We all know that in 2024, the world recovered almost 100% before COVID level, but Nepal is a little bit behind. And since last four, five, six months, we have crossed the before COVID level. One thing is very interesting to note about the international visitors, the top outbound markets and spenders are China, USA, Germany, UK, France, Australia, Canada, Russia, Italy, Italy and India and these are the same markets that are also traveling to Nepal. So we can imagine that though number wise, it is a small inbound number, we have built in Nepal a global destination for many travelers.
Nepal offers almost all kind of activities, be it land or water, or air, though it is popularly known as mountain and trekking and climbing type of destination. Beyond these types of activities, Nepal is becoming very very popular in niche segments especially golf, family tours, meditation, lifestyle, and weddings. Many visitors, they’re surprised to know that out of Nepal’s total land, nearly 45% land is protected as national parks and jungles, forests, protected areas. 16,000 plus community forests are developed in the last 30 years.
Nepal is also known as nature positive destination. Recently, most of the Indian visitors, they have a kind of mindset that maybe in Nepal, there are no more luxury hotels or in trekking areas, so there might be a few tea houses. But in recent years, especially post-COVID, many investors, they have developed nearly 25 plus five-star hotels in Kathmandu, in Pokhara, in numerous border towns of India. These are the few brands that they have recently expanded their ventures in Nepal – like Dusit Thani, Hilton, Marriott, Taj, Sintamani. Sintamani is really doing very, very good these days, one of the luxury brands, IHG, these all-top tourism hospitality brands are already in Nepal.
Connectivity wise also, Nepal is well connected with more than 25 international cities. As we all know that the global tourism trend is changing towards a very typical type of luxury or comfort focussed activities to experiential tourism economy and countries like Nepal have greater potential because Nepal offers diversity within a small landscape. We all know that how tourism is changing in last 20-25 years. And destinations like Nepal are perfectly fit for that.
What are the major reasons to invest in Nepal? Because all destinations are offering very, very attractive packages, but there are a few very unique things to choose Nepal as a preferred investment destination. From the government side, Nepal has given one of the topmost priorities for the tourism sector, especially, hydro and tourism, are topmost priority. Especially in manufacturing industries we don’t need to care about local communities but while we think about investing in tourism, local communities matter, and Nepal’s local communities are always very very welcoming and very supportive.
The weather and location. I think those who have visited, you all know that. A very, very wonderful, perfect weather around the year. Infrastructure-wise also, Nepal has improved a lot. Now, the only international airport in Kathmandu is also expanded. Just three years ago, our parking bay in international airport was limited to 10 to 12 parking slots, but now it is extended to 29.
Similarly, two new regional level international airports are also developed in beautiful cities of Pokhara and Lumbini, the birthplace of Lord Buddha. And these are the few areas where really the potential investors can look for. Hotel resorts, especially so far, the unit-wise, tourism is the sector which is receiving the largest FDI. In adventure tourism segment also, we are ready to welcome new investments, as also in many other tourism segments. In eco-tourism projects, it is the same story, as Nepal provides the perfect fit. Recently, the Nepal government has introduced an innovative policy, where even within the protected areas, with certain specified code of conduct being followed, we can find some investment opportunities.
MICE tourism is also probably another area where Nepal needs more investment because from Kathmandu city itself, four capital cities can be connected in one- and one-half hour flight distance. Nearly 20 plus cities in India, China, Dhaka can be connected in two and two and a half hour flights where the population is more than 30 million. Recreational tourism sector is also another area where the investors can think of.
In a nutshell, I think while there are a few segments, there are luxury segments, the high demand is there, but limited investment has come in so far. For example, wellness and Ayurveda, this is the most rising sector, but very low investment is still there. And family and friendly hotels are also needed, high demand, but very limited availability is there.
I’m here to share with you a few windows of opportunities and invite you to be a part of Nepal’s tourism growth. The arrival train of diverse tourism segment is climbing up very steadily. These aren’t just tourists, they are trekkers, pilgrims, digital nomads. Very recently, our government has opened digital nomads, a very unique visa category, honeymooners, wellness seekers, and these segments Nepal is attracting in a big way.
But there’s the untapped potential waiting you all to tap these opportunities. Nepal’s tourism economy is still to be leveraged. We are talking about a nation where 45% of the land is protected, national parks, conservation areas, community forests, imagine a hospitality in five structures designed to immerse guests in pristine wilderness, heritage cities, and spiritual trails all around. Earlier, when Nepal was known as a mountain destination, our tourism was very season-based but now it is not a season-based tourist destination. Nepal now caters to every age, every season and everyone.
So, from luxury paragliding in Pokhara to meditation retreats in Lumbini, our experience diversity is world class. Government support for FDI with the streamlined approval, tax incentives and policy stability is also there.
Investment Board of Nepal is there, Department of Industry is there, and at Nepal Tourism Board, we have also established one investment facilitation desk.
We need partners to create and co-create immersive experiences. The market is ready, the infrastructure is growing in Nepal, the government is very much aligned, we all need now is your vision and connection to Nepal. I invite you all, not just just to invest but be a part of Nepal’s next tourism chapter. Together, let’s transform the Himalayas into a global benchmark for sustainable and soulful hospitality center for the world.
