Tourism in the New Millennium

By: K Bhandari

Prevailing Tourism Scenario
Sandwiched between China in the North and India in the South, located along the southern slopes of the Himalaya, Nepal has all those components which are necessary for identifying itself as the destination of the Millennium.

According to the tourism statistics 1998, the total tourist arrivals during 1998 remained 463684, which is 9.9 percent increase over the previous year. Pleasure tourist comprises the majority of tourist arrival (56.363 %). Second is adventure tourist (24.293 %), however their longer length of stay gives them a greater predominance in tourism in Nepal than their numbers suggest. According to region, Indian tourist constitutes the largest segment (30.889 %) then comes Japan (8.06 %). The tourism statistics 1999 showed 6.03 percent increase in tourist arrivals via air from January 1999 to October 1999 (source NTB) compared to the same period last year.

The Langtang Range of mountains : A snowy attraction for tourists to view from Kathmandu Vally.

Tourism has been growing as leading foreign currency earnings over the years. Tourism contributed about 4.4 % to the Gross Domestic Product  (GDP) of the nation during eighth five-year plan. Total foreign currency earning through this sector in the year 1998 was put at 152,500,000 US$, quite significant for a small country like Nepal. An estimated 257,000 people are believed to have been employed through tourism during 1996/97, on permanent or temporary basis (source ninth plan).

Despite above mentioned facts, development of tourism in the country can not be taken to be satisfactory. The rate of development of this sector does not match the versatile potentiality acquired by us.

Current Situation

His Majesty’s Government attaches priority to tourism even though this sector has not been able to receive higher share in government spending due to certain other obligations in basic need areas. A major problem with the Nepalese private sector is that it is small, disorganized and is limited in its capacity to raise resources and invest in the form of equity. The savings/investment rates are low. There is limited exposure to international trends. The culture of state intervention still prevails and is generally accepted.

Tourism considered a major component of the Nepalese economy, has so far, been concentrated in a few major locations, and confined to a few major products. While cultural tourism is centered in and around the capital Kathmandu and the town of Pokhara, trekking is popular in the Khumbu, Langtang, and Annapurna regions, and Chitwan is the focus for wildlife tourism. Apart from some sightseeing mountainous spots like Nagarkot, Dhulikhel, Kakani etc, we have not been able to add more places of interest to the tourist, in addition to the traditional products we’ve been selling.

Future Actions Required

Despite our immense potentiality, we are unable to exploit the economic benefits proportionate to this, due to poor infrastructure, meager investment and irrational marketing. However, spreading tourism to new places with more activities is of utmost necessity, with the increase of competition among the South Asian countries.

Various policy measures need to be initiated to attract investments in new areas with potentials. These policy measures can be introduced after detailed consultations with the entire travel trade sector and with the mobilization of newly formed Nepal Tourism Board (NTB). Also this helps the Board to plan marketing of these zones in advance, which also helps in the marketing budget of the individual private sector in those regions.

There needs to be various reforms carried out in the aviation policy so as to make favorable condition for the airlines to open up in new sectors. The various social and tourist routes need to be redefined. Distinction between commercial and remote routes within social routes is required. Price revision in fares on select social routes may be needed to take care of increase in costs of inputs such as aviation fuel. The process of nomination for international routes and route allocation should be rationalized and spelt out clearly so that criteria are known to all the players.

Since India is the largest inbound travel market, negative projection of Nepal by Indian media will certainly make a big difference. The adverse impact of recent hijacking of the Indian Airlines airbus and the frequent crashes of domestic airlines has to be studied carefully. Measures for air safety has to be ensured and maintained.

Nepal Tourism Board should be very clear in its marketing strategies. Advertisements should be well connected with the events taking place in the country and efforts should be initiated to make documentaries and they should be telecast through various international channels. Finally, a very strong research base will certainly help in effective planning..

Thus, at this juncture where tourism provide one in every nine jobs (255 million) and contributes 10% of the worlds GDP, 11.3 % of the worlds consumption and 10.4 % of the government revenue (according to WTTC report), Nepal must not be a mere spectator in fast changing global competition.

Language training for trekking guides

By A Staff Reporter

In a bid to produce competitive personnel for the development of tourism industry, Kathmandu Environmental Education Project (KEEP) in association with the Nepal Tourism Board (NTB) initiated a specially designed language training course for the trekking guides working for various trekking agencies in Nepal.

The training programme titled “Millennium English Language Course for Trekking Guides” initiated from 2 January 2000 has been participated by more than forty trekking guides working with different trekking agencies in Nepal. The four-week long training programme will conclude  28 January 2000.

Speaking at the inaugural function, Prashant Singh, Director Finance and Administration, NTB, said that the Tourism Board is  serious in providing training to the people working for the tourism industry.

“Trekking and tour guides are our ambassadors to foreigners, who can play an important role in the success of tourism industry,” he said.

“The guides should at least be able to communicate with the trekkers,” he said, “such language training will help them increase their knowledge of English language.”

Addressing the inaugural function, P. T. Sherpa informed that  KEEP had been providing English language training for the last couple of years. “This is our fourteenth effort to train trekking and tour guides,” he said.

KEEP had also organized similar programmes to train other personnels in the tourism sector, he informed.

Altogether 40 trekking guides from different agencies have joined the language course this time, which is being held at the premises of Tourist Service Centre, Bhrikuti Mandap. Five language teachers including four foreigners are involved in teaching them.

Entrepreneurs worried by arrival reports

By A Staff Reporter

When the travel trade entrepreneurs are trying to  assess the effect resulting form the hijack of the Delhi-bound Indian Airlines plane that took off from Kathmandu last week, they  have been shocked to hear about the decline of visitors to Nepal in 1999.

According to some recent news, tourists arrival to Nepal in 1999 by air, declined by over 13 percent. The number of visitors in 1999 by air was even below the 1997 level.

Contrary to the expectation that the Visit Nepal Year 1998 would boost tourism industry, the statistics compiled by the  Immigration Office at the Tribhuvan International Airport showed a drop in arrivals particularly due to substantial decline in tourist arrivals from major destinations including India, Japan, United States and Australia.