Tourism created 3.3 percent of all jobs in Nepal in 2011

Travel and tourism has emerged as a major job provider in Nepal with the sector accounting for 3.3 percent of the total employment in the country in 2011. According to the publication entitled Travel and Tourism Economic Impact 2012 Nepal published by the World Travel and Tourism Council (WTTC), the travel trade generated 412,500 direct jobs last year.

The WTTC report has projected that the travel trade sector’s contribution to the country’s total employment will rise to 3.7 percent in 2012. The direct employment provided by the sector includes employment by hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). It also includes the activities of restaurants and leisure industries directly supported by tourists.

According to the report, the travel and tourism sector attracted capital investment of Rs 12 billion in 2011. “This is expected to rise by 5.4 percent in 2012 and by 4.9 percent per annum over the next 10 years to Rs 20.4 billion in 2022,” said the report. The total contribution of the travel and tourism sector to the Gross Domestic Product (GDP) stood at Rs 119.1 billion in 2011, said the WTTC. Prachanda Man Shrestha, former chief executive officer of the Nepal Tourism Board, said that Nepal’s tourism has rebounded with confidence and that it could be a competitive advantage service sector to address the country’s trade deficit in the future. “In spite of inadequate infrastructure and other hurdles, tourism is showing positive hopes for the country’s economy as reflected in the report,” said Shrestha. Nepal received a total of 735,965 international visitors in 2011 and earned revenue worth Rs 28.6 billion. The income from international visitors is forecast to grow by 2.8 percent in 2012, according to the report.

The report shows that both international and domestic travellers spend most of their money on leisure. It says leisure travel spending of both domestic and inbound travellers generated 80.6 percent of the direct travel and tourism GDP in 2011 compared with 19.4 percent for business travel spending. Despite the impressive performance in 2011, Nepal’s tourism industry is way behind other tourist destinations. The WTTC report has ranked Nepal 34 in terms of travel and tourism direct contribution to employment and 127 in terms of attracting foreign visitors among 181 tourist destinations. Likewise, the WTTC has placed Nepal in the 120th position in capital investment in tourism and at the 127th position in tourist spending.

source: The Kathmandu post, 7 April 2012