The findings were released at a time when the tourism industry has seen mixed results in tourist inflows, with declines recorded in the first three months of 2009 and a sudden increment recorded in April. Although the survey says that tourist arrivals will slightly decline this year and that the mood is not very positive, it adds, "business is better than what many have expected."
Pessimism had shrouded this sector since the second half of last year, when the global financial crisis took its toll on households worldwide. Gloom continued to dominate the Nepali tourism industry too through the first quarter of 2009, with Nepal´s hotels reporting a 20 percent decline in occupancy rates and many travel and tour companies complaining about pre-bookings cancellations. In that period, the number of tourists coming to Nepal also declined by 17 percent.
However, the survey has found that tourism-related businesses were in better shape in March this year than in February, with 13 percent of the respondents reporting that businesses had “improved a lot” in March and another 37 percent saying businesses had “somewhat improved.” But when asked whether business conditions would improve this year, only 26 percent of respondents answered "yes," 35 percent said "no," while 39 percent said they were "not sure."
The survey also shows that one-star, two-star, three-star and tourist-class hotels performed better than four- and five-star hotels, indicating a shortage of high-end tourists. Likewise, tour operators seem to be in a comparatively better position than trekking agencies -- 72 percent of trekking agencies said business was lower this year, while only 53 percent of tour operators said that business was worse this year. Trekking agencies are less optimistic because they have seen a decline in the number of European and American tourists, who are more adventurous and who constitute their most lucrative clients.
The survey, however, notes that an increment in tourist arrivals will depend on the country´s ability to promote Nepal as a value-for-money destination, just as Thailand has. The survey also suggests that the government prepare short- and medium-term measures keeping in mind the Visit Nepal Year 2011 plan. And "Tourism may not bounce back by 2011," states the survey, warning that the government´s target of attraction one million tourists in that year may remain unfulfilled if concrete measures are not taken now.
Nepal currently attracts only around 500,000 tourists a year, but this sector provides employment to around 240,000 people and contributes around three percent of the GDP.
The survey was conducted among 95 tourism-related institutions, including hotels, tour operators, trekking agencies and airlines.
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