More than one million tourists Visited Nepal 2023

Nepal's tourism industry has rebounded strongly in 2023, crossing the coveted 1 million visitors mark for the year. This is an important milestone as the country aims to revive the sector following the battering of the COVID-19 pandemic. The growth has been propelled by rising arrivals from India, China and the US, among other key source markets. With new airports opening up and massive investments lined up, Nepal is optimistic the momentum will continue in 2024.

Key Highlights of 2023

• The total number of tourists in 2023 crossed 1 million, reaching 1,014,885 according to the Nepal Tourism Board (NTB) data. 

• The last instance of tourist arrivals crossing 1 million was in 2019, pre-pandemic when the country received 1.19 million visitors.  

• The highest number of tourists came from neighbouring India, estimated at 314,000. China and the US followed with 60,000 and 100,000 tourists, respectively.

• Chinese arrivals sharply rose after borders reopened in March 2022, ending a 3-year restriction. Direct flights also resumed between the countries.  

Surge in Regional Travel Propels Rebound

A key factor driving Nepal’s tourism resurgence is the boom in regional travel. With India topping the list, Asian countries comprised almost 50% of total arrivals. There are several tailwinds favouring regional traffic:

• Easing of pandemic restrictions across Asia

• Demand for short-haul destinations  

• Nepal's proximity and connectivity to major Asian hubs

• Value offerings compared to long-haul trips

In addition to these structural factors, tactical factors like visa-on-arrival for many nationalities, no quarantine rules and aggressive tourism promotion campaigns have helped bring visitors back. 

India Reclaims the Summit: A Familiar Feast for the Nepalese Hospitality Industry

India, a historical giant in Nepal's tourism scene, has reclaimed its throne as the top source of tourists in 2023. This heartwarming statistic isn't just about numbers; it's a testament to the deep-rooted cultural and geographical ties between the two nations. Imagine bustling Kathmandu Durbar Square teeming with vibrant saris and the aroma of masala chai or serene Pokhara echoing with the laughter of Indian families picnicking by the Fewa Lake. This renewed influx of Indian tourists is a familiar feast for the Nepalese hospitality industry, a welcome return to a pre-pandemic rhythm.

The Chinese Phoenix Rises: From Frozen Flights to Soaring Hopes

Remember when throngs of Chinese tourists filled Nepal's streets with chatter and colourful umbrellas? After a three-year hiatus due to the pandemic, Chinese travellers are finally gracing Nepal's soil once again. 

This long-awaited return is more than just a boost to the tourism sector; it's a symbol of resilience and the thawing of icy geopolitical relations. Beijing's decision to reopen its doors to Nepal in March 2023 was met with cheers and cautious optimism. Kishore Raj Pandey, a pioneer in Nepal-China tourism, aptly captures the sentiment, "So far, it's a good business season for us." These words echo the hopes of countless travel operators and local businesses dependent on Chinese tourism.

New Airports, Investments to Boost Growth  

As 2023 draws to a close, Nepal's travel industry is betting on major new infrastructure and policy initiatives to accelerate growth in the coming year.

Two international airports, Bhairahawa and Pokhara, started operations in 2022. As connectivity and awareness regarding these airports improve in 2024, officials predict it could nearly double foreign arrivals to 2 million.

Bhairahawa Airport provides access to Buddha's birthplace Lumbini. Pokhara airport serves the scenic Annapurna region, which is popular among trekkers. However, transport infrastructure between these airports and final destinations needs major upgrades to unlock their true potential.  

Alongside hardware, the government’s tourism policy initiatives are also raising hopes. The Nepal Tourism Board plans to launch an aggressive marketing plan in 2024 focused on India and Southeast Asia. Simplified visa rules, new mountaineering regulations, and attractive financial schemes to support tourism enterprises have been proposed.  

The private sector is actively preparing to capitalise on emerging growth opportunities. By 2025, several new 5-star hotels, including the Sheraton Kathmandu Hotel, The Mastiff Hotel in Lalitpur, and the Asian International Regency in Rupandehi, are set to be completed across Nepal's key tourist destinations.

So despite some lingering concerns around political stability and inflation, tourism entrepreneurs are making big bets on Nepal’s travel demand over the coming years.

Risks and Challenges 

However, realising the projected growth rates will require navigating several downside risks and challenges.

First, while a million tourists is a major rebound from the pandemic depths, it is still 15% below the 2019 peak. Given looming global recession fears, recovering those lost volumes could take sustained effort. 

Second, regional geo-political issues around Nepal’s new airports remain unresolved. Any escalation here could dampen travel plans through these gateways.  

Finally, high airfares, poor last-mile connectivity and limited tourism infrastructure continue to plague the industry. Addressing these gaps needs coordinated public-private action over the next 3-5 years.

The Road Ahead

Notwithstanding the risks, the resilience shown by Nepal’s tourism sector in 2023 is commendable. With the basics in place around safety protocols, easing restrictions and promotional campaigns, Nepal must now focus on upgrading its tourism infrastructure. 

New airports, roads, hotels and enhanced environmental sustainability across mountain trails and heritage sites should be priority areas. Combined with policy reforms encouraging entrepreneurship and investments, these steps can help Nepal scale new highs in the tourism decade from 2023-2032.

Momentum to Continue in 2024

With the World Bank and the IMF projecting a strong growth in tourism, 2024 looks promising. The potential doubling of tourist arrivals to 2 million is a realistic target, especially with promoting new international airports in Bhairahawa and Pokhara.

We can anticipate continuing the trend where Nepal attracts a diverse range of tourists, from pilgrims and trekkers to luxury travellers. Additionally, the increasing interest in sustainable and eco-tourism will likely shape future offerings.

Effective government policies and aggressive marketing campaigns will be key to attracting more tourists. The focus should be on showcasing Nepal's diverse attractions beyond trekking and spiritual tourism.

COUNTRY-WISE ARRIVAL DATA

Top Countries Contributing to Tourism in Nepal

The data highlights the top countries from where the tourists arrived. The leading contributor is India, with a total of 319,936 tourists, accounting for a significant 31.52% of the total tourist arrivals. This is followed by the United States of America (USA) with 100,357 tourists (9.89%), and China with 60,878 tourists (6%). Other notable contributors include the United Kingdom (52,866 tourists), Australia (38,798 tourists), Bangladesh (36,483 tourists), Germany (26,980 tourists), Thailand (25,678 tourists), South Korea (23,743 tourists), and France (23,168 tourists).

Out of the total tourists, 566,632 were male, and 447,846 were female. This distribution indicates a slightly higher inclination of male tourists visiting Nepal as compared to female tourists. The gender distribution points towards a slightly higher male demographic, which might be influenced by factors like adventure tourism and trekking, which are popular in Nepal. However, the substantial number of female tourists also indicates the country's growing appeal across different gender groups.