1. TOURISM IN NEPAL

2. AGENDA OF PRESENTATION
 Introduction of tourism industry
 Visit Nepal 2011
 Impact of global crisis
 SWOT
 Porters 5 force model.
 PEST
 Group mapping
 Value chain mgmt……

3. Introduction of Tourism in Nepal
 Tourism was unknown to Nepal till 1950.
 With the dawn of democracy in 1950, Nepal open its
door to visitors.
 Nepal has great potential in Tourism as it has a lot to
offer.
 As per the economic survey 2008, the highest no. of
tourist comes to Nepal from Asian continent(48.3%),
followed by Europe (30.5%)
 The no. of tourist come from India is significant
(26.7%)

4. Distribution of Tourist coming to Nepal
48.3
30.5
17.8
Tourist
Asia
Europe
Others

5. Types of business in tourism industry
 Accommodation: bed &
breakfasts, tents, resorts, lodges, cabins, home
stay, hotels, motels, campgrounds
 Transportation: bus or coach driver, rental cars, air
transport operator
 Attractions: museums, cultural centers, mountains, rivers,
 Tour operators: bush tucker tours, 4wd tag-along
tours, guided town tours, adventure tours, local sightseeing
tours.
 Tourism hire and retail: souvenir sales, art and artifact
sales (Pokhara lakeside)
 Bookings: tour desk, travel agent, online tour and
accommodation sales
 restaurant & other facilities: restaurants of every genre

6. MAJOR TOURSITS ATTRACTIONS
 TREKKING
 MOUNTAINEERING
 RIVER RAFTING/CANYONING
 JUNGLE SAFARI
 VILLAGE TOURS
 SIGHT-SEEING

7. Visit Nepal 2011
 The government of Nepal has announced the year 2011 as Nepal
tourism year and targeted to reach the number of tourists
visiting Nepal to be doubled i.e. one million in the year 2011.
 The recent statistics of visit to Nepal shows that the numbers of
tourists are not exceeding more than half million, as the number
were 526,705 in 2007 and 500,277 in 2008.
 Despite strong potential, tourism growth declined in last decade
in Nepal, significantly mainly because of conflict and insecurity.
 However the current statistics shows that the industry has
started rebounding in the country, but we need to investigate
why this sector is under performing and how Nepal can increase
market share in an increasingly competitive world tourism
market.

8. Visit Nepal 2011
 ‘Nepal Tourism Year 2011’ is a grand fete throughout the year
which is going to celebrate in Nepal in 2011.
 The concept of Nepal Tourism Year 2011 was emerged to
manage and develop the tourism industry of Nepal by cashing
the expertise view, experiences and commitment of
government with public private venture.
 For that Nepal tourism board is continuing in the promotional
activity with public private venture internally and externally.
 The campaign will continue to promote Nepal in international
arena through its line agencies such as Nepalese diplomatic
missions abroad, I/NGOs, airlines, and national and
international media, NRN community and Nepal’s friends and
well-wishers.

9. Number of Tourist Arrival in Nepal
0
100000
200000
300000
400000
500000
600000
2002
dec
2003
dec
2004
dec
2005
dec
2006
dec
2007
dec
Total No.
Tourist arrival by air

10. Average Stay
7.92
9.6
13.51
9.1 9.5 10.02
0
2
4
6
8
10
12
14
16
2002
dec
2003
dec
2004
dec
2005
dec
2006
dec
2007
dec
avg. stay(days)
avg. stay(days)

11. Annual Growth Rate
-23.7
22.7
13.9
-2.6
4.9
33.52
-30
-20
-10
0
10
20
30
40
2002
dec
2003
dec
2004
dec
2005
dec
2006
dec
2007
dec
Annual growth rate
Annual growth rate
Base year
taken : 2001

12. Number of Hotels
108 110 110 105 95
858 886 896
502 539
966 996 1006
607 634
0
200
400
600
800
1000
1200
2003 2004 2005 2006 2007
Star Hotels
non-star hotel
Total

13. Foreign Exchange Earning from tourism
6.1
4.6 4.5
6.6
1.8
1.5 1.4 1.3
0
1
2
3
4
5
6
7
2004/05 2005/06 2006/07 2007/08
% total forex
earning
As % of GDP

14. Impact of Global crises in Tourism
Industry in Nepal
Historically, Nepal's tourism sector has been a success story.
However, from 2007 to 2008, the country experienced a sharp decline
due to the onset of a global recession and regional instability.
 Geography
Nepal is a landlocked country between China and India. The natural
landscape consists of valleys and plains in the south and the awe-
inspiring Himalayan Mountains in the north.
 Statistics
From 2007 to 2008, Nepal's tourism declined by five
percent, compared to an increase of 37.2 percent from 2006 to 2007.
The majority of this decline was in cultural travel; there was actually an
increase in the trekking and mountaineering sector.

15. Impact of Global crises in Tourism
Industry in Nepal
 Economic Significance
According to the 2008 Annual Report of Nepal Tourism Statistics, there
was a 52.6 percent increase in tourism revenue from 2007 to 2008.
Revenue increased from approximately $231 million to $352
million, respectively.
 Effect of a Global Recession
Nepal's tourism department attributes the decline to the global recession.
However, economic indicators demonstrate that those who can afford to
visit are spending more money in Nepal's tourism sector.
 Regional Instability
Another contributing factor to the decline in Nepal's tourism was a civil war
with Maoist rebels and the Nepalese government. While the war has
ended, continued fighting between political regimes occasionally prevents
international travel into Nepal

16. About SWOT
STRENGTHS
CAPTURE
WEAKNESSES
STORE UP
OPPORTUNITIES
INVEST
THREATS
IDENTIFY
CAN
CONTROLL
CANT
CONTROLL
INTERNAL
ENVIRONMENT
EXTERNAL
ENVIRONMENT
MATCH
Generate ideas
Prepare goal statement

17. SWOT analysis
STRENGTHS
1. Natural and cultural diversity
2. Demand-supply gap
3. Government support
4. Increase in the market share
WEAKNESSES
1.Poor support infrastructure
2.Slow implementation
3.Susceptible to political events
OPPORTUNITIES
1.Rising income of people
(internal tourism)
2. Nepal Tourism year 2011
THREATS
1. Fluctuations in international
tourist arrivals
2.Increasing competition
3. Political instability

18. Conclusion
 Enough competitive advantages(strengths)
 Efforts to convert their weaknesses into
opportunities(invest for better infrastructure &
services).
 Mitigate the threats by gaining competitive edge over
the competitors.(can hardly do anything about the
political instability)
 Make best utilization of opportunities like Visit
Nepal year 2011

19. Porter’s 5 force model

20. Porter’s 5 force in Tourism industry-Hotels
Threats of
new
Entrants
Threats of
Substitute
products
Competitive
rivalry
Supplier’s
bargaining
power
Buyer’s
bargaining
power
•Economies of
scale
•Capital
requirement
•Switching
cost to buyer
•Cost
disadvantages
•Govt policy
•Relative price
of substitute
•Relative
quality of
substitute
•No. of
competitor
•Relative size
of competitor
•Fix cost Vs
Variable cost
•Product
differentiation
•Supplier
concentration
•Availability of
substitute
inputs
•Supplier’s
production
differentiation
•Buyer’s
concentration
•Product
differentiation

21. PEST Analysis
Remote
environment
Macro
environment
Industry
sector
organization

22. PEST Analysis
Political factors: It includes
government regulations and legal
issues under which
businesses should operate.
1. Political instability
2. Frequent disturbances ( bandas
& strikes, rallies etc) by political
parties.
3. Government regulation
Economic factors: Economic
factors affect the purchasing
power of potential customers and
also affect the individual
company’s offerings.
1. Inflation
2. Global crisis
3. Per capita income(internal
tourism)
Social Factors : it includes the impact of
social factors on a particular business @
large.
1. Variety in culture
2. Religious significance
3. Hospitable nature of Nepalese
Technological Factors: Changes in the
technology have changed the way
businesses operate in tourism industry
eg Internet booking for tickets and
holidays.
1. E-commerce
2. MIS
3. Customer relationship mgmt

23. Group Mapping- Hotels
 Our hotel : d lodge
 Location : Durbar Margh
 Competitors : KFC & Pizza hut
Hotel Del Annapurna
Nanglo & Bakery cafes
 Factors taken: Food value
Speed of delivery

24. Group Mapping- Hotels
D
lodge
KFC
& PH
Nanglo
bakery
Annapu
rna

25. Value chain
Supply chain
management
Operations
Sales &
maketing
service Profit margin
Primary
activities &
costs
Secondary
activities
& cost

26. Value chain of tourism industry