Presentation by Mr. Deepak Raj Joshi, CEO, NTB

1. DEVELOPING DESTINATIONS
FOR RECREATION AND
PILGRIMAGE
Investment Opportunities
Deepak Raj Joshi
CEO, Nepal Tourism Board

2. PRESENTATION OUTLINE
1
1. BRAND NEPAL
2. DESTINATION NEPAL: WHY NEPAL?
3. COUNTRY OVERVIEW
4. FOREIGN INVESTMENT IN TOURISM SECTOR
5. RECENT DEVELOPMENTS
6. POLICY AND INCENTIVES IN TOURISM
SECTOR
7. POTENTIAL PROJECTS FOR INVESTMENT

3. BRAND NEPAL: A PROMISING INVESTMENT DESTINATION
 World’s iconic destinations: Lumbini, the birth place of
Lord Buddha, Pashupatinath and the Mt. Everest
 The most diverse country: cultural diversity and natural
diversity within a small area
 People: Friendly, welcoming and supportive communities
 Gateways to the Himalayas and the Buddhist Circuit
 Tourism capital of South Asia
 World capital for mountaineering and trekking
 UNESCO has listed 4 World Heritage Sites in Nepal
 12 National Parks, 3 Wildlife Reserves, 6 Conservation
Areas, 1 Hunting Reserve

4. DESTINATION NEPAL: WHY NEPAL?
Between two huge markets of India and China; and close to South
East Asia and Middle East Asia
COUNTRY OUTBOUND TOURISM
(NUMBER OF
DEPARTURES ‘000) (2017)
GDP GROWTH
(ANNUAL %)
(2017)
POPULATION
‘000 (2017)
India 23,943.00 6.7% 1,339,180.13
China 143,035.00 6.9% 1,386,395.00
East Asia &
Pacific
397,924.82 4.6% 2,314,364.99
LOCATION AND MARKET

5. DESTINATION NEPAL: WHY NEPAL?
Priority: Tourism
envisioned as the second
most important driver of
the economy
Timing and environment: Political stability, labour
laws and labour relations, willingness for
economic development, guaranteed repatriation,
ones-stop service, government making further
investment friendly laws and fixing bottlenecks
Weather: Pleasant climate and
fantastic weather round the
year
Brand: Ethnic (125 ethnic groups) and
linguistic diversity (123 languages), young
and vibrant population, best ‘value for
money’ destination, and emotionally
rewarding travel and tourism experience
Nepal at the heart of the ‘mountain
economy’ declared by the Fourth
BIMSTEC Summit Declaration

6. COUNTRY OVERVIEW
Nepal welcomed
nearly 1.2 million
tourists in 2018
(excluding Indian
tourists traveling
by land). A recent
survey by NTB
shows that Nepal
welcomed an
additional 1.5
million tourists
who travelled by
land.
Proportion of tourism
industries registered out of the
total industries
Growth rate of tourist arrivals has
been consistently high: 40% (2016),
25% (2017), 25% (2018)
The sector accounted for
32% of industries
registered in Nepal and is
one of the most
attractive sectors among
potential investors
The World Travel and Tourism
Council estimates that
investment in the travel and
tourism sector in Nepal was
USD 170.7 million in 2017
Consistent increase in
investment in tourism.
Investment is expected to rise by
7.6% in 2018 and maintain
steady growth of 4.7% per year
over the next decade to
USD 289.5 million
159 out of 496 in FY 2017/18
1615 out of 7529 up to FY 2017/18

7. FOREIGN INVESTMENT IN TOURISM SECTOR
Major MNC’s Investment in Nepal (Hotel Industry)
YEAR NUMBER OF
INDUSTRY
FOREIGN INVESTMENT
(NRS MILLION)
2012/13 103 7,151.19
2013/14 84 5,832.77
2014/15 147 27,215.37
2015/16 112 11,124.95
2016/17 154 14,999.72
2017/18 159 23,855.50

8. RECENT DEVELOPMENTS
 Upgradation and plans for further expansion of Tribhuvan International Airport
 Completion of Gautam Buddha International Airport (within a year) and Pokhara Regional
International Airport (within two years)
 Upgradation of highways (east to west as well as north to south) aiming to facilitate the
movement of people and enhance internal tourism
 Multiple cross-border railway links are being built with China and India which will directly
impact tourist inflow from these countries
 Development of Ramayan Circuit and Asian Buddhist Circuit Pilgrimage sites connecting
India and Nepal is bound to increase tourist inflow in Nepal

9. TOURISM POLICY
POLICIES
 Tourism Policy, 2065 (2008)
 Civil Aviation Policy, 2063 (2006)
RULES/REGULATIONS
 Casino Regulation, 2070 (2013)
 Rafting Rules, 2063 (2006)
 Travel and Trekking Agency Rules,
2062 (2005)
 Mountaineering Rules, 2059 (2002)
 Hotel, Lodge, Restaurant, Bar and
Tourist Guide Rules, 2038 (1981)
ACTS
 Nepal Tourism Board Act, 2053 (1997)
 Immigration Act, 2049 (1992)
 Tourism Act, 2035 (1978)
DIRECTIVES AND WORKING
PROCEDURES
 Hotel Standard, 2074 (2017)
 Tourism Industry Service Delivery Directives,
2070 (2013)
 Tourism Transport Service Business
Registration and Operating Work Procedures
 Homestay Working Procedures, 2067 (2010)

10. INCENTIVES
 Visa on arrival for almost all countries (except 9)
 Indian nationals do not need a visa to enter Nepal
 No tourist visa fee applicable to Chinese nationals
 No visa fee applicable to the passport holder of member
states of the South Asian Association for Regional
Cooperation (SAARC) for 30 days
 Non-tourist visa of 6 months for study, research & survey
for potential foreign investors
 Business visa to foreign investor or their representative
and their family members until the prescribed minimum
foreign investment is retained in Nepal
VISA

11. INCENTIVES
 100% exemption for first five years from the date of operation of business and
50% concession for next 3 years for special industry with capital of more than
NRS 1 Billion (Around USD 9 million) and providing direct employment to more
than 500 persons for a whole year
 Subsidy in income tax for industries providing direct employment to more than
100 Nepali nationals
 15% tax rebate to tourism companies listed with Security Exchange Board
 Exemption on dividend tax of all tourism industries for capacity expansion by
capitalization of profit
 Further exemptions can be made and facilities and concessions given on the
recommendation of and decision of the Council of Ministers on a case by case
basis
TAX

12. INCENTIVES
 Only 1% custom duty applicable for import of standard promotional
materials printed outside Nepal for promotion of tourism business
 Rebate of 50% custom duty on the import of any two units of luxury
coach, micro-bus and mini-bus allowed for travel agents, trekking
agencies, rafting agencies, starred hotels and resorts having permanent
license
 Only 5% customs duty shall applicable on the prescribed goods
imported once by the star hotels or resorts as per approved scheme for
hotel construction
 Only 1% custom tax on aircraft, engines, and aircraft spare parts
CUSTOM DUTY

13. TOURISM PROJECTS FOR INVESTMENT
SPIRITUAL/ RELIGIOUS
DESTINATION DEVELOPMENTS
RECREATION
TOURISM
EDUCATION, SPORTS
AND HEALTH TOURISM
CIVIL AVIATION MICE TOURISM

14. DESTINATION DEVELOPMENTS BASED ON
SPIRITUAL/ RELIGIOUS HERITAGE
KHAPTAD HIGH-END LUXURY TOURISM PROJECT
Sudurpaschim Province, Khaptad National Park
Cable car, development of luxury high-end
resort/hotel, sports and wellness activities,
supporting infrastructure, regeneration, conservation
and development.
Estimated Project Cost: USD 187 million
JANAKI HERITAGE HOTEL WITH CULTURAL VILLAGE PROJECT
Province No. 2, Dhanusadham Municipality
World-class luxury destination wedding heritage hotel, regeneration,
conservation and development of religious area, and supporting
infrastructure
Estimated Project Cost: USD 19.92 million

15. DESTINATION DEVELOPMENTS BASED ON
NATURAL HERITAGE (RECREATION TOURISM)
SHEY PHOKSUNDO
LUXURY RESORT
Karnali Province,
Shey Phoksundo
A fully integrated and
comprehensive 5-star
resort
Estimated Project Cost:
USD 100 million
TAL TALAIYA TOURISM PROJECT
Province 1, Itahari Sub-metropolitan City
Theme park with sports paradise, hotel with
casino, museum, zoo, ethnic village, food
court and supporting infrastructure,
regeneration, conservation and development
Estimated Project Cost: USD 41 million
DREAMLAND DHULIKHEL PROJECT
Province 3, Dhulikhel Municipality
Theme park with sports paradise, hotel with
casino, museum, zoo, ethnic village, food
court and supporting infrastructure,
regeneration, conservation and development
Estimated Project Cost: USD 43 million
DAMAULI MULTIPURPOSE PROJECT
Gandaki Province
Artificial lake and river management, spiritual and
cultural themed amusement park, ethnic village / resort,
convention and exhibition centre, integrated agriculture
and allied industries, prime residential development
Estimated Project Cost: USD 55 million
FILM CITY PROJECT
Province 3, Dolakha, Bhimeshwor Municipality
(Area: 189 to 314 acres)
Film shooting spaces, production and post-
production services, tourism facilities, supporting
facilities and further development
Estimated Project Cost: USD 25 million

16. EDUCATION, SPORTS AND HEALTH TOURISM
GAUTAM BUDDHA INTERNATIONAL MATERNITY
HOSPITAL
Province 5, Lumbini Sanskritik Municipality
Hospital focused on maternity and wellness services
Estimated Project Cost: USD 39 million
DHULIKHEL MEDI-CITY PROJECT
Province 3, Dhulikhel Municipality
Education, health, sports and wellness, research and development,
residence facilities, commercial centre and supporting infrastructure
Estimated Project Cost: USD 25 million
GANDAKI TECHNICAL UNIVERSITY
Gandaki Province
School of medical sciences, school of engineering and applied sciences,
school of tourism and hospitality management, school of fashion
designing and management, technical and vocational training institute,
University research centre
Estimated Project Cost: USD 61 million

17. EDUCATION, SPORTS AND HEALTH TOURISM
DOLAKHA MOUNTAIN ACADEMY
Province 3, Gaurishankar Rural Municipality or Sailung
Mountain academy, development of hotels and residence
facilities, mountain museum, cultural village, regeneration,
and conservation, and supporting infrastructure
Estimated Project Cost: USD 45 million
SKI RESORT IN MANANG
Gandaki Province, Manang
Luxury resort, ski tow system (ski club), snow making
system, and hiking and trekking trail
Estimated Project Cost: USD 100 million

18. CIVIL AVIATION
BIRATNAGAR REGIONAL INTERNATIONAL AIRPORT
Province 1, Biratnagar
Air transportation project with retail and business components
Estimated Project Cost: USD 373 million
DHANGADHI REGIONAL INTERNATIONAL AIRPORT
Sudurpaschim Province, Kailali
Air transportation project with retail and business components
Estimated Project Cost: USD 258 million
NIJGADH INTERNATIONAL AIRPORT
Province 2, Bara
Air transportation project with retail and business components
Estimated Project Cost: USD 545 million (first phase)

19. MICE TOURISM
NEPAL INTERNATIONAL CONVENTION AND EXPO CENTRE PROJECT
Province 3, Madhyapur Thimi Municipality, Bhaktapur
Convention hall, exhibition hall, business hotel, meeting spaces and
business centre, supporting infrastructure and services
Estimated Project Cost: USD 16 million

20. THANK YOU