Entry points for developing tourism in Nepal: what can be done to address key constraints to inclusive growth?

Research reports and studies
June 2013
Harry Jones

Tourism is an important element of the Nepali economy, contributing almost 10% of GDP in 2012 and supporting 1.2 million jobs, including reasonable incomes for poorer people.

Yet despite great potential, the tourism industry is showing signs of a slide towards a ‘low-value, high volume’ model which, unchecked, will erode the benefits Nepal seeks to gain from tourism and its chances of inclusive growth.

This report by Harry Jones, carried out at the Centre for Inclusive Growth in Nepal, answers the following questions:

  1. How is tourism contributing to inclusive growth in Nepal, and how can this contribution be improved?

  2. How do institutions, incentives, structural factors and knowledge and information shape the drivers and constraints around the key policy issues?

  3. What can realistically be done to make improvements, what are the most promising entry points and what are the prospects of success?

The study builds on the work of the RAPID programme at ODI to apply the knowledge, policy and power framework to pressing problems in developing countries. The approach looks at political context, the role of actors and different types of knowledge and knowledge interaction processes. After drawing out the key drivers and constraints to inclusive growth of the tourism sector, it provides recommendations for national policy-makers and international agencies, civil society and the private sector.