Gorkha Earthquake vs Tourism Sector in Nepal

….as per the Post Disaster Needs Assessment (PDNA), National Planning Commission, the total damages and losses caused by the Gorkha Earthquake 2015 is NPR 706 billion (US$ 7.0 billion) which is about one third of the Gross Domestic Product (GDP) in FY 2013-2014.

In the aftermath of the disaster, while considering individual sectors of social and economic activity, the Housing & Human Settlements sustained about 50 percent of the damages and losses followed by the Tourism sector at 11 percent.

The environment, education, finance and agriculture sectors represent between 4-5 percent each of the total disaster effects. Compared to all the socio-economic sectors, Tourism incurred highest disaster effect in terms of losses i.e. NPR 62 billion. 

It is also important to note that out of the total damages and loses incurred by the country, the private sectors have sustained over 3 times in damages and losses (NPR 540 billion) compared to the public sectors (NPR 166 billion)

It is estimated that the overall impact will translate into a reduced number of annual tourist arrival; about 40 percent, on average, over the next 12 months, and another 20 percent reduction in the following 12 to 24 months. Likewise, the tourist spending per day will be reduced from US$ 46.4 to US$ 35, which will be a great setback for the revenue generation in coming years. The loss of tourism revenue alone is estimated to be over NPR 47 billion.

A total NPR 62.4 billion of revenue losses is estimated due to a combination of losses in tourism including air transport, trekking, tour operations, restaurant and costs of debris removal & future promotional campaigns for tourism.

Overall, the Nepalese tourism industry experienced over NPR 81 billion in damages and losses due to the catastrophic earthquake. This amount is 11% of the total cost of damages and losses incurred by the country….

(NOTE: Please click below links to see the entire research article in 3-part installments)

(Part I) The Gorkha Earthquake 2015: Economic Impact on Nepal Tourism

(Part II) The Gorkha Earthquake 2015: Economic Impact on Nepal Tourism

(Part III) The Gorkha Earthquake 2015: Economic Impact on Nepal Tourism

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