KATHMANDU, April 26: Gross Value Added (GVA) by hotel and restaurant sector has increased significantly over the past one and half decades, the National Accounts Statistics of Nepal (2017/18 Annual Estimates) shows.
The report, which was published by Central Bureau of Statistics (CBS) in Kathmandu on Wednesday, estimates the contribution of hotel and restaurant sector to Gross Domestic Product (GDP) to increase by 2.05 percent in FY2017/18.
Similarly, GVA by hotel and restaurant sector is estimated to grow to 9.77 percent in the current fiscal year compared to a rise of in the current fiscal year compared to 7.33 percent in FY2016/17.
If the estimates of CBS materialize, GVA by hotel and restaurant will be the highest since 2004/05. In FY2003/04, the GVA by hotel and restaurant sector had stood at 12.74 percent, up from 2.01 percent in FY2002/03.
In monetary terms, the GVA by hotel and restaurant sector is estimated to grow by 2.05 percent to Rs 556 billion at current prices in FY2017/18. It was Rs 477 billion in the last fiscal year.
The report states that healthy growth in tourist arrival in FY2017/18 is the major factor behind rise in GVA by hotel and restaurant sector. "Remarkable growth in tourist arrival, international tourism year campaigns, and healthy growth in domestic tourist movement are some of the reasons behind the performance of hotel and restaurant sector in the current fiscal year," it added.
According to the Ministry of Culture, Tourism and Civil Aviation, a total of 940,218 foreign tourists visit Nepal in 2017 compared to 753,002 in 2016.
"Reduction of load-shedding hours, which has made energy cheaper for hotels and restaurants, also contributed to higher GVA by the sector," the report added.
Contribution of agri sector to GDB to rise to 27 percent: CBS
Agriculture and Forestry sector is estimated to contribute 27.10 percent to Gross Domestic Product (GDP) of the country in the current fiscal year.
According to National Accounts Statistics of Nepal (2017/18 Annual Estimates) published by Central Bureau of Statistics (CBS), GVA by this sector is estimated to grow by 2.12 percent.
Despite 1.5 percent drop in paddy production, the crop alone is estimated to contribute 20.75 percent of GVA in the current fiscal year.
According to Ministry of Agriculture, Land Management and Cooperatives, the country produced 5.1 million tons of paddy in the current fiscal year compared to 5.2 million tons in FY2016/17.
"GVA by major crops like wheat and maize has also been estimated to increase in the current fiscal year," added the report. "Agricultural ministry has also estimated that GVA by pulses and fruits will fall down, while GVA by other crops is likely to grow slightly."
Farm modernization, easy access to seeds and fertilizers, and improved irrigation facility, as well as favorable climate, are some of the reasons behind slight increase in contribution of agri sector to GDP in the current fiscal year, according to the report.