Prasad Shrestha

In recent years, tourism is regarded as one of the world’s biggest and fastest growing industries. It has been playing a pivotal role in the socio-economic development of the most of the developed as well as developing counties of the globe. So, most of the nations are attracted to this industry and are trying their best to strengthen their economy by promoting tourism. Tourism has been identified as an important source of foreign exchange earning, as well as source of employment opportunities. Moreover, tourism is a multi-faceted industry which promotes cottage industries, trade and other service sectors.

Despite enormous potentiality, tourism has a belated beginning in Nepal. It began after the advent of democracy in 1951 only. Cultural, religious and natural resources are the three major attractions of Nepal which have eight cultural and two natural World Heritage sites. It offers nature based tourism activities like trekking, mountaineering, rafting and wildlife sanctuaries as well as provides culture and people based and man made attractions. Tourist arrival in Nepal is growing steadily. However, her place in world tourism is low. Even in comparison to the countries of South Asia, which itself happens to be none too encouraging, Nepal has only a lowly position.

Situation of World Tourism

International tourist arrivals have gone up from 25,282 thousand in the year 1950 to 6,36,676 thousand in the year 1998. In the fifties and sixties, the growth rate of international visitors were relatively high. Higher growth rate was also recorded in the period 1987-89, 1992 and in 1995. On the other hand, the receipts from international tourism have gone up from 2,100 million US dollars in the year 1950 to 4,41,255 million US dollars in the year 1998. Revenue growth was high in a number of years, especially in the sixties and seventies and in the years 1986, 1987 and 1990. Within 1950-1998, the annual growth rate of world visitors and receipts from it recorded 7.0% and 11.8% respectively. Per capita spending has increased from US $83 in 1950 to US $ 693 in 1998. In comparison to the international tourist growth rate, the growth rate of tourism receipt is very high. It proves that tourism is a fast growing and a major foreign exchange earning industry in the world.

Regional Shares

Since 1960, Europe has maintained the highest share in international tourism while Americas were in second highest position followed by East Asia and Pacific, Africa, Middle East and South Asia. In 1998, the share of Europe alone was 60.0% in tourist arrivals and 52.0% in receipts of the world tourism and Americas have a share of 19.2% in tourist arrivals and 27.4% in receipts. However, the share of Europe and the Americas have shown a decreasing trend in both tourists arrivals and receipts since past few decades.

In comparison to other regions, East Asia and Pacific has significantly high growth rate in both international tourist arrivals and world receipts. Tourist arrival was only 1.0% and receipts 2.9% of the world total in 1960 and it had gone up to arrivals share of 13.7% and receipts share of 15.4% in the year 1998. However, South Asia has the lowest market share in world tourism. The growth rate, however, seems to be satisfactory, recording the share of tourist arrival at 0.8% and receipts at 1.0% in 1998 against arrivals share of 0.3% and receipts share of 0.5% in the year 1960. It showed that, despite being abysmally low, South Asia is also trying to move ahead in the world tourism arena. It should also be noted that the growth of South Asia vis-à-vis the World was satisfactory in the period 1960 - 1980 but after 1980, the share remained more or less stagnant, indicating that real growth has not taken place in recent times.

Nepal and World Tourism

International visitors have been growing gradually and visitors have more than doubled during the past 18 years. International visitors grew by 2.2 times in the period. But, the total number of visitors in East Asia and Pacific region increased more than four times during the same period. The fastest growing destinations in this region were Australia, New Zealand and the Pacific Islands . The market share of East Asia and the Pacific in the world tourism reached 13.69% in visitor arrivals in 1998 from 7.37% in 1980. But, the market share of the South Asia region reached 0.78% in 1997 from 0.80% in 1980. This showed that, in terms of share, there has been a decline in the share of South Asia and this cannot be considered a satisfactory situation. However, in 1998, there has been a marginal increase to 0.82% showing more or less constant trend. The share of Nepal in the world market is more or less constant at 0.06 - 0.07% but the share of Nepal in South Asia market is increasing marginally. It shows that Nepal as well as South Asia lag significantly behind the dynamic region of East Asia and the Pacific. Nepal’s growth is more or less comparable to the world growth. From the tourism prospect, the very region of South Asia is far behind the growth centres of world tourism.

Nepal’s Position

The average annual growth of visitors in East Asia and the Pacific, South Asia and Nepal during 1970 - 1998 period were 10.5%, 6.4% and 8.6% respectively whereas earning growth rates of those three areas were 12.0%, 3.0% and 8.0% respectively. It shows that East Asia and the Pacific area had the highest growth rate both in visitor arrival and earnings. But, South Asia and Nepal both have not been able to record satisfactory growth. The reason for the low growth rate in Nepal had been largely influenced by the poor performance of South Asia as a whole.

Conclusion

Nepal has recorded a significant growth in the tourism industry during the last three decades. It has also been popular on a worldwide level especially for trekking and mountaineering activities. Despite these achievements, Nepal has occupied only a marginal share in the world tourism arena. Hence, it may be concluded that, despite potentials and persistence of the growing market, Nepal has not been able to create a satisfactory level of market. Therefore, Nepal must initiate serious effort to launch aggressive marketing to improve the situation in this highly competitive industry.

1950 - 1999

Note:a) From 1950 to 1985, Annual Growth rate has been computed on the basis of average compound growth.

b) Datas for 1999 are preliminary estimated.

Share of Nepal, South Asia, East Asia & The Pacific in World Tourism

South Asia and Nepal 1970 - 1999

Source: WTO
Note: Growth rate of 1985 is the average compound growth rate of 1970-1980.
         Growth rate of 1985 is the average compound growth rate of 1980-1985.

Cover Features | Opinion Poll | Economy & Policy | 
91 days Treasury Bills | Management | Corporate| Marketing | Stock Market |
Column | World Briefs| Health | Entertainment | Inner-view | Tourism |
 Business News | Main