nepal tourism statistics 2019

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नेपाल सरकार

संस्कृति पर्यटन तथा नागरिक उड्डयन मन्त्रालय, पर्यटन विभाग.

पर्यटन तथ्याङ्क

सम्बन्धित लिंक्स

नेपाल सरकारको आधिकारिक पोर्टल

प्रधानमन्त्री तथा मन्त्रिपरिषद्को कार्यालय

संस्कृति, पर्यटन तथा नागरिक उड्डयन मन्त्रालय

अर्थ मन्त्रालय

सङ्‍घीय मामिला तथा सा.प्र मन्त्रालय

विधुतीय खरिद प्रणाली

Ministry of Culture,Tourism & Civil Aviation,Nepal

सम्पर्क विवरण

2nd May 24 02:51:42

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Nepal Tourism

• Living reference work entry
• First Online: 15 October 2023
• Cite this living reference work entry

• Sanjay K. Nepal 3  

Nepal is a small Himalayan country (147,181 km 2 or 56,827 mi 2 ) in South Asia. It shares borders with India to the south, east, and west and China to the north (Fig. 1 ). The country’s population reached 27 million in 2019. Tourism is an important industry for Nepal, accounting for 6.7% of its GDP in 2019. In 2019, about 1.2 million international tourists visited Nepal (International Monetary Fund 2021 ).

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International Monetary Fund. 2021. Nepal population statistics . IMF.

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Nepal, S. K. 2003. Tourism and the environment – perspectives from the Nepalese Himalaya . Innsbruck and Kathmandu: Studien Verlag and Himal Books.

Nepal, S. K. 2010. Tourism and political change in Nepal. In R. W. Butler & W. Suntikul (Eds.), Tourism and political change (pp. 147–159). Oxford: Butterworth-Heinemann.

Nepal, S. K. 2016. Tourism and change in Nepal’s Mt. Everest region. In H. Richins & J. S. Hull (Eds.), Mountain tourism – experiences, communities, environments and sustainable futures (pp. 270–279). Wallingford: CABI.

World Travel and Tourism Council. 2021. Nepal Annual Research: Key Highlights, WTTC.

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Sanjay K. Nepal

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Nepal, S.K. (2023). Nepal Tourism. In: Jafari, J., Xiao, H. (eds) Encyclopedia of Tourism. Springer, Cham. https://doi.org/10.1007/978-3-319-01669-6_822-1

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DOI : https://doi.org/10.1007/978-3-319-01669-6_822-1

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Tourism in Nepal – 50+ statistics, numbers and trends

Updated on June 22, 2022 by Axel Hernborg

Nepal is a land of discovery and unique experience and rich with ancient cultures and the most dramatic scenery in the world. Nepal is the ideal destination for broad-minded individuals who value authentic and mesmerizing experiences . A lot of visitors come and revel in the untouched and the undiscovered.

The  tourism sector is the backbone of the Nepalese economy . For many tourists, Nepal’s greatest attraction is its people . The traditions and famous hospitality of its many different groups make Nepal so special for visitors from all over the world. From remote mountain villages to medieval hill-towns and the ancient cities of the Kathmandu Valley , the people of Nepal are always welcoming. Therefore, visitors come and experience the strong and unique flavors of Nepalese cuisine, prepared with love and a depth of flavor, and join in and celebrate at one of the many festivals year-round . In Nepal, there are more festivals than days of the year . There is nowhere else in the world that can offer as many festivities as Nepal.

There is a lot more about the tourism sector of Nepal, here, we explain some of the top trends and statistics in the Nepal Tourism industry.

Table of contents

• 1 Covid-19 and Tourism Industry
• 2 Pre- and Post-Pandemic Trends and Statistics
• 3 Contribution of Tourism to Nepal’s Economy
• 4 Tourism Industry Insight
• 5 References

Covid-19 and Tourism Industry

Nepal is known as an ideal destination for trekking, adventure tourism, wildlife, and culture . The Nepalese tourism industry suffered significant losses during the Covid-19 pandemic . The highly anticipated government campaign, “Visit Nepal 2020” had to be completely called off. The campaign aimed to draw 2 million foreign visitors during the year 2020 , but COVID-19 disrupted everything .

However, tourist footfalls are gradually increasing in  Nepal  as coronavirus-related restrictions are eased . According to the Department of Immigration , in March 2022,   Nepal received 42,006 tourists via flights, of whom 15,013 tourists were from India followed by 4,029 tourists from the United Kingdom and 4,896 from the United States . Last year in the same period, only 14,977 foreign tourists visited Nepal.

Pre- and Post-Pandemic Trends and Statistics

• Nepal hosted 1.19 million foreign tourists in 2019.
• The ‘Visit Nepal 2020’ campaign , officially introduced on 1 January , aimed to attract 2 million tourists , generate $ 2 billion and create thousands of new jobs .
• In response to Covid-19 , the government suspended the ‘ Visit Nepal 2020’ initiative on 3 March.
• When the World Health Organization (WHO) declared COVID-19 a pandemic on 13 March , the government suspended all permissions for mountaineering expeditions and suspended all visas.
• On 23 March , the government locked the country down and suspended all national and international flights.
• Massive cancellations of hotel and tourist bookings followed, resulting in widespread unemployment , loss of income, and threatened livelihoods for thousands.
• The collapse of international and domestic tourism followed a 2% drop in tourist arrivals in January 2020 compared to 2019 .
• Over 10 000 tourists who had entered Nepal before the lockdown was also left stranded , although many of them were eventually repatriated .
• According to a paper from the  Journal of Tourism and adventure , the Nepalese economy had suffered a preliminary loss of 14.37% as travel had been restricted around the world. 
• According to the Nepal tourism statistics , Nepal hosted 230,085 tourists in 2020 , a drop of more than 80% compared to 1,197,191 in 2019 .
• In the first 11 months of 2021 , around  126,000 tourists  visited Nepal .
• In November 2021 , approximately 26,487 tourists visited Nepal , the largest number of tourists since the pandemic began.
• In October 2021 , 26,135 tourists visited, which was a big jump from the 9,898 tourists that had visited during September .
• Now, quarantine is not required for fully vaccinated tourists and the visa on arrival is reinstated for vaccinated tourists or the ones with a negative PCR test.
• The impressive rate of growth in tourist arrivals in recent years, especially in the business travel category, coupled with the high occupancy rates for 5-star hotels in Nepal signal opportunities for investment in this sector. 
• The construction of many luxury hotels in different parts of the country has seen progress .
• Investors of new hotel projects are trying to take an early lead in market competition as normalcy has resumed. 
• Numerous luxury hotels with casinos have opened in the cities near the Indian border .
• More international hotel chains have started to arrive in Nepal . Marriott, Aloft, Ramada, and Hyatt Place have opened in recent years
• Several of the big hotel chains have hotels under construction such as Sheraton, Double tree by Hilton, Lemon tree hotel, Le Meridien, Dusit Thani Resort, and Holiday Inn.

Contribution of Tourism to Nepal’s Economy

• Nepal’s tourism revenue in 2018 accounted for 7.9% of the country’s Gross Domestic Product (GDP) and supported more than 1.05 million jobs .
• Nepal recorded a total of 230,000 tourists in 2020 .
• In 2020 , Nepal was ranked 154th in the world in absolute terms.
• With 0.0079 tourists per resident , Nepal ranked 189th in the world.
• In South Asia , Nepal ranked 6th .
• In 2020, Nepal generated around 238.00 million US dollars in the tourism sector alone. This corresponds to 0.71% of its gross domestic product and approximately 1% of all international tourism receipts in South Asia .
• The tourism sector employs 371,140 people , representing 11.5 percent of persons engaged in all industries in Nepal.
• Tourism is Nepal’s fourth-largest industry by employment .

Tourism Industry Insight

• Nepal’s hospitality industry grew rapidly in the last decade with an increased number of arrivals.
• Bagmati Province , which includes Kathmandu Valley , accounts for the largest number of tourism personnel i n the country, 161,674 persons or 43.6%.
• Province 1 comes second with an employment number of 56,782 persons or 15.3%.
• Lumbini and Gandaki provinces employ 47,827 and 47,447 persons , respectively.
• Sudurpaschim Province has 17,195 tourism workers .
• Karnali has 14,123 tourism workers .
• Province 2 has 26,092 tourism workers .
• The number of people engaged in restaurants and mobile food service activities is 243,790 or 65.7%.
• The number of people engaged in short-term accommodation activities or the hotel industry is 76,010 people or 20.5%.
• The country’s airlines employ 2,750 people .
• 17,899 people are engaged in beverage selling activities.
• Travel agencies provide 13,223 jobs .
• The number of establishments in the tourism industry is 134,832, making up 14.6% of all establishments in Nepal .
• Bagmati Province has the largest number of 49,234 tourism establishments , accounting for 36.5% of all establishments in the tourism industry .
• Province 1 has 24,900 tourism establishments with Everest National Park and Ilam being the main draws for visitors.
• The number of establishments in Gandaki Province is 16,412 with Pokhara Valley, Mt Machhapuchchhre, Annapurna range, and Gorkha being the major attracting factors for tourists .
• Lumbini Province has 19,211 tourism establishments and its key allures are Lumbini and Banke and Bardia national parks.
• Rara and Shey Phoksundo national parks are the major sites of Karnali Province which has 6,351 tourism establishments .
• Sudurpaschim Province has 7,604 establishments with Khaptad National Park and Shukla Phanta National Park being its key destinations.
• There are 11,120 tourism establishments in Province 2 where Parsa Wildlife Reserve and Janakpur are the major tourism sites.
• The number of tourist standard hotels rose by 54.3% between 2012-13 and 2019-20.
• The number of star hotels increased by 29% during 2012-13 and 2019-20 .
• 72 firms received refinance loans worth  NPR 8.99 billion  for the first 4 months of 2021 . More than 55% of the firms were tourism-related businesses.
• The tourism businesses received NPR 4.95 billion , which covered more than half of the issued refinance loans . 
• Nepal-Bangladesh Tourism Promotion and B2B Exchange Program in collaboration with the Pacific Asia Travel Association (PATA) is an initiative started to promote each other’s destinations through mutual tie-ups. 
• Nepal Tourism Board (NTB) with Trekking Agencies Association of Nepal (TAAN) has signed a Memorandum of Understanding to generate 1,000 short-term jobs for workers in the tourism industry .

https://kathmandupost.com/money/2021/06/17/tourism-is-nepal-s-fourth-largest-industry-by-employment-study

https://www.worlddata.info/asia/nepal/tourism.php

https://academic.oup.com/jtm/article/27/6/taaa105/5868304

https://nepaleconomicforum.org/the-impact-of-the-pandemic-on-the-hospitality-and-tourism-sector-and-its-recovery/

https://www.business-standard.com/article/international/tourist-activity-slowly-picking-up-in-nepal-as-covid-restrictions-are-eased-122040900940_1.html

https://knoema.com/atlas/Nepal/topics/Tourism/Travel-and-Tourism-Total-Contribution-to-GDP/Contribution-of-travel-and-tourism-to-GDP-percent-of-GDP#:~:text=(%25)%20in%202019-,Contribution%20of%20travel%20and%20tourism%20to%20GDP%20(%25%20of%20GDP,reduced%20by%204.92%20%25%20in%202019 .

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Nepal Tourism Statistics

Nepal np: international tourism: expenditures, view nepal's nepal np: international tourism: expenditures from 1995 to 2016 in the chart:.

Nepal NP: International Tourism: Expenditures: % of Total Imports

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Nepal NP: International Tourism: Expenditures: for Passenger Transport Items

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Nepal NP: International Tourism: Expenditures: for Travel Items

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Nepal NP: International Tourism: Number of Arrivals

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Nepal NP: International Tourism: Number of Departures

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Nepal NP: International Tourism: Receipts

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Nepal NP: International Tourism: Receipts: % of Total Exports

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Nepal NP: International Tourism: Receipts: for Passenger Transport Items

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Nepal NP: International Tourism: Receipts: for Travel Items

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Travel & Tourism - Nepal

• The projected revenue of the Travel & Tourism market in Nepal is estimated to reach US$458.60m by 2024, with an expected annual growth rate (CAGR 2024-2028) of 7.15%.
• This growth is expected to result in a projected market volume of US$604.40m by 2028.
• The largest market in this market is the Package Holidays, with a projected market volume of US$209.10m in 2024.
• By 2028, the number of users in Package Holidays is expected to amount to 2,295.00k users.
• In 2024, the user penetration rate is 11.7%, which is expected to increase to 13.4% by 2028.
• The average revenue per user (ARPU) is expected to amount to US$125.50.
• Online sales are projected to generate 64% of the total revenue in the Travel & Tourism market by 2028.
• It is worth noting that in global comparison, United States is expected to generate the most revenue in this market, with a projected revenue of US$199bn in 2024.
• Nepal's Travel & Tourism sector is experiencing a shift towards sustainable tourism, with an emphasis on ecotourism and community-based tourism initiatives.

Key regions: Malaysia , Europe , Singapore , Vietnam , United States

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

The market consists of five further markets.

• The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
• The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
• The Hotels market includes stays in hotels and professionally run guest houses.
• The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
• The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

For further information on the data displayed, refer to the info button right next to each box.

• Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

out-of-scope

• Business trips
• Other forms of trips (e.g. excursions, etc.)

Travel & Tourism

• Vacation Rentals
• Package Holidays
• Analyst Opinion

Nepal, known for its majestic mountains and rich cultural heritage, has been experiencing a notable growth in its Travel & Tourism market. Customer preferences: Travelers visiting Nepal are increasingly seeking authentic and immersive experiences, such as trekking in the Himalayas, exploring ancient temples, and participating in local festivals. The demand for sustainable and eco-friendly tourism practices is also on the rise, with tourists showing a preference for responsible travel options. Trends in the market: One of the key trends shaping the Travel & Tourism market in Nepal is the growing popularity of adventure tourism. Activities like mountaineering, white-water rafting, and paragliding are attracting thrill-seekers from around the globe. Additionally, the country's focus on promoting cultural tourism has led to an increase in heritage tours and homestay experiences. Local special circumstances: Nepal's unique geography, which includes eight of the world's ten highest peaks, positions it as a prime destination for adventure enthusiasts and nature lovers. The country's diverse ethnic communities and vibrant traditions also add to its appeal, offering tourists a chance to immerse themselves in a rich tapestry of cultures. Underlying macroeconomic factors: The political stability and improved infrastructure in Nepal have played a significant role in driving the growth of the Travel & Tourism market. Government initiatives to promote tourism, such as easing visa regulations and investing in hospitality services, have helped attract a larger number of international visitors. Additionally, the increasing connectivity through air travel and the presence of a skilled workforce in the tourism industry have further boosted the sector's development.

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• Global Comparison
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NEPAL TOURISM CAMPAIGN #VisitNepal2020

As 2019 commences, nepal continues its preparations for the next countrywide and yearlong campaign of tourism dubbed ‘visit nepal 2020’ with the tag line: “lifetime experiences”. the government aims to reach a new ambitious record of 2 million tourists by the end of 2020. with the tourism industry thriving better than ever after the 2015 earthquakes, perhaps the government’s target is not so surprising but there still remain a few hurdles to overcome..

The year 2018, saw Nepal’s tourism grow by 24% with the number of foreign tourists in Nepal reaching over the million mark of 1,173,072, according to the Nepal Tourism Board (NTB). This is a significant rise when compared to the figures from 2017 which was only 940,218. Achieving the one million milestone has been the Ministry of Culture, Tourism and Civil Aviation’s (MoCTCA) goal for about two decades and it has certainly helped boost the tourism sector’s confidence in reaching the two million target by 2020.

However, it is not only Nepal which is seeing an increase in tourism, the World Tourism Organisation (UNTWO) estimates that in 2018 there was an overall 6% increase, totalling 1.6 billion, of worldwide international tourist arrivals (overnight visitors). UNWTO Secretary-General, Zurab Pololikashvili, announced on a news release, “The growth of tourism in recent years confirms that the sector is today one of the most powerful drivers of economic growth and development. It is our responsibility to manage it in a sustainable manner and translate this expansion into real benefits for all countries, and particularly, to all local communities, creating opportunities for jobs and entrepreneurship and leaving no one behind. This is why UNWTO is focussing 2019 on education, skills and job creation.”

Based on the current progressions, the UNTWO expects international tourist arrivals to reach historic growth levels, rising up 3-4% next year which spells good news for the Visit Nepal 2020 campaign goal. The UNTWO also point to another growing trend of stable outbound travel from emerging markets, especially India and other smaller Asian source markets. In fact, this trend can be seen in Nepal itself. For instance, using data from the NTB, in 2018, Nepal saw a 55% rise in Sri Lankan tourists and the number of Indian tourists grew by 25%.

Notably, the NTB found that the top five countries that international tourists came from were: India, China, USA, Bangladesh and the UK. The CEO of NTB, as quoted from the Nepali Sansar website, said, “The growth can be attributed to concerted efforts of Government of Nepal, Nepal Tourism Board, private sector travel trade and media towards promotion of overall tourism sector in the international tourism arena.”

History of the Visit Nepal Campaign

The first ever Visit Nepal campaign was held in 1998 and was also the first major collaborative effort undertaken by Nepal to develop its international image of tourism. Along with the government, various agencies and organisations within and outside of the tourism sector, worked on strategies to improve Nepal’s tourism industry. The main aim of the campaign was to find ways to encourage tourists to visit all year round, rather than just the peak seasons when the weather is better. With the slogan, ‘Visit Nepal 1998 – A World of its Own’, the campaign proved to be a huge success where about 400,000 tourists visited Nepal that year which was a great increase from previous years.

Thirteen years later, Visit Nepal 2011 was launched, this time with a clearer and ambitious goal of attracting 1 million tourists. In that year, more than 700,000 tourists came to Nepal and although the country did not succeed in reaching its target until 2018, the significant upsurge of international tourist arrivals whenever the Visit Nepal campaigns were held revealed its relevance and gravity.

Indeed, the country has recognised tourism as a vital economic contributor to its GDP. According to the World Bank, in the Fiscal Year 2018, Nepal saw a 9.1% growth in the retail sector, the sub-sectors of the service sector e.g. hotels and restaurants had a 9.8% increase, with industry growing by 8.8% which was well above its twenty-five-year average of 4%.

As such, the government have decided that 2020 is the right time for Nepal to dedicate itself to a year of tourism. Since Prince Harry’s first ever visit to Nepal in 2016, in the aftermath of the devastating 2015 earthquakes which badly affected Nepal’s tourism industry, his stay brought good international publicity to the nation and helped boost the figures of tourist arrivals by almost 25% in the following year. This growth does not appear to be stopping any time soon, as seen through Nepal reaching the 1 million mark, and with the upcoming Visit Nepal campaign, tourism is once again flourishing in the country.

However, Rameshor, 28, who works at the Handmade Paper Shop in Thamel which has been running for around thirty years, is skeptical of the Visit Nepal 2020 campaign, “It is a really good idea but whether the government will be able to facilitate the right implementations or not, I don’t know.” He added, “Nepal has seasons of when tourists visit, right now it’s off-peak so business is not bad but not good. You can’t really change the seasons.”

Despite, it being off-season, there are still plenty of tourists about in Kathmandu. For American tourists Sally, 68, and Jessica, 54, this was their third visit to Nepal. When asked about how and why they decided to come to Nepal, they replied, “It was a place that I had always wanted to visit and I wanted to see Mount Everest and in our first visit [in 2014] we were able to do that with Shiva Excursions and it was a dream of mine and we fell in love with the place. It’s the people that bring us back, we love it... it just feels like we’re home.” Sally further mentioned, “We have some really good friends here, a local guide who runs a trekking business [Shiva Excursions], we went on a trek with the family, that’s the main reason why we came.”

Obstacles for Visit Nepal 2020

One of the biggest drawbacks for the campaign could be the incompletion of the construction of international airports in Bhairahawa, 22km from Lumbini, and Pokhara. Both these locations attract vast numbers of tourists: Lumbini being the birthplace of the founder of Buddhism, Gautama Buddha, attracts spiritual tourists, whilst Pokhara is the gateway to the Annapurna region, a popular trekking destination.

However, despite many setbacks, the Civil Aviation Authority of Nepal state that Gautam Buddha International Airport at Bhairahawa will be set to open by July 2019. Once this upgrade has been completed, it is estimated that the airport’s handling capacity will rise up to 760,000 passengers annually. The Lumbini Development Trust’s latest statistics from 2018, reveal that there was a 20.7% increase of foreign visitors when compared to 2017, totalling to 363,539 foreign visitors to the holy site. Therefore, with such growing numbers of foreign tourists, if the airport does open at the intended date, it would likely help Nepal close the gap to the 2 million mark by 2020.

Unlike, Gautam Buddha International Airport, it seems the Pokhara International Airport will not be ready for 2020. The Project Chief of Pokhara International Airport, Binesh Munankarmi, in The Kathmandu Post, explained that the contractor of the project, China CAMC Engineering, is required to hand over to the government in July 2021. Had this airport been ready for the Visit Nepal 2020 campaign, foreign tourists seeking adventure or trekking may have been more incentivised to visit Nepal via Pokhara to avoid further travel expenses from Tribhuvan International Airport in Kathmandu to the Annapurna region. Consequently, this could be a disadvantage for Nepal in reaching their ambitious target for 2020 since the Ministry of Tourism of Gandaki Province (which Pokhara is in), hold the general consensus that 40% of international visitors come to Pokhara.

That being said, Nepal is a country of such diversity that finding more potential international airports is not a problem, rather the pressing issue that needs to be addressed now is the ineffective management of the current Tribhuvan International Airport (TIA). Suraj Vaidya, National Coordinator of Visit Nepal 2020 campaign, as quoted from The Himalayan Times, suggested, “TIA should render the best services possible as it is here that foreign tourists get the first experience of Nepal.”

Passengers face long waiting times through immigration, baggage collection and now, with the new relocation of the parking lot, a 200m walk with their luggage to reach transport. These problems, if not solved now, will produce even more hassle if the government wants to bring a further 2 million tourists into the country by 2020.

Furthermore, in keeping with the theme of travel, the Nepal Association of Tour Operators, in a press statement, implored the government to finish road construction works around Kathmandu and other popular tourist locations such as Nagarkot, Pokhara and many others. They said, as quoted from The Himalayan Times, “The condition of roads in Kathmandu is pathetic beyond description. And it is hard to walk along the roads in without being affected by dust. As we are making preparations for the grand tourism campaign -Visit Nepal 2020 such issues will tarnish the country’s destination image in the international arena.”

It is not only the construction of roads that needs to be completed, there are still several monuments and temples that were damaged or destroyed by the 2015 earthquakes that are still waiting to be fully restored. Christian Manhart, UNESCO Representative to Nepal, disclosed, “Two months after the earthquake, we did a Post Disaster Needs Assessment, where we got all the figures and we were targeting ten years for the entire construction. The Department of Archaeology actually was more optimistic, they said six years. But now I think that we will exceed ten years.”

Even, if taking the Department of Archaeology’s optimistic construction timeframe, six years after the earthquakes sets the full completion date for all restorations at 2021, narrowly missing the Visit Nepal campaign by one year. Bearing in mind, these estimates did not foresee the delays in reconstruction due to disputes between stakeholders, for example, in the case of Hanuman Dhoka’s restoration standstill. With such suspensions keeping these significant monuments from being restored to their former glory, the country may struggle in attaining Visit Nepal 2020’s bold campaign goal.

Most worryingly though, is Nepal’s issue of fraudulent helicopter rescue scams that have reached such levels of notoriety that even international news outlets have recently been reporting on this matter. Investigations carried out on behalf of insurance companies uncovered a five-year, multimillion-dollar scam where climbers were pressured to take expensive helicopter flights down mountains at the first sign of illness because helicopter operators and guides of trekking companies gain commission payments as a result of calling for helicopter evacuation of insured trekkers. These investigations also exposed that the scam caused at least one unnecessary death and involved dozens of tour operators, helicopter companies, hotels and hospitals.

Although the government have ordered a review of how helicopter mountain rescue operations are conducted, with this problem reaching international level, Nepal’s reputation may be at risk. If Nepal does not crack down on this potentially life-endangering problem now, future foreign mountaineers or trekkers may be deterred from visiting Nepal for fear of being scammed. This in turn would not only hurt the trekking industry but also the number of international tourist arrivals since the majority of international visitors come to trek through or climb Nepal’s treasured Himalayas.

Regardless of all these possible and current hurdles, organisations and agencies continue to eagerly prepare for the Visit Nepal 2020 initiative with much gusto. For instance, the NTB has been taking part in travel marketing roadshows all across the United Kingdom to raise awareness about Nepal’s tourism campaign since tourist arrivals from the UK rose by almost 25% in 2018, totalling 63,000 British tourists in Nepal that year. A spokesperson for the NTB, as quoted from the Travel Weekly website, said, “Many contacts in the UK travel trade have identified Nepal as a growth area for 2019, and the roadshows are expected to help the country reach its 2020 target of two million visitors.”

Whilst Nepal can commend itself for finally reaching the 1 million milestone in 2018, in spite of, and especially, after the events of the disastrous earthquakes three years ago, the government should not rest and think that reaching 2 million international arrivals will be any more easier. It is, indeed, an ambitious target and if the nation wants to be any close to achieving it, Nepal must continue to put more work in to take the right measures and ensure that the country is in the best state to attract the highest number of international visitors, thus, reaping the rewards and developing economically.

Pun is an intern from the UK

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COVID-19 Pandemic and its Impact on Tourism Industry in Nepal

Journal of Tourism & Adventure

The article aims to measure the impact of novel corona virus disease (COVID-19) pandemic on tourism industry in Nepal. The pause of tourism mobility for months due to an abrupt halt of transportation means; shuttered borders; and stay-at-home orders by government has brought adverse effects on Nepal’s tourism industry and its stakeholders. Likewise, airlines, accommodation, transport operators and other sub-sectors of Nepal are suffering due to international travel bans. There are spillover impacts of the pandemic on the socio-cultural structure, human psychology and global economic system where tourism industry is no exception. The impacts are gradually unfolding. Hence, the study also focuses on the preparedness and response strategy of stakeholders for combating this pandemic which has brought crisis and fear to Nepal’s tourism industry. The research is qualitative in its nature and followed basic/fundamental research type to expand knowledge on this topic which will shed light o...

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Tourism is a service-based industry with multiplicity of inter-linkages to the various other sectors in an economy. It contributes the significant amount of Gross Domestic Product (GDP) with remarkable employment opportunities in many countries of the world. This research work is conducted to identify the effect of corona virus disease 2019 (COVID-19) in Nepalese tourism industry and potential measure to cope with the effect in the economy by which necessary suggestions would recommend for this sector. This is a qualitative research based on the qualitative data gathered from primary as well as secondary sources. Fifteen respondents from different parts of Kathmandu valley have been purposively selected to obtain the first-hand responses who are formally engaged in tourism sector. It is found that there is significant effect in entire tourism sector and considerable decline globally and even the final statistics has not been measured yet. Nepal is also in the similar stream. Still t...

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The aim of this paper is to explore and illuminate the preliminary impacts of novel coronavirus disease (COVID- 19) in tourism industry of Nepal. The spillover impact of pandemic has been seen in almost every sector globally. Many scholars and practitioners have already started rethinking and researching in different disciplines based on issues regarding COVID-19. Some of the disciplines are International tourism, health sector, international economy, global politics, human civilization, sustainability and so on. The United Nation World Tourism Organization (UNWTO) and World Health Organization (WHO) are closely cooperating for understanding the severe impact of escalation of coronavirus on the human health and damage in the world economy as well as tourism sector (UNWTO, 2020). There are uncountable job losses recorded in tourism industry due to stranded traveller’s mobility after many nations including Nepal declared lockdown as a strategy to control the spread of virus Therefore,...

bhim kunwar

Th is research aims to discover and present the impacts of COVID-19 in tourism in the context of Lumbini and its premises. As COVID-19 spread globally, it has created many challenges in health and security, daily lives, the national economy, and the global tourism industry. Th e COVID19 outbreak has been considered as the most challenging tragedy that occurred in the world aft er the 2nd world war. Th e World Health Organization (WHO) had listed Nepal also as a country with a high-risk zone of COVID-19.Th e travel restriction and nationwide lock-down implemented by many countries including Nepal have resulted in a stranded traveler’s movement. As the consequences ticket reservation, fl ight services, transportation, hotel, and restaurants were closed and several job losses were registered in the tourism sector. Th e negative eff ects like fear, threat, frustration, and losing the confi dence of tourism entrepreneurs appeared. Th is has brought changes in the tourists’ behavior and t...

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Coronavirus disease 2019 (COVID-19) had adversely affected different sectors, including, tourism in 2020. It had compelled tourism stakeholders to follow additional health, hygiene, and safety measures. But, tourism is one of the crucial sectors to develop the least developed countries, like Nepal. It was prioritized by the government to generate money and enhance the local livelihood more sustainably. With an objective to assess the steps taken by tourism stakeholders (policymakers and operators) during COVID-19 in Nepal, this study was focused on the national level with examples taken from the local level. A review of online news articles and collection of secondary data from different governmental agencies of Nepal was done for data collection. More than 219 online articles were reviewed, and the published information was also cross-checked with the government's press release. Policymakers and tourism operators have applied different strategies to recover tourism in Nepal. But COVID-19 had adversely affected their business despite these policy measures and actions. To revive the tourism industry, infrastructural development, promotion of domestic tourism, and health, hygiene, and safety measures were prioritized.

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Malati Kaini

This paper has focused upon the rural tourism in Nepal and the impacts of COVID-19 on its development. In Nepal tourism mostly occurs in rural environments and involves rural experiences. Wonderful rural cultures and traditional farming are attracting tourists in the rural areas. The villages of Nepal have their own unique natural and cultural dimensions. The fresh environment, natural and cultural artifacts, and the lifestyle of the local people are the main things to experience in the villages. Greatest potential benefit of rural tourism is its ability to generate money, which can translate into numerous positive economic opportunities for locals and their communities. But the COVID-19 pandemic has had a significant adverse impact on most businesses including rural tourism. Before COVID-19, rural tourism had become one of the most important activities to generate income in some rural areas of Nepal. But now all activities of rural tourism are in coma. Thus, in the post COVID-19 sc...

International Journal of Innovation, Creativity and Change.

Sukrita Rai

Life is at halt in Nepal due to COVID-19, with a four-month lockdown period attempting to stop the spread. The tourism sector is the hardest hit by the pandemic and restrictions placed on international travel. Tourism has been one of the major incomes generating sectors of Nepal, with the cancellation of campaign Visit Nepal 2020 devastating the region with the loss of an expected two billion dollars. The people working in the tourism sector are in shock: it is not "new normal" for them; it is the phase of abnormality and uncertainty. They are more worried about hunger then the contagious COVID-19. The indigenous and the low-level employees are the most vulnerable at this time. Despite their own threat to survival, their concern about their employers' business is very thoughtful and significant. Despite uncertain about their survival they are still positive and happy for the environment as it is allowed time to rejuvenate and recover with less human interference. This research brings attention to those low-level employees working in tourism sector and their family's survival. The research questions of the paper are: (1) What are the experiences that the low-level employees of tourism sector are experiencing in their life, livelihood and occupation? and (2) How do they respond to the disastrous COVID-19 in terms of their occupation and the sector where they were and are working? This paper tries to explore the employees experience during this time of crisis. The research design is qualitative, with primary data collected through tele-interview and secondary data collected through books, newspaper articles, journal articles, government and non-government reports, and websites. Thematic analysis was utilised through this short study.

Rajiv Dahal

The paper aims to explore and understand COVID-19 and its effect on tourism in Nepal. More specifically, the study intends to find out Nepalese leisure travelers’ past traveling behavior and their willingness to travel once the government of Nepal relaxes the COVID-19 related lockdown and measures. The study used exploratory research design and used a survey method to find out respondents’ opinions on aspects of COVID-19 and tourism. The use of convenience sampling for collecting responses yielded 316 responses through email and social media platforms that lasted for three weeks in June - July 2020. The research revealed that most of the respondents are less affected by COVID-19 and are willing to take a holiday/vacation once there is relaxation of the COVID-19 measures. The majority of the respondents believed tourism as a significant part of the Nepalese economy, and expected tourism in Nepal would recover from the COVID situation.

The Gaze: Journal of Tourism and Hospitality

Deepak G A U T A M Tutunga

Tourism sector, a major backbone in revenue generation in Nepal having an immense potentiality is hardly hit by the ongoing COVID-19 pandemic that has suspended Visit Nepal Year 2020, with a theme, an experience of a life-time. This remarkable campaign is also a national development strategy in the tourism history of Nepal which aimed at attracting around 2 million foreigners from all over the world. This article is designed to explore about COVID-19 Pandemic lockdown impacts on tourism industries and Visit Nepal year 2020 Campaign. For these, secondary literature available in Google Scholar, Research Gate and, recently published newspapers were accessed. The result shows that the unprecedented and uncertain lockdown stuck millions of people in their home, lower the economic activities of different sectors of the tourism industry including hotels, homestays, travel and tours, impact on remittance, a collapse of small industries and suspension of mega projects and many more. In addit...

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The travel and tours enterprise were badly affected due to pandemics. In the aftermath of high restrictions on human movement, travel-based entrepreneurs were highly impacted due to lockdown. Due to pandemic, highly impacted into earning-saving, lack of supportive working conditions, lower self-capacity, and lack of recovery budget and policies, the travel and tours-based entrepreneurs were highly impacted. The study reflected the impact of pandemics on travel and tours, major constraints, and a possible way forward to sustaining. The research explores what are the major existing practices of sustaining travel and tours entrepreneurs during pandemics, what factors can contribute to building bounce-back capacities of travel and tours entrepreneurs' sustainability. Above forty-four, snowball-based sampling was done from major travel and tours entrepreneurs, Pokhara-Nepal. A structure-based open-ended questionnaire, key informant interviews, and inperson-based discussion were applied in the method of study. Used the content analysis along with a recap of the research question, undertake bracketing to identify biases, operationalize variables with develop a coding, and code the data with undertaking analysis while qualitative analysis, and multiple regression facilitated on quantitative analysis to finalize the discussion. The study reflects that self-saving, social support, state and financial institutions recovery support, social behavior and change communication, full vaccination practices, and selfaccountable tourist behavior are highly expectable conditions to the sustainability of travel and torus entrepreneurship in the learning area. The study concludes that self-saving capacity can contribute to bounce-back capacity for every entrepreneur. Social support and socioeconomic recovery packages were also contributing to sustaining travel and tours in the study area. Self-saving condition and capacity is higher bounce back capacity compared to non-saved entrepreneurs in the study area. Social support, socioeconomic recovery practices, and recovery packages from state and financial institutions were not at the higher level as expected.

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Nepal to grow 3.87 percent, says statistical agency

Sangam Prasain

Nepal is expected to grow by 3.87 percent in the current fiscal year in the optimistic scenario—recovery of trade and robust tourism growth—according to the annual account estimates released by National Statistics Office on Tuesday.

Computed on the basis of this growth rate, Nepal’s gross domestic product (GDP) at the purchaser's price is estimated to reach Rs5.70 trillion at the end of the fiscal year in mid-July.

The office’s growth estimate is slightly higher than the Asian Development Bank’s projection of 3.6 percent. The World Bank, on the other hand, has forecasted a growth rate of 3.3 percent. The government’s initial target was to achieve a robust 6 percent growth.

“The growth figure shows that the country’s economy is recovering,” said Hem Raj Regmi, deputy chief statistician at the National Statistics Office.

“Last fiscal year, we grew by nearly 2 percent and this fiscal year, we will add another 2 percent,” he said.

The growth forecast is based on the actual data for nine months and projected data for three months of the final quarter of the financial year.

The statistical office said that on the optimistic side, they have estimated that trade, wholesale and retail business, and hotels and accommodation would grow in the next three months.

The Nepali economy has historically been stuck in a low-growth trap in the past decades due to a decade-long Maoist insurgency followed by strikes, bandas, load shedding, and earthquakes.

Nepal was struck by two powerful earthquakes of magnitudes 7.8 and 7.3 on April 25 and May 12, respectively, killing 8,790 people and injuring 22,300. The economic loss was estimated at $7 billion, out of which 76 percent was in the private sector.

Following the disaster, Nepal’s economic growth rate plunged to 3.98 percent in the fiscal year 2014-15 and decelerated further to 0.43 percent in 2015-16.

But since then, a flurry of post-disaster activities has meant that the economy is growing at breakneck speed. The Nepali economy grew by 8.98 percent in the fiscal year 2016-17, the highest growth rate since the fiscal year 1993-94.

In 2017-18, the economy grew by 7.62 percent and 6.66 percent in 2018-19, according to the National Statistics Office, formerly the Central Bureau of Statistics, the main government body that deals with the country's vital statistics.

The worst came in 2019-20 when the world was hit by the Covid pandemic. The pandemic-induced supply and demand shock on the economy caused Nepal's economy to plunge to a negative 2.37 percent.

This is the first annual negative growth rate since 1982-1983 when Nepal’s economic growth rate plummeted to -2.97 percent, according to the World Bank .

The statistics office then attributed the negative growth rate to a drought in 1980-81 that led to a severe food crisis .

Nepal’s economy, which rebounded strongly after Covid, has been marred by political instability and haphazard decisions to gain short-term benefits, economists say.

“The expenditure from the government and the private sector is staggeringly slow,” said Regmi.

Private investment remained sluggish, as evidenced by decreased imports of capital and intermediate goods. On the other hand, public consumption and investment contracted, driven by austerity measures and low revenue collection.

“The annual spending of the three tiers of the government stands at a combined Rs500 billion. If we assume that the private sector pumped four times more than the government into the national economy, the total expenditure will be Rs2.5 trillion,” said Regmi. “Now imagine what output would come from these small investments,” he questioned.

“There is no environment for Nepal to achieve a double-digit economic growth rate. We need to increase expenditure. We need to encourage the private sector to invest.”

“If the country’s capital expenditure remains the same, there is no need to be optimistic.”

Regmi, however, said that Nepal’s growth rate neither will slow down nor grow. “It will remain static.”

The statistical office has estimated that the per capita gross national income or per capita income may rise to $1,456 this year from $1,405 in the last fiscal year. The per capita GDP may reach $1,434 in the current fiscal year, from $1,389 in the last fiscal year. The per capita income means the average annual income of a person.

According to the report, the final consumption expenditure or money spent by Nepalis on consumption will reach Rs5.27 trillion, which is 92.38 percent of the GDP.

This means people are saving less or on average a person saves 7.62 percent of their income, which is so far not good, according to the officials. The workers' remittance as a percentage of GDP has been expected to reach 22.96 percent in the current fiscal year.

The statistical office said that the agriculture sector, which contributes 24.60 percent to the country’s economy, was projected to grow by 3.05 percent this fiscal year.

The manufacturing sector which contributes 4.8 percent to the GDP has been expected to drop by 1.60 percent by the end of the fiscal year. Similarly, the construction sector, which contributes 5.41 percent to the GDP, has been projected to drop 2.07 percent.

The retail and wholesale sector, the repair of motor vehicles, which accounts for 13.84 percent of the GDP, slowed 0.16 percent.

Accommodation and food service activities, which are linked to tourism activities, have been expected to see a robust growth of 21.84 percent, the highest among all 18 economic compositions in the Nepali economy, followed by the electricity and gas subsector.

Economists say that retail stores are seeing a slowdown in discretionary spending by consumers, primarily because of inflationary pressures, reflecting how a slowing economy has dampened the market mood.

A credit crunch, real estate slowdown, tumbling stock market and rising unemployment have rattled the economy even as a new government was formed.

Nepalis are not buying cars, furniture, gold and clothes. Stores in Kathmandu’s major markets like New Road, Mahabauddha and Durbarmarg have launched sales offers, but buyers are still not showing up.

People are spending less at restaurants and purchasing less goods for their homes. They are cutting their budgets almost everywhere.

“The government needs to encourage the private sector to invest to bring the economy on the track,” said Regmi.

Sangam Prasain Sangam Prasain is Business Editor at The Kathmandu Post, covering tourism, agriculture, mountaineering, aviation, infrastructure and other economic affairs. He joined The Kathmandu Post in October 2009.

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Climbers have turned Mount Everest into a high-altitude garbage dump, but sustainable solutions are within reach

S pring is go time for climbers who hope to summit Mount Everest, Earth’s highest peak above sea level. Hundreds of mountaineers from around the world travel to Asia in April and May, headed for base camps in Nepal and Tibet.

But jagged peaks won’t be the only thing they see. Especially on Everest’s more heavily traversed Nepal side, they’ll find fields of garbage – including cans, bottles, plastic and human and animal excrement.

Each year, more than 60,000 trekkers and climbers visit the Sagarmatha National Park and Buffer Zone , a high-altitude swath of the Khumbu region in northeast Nepal that includes Everest and seven other peaks. Some 400 to 500 climbers attempt to summit Everest every year.

The trash problem first became evident in the 1980s and 1990s, when climbing on the mountain and trekking in Khumbu began to increase. Climber and trekker numbers have further skyrocketed in the past 20 years .

Most coverage of this issue focuses on negative and sensational aspects, such as the frozen bodies of climbers who remain where they died on the mountain because removal operations are risky and expensive.

We are scholars who study geoscience and mountain geography , and one of us (Alton Byers) has lived in Nepal and worked with communities around Everest. We are encouraged to see increased efforts to address Everest’s massive trash problem. In our view, modern technology and international cooperation are key to ending the pileup of waste in this iconic setting.

Pollution from waste

For most visitors to this area of the Himalayas, Everest base camp on the upper reaches of the rapidly receding Khumbu Glacier is the ultimate destination, at an altitude of 17,589 feet (5,364 meters). Formerly a two- to three-week trek from Kathmandu, today the journey is most likely to begin at the Lukla Airport , which sits about 35 miles (60 kilometers) from base camp.

Climbers who aim to summit Everest typically spend up to two months on the mountain , including weeks making short, incremental ascents above base camp and back down again. This enables them to acclimate to the altitude before climbing to higher camps and then to the summit.

Much of the food and equipment headed to Everest also begins its journey at Lukla. Some is shipped to base camp by helicopter, but much of the gear is carried there by yaks, yak/cattle crossbreeds called dzopkio, mules and horses .

Lots of equipment, food and packaging, plus animals and porters, means a lot of garbage. A 2010 study estimated that park tourism generated 4.6 tons of solid waste per day during peak tourist periods in April-May and October-November.

Eventually most of this refuse is dumped into unsightly landfills a short distance from local villages. There it is burned, adding particulates and toxic chemicals to the air. The remaining ash is buried, where it can contaminate groundwater.

At the base camp, microplastics – likely from discarded mountaineering clothing, tents, ropes and boots – have been found in water and snow samples . High levels of perfluoroalkyl and polyfluoroalkyl substances, or PFAS , widely known as “forever chemicals,” have been found on the Khumbu glacier , probably from materials used to waterproof climbing boots, tents and clothing.

These substances could pose health risks for transient climbers, but are a more serious threat for people who live in the nearby settlements of Gorak Shep, Lobuche, Dugla and Pheriche for most of the year. Some of these villagers work at Everest base camp and are exposed there too.

And then there’s sewage. Most septic tanks at the hundreds of lodges located throughout the national park and buffer zone leak, further polluting groundwater . Camp Four, the last site that climbers occupy before they attempt to summit Everest, is covered with garbage and frozen, wind-swept feces.

National parks in developed countries have infrastructure to handle waste management, trash pickup, recycling and wastewater treatment. At Everest base camp, there are just collection barrels under toilets. Each year, some 50,000 pounds (22,000 kilograms) of human waste are brought to landfills several kilometers away .

Solutions for sustainable tourism

Recognizing the scale of this problem, initiatives are in progress to develop solutions.

The Sagarmatha Pollution Control Committee , created by local Sherpa people in 1991, is an Indigenous nonprofit organization that is responsible for monitoring garbage in the permit-required mountains and peaks. The group focuses on litter control and periodic base camp cleanups.

In 2014, the government of Nepal began requiring every mountaineer who climbs above the Everest base camp to bring back 18 pounds (8 kilograms) of solid waste from the mountain or forfeit a US$4,000 deposit. Of course, if you’ve paid $75,000 or more for the trip, losing the deposit may not be much of an incentive. Many people elect to forfeit it.

A nonprofit called Sagarmatha Next , established in 2019, is working to promote sustainable tourism in the Khumbu region, partnering with companies and organizations from around the world. The group has raised awareness by producing art works and souvenirs from trash. It also launched a “Carry Me Back” program that encourages tourists to take two-pound (one-kilogram) bags of solid waste, such as shredded plastic bottles, to the airstrip at Lukla for processing and disposal in Kathmandu.

At the local government’s request, the University of Colorado Boulder developed a sustainable solid waste management plan in 2019 for the national park and buffer zone. The COVID-19 pandemic delayed implementation of the plan, which proposes creating a five-step process: waste segregation, collection, sorting and shredding, transfer to shipment stations and transportation to recycling facilities in Kathmandu.

Another nonprofit initiative, the NeverRest Project , was created during the pandemic to provide environmental solutions for Mount Everest and other fragile ecosystems around the world. NeverRest is working with the Nepal Tourism Board to revolutionize high-altitude waste management using modern technology.

In 2023, the organization presented a concept plan for a sustainable Everest base camp that would install technologies such as portable solar tents to reduce use of fossil fuel; unisex portable urinals with multi-use filters that convert urine into water; incinerator toilets that transform human waste into ash; and modular geodesic dome tents designed for effective heat retention to reduce energy use.

In the 71 years since Sir Edmund Hillary and Sherpa Tenzing Norgay made the first known successful ascent of Mount Everest , this peak has been a setting for daring expeditions, triumphs and tragedies. We hope that the region’s garbage problem soon will fade into history as new approaches and technologies provide solutions for Everest and other remote high-mountain locations around the world.

• Is it time to stop climbing mountains? Obsession with reaching summits is a modern invention
• Seabirds that swallow ocean plastic waste have scarring in their stomachs – scientists have named this disease ‘plasticosis’

Alton Byers has lived and worked in Nepal, and has collaborated with communities around Everest to protect and restore ecosystems that have been damaged by trekkers, climbers and the tourism industry. He was lead author of a sustainable solid waste management plan for Sagarmatha National Park and Buffer Zone produced in 2020 by University of Colorado Boulder researchers with support from the National Geographic Society.

Suzanne OConnell does not work for, consult, own shares in or receive funding from any company or organization that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

Lao Economic Growth Remains Subdued Says World Bank Report

Economic growth in the Lao PDR is estimated to have been below 2019 levels in 2023 and is forecast to remain below that pace in 2024, weighed down by economic instability, low worker skills, out-migration of labor, and a challenging business environment, the World Bank said in a report released on Tuesday.

Lao GDP is estimated to have grown 3.7% in 2023, with positive contributions from tourism, transport, logistics, and mining, according to the Lao Economic Monitor for April 2024, Accelerating Reforms for Growth , Foreign investment increased substantially, mainly in electricity and mining, while improved revenue collection has offset increased public spending. In 2019, growth stood at 5.5%.

Continued high inflation, caused by the falling value of the kip, means that consumption remains constrained. In 2023, the annual average official kip/US dollar exchange rate weakened by 31%. Given Laos’ high import dependence, depreciation brings changes in domestic prices. Headline inflation averaged 31% over 2023 and remains high, with food, transport, hotel, and restaurant price increases the main contributors. 

“ While average household incomes improved in 2023, about a third of Lao households, especially low-income families, have seen their purchasing power fall behind inflation ,” said Alex Kremer , World Bank Country Manager for the Lao PDR . “ Our monitoring surveys show over 30% of families have reduced their spending on health and education, while in urban areas where fewer people grow their own food, food security is becoming an increasing problem .”

In 2024, GDP is projected to grow by 4%. Economic activity is expected to benefit from further growth in services, plus investment in the power sector and some special economic zones. However, kip depreciation and high inflation are likely to persist due to a lack of foreign exchange and the need to repay high external debts.

Between 2020 and 2023, about $2 billion (around 15% of GDP at the 2023 rate) of principal and interest payments on debts owed to China was deferred. Nevertheless, debt payments will still require large amounts of foreign currency, and access to international capital markets has deteriorated with loss of access to the Thai bond market. Recent regulations requiring the repatriation and conversion of export proceeds from mining, power, agriculture, and services may bring more foreign currency into the economy in the short-run but could be counter-productive if they deter future investment.

The report recommends restoring macroeconomic stability through a strong commitment to five critical reform areas: debt management, revenue mobilization, public investment management, financial sector stability, and business environment reforms. Recent revenue reforms will help balance finances, but the overall pace of reform needs to accelerate.

This edition of the Monitor includes a thematic section on education, which finds that public education funding has fallen, with the 2023 budget allocation for education 38% down from the 2013 figure in real terms. While strong human capital and education are fundamental to putting Laos on a sustainable high-growth trajectory, primary education is no longer universal across the country: an increasing number of children are dropping out and those who stay are not learning.

This has follow-on effects for subsequent education levels. Most Lao secondary students score below expected levels, especially in mathematics and science. If learning outcomes are to improve, the education sector needs urgent re-prioritization and increased budget allocation.

Last Updated: Apr 30, 2024

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