Contribution of Tourism on Nepalese Economy

Shiba Prasad Rijal

Abstract: This study aims at examining the role of tourism on economy and employment of Nepal. The study is based on secondary data/information and experience-based approach. Travel and tourism, one of the important economic activities in almost all the countries of the world, is no doubt the largest industries in Nepal and primary source of foreign exchange earnings and employment. Its direct contribution to GDP was 3.6 percent (NPR 85.2 billion) while its total contribution was 7.5 percent (NPR 177.9 billion) in 2016. Likewise, direct contribution of travel and tourism to employment was 2.9 percent and its total contribution was 6.4 percent of the total employment. The contribution to visitors export was US$ 0.4 billion with a share of 19.0 percent of the total export. Likewise, percentage share of domestic spending, leisure spending and business spending was 3.9, 3.1 and 0.5 percent respectively. The contribution of tourism is significant however, still Nepal is unable to utilize its full potentials and can be increased and fully utilized with the development of sufficient tourism related infrastructures and promotional activities.

Keywords: Foreign exchange earnings, gross domestic product, employment, Nepalese economy, productive business, tourism