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Loss in Tourism Industry in Nepal

Historically, Nepal's tourism sector has been a success story. However, from 2007 to 2008, the country experienced a sharp decline due to the onset of a global recession and regional instability.

  1. Geography

    • Nepal is a landlocked country between China and India. The natural landscape consists of valleys and plains in the south and the awe-inspiring Himalayan Mountains in the north.

    Statistics

    • From 2007 to 2008, Nepal's tourism declined by five percent, compared to an increase of 37.2 percent from 2006 to 2007. The majority of this decline was in cultural travel; there was actually an increase in the trekking and mountaineering sector.

    Economic Significance

    • According to the 2008 Annual Report of Nepal Tourism Statistics, there was a 52.6 percent increase in tourism revenue from 2007 to 2008. Revenue increased from approximately $231 million to $352 million, respectively.

    Effect of a Global Recession

    • Nepal's tourism department attributes the decline to the global recession. However, economic indicators demonstrate that those who can afford to visit are spending more money in Nepal's tourism sector.

    Regional Instability

    • Another contributing factor to the decline in Nepal's tourism was a civil war with Maoist rebels and the Nepalese government. While the war has ended, continued fighting between political regimes occasionally prevents international travel into Nepal.

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