As Indian outbound tourism continues to expand, Nepal is well positioned to benefit from its geographical proximity, cultural affinity, and natural attractions
India is the world's sixth-largest economy, with an economic output of around US$ 4.15 trillion. As economic activity and per capita income continue to rise, the number of Indians travelling abroad has also increased significantly. According to the Indian Ministry of Tourism, 32.7 million Indians travelled overseas in 2025, compared to 30.85 million in 2024. The most visited destinations were the United Arab Emirates, Saudi Arabia, and Thailand.
These figures indicate that India has enormous potential as a source market for Nepal's tourism industry. According to the Nepal Tourism Board, 293,384 Indian tourists arrived in Nepal by air last year, while an estimated one million more entered the country through land border points. Among Indian visitors, Pashupatinath, Muktinath, Pokhara, and Manakamana remain the most popular destinations.
An analysis of the arrival trends of Indian tourists reveals a remarkable increase during Nepal's traditional tourism off-season. Many Indian travellers prefer travelling in their own vehicles, taking advantage of the easy road connectivity between the two countries during holiday periods. Nepal continues to be a preferred destination because of its cultural and linguistic similarities with India, easy accessibility, natural beauty, and affordable travel packages.
More recently, climate change has emerged as another factor encouraging Indians to visit Nepal. Rising temperatures across India, with mercury crossing 40°C in many states, have prompted travellers to seek cooler destinations during the summer months.
Against this backdrop, the growing preference among Indian tourists to visit Nepal as a refuge from rising temperatures presents a significant opportunity for Nepal's tourism sector. Traditionally, the country's tourism activity slows after the spring season. However, this year witnessed an unexpected surge in Indian arrivals during June, keeping tourism businesses unusually busy.
Hotels in major destinations such as Pokhara, Muktinath, and Manakamana have reported high occupancy rates, largely driven by Indian pilgrimage tourists. According to recent data from the Annapurna Conservation Area Project (ACAP), approximately 66,000 tourists visited Muktinath during May and June, of whom 94 percent were Indian nationals.
This encouraging trend reflects Nepal's sustained efforts to promote its tourism products through participation in travel fairs and tourism exhibitions across India. Such promotional campaigns have helped position Nepal as an attractive destination for Indian travellers.
Furthermore, popular hill stations in India such as Sikkim and Darjeeling receive heavy rainfall from mid-June onwards, often resulting in severe landslides and travel disruptions. In contrast, Nepal offers pleasant weather, spectacular mountain scenery, attractive off-season accommodation discounts, and relatively uncrowded cultural and historical attractions, making it an appealing alternative during the monsoon months.
The record number of visitors to Muktinath this year demonstrates its growing status as one of the most sought-after pilgrimage destinations for Indian tourists. Maintaining and effectively managing this increasing flow of visitors should therefore become a priority for policymakers and tourism stakeholders. Sustainable visitor management will be essential to retaining this momentum in the years ahead.
At the same time, Nepal should identify, develop, and promote other potential religious destinations capable of attracting Indian pilgrims. Marketing efforts should position Nepal not merely as a seasonal escape from extreme heat but as a year-round destination offering rich religious, cultural, natural, and adventure tourism experiences.
Recent reports in the media and on social media regarding the behaviour of some Indian tourists in public places have also highlighted the need to improve tourism infrastructure and visitor management. The number of Indian religious tourists is substantial, and many follow specific customs regarding food preparation, accommodation, water use, and religious practices. These cultural preferences deserve respect and should be accommodated wherever feasible.
Nepal should therefore prioritise investment in essential infrastructure at its most visited pilgrimage sites. This includes constructing pilgrim rest houses, improving transportation facilities, expanding public toilets, promoting quality guest houses and homestays, and ensuring access to clean drinking water and proper sanitation. Equally important is the establishment of clear operating procedures for public sites, supported by visible information on visitors' responsibilities, including appropriate dos and don'ts, to preserve the cleanliness and sanctity of these destinations.
Although many pilgrimage visitors travel on modest budgets, they contribute significantly to local economies through the purchase of religious items, handicrafts, souvenirs, groceries, food, and other local products. This spending directly benefits small businesses, creates local employment opportunities, and improves the livelihoods of grassroots communities. Increased tourist expenditure also generates higher government revenue, which can be reinvested in infrastructure development, heritage conservation, and the sustainable management of Nepal's religious tourism destinations.
As Indian outbound tourism continues to expand, Nepal is well positioned to benefit from its geographical proximity, cultural affinity, and natural attractions. By improving infrastructure, strengthening sustainable tourism practices, diversifying religious tourism products, and enhancing visitor management, Nepal can transform the growing influx of Indian tourists into a long-term driver of economic growth while preserving the country's unique natural and cultural heritage for future generations.
Gurung is a former member, National Planning Commission, and Sindurakar is Chief Administrative Officer, Nepal Mountaineering Association