Economic Development in Nepal
Nottingham University Business School
MBA Programme
BUSINESS ECONOMICS (N14M79)
A CASE STUDY ON THE CHALLENGES FACED BY THE TOURISM INDUTRY OF NEPAL
NAME:
Trishakti, J.B. Rana; Student ID: UNIMKL-012016
Word Count: 2190 (Excluding Executive Summary)
EXECUTIVE SUMMARY
As a poor developing nation, Nepal faces many challenges and opportunities. It has just emerged from a decade long civil war and emerged as a Federal Democratic Republic in 2008. Tourism industry in Nepal has gone through a rough phase during this period, which has resulted in low revenues and employment generation.
Tourism industry represents more positive potentials than other industries in contributing to Nepal’s growth. In 2011, Tourism contributed 8.8% to GDP and employed 7.7% of total population employed. Total number of tourist arrival in 2011 was 736,215 which is a significant increase as compared to previous years. Vision 2020 of the Nepal Tourism Board is to achieve the arrival of 2 million tourists and provide employment to 1 million people.
As a touristic destination, Nepal has a competitive advantage in terms of natural assets and diverse and rich culture. Located between India and China, Nepal needs to take advantage of its location and attract more tourists from these countries. It also needs to promote itself at the world stage and improve its brand positioning.
Despite the growth of tourism in the past couple of years, the industry is still functioning below par. The growth is taking place at a very slow rate due to major obstacles like lack of infrastructure, poor accessibility, low investment and poor marketing and promotion. The government needs to take immediate action in strengthening this industry in order to achieve Vision 2020.
TABLE OF CONTENTS
1.0 Introduction.…………………………………………………… 4 2.1 Background……………………………………………. 4 2.2 Industry Overview…………………………………….. 4 2.3 Case Study and Objectives……………………………. 5
MBA Programme
BUSINESS ECONOMICS (N14M79)
A CASE STUDY ON THE CHALLENGES FACED BY THE TOURISM INDUTRY OF NEPAL
NAME:
Trishakti, J.B. Rana; Student ID: UNIMKL-012016
Word Count: 2190 (Excluding Executive Summary)
EXECUTIVE SUMMARY
As a poor developing nation, Nepal faces many challenges and opportunities. It has just emerged from a decade long civil war and emerged as a Federal Democratic Republic in 2008. Tourism industry in Nepal has gone through a rough phase during this period, which has resulted in low revenues and employment generation.
Tourism industry represents more positive potentials than other industries in contributing to Nepal’s growth. In 2011, Tourism contributed 8.8% to GDP and employed 7.7% of total population employed. Total number of tourist arrival in 2011 was 736,215 which is a significant increase as compared to previous years. Vision 2020 of the Nepal Tourism Board is to achieve the arrival of 2 million tourists and provide employment to 1 million people.
As a touristic destination, Nepal has a competitive advantage in terms of natural assets and diverse and rich culture. Located between India and China, Nepal needs to take advantage of its location and attract more tourists from these countries. It also needs to promote itself at the world stage and improve its brand positioning.
Despite the growth of tourism in the past couple of years, the industry is still functioning below par. The growth is taking place at a very slow rate due to major obstacles like lack of infrastructure, poor accessibility, low investment and poor marketing and promotion. The government needs to take immediate action in strengthening this industry in order to achieve Vision 2020.
TABLE OF CONTENTS
1.0 Introduction.…………………………………………………… 4 2.1 Background……………………………………………. 4 2.2 Industry Overview…………………………………….. 4 2.3 Case Study and Objectives……………………………. 5
Bibliography: Figure 1: Contribution to GDP, 2002-2012 Table 1: Tourism Scenario, 2010-2011 Source: Nepal Tourism Board