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

Tourism 3(Photo Source: Google)

4. Earthquake Impact on Tourism & Sub-Sectors

With full destruction damages of NPR 5,053.5 million and partial damages of NPR 13,809.3 million, the tourism sector has sustained total damages to assets worth NPR 18,862.8 million which mainly includes hotel accommodations, restaurant facilities, furniture, homestays, eco-lodges, trails, etc.

Destruction of tourism facilities combined with the drastic decline in foreign tourist arrivals post disaster have significantly impacted the revenue generation from the tourism sector. An estimated total of NPR 62.4 billion of losses in revenue would include tourism revenues, air transport revenues, tour operator revenues, trekking revenues and restaurant revenues.

The losses in revenue seem to cascade for several years starting from May 2015 thru June 2017. Losses are expected to stop once all the destroyed assets are rebuilt and the number of tourists have recovered to normal levels. Of the total damages and losses estimated in tourism, the private sector shares a whopping 92% i.e. over NPR 75 billion.

4.1 Hotel Accommodation:

The majority of registered hotels are located in the two main tourist hubs of the country i.e. Kathmandu and Pokhara. Hotels range from non-star tourist standard to five star accommodation in these locations. As per the 2012-Survey of Central Bureau of Statistics (CBS), there is a total of 522 star and non-star hotels with 11,087 beds and 21,498 rooms within the Kathmandu valley alone (Table 4.1A).

A survey conducted by Pokhara Tourism Council in 2013 shows that there are 230 tourist standard hotels and 320 common regular type guest houses in Pokhara city (Table 4.1B). Likewise, nationwide there is a total of 730 star and tourist standard hotels with 15,266 beds and 34,382 rooms (Table 4.1C).

Table 4.1A: Number of hotel accommodation in Kathmandu valley by category & capacityTable 4.1A

 Source: Census of Manufacturing Establishments 2011/2012, Central Bureau of Statistics (CBS)

 

Table 4.1B: Tourism facilities in PokharaTable 4.1B

 Source: Field Survey, 2012, Tourism in Pokhara, Pokhara Tourism Council, 2013

 

Table 4.1C: Hotel accommodation in Nepal by category & capacityTable 4.1C

Source: Ministry of Culture, Tourism & Civil Aviation, Tourism Industry Division (2070 B.S.) & PDNA

The number of star hotels reached to 118 by mid-January 2015 with addition of one hotel in this period. The number of tourist class hotels except star hotels has increased to 957 by mid-January 2015. Similarly, the number of beds in star hotels reached to 9,554 while the number of beds in tourist class hotels other than the star hotels has reached a total of 26,625 by mid-January 2015.

In the wake of the disaster National Society for Earthquake Technology-Nepal (NSET) touched base with around 40 star hotels throughout the Kathmandu valley to seek preliminary damage situation of the hotels. Nearly 30% were found to be in bad shape with either significant structural or non-structural damages reported over the phone. Few weeks after the major shock of 25th April, NSET, along with the members from Ministry of Culture, Tourism and Civil Aviation (MoCTCA), Hotel Association of Nepal (HAN) and Department of Urban Development & Building Construction (DUDBC) was involved in conducting rapid damage assessment of 81 buildings of 48 hotels & resorts within Kathmandu Valley. Among them inspected, 3 hotels were found unsafe. The damage assessments helped most of the hotels in Kathmandu to decide over continuous operation as well as to determine their options for repair, maintenance or retrofitting.

A significant total NPR 16,295 million (worth around 86% of the total damages in tourism sector) of earthquake damages in tourism sector included the partial or full destruction of hotel buildings, infrastructures, restaurant facilities and furniture in the affected areas (Table 4.6). A few hotels in the Kathmandu Valley including Nagarkot were completely damaged with a majority suffering minor cracks. As estimated by the Hotel Association of Nepal (HAN), in the wake of the disaster, the occupancy level of the hotels in the valley was no more than 25% to 30%. Various tourist accommodations of different types were either fully or partially damaged in the Langtang, Gorkha-Manaslu, Khumbu, Charikot, Kalinchok, Jiri and Rolwaling areas and in Dhanding district.

4.2 Homestays & Eco-lodges:

As per Ministry of Culture, Tourism & Civil Aviation, 2014 update, there are 226 registered community and private homestays around Nepal but a significant number of homestays are not yet registered with the government. As per the survey performed by Nepal Tourism Board (NTB) in 2011, the total number of non-registered properties was 2,604, which provided 35,789 tourist rooms and 69,040 tourist beds in the 15 major and 5 minor tourism sites. Most of these additional lodgings are homestays, teahouse lodges and monastery accommodations.

NPR 1,720 million worth of damages in homestays infrastructures were recorded. The amount is 9% of the total damages experienced by the tourism sector. Further, in coming days NPR 495.3 million of losses are estimated in Homestays. National Trust for Nature Conservation (NTNC) estimated that NPR 415.3 million of damages were suffered by the Eco-Lodges in conservation areas (Table 4.6).

4.3 Restaurants:

Production of hotel & restaurant sector combined had recorded a growth of 6.8 percent in the fiscal year 2013/2014. Production of this sector is estimated to have grown by 4.0 percent in the fiscal year 2014/2015. Decreased tourist arrivals, physical damages caused to hotels and restaurants by the earthquake and fall in domestic tourism activities have resulted in low growth of this sector in the current fiscal year as compared to that of the previous fiscal years.

Restaurants in Kathmandu reported that a total of 335 contractual workers lost their jobs after the earthquake. Restaurant in the Kathmandu Valley alone expected to register NPR 11.1 million in income loss during the months of May thru December 2015 (Table 4.6).

4.4 Trekking:

The tourism statistics for 2014 shows a total of 1,860 trekking agencies and 61 rafting agencies in Nepal compared to 1,524 and 40 in 2012 respectively (Table 4.4A). Trekking Agencies’ Association of Nepal (TAAN) reported about 40,000 employees (including guides, porters, cooks, etc.) engaged in the trekking subsector in all the major trekking destinations had no jobs between May and July 2015.

 Table 4.4A: Registered tourism industries

Table 4.4A

Source: CBS, 2012 and MoCTCA, 2014

Compared to last couple of years (Table 4.4B), the trekking visitors in the higher end segment are more likely to cancel their visits and the impact is expected to be a 70 percent reduction over a 12 month period after the earthquake. The number of lower-end trekking groups is expected to recover relatively quicker, with an estimated reduction of 20 percent over the same period.

Table 4.4B: Major trekking destinations & number of arrivalsTable 4.4B

Source: MoCTCA, 2014

A notable number of infrastructure destructions have badly hit the trekking sector. 150 kilometers of trekking trails have significant damages and 200 kilometers require maintenance and repair to make it safer for trekking. It is estimated that the trekking trails have sustained the damages of about NPR 426.1 million. Further an estimated NPR 5,711.3 million worth of income loss in trekking was expected by the end of 2015 alone (Table 4.6).

4.5 Travel & Tour Operators:

The tourism statistics for 2014 above shows a total of 2,567 registered travel agencies and tour operators in Nepal compared to 2,116 in 2012 (CBS, 2012)(Table 4.4A). Nepal Association of Tour Operators (NATO) estimated NPR 6.9 million worth of damages suffered by the Travel & Tour Operators in Nepal due to the earthquake. Further, NATO estimates showed that tour operators are expected to lose NPR 1,852 million worth revenue during May-Dec 2015, NPR 1,229 million revenue during Jan-Jun 2016 and NPR 1,843 million revenue during Jul 2016-Jun 2017, amounting a total of NPR 4,924 million losses in revenue (Table 4.6).

4.6 Air Transport:

Tourism Employment Survey, 2014, MoCTCA estimates that there are nearly 20,000 airlines jobs created by the tourism industry. Domestic airline operators reported total monthly income losses of about NPR 400 million for the month following the earthquake.

Airline Operators Association of Nepal (AOAN) estimated that the domestic airlines would suffer NPR 2,000 million worth of revenue loss during May-Dec 2015, NPR 1,280 million of revenue loss during Jan-Jun 2016 and NPR 1,440 million of revenue loss during Jul 2016-Jun 2017; a total of NPR 4,720 million losses in revenue (Table 4.6).

Table 4.6: Summary table of estimates of damages and losses in tourism & sub-sectorsTable 4.6

Source: Post Disaster Needs Assessment (PDNA), National Planning Commission, GoN

4.7 Other Sub-sectors:

Besides major tourism stakeholders and sub-sectors mentioned earlier there are other tourism related subsectors providing their services. Civil Aviation Authority of Nepal in 2013 (Table 4.7A) and Ministry of Culture, Tourism & Civil Aviation in 2014 (Table 4.7B) showed an increasing market trend of tourist, trekking and river guides as well as consistent market trend in ultra-light, paragliding, skydiving, etc. These service providers had to suffer significant losses due to reduced number of tourists coming to Nepal.

Table 4.7A: Other tourism related firms & service providers

Table 4.7A

Source: Civil Aviation Authority of Nepal (2013)

 

 Table 4.7B: Other tourism related firms & service providersTable 4.7B

Source: MoCTCA, 2014

 

Table 4.7C: Estimation of earthquake damage/loss in culture heritage sector of NepalTable 4.7C

Source: National Planning Commission, GoN

Following the Gorkha Earthquake, many roads and access trails to remote pilgrimage sites were cut off. All seven World Heritage zones in the Kathmandu Valley were closed and ticket collection from tourists was suspended. In the Kathmandu valley alone the losses from reduced revenues from the sale of tourist entry tickets to the World Heritage Sites and museums was estimated at USD 6.2 million over the 12 months period after the quake. (Table 4.7D).

Table 4.7D: Losses from tourist ticket sales

Table 4.7D

Source: Post Disaster Needs Assessment (PDNA), National Planning Commission, GoN

A large portion of key tourism monuments and heritage attractions have been reduced to rubble. Few months after the disaster, the Tourist Guide Association of Nepal (TURGAN) reported that 228 tour guides were no longer employed as a result of the earthquakes as there were hardly any tourists to take around in Durbar Squares in Kathmandu, Bhaktapur and Patan areas. Nearly a year after the catastrophe, the number of visitors seems to be rising again.

5. Cost of Recovery:

The PDNA priced the total earthquake damages at NPR 517 billion, losses at NPR 189 billion and recovery needs at NPR 669 billion, roughly a third of the economy. Early estimates suggested that an additional 3 percent of the national population (around a million people) was pushed into poverty as a direct result of the earthquakes.

The cost of recovery for tourism is nearly NPR 39 billion which is 5.8% of the total recovery needs of the country. Starting from the demolition of damaged structures & rubble removal to reconstruction & recovery activities, there are numerous sub-sectors such as hotels & accommodations, trekking, tour operations and loan rescheduling as well as extensive promotional campaigns which need recovery attention currently.

Table 5: Summary of the cost of recoveryTable 5

Source: Post Disaster Needs Assessment (PDNA), National Planning Commission, GoN

There are costs attached to respond to the market slackness endured both by the Nepal Tourism Board (NTB) and the industry as a whole. The NPR 400 million annual marketing spend of NTB under normal situations and the approximately NPR 1,800 million aggregated total marketing and promotion spend of the private sector may have to be increased multiple-fold to recover and revive the tourism market. It is estimated that over NPR 5 billion will have to be spent over the next couple of years for the targeted tourism promotional campaigns (Table 5).

 * * * *

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

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

Also Read:

(Part II) (2 of 2) Construction Focus Four: Struck-By Hazards

(Part II) (1 of 2) Construction Focus Four: Struck-By Hazards

(Part I) (1 of 2) Construction Focus Four: Fall Hazards

(Part I) (2 of 2) Construction Focus Four: Fall Hazards

Fire Prevention and Fire Protection – Air Pollution in Kathmandu – Construction PPE – Carbon Monoxide poisoning – Electrical Safety – Fall Protection in General Industry– Fearsome 4 of Construction Safety – Fall Restrain System Vs. Fall Arrest System – Respiratory Protection – Portable Ladder Safety – Confined Space Entry – Initiating First Aid/CPR – Are you too busy… – If you have $86,400 in your account… – Safety professionals have job prospects as Insurance Risk Surveyor or Loss Assessor

 

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

Tourism 2(Photo Source: Google)

3. Impact Indicators & Post Disaster Context

3.1 Gross Domestic Product (GDP):  

With hotels and restaurants contributing about 1.9 percent to GDP in 2012, international tourism contributed about 2% to GDP. The 2015-World Tourism and Travel Council (WTTC) report indicates that the direct contribution of tourism to the national GDP is 4.3 percent in 2014. The same report shows a GDP contribution of 8.9 percent in 2014 aggregating the contribution of hotels and restaurants including domestic tourism as well as other subsectors of tourism. Before the Gorkha Earthquake, the hotel and restaurant sector was expected to grow its GDP contribution by 6.6% while after the earthquake the estimated growth is only 3.9%.

3.2 Employment:

Tourism in Nepal creates employment thru various formal businesses such as hotels, airlines, restaurant, tours & travels, trekking, etc. while at the same time there are a number of informal value chain businesses such as guide, porter, taxi, handicraft, money exchange, food chain and many more helping create indirect jobs. Due to the earthquake the total workdays lost in tourism sector is estimated to be 29,662,443 including men and women. Likewise the losses in personal income stands over NPR 6 billion.  

The Tourism Employment Survey, 2014 of the Ministry of Culture, Tourism & Civil Aviation (MoCTCA) estimates that approximately 138,148 persons were engaged in the tourism sector. For the estimation, the survey utilized the data from 192 sampled industries out of the total 4,819 registered tourism industries(Table 3.2).

Table 3.2: Estimation of employment generated by tourism industries in NepalTable 3.2

 Source: Tourism Employment Survey, 2014, MoCTCA

The WTTC 2015 report, based on pre-earthquake data, indicates that in 2014 travel and tourism in Nepal directly supported 487,500 jobs (3.5 percent of total employment) and an additional 608,000 indirect jobs creation was estimated in the report. In the pre-earthquake scenario, the number of jobs was expected to rise by 4 percent in 2015 and by 3 percent per annum to 681,000 jobs in 2025.

As per MoCTA, about 80% workers in tourism are male. Likewise the proportion of male workers is higher than female workers in all types of tourist businesses, except in homestays, which employs 57% women. After the earthquake, more women have lost jobs than men, particularly when one considers that women occupy less skilled jobs such as housekeeping which can be easily taken over by men.

3.3 Tourist Arrival:

In recent years, the two main volume markets, India and China, have shown encouraging trends in arrivals to Nepal. In the past five years, the average annual growth rate of Chinese and Indian visitors has been 26 percent and 14 percent respectively. The growth from the rest of the world has been about 8 percent a year. As share of visitors from India and China accounts for about 36 percent, the overall growth in tourist arrivals has been pulled up to 10 percent a year over the past five years. The statistical survey in 2014 by MoCTCA shows an increasing trend of tourist arrivals in Nepal since 2000 (Table 3.3) and (Figure 3.3).

Table 3.3: Tourist arrival and average length of stay, 2000-2014Table 3.3

Source: Nepal Tourism Statistics, 2014, MoCTCA

Figure 3.3: Tourist arrivals in Nepal, 2000-2014Figure 3.3

Source: Nepal Tourism Statistics, 2014, MoCTCA

Post-earthquake, the number of tourist arrivals to Nepal has declined by 90 percent compared to May of 2014. The industry expects visitor numbers to be 40 percent lower in the fiscal year 2015-16 compared to 2014-15 and another 20 per cent reduction in the following 12 to 24 months. Thus a significantly reduced number of tourist arrivals is likely to be observed over the next two to three years.

In the long term, a sustained absence of visitors from highly affected areas is likely to lead to a permanent relocation of local residents to other areas, resulting in their livelihoods getting disconnected from their place of origin. In the long run, this could produce significant socio-cultural impacts to the people living in those regions.

3.4 Foreign Exchange Earnings:

At the macroeconomic level, after remittances and export of goods & services, tourism is the third largest economic sector for foreign exchange earnings. As per Nepal Rastra Bank data, in the year 2012-2013, the total foreign exchange earnings from tourism was over NPR 34 billion which is 4% of the total foreign exchange earnings or 2% of the national GDP as shown in the table below (Table 3.4). Further, based on eight months of FY 2013-14, the total foreign exchange earnings from tourism is still over NPR 34 billion, although the numbers won’t look promising after the Gorkha Earthquake.

Table 3.4: Foreign exchange earnings from tourismTable 3.4

Source: Nepal Rastra Bank, 2012-2013

3.5 Government Revenue:

Following the increasing trend of the government’s revenue generation from tourism sector, the directly visible government revenue from the tourism sector in 2012 was nearly NPR 9 billion which represented about 3.6 % of the total government revenue that year (Table 3.5A).

Table 3.5A: Tourism sector’s contribution to the Government’s fiscal revenueTable 3.5A

Source: Post Disaster Needs Assessment (PDNA), National Planning Commission, GoN

Due to the earthquake there are losses to the government revenue streams such as national park permit fees, mountain trekking fees, tourist and tourism related fees, tax revenue to the government, etc. Nepal Mountaineering Association (NMA) received over NPR 51 million in royalty for mountain expeditions in 2014(Table 3.5B). The past data from the Department of National Park and Wildlife Conservation (DoNPWC) show an encouraging number of tourist arrivals every year in the national parks and protected areas (Table 3.5C). In the post-disaster days, these figures are certainly going to get impacted heavily.

Table 3.5B: Royalty received by peak, 2014Table 3.5B

Source: Nepal Mountaineering Association (NMA)

Table 3.5C: Tourist visitors on national parks and protected areasTable 3.5C

Source: Department of National Park and Wildlife Conservation (DoNPWC)

3.6 Tourism Revenue:

The revenue losses result from losses in tourism revenues, air transport revenues, tour operator revenues, trekking revenues and restaurant revenues. It was estimated that the decreased tourism arrivals would affect tourist spending and subsequently would lead to a revenue loss of over NPR 21 billion between May and December 2015. This is estimated to decrease by about half (to nearly NPR 13 billion) in the next six-month period in 2016. Another nearly NPR 13 billion is expected to be the tourism revenue loss during the year 2016-17. Due to the earthquakes the loss of tourism revenue is estimated to be over NPR 47 billion by the end of 2017.

Other impacted revenue sources are from various tourism sub-sectors such as airlines, travels & tours, trekking, restaurant, etc. After the earthquake disaster, a total of over NPR 62 billion of revenue losses is estimated due to a combination of destruction and non-availability of tourism facilities and the drastic decline in foreign tourist arrivals (Table 3.6).

Table 3.6: Summary table of estimates of lossesTable 3.6

Source: Post Disaster Needs Assessment (PDNA), National Planning Commission, GoN

3.7 Hazards & Vulnerabilities:

After the Gorkha Earthquake, there is increased potential of loss due to the hazards such as, landslides, outbursts of glacial lakes, avalanches, rock falls, floods and more aftershocks. Mountain tourism and the communities in those areas are more vulnerable to calamities due to geophysical challenges, weather conditions, climate change, etc. On one hand, the mountain residents and workers are exposed to the general increased risk of landslides, rock fall, floods, etc. associated with mountain settings, while on the other their families are highly vulnerable to changes in visitor numbers and travel patterns that directly affect their incomes and livelihoods. If no alternative income sources are available to the households, their condition is likely to become severe in the coming days.

Many trail and trekking sections are declared insecure based on assessments by trekking companies. National parks and conservation areas do not have an inventory system in place that assesses the safety of their areas with respect to natural disasters. There is an increased need to invest in an early warning system to ensure safe tourist experiences for all market segments.

At present the clear risk is the sustained loss of income due to the absence of tourist in the aftermath of the earthquakes. This risk is not limited to actual earthquake-affected areas but to the whole of Nepal. The risk is even higher due to our own vulnerabilities and lack of capabilities to timely respond to such disasters. Safety has risen as the biggest concern for the entire fraternity of tourism stakeholders and it will certainly cost money and extensive planning to address those critical issues.

(To Be Continued…)

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

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

Also Read:

(Part II) (2 of 2) Construction Focus Four: Struck-By Hazards

(Part II) (1 of 2) Construction Focus Four: Struck-By Hazards

(Part I) (1 of 2) Construction Focus Four: Fall Hazards

(Part I) (2 of 2) Construction Focus Four: Fall Hazards

Fire Prevention and Fire Protection – Air Pollution in Kathmandu – Construction PPE – Carbon Monoxide poisoning – Electrical Safety – Fall Protection in General Industry– Fearsome 4 of Construction Safety – Fall Restrain System Vs. Fall Arrest System – Respiratory Protection – Portable Ladder Safety – Confined Space Entry – Initiating First Aid/CPR – Are you too busy… – If you have $86,400 in your account… – Safety professionals have job prospects as Insurance Risk Surveyor or Loss Assessor

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

Tourism 1(Photo Source: Google)

Tourism in Nepal

The rate of economic growth of any nation is directly related to its industrial development. In this regard tourism industry is certainly one of the major aspects of Nepalese economy. Apart from providing employment to the people, tourism also helps create national income by utilizing its natural resources as well as conserving socio-cultural heritages. In the process, it helps improve the living standard of the people, the prime objective of any development activity of a country.

Like many other economic sectors, the potential of tourism in Nepal is yet to be explored and realized. It would not be an exaggeration to identify the tourism in Nepal as still a crawling industry through its infancy. Being a labor intensive service sector, the Ministry of Culture, Tourism & Civil Aviation (MoCTCA) has recognized it as a potential sector for the economic development and a major source of employment to help reduce poverty in the country. MoCTCA in 2009 aimed to increase annual international tourist arrivals to 2 million and increase employment in the tourism sector to one million by 2020. The goal seems tough to achieve with the advent of recent devastations caused by the earthquakes and the existing level of infrastructures and capabilities.

1. Background

Nearly 82 years after the mega earthquake of 1934 CE, Nepal was heavily shaken by the recent M 7.6 earthquake on Saturday, 25th April, 2015 at 11:56 NST and a major aftershock of M 6.8 on Tuesday, 12th May, 2015 at 12:50 NST. With the epicenters located in Gorkha and Dolakha districts respectively, the tremors of the quakes were felt as far as in China, India and Bangladesh.

Nearing one year after the Gorkha Earthquake, the figures up till now show that the devastating earthquake and the following major aftershocks left around 9,000 dead, 23,000 injured and thousands homeless all over the country. It is estimated that these earthquakes affected almost one-third of the entire nation’s population including 31 districts, of which 14 were hard hit. An analysis of the data for each affected district, in combination with the data on population, reveals that the average values of disaster effects, NPR/person range from a high of NPR 255,860 per person in Dolakha to NPR 43,800 in Makawanpur, with an average of NPR 130,000 per person across the 14 most affected districts (Table 1.1A).

Table 1.1A: District wise per capita disaster effects, NPR/personTable 1.1A                                                                              Source: Post Disaster Needs Assessment (PDNA), National Planning Commission, GoN

As per the Post Disaster Needs Assessment (PDNA), National Planning Commission, the total damages and losses caused by the earthquake 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 (Table 1.1B).

Table 1.1B: Summary of disaster effectsTable 1.1BSource: Post Disaster Needs Assessment (PDNA), National Planning Commission, GoN

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) as shown below (Figure 1.1).

Figure 1.1: Public and private sector distribution of disaster effectsFigure 1.1Source: Post Disaster Needs Assessment (PDNA), National Planning Commission, GoN

2. Earthquake Impact on Tourism Sector      

Although the tourism sector in Nepal has sustained significant physical damages, the tangible economic losses will be more pronounced over the next couple of years as a result of the earthquakes. Also in terms of declined number of tourists, the overall impact of the earthquakes on the tourism sector goes beyond the 14 highly affected districts and some well-known tourism destinations in Nepal such as Chitwan and Pokhara.

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.    

There are some major economic indicators of tourism sector in Nepal as identified by the Ministry of Culture, Tourism and Civil Aviation (MoCTCA), Nepal Rastra Bank and the Ministry of Finance. Last year about 800,000 tourists flew to Nepal in 26 different airline carriers, stayed around 13 days and spent US$ 46.4 each while contributing 2.6 % to the national GDP (Table 2).

Table 2: Major indicators of tourism sectorTable 2                  Source: Economic Survey 2014/2015, Ministry of Finance, Government of Nepal

(To Be Continued…)

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

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

Also Read:

(Part II) (2 of 2) Construction Focus Four: Struck-By Hazards

(Part II) (1 of 2) Construction Focus Four: Struck-By Hazards

(Part I) (1 of 2) Construction Focus Four: Fall Hazards

(Part I) (2 of 2) Construction Focus Four: Fall Hazards

Fire Prevention and Fire Protection – Air Pollution in Kathmandu – Construction PPE – Carbon Monoxide poisoning – Electrical Safety – Fall Protection in General Industry– Fearsome 4 of Construction Safety – Fall Restrain System Vs. Fall Arrest System – Respiratory Protection – Portable Ladder Safety – Confined Space Entry – Initiating First Aid/CPR – Are you too busy… – If you have $86,400 in your account… – Safety professionals have job prospects as Insurance Risk Surveyor or Loss Assessor