For too long, Nepali entrepreneurs have been selling the country too cheap to tourists
Battered by the coronavirus pandemic and the Russia-Ukraine war this year, the government has unveiled a 'Nepal tourism decade (2023-2032) strategic action plan' to revive the tourism sector, which contributes significantly to the country's foreign exchange earnings. The strategic action plan was prepared by a five-member team headed by tourism expert Prachanda Man Shrestha. It hopes to increase the number of tourists to 3.5 million, not counting Indian nationals and those coming overland, by 2032. Average per day tourist spending will increase from US$ 48 to $125 while creating a million jobs in the tourism industry. This is expected to boost tourism's contribution to the country's gross domestic product to 10 per cent from the current 2 per cent.
Although Nepal is endowed with a rich culture, an irresistible natural beauty and a topography best suited for adventure tourism, it has failed to attract the desired number of high-end visitors and in extending tourists' stay despite the increasing number of foreign visitors.
For too long, Nepali entrepreneurs have been selling the country too cheap to tourists. While average spending of a tourist in Nepal was $54 in 2017, it dropped by 22.73 per cent in 2018 to $44. Similarly, the average length of stay of foreign tourists here in 2018 dropped to 12.4 days from 12.6 days in 2017, despite the government's three-year development plan (2016-2018) aim to increase the length of stay of foreigners to 14 days by 2018. It's a fact that we have failed to diversify our tourism products across the country, so crucial for increasing both the spending and length of stay of tourists.
Tourism packages are limited to a few places, namely, Kathmandu, Pokhara, Chitwan and the Everest region. Even after six decades of welcoming foreign tourists to Nepal, the mid- and far-western regions remain largely out of bounds for visitors.
Actually, there is something in Nepal for a foreign visitor to indulge in, which means we could be welcoming tourists round the year, and not limit the industry to two seasons a year. However, the country has failed to exploit the potential to the full. The action plan, with a vision of promoting sustainable development of tourism, will focus on each of the seven provinces during the decade-long campaign in an area that they hold the best promise – from cultural heritage in Bagmati Province in 2024 to the rugged terrain in Gandaki in 2025 to Buddhist tourism in Lumbini in 2027 and nature and spiritual travel in Sudurpaschim in 2029. Nepal is optimistic that tourist arrivals will reach 2019 levels by 2024. However, the serious outbreak of COVID-19 in neighbouring China and now in different parts of the globe cautions us not to be over optimistic about the tourism industry in the immediate future. Still let us keep our fingers crossed, and when the country launches the strategic tourism action plan in a week's time, both the government and the private sector as well as the political parties have a role to making it a success.
Namely, let us all give a thought to how we can promote cleanliness and cut down on pollution. Secondly, political instability in the form of strikes and shutdowns will kill the goose that lays the golden egg.
End airfare cartel
Around half-a-dozen private airline companies have resorted to a cartel on domestic airfares in cahoots with each other, going against the principles and norms of open market and liberal economy. The companies have engaged in a syndicate based on the minimum and maximum airfares determined by the government. Even during the low flow of air passengers, the domestic airlines do not slash the airfares even on the major truck routes from where they make the most profit. With the domestic airlines resorting to cartels, passengers have not been able to reap benefit from the so-called open market and liberal economy.
In order to address this problem, the Ministry of Culture, Tourism and Civil Aviation has directed the Civil Aviation Authority of Nepal to study cartelling on domestic flights. As per the government policy, no airline company can determine airfares based on carteling. The National Planning Commission is also studying the issue. What action the government would take against the airlines will be known only after the study report is out. Whenever the price of aviation fuel is hiked, the airlines hike the airfares suddenly, but do not cut the airfares when the fuel price is slashed.
A version of this article appears in the print on December 26, 2022, of The Himalayan Times.
