Nepal’s earnings from international tourism recorded a slight decline during the first 11 months of the current fiscal year, according to the latest data released by the Nepal Rastra Bank (NRB). The central bank reported that travel income under the service account decreased by 0.1 percent to Rs. 82.22 billion during the review period (mid-July to mid-June of FY 2025/26). In the corresponding period of the previous fiscal year, travel income stood at Rs. 82.33 billion. The marginal decline suggests that despite healthy tourist arrivals, the average spending by foreign visitors in Nepal remained slightly lower than last year.
Travel Expenditure Continues to Exceed Tourism Earnings
While tourism earnings remained largely unchanged, Nepal’s travel payments, money spent by Nepalis abroad, continued to far exceed travel income. According to the NRB, travel payments declined by 4.7 percent to Rs. 193.65 billion, compared to Rs. 203.18 billion during the same period last fiscal year. Despite the decline, outbound travel spending remained more than double the country’s tourism earnings, resulting in a significant deficit in the travel services balance.
Education Accounts for Largest Share of Overseas Spending
A substantial portion of its travel expenditure continued to be driven by education-related expenses. The NRB reported that Rs. 132.23 billion was spent on overseas education during the first 11 months of the fiscal year, up from Rs. 124.75 billion recorded during the same period last year.
The increase highlights the continued rise in the number of Nepali students pursuing higher education abroad, making education the single largest component of Nepal’s travel payments.
Service Account Remains in Deficit
As travel payments continued to exceed travel income, Nepal recorded a net service income deficit of Rs. 72.54 billion during the review period. However, the deficit narrowed compared to the Rs. 82.78 billion deficit recorded during the corresponding period of the previous fiscal year, reflecting a reduction in outbound travel expenditure.
Need to Increase Tourist Spending
Although Nepal has witnessed a steady recovery in international tourist arrivals, the latest figures indicate that higher visitor numbers have not translated into increased tourism earnings. Industry experts say the country needs to focus on attracting high-value tourists, extending visitor stays, and encouraging greater spending on accommodation, adventure tourism, cultural experiences, wellness, and other premium tourism products to maximize the sector’s economic contribution.
