Tourism Info Nepal

Nepal’s Hospitality Sector Survey Reveals Significant Private Investment and Economic Contribution

Nepal’s Hospitality Sector Survey Reveals Significant Private Investment and Economic Contribution

The National Statistics Office of Nepal recently published the results of a comprehensive survey on hotels and restaurants across the country. The survey revealed that the private sector has invested approximately NPR 543.25 billion in fixed assets within establishments related to accommodation and food services, such as hotels and restaurants. Of this investment, 28% has been sourced from financial institutions as loans or other financial instruments.

The sector contributes significantly to Nepal’s economy, generating a value addition of NPR 109.27 billion annually. According to the survey, these establishments produce services worth NPR 326.01 billion annually, incurring operating costs of NPR 216.73 billion.

The survey highlighted that 387,000 individuals are actively engaged in this sector as business owners or partners. Interestingly, 44% of the investors are women, while men comprise the remaining 56%. Furthermore, approximately 106,000 individuals are employed as regular salaried staff, earning a total of NPR 20.61 billion annually in wages and benefits.

The survey was conducted nationwide between Shrawan 2079 and Ashad 2080. It focused on establishments registered with the Department of Tourism, including star hotels, resorts, and food service providers with 10 or more employees. A total of 142,223 hotels and restaurants offering accommodation and food services were analyzed. However, the survey excluded educational institutions, hostels, religious accommodations, and street-side food stalls.

The highest private investment was recorded in the Bagmati Province at NPR 241 billion, followed by Gandaki Province with NPR 106.64 billion, and Lumbini Province at NPR 53 billion. Karnali Province had the lowest investment at NPR 11 billion.

Across Nepal, there are 116,100 rooms available for accommodation, ranging from star hotels to homestays. Among these, 8,496 rooms are in star hotels, 1,175 in tourist-grade hotels, 3,829 in resorts, and 3,700 in homestays. However, the survey did not include detailed information on the total number of beds available, as some rooms have multiple beds.

Room rates vary significantly, from NPR 1,400 in budget accommodations to NPR 6,900 per night in five-star hotels. Nepal’s private sector claims it can serve up to 3 million tourists annually. According to the Hotel Association of Nepal (HAN), star and tourist-standard hotels can provide 10,000 beds per day, capable of accommodating up to 3.5 million tourists annually.

Nepal’s restaurants have a combined seating capacity of serving 2.23 million guests at once. “If all citizens decided to dine out simultaneously, Nepal’s restaurants could accommodate up to 2.23 million people at one time,” stated Hemraj Regmi, spokesperson for the National Statistics Office.

The survey also revealed a significant issue regarding registration. Approximately 37% of the hotels and restaurants in operation are not officially registered with the government, pointing to gaps in regulation and oversight.

Despite these challenges, the survey underscores the immense potential of Nepal’s hospitality sector. With increased investment, improved regulation, and focused promotion, the sector is poised to attract more tourists, contributing further to the nation’s economy.

Tourism entrepreneurs have expressed optimism, stating that with the current infrastructure, Nepal can efficiently cater to an increasing number of tourists, ensuring high-quality accommodation and dining experiences.

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