Tourism Revenue increases 27%

16th Feb, 2018 | Tourism Mail Crew

KATHMANDU, Feb 16: The country's tourism revenue has increased by 27 percent in the first half of the current fiscal year, compared to the same period of fiscal year 2016/17.

Foreign tourists have spent Rs 33.7 billion in the first six months of the fiscal year 2017/18. The per day expenditure of foreign tourists in Nepal is estimated to reach US$ 70 in FY 2017/18, according to the tourism ministry. The expenditure in FY 2016/17 was $52.

The average length of stay of foreign tourists in the current fiscal year is not expected to increase from the last year's number of 13.4 days. However, General Secretary of the Hotel Association of Nepal, Binayak Shah, says that the room occupancy in HAN member hotels has increased to 65 percent in 2017, a 5 percent increase from 2016.

The expenditure of foreign tourists, however, has not been increasing at the desired rate due to unhealthy competition among tourism service providers. Media Consultant at Nepal Tourism Board, Sarad Pradhan, said, "Increasing number of hotel rooms and other service providers have provided a plethora of options to tourists. Most of them choose cheaper hotels and services.”

He stated that unhealthy competition among hotels has been affecting the per day expenditure of tourists.

President of the Trekking Agencies' Association of Nepal, Nava Raj Dahal, said that the tourism earnings has mainly increased in 2017 due to the increase in number of foreign tourists. “However, we are yet to receive high-spending tourists. We need to take a new strategy to tap the high-end segment now,” said Dahal.