Thus, the recently published report on world tourism by World Tourism Organization (UNWTO) brought in a respite in disproportionately relaxing manner. The international tourist arrival has finally started showing a positive growth after fourteen discouraging months. The number of international tourists grew by about 2 percent in the last quarter of 2009 with outlook for 2010 showing a more encouraging growth of between 3 percent and 4 percent. It is indeed a relief, not only for travel trade entrepreneurs but also to those who keep a tab on world economy.
Back home in Nepal, the scenario is getting encouraging. In spite of political disturbances, we have been enjoying continued positive growth in tourist arrivals since June 2009 with growth of 5 percent in October, 8 percent in Nov and 4.4 percent in Dec as compared to the same period of the previous year with an overall increase of about 1.1 percent in 2009. Hotels in Kathmandu have accordingly showed a positive growth in its turnover for the fiscal year 2008/09 with annual revenue swelling by as high as 15.8 percent in Radisson and by 22.8 percent in Soaltee Crowne Plaza. With governmental and private sector supposedly gearing up for the upcoming Visit Nepal 2011 which has set a target to bring in at least one million international tourists, tourism industry in Nepal is destined to see brighter days.
The International Monetary Fund, no doubt must have enough grounds to believe the world economy is in the process of recovery and has projected a growth of over 3 percent for 2010. However, the downside is people around the world continue to lose jobs; news of foreclosures are still common, the credits crunch is a reality, security threat is an issue and uncertainty of outbreak of HIN1 is still exists. To make the situation worse, we have endless series of in-house problems—political confrontations, deteriorating power crises, soaring crime rate, decreasing rate of increment in remittance, political obstructions of mega hydro projects, labor problem, liquidity crises, skyrocketing inflation and a crippling economy are only few to list here. In a nutshell, the prospect of tourism - nationally and internationally - is still very dicey and can swing either way.
Carving a strategy based on history and externalities is normal in general situations. Slashing down rates to retain market share, putting on hold up-gradation plans and investment schemes and addressing our redundancies even at the cost of quality are the common approaches we adopt to counter the odds that leads to lessening demand for our product. Playing with the margins or wrongfully gaining others’ share of pies might help us in short run; however this cannot sustain our existence in long run. When one of the baking soda companies saw no scope for further growth, it explored potential opportunities in refrigeration sector in trapping the bad odor—an application that was not envisaged when it was produced and marketed in the first place. Correcting the demand side itself helps swing the industry to our favor in unfavorable situations as well. Steve Jobs has done the same not once but several times in Apple with his Macintosh to iPod to iPhone to iPad and has regained the company’s glory each time.
Religion, adventure, leisure, wildlife, spa and wellness and many more assortments are there to add depth to our overall product. The only missing part is innovation.
India and China, both our neighbors are growing to be world economic powers and have shown considerable level of resistance to global recessions. The affordability of a quarter of world’s population is improving every year due to their combined growth. With basic needs fulfilled, they are and will eventually venture out of their countries for leisure. Being in close proximity to these countries and sharing similar cultural traits and dialects, there exists a tremendous potential for Nepal to attract this particular segment of travelers. Recession which is holding them back from long haul vacations will encourage them to opt for short haul and cheaper yet exciting destination like Nepal.
An entrepreneur who runs a reputed restaurant and a bar club in Nepal and India once revealed his key to success when I asked him why he had more than 300 dishes in his menu. His reply was- “taste with a twist” is what he believes in. Rather than selling same set of tourist hubs, trekking routes, rafting rapids, Himalayan peaks, temples and monasteries, a lot more products can be explored and marketed to give a “twist” to our “menu”. Every hillock you scale undoubtedly reveals varied picturesque natural beauties and adventures. Every mile you drive takes you through different civilizations. Religion, adventure, leisure, wildlife, spa and wellness and many more assortments are there to add depth to our overall product. The only missing part is entrepreneurial innovation to package our product with a ‘twist’ and government’s commitment to improve the demand in the first place.
Population in Nepal is rapidly converging to city centers thanks to insecurity and lack of facilities and job prospects in rural parts. The civilization that came in to existence along the banks of rivers hundreds of years ago is unbelievably absorbing the exodus but is literally degrading the cities to slums. With anxiety dwelling in these cities and also having to face sophisticated challenges of the modern world, be it at work or home, people are longing to escape the chaos for a break. The so-called resorts, be it in the form of trout farms or a lover’s point located at resort hubs such as Dhulikhel and Nagarkot or tranquil spots in Balthali or Hattiban, hardly an hour away from the hustle and bustle of the city are getting very popular these days. It is evident there is a strong urge amongst Nepali city dwellers to travel and a sheer potential for domestic tourism to, which if tapped properly can help steer our tourism sector through bad times.
Counting on a positive market trend is always good to gather our lost momentum. However, it cannot fuel our wagon to reach our destiny. Only acting collectively to improve the demand side can help sustain the growth of Nepal’s tourism industry.
(Writer is Director- Business Development and Projects, Soaltee Hotel Limited.)
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