KATHMANDU, March 13: Nepalis are travelling abroad like never before, sending a massive amount of foreign currency out of the country.
Data from Nepal Rastra Bank (NRB) show that money spent by Nepalis abroad far exceeds revenue from foreign tourists visiting Nepal.
In the first seven months of the current Fiscal Year (FY), Nepalis spent a total of Rs 121.27 billion on overseas travel under the services account, a 5.1 percent increase from Rs 115.34 billion during the same period last year.
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This surge in spending has put pressure on the services sector, with net service income showing a deficit of Rs 50.16 billion, compared to Rs 36.17 billion in the same period last year. Essentially, Nepalis are spending roughly Rs 50 billion more abroad than the country earns from foreign visitors.
Neighbouring countries and Southeast Asian nations are the most popular destinations, with India, Thailand, the United Arab Emirates, Malaysia, Singapore, China and Japan topping the list. Thailand, Dubai and Malaysia attract travellers due to their affordability and convenience, and the growing popularity of “package tours” has made five- to seven-day trips more accessible.
Nepalis also travel to India for religious and cultural purposes, while many go abroad for study, training or business. Experts point to rising household incomes and remittances from foreign employment as key factors driving this trend, along with affordable travel packages and the influence of social media, which has linked international travel to prestige among young people.
NRB counts expenses such as airfare, hotel accommodation, food, local transportation, shopping, entertainment, casinos and other tourist activities under overseas travel. Corporate travel for short-term training, conferences, exhibitions and business meetings is also included.
Nepali students studying abroad further contribute to foreign currency outflow, with Rs 64.1 billion spent on education during the review period. The number of students heading to Australia, Japan, the United States, Canada, the United Kingdom and European countries continues to rise, intensifying education-related spending abroad.
While the increase in foreign travel signals expanding economic activity, it also heightens the risk of a services account deficit. Although people going abroad for education and employment send remittances back to Nepal, boosting foreign tourist arrivals is crucial to maintaining a balance of foreign currency.
Experts say that expanding tourism infrastructure, improving service quality and promoting Nepal internationally could help attract more foreign tourists, increasing revenue and offsetting the widening deficit caused by rising outbound travel and education expenditures.
