BOUNCING BACK OR FORWARD: Crisis Management for Tourism Recovery
Nepal’s tourism industry has long been one of the country’s most vital economic pillars but over the past few years, it has faced repeated disruptions that have tested its resilience, from the Covid 19 pandemic to political unrest, natural disasters, and now, the aftershocks of the September 2025 Gen Z protests. Each crisis has revealed the sector’s vulnerabilities while also underscoring its capacity for renewal. The question today is not just whether Nepal’s tourism industry can bounce back but whether it can bounce forward, rebuilding itself in ways that are more sustainable, inclusive and resilient than before.
As tourism businesses navigate a landscape shaped by financial strain, shifting traveller behaviour and increasing global emphasis on sustainability, they face a difficult balancing act. Short-term survival pressures often clash with long-term sustainability goals, yet the two are deeply intertwined.
Environmental stewardship and financial resilience must evolve together if Nepal is to sustain its competitive edge in a changing world. The path forward lies in redefining crisis management, not as a temporary response but as a continuous process of adaptation, learning and innovation that prepares the industry to withstand future shocks.
In this Opinion segment, four leading voices in Nepal’s tourism industry: Prithivi Bahadur Pandé, Executive Chairman of Aloft Kathmandu Thamel; Raj Gyawali, Founder of Social Tours; Rabi Chandra Singh, Chairman of Society International Travel Services Limited; and Shiva Dhakal, Founder of Community Homestay Network and Royal Mountain Travel, share their insights on what it will take for Nepal’s tourism sector to truly recover. They discuss how businesses can balance financial pressures with sustainability, the shift from traditional to digital marketing, the evolving role of the Nepal Tourism Board, and the broader question of whether Nepal’s tourism model needs to be reimagined for a new generation of global travellers.
Prithivi Bahadur Pandé
Executive Chairman of Aloft Kathmandu Thamel
A crisis inevitably shifts focus toward survival but true recovery demands aligning immediate decisions with long-term resilience. For tourism businesses, this means optimising operations and controlling costs without undermining investment in people, the environment, or service quality. The sector must strike a deliberate balance between prudence and progress - managing short-term pressures carefully while continuing to invest in sustainability, energy efficiency and digital transformation. This dual focus builds financial stability today and strengthens competitiveness for tomorrow.
How can tourism businesses balance short-term financial pressures with long-term sustainability goals in the aftermath of a crisis?
Prithivi Bahadur Pandé: A crisis inevitably shifts focus toward survival but true recovery demands aligning immediate decisions with long-term resilience. For tourism businesses, this means optimising operations and controlling costs without undermining investment in people, the environment, or service quality. The sector must strike a deliberate balance between prudence and progress - managing short-term pressures carefully while continuing to invest in sustainability, energy efficiency and digital transformation. This dual focus builds financial stability today and strengthens competitiveness for tomorrow.
Raj Gyawali
Founder of Social Tours
During crises, it is tempting to cut corners in sustainability or community partnerships, but those are the very things that make Nepali tourism authentic. Responsible tourism is no longer a luxury; it is survival strategy. Businesses that protect people, places, and reputation always recover faster.
Raj Gyawali: There is no single strategy here. Every tourism business in Nepal is at a different financial stage. But one thing applies to all - we must start doing scientific costing and keeping backup funds for the inevitable “rainy day.” Nepal faces disruptions almost every year, so resilience must be built into business planning.
During crises, it is tempting to cut corners in sustainability or community partnerships, but those are the very things that make Nepali tourism authentic. Responsible tourism is no longer a luxury; it is survival strategy. Businesses that protect people, places, and reputation always recover faster.
Rabi Chandra Singh
Chairman of Society International Travel Services Limited
Business-level action alone is insufficient. Government must provide tangible support including tax incentives for sustainability investments, facilitated access to green financing, direct subsidies for small enterprises, and pre-established crisis support mechanisms. Infrastructure improvements to transportation and utilities are critical for reducing operational costs. Policy stability is essential - businesses cannot make multi-year sustainability commitments without confidence in the policy environment. The government’s September 2025 commitment to “removing policy obstacles” must translate into concrete, sustained action.
Rabi Chandra Singh:
Understanding the dual nature of sustainability
The challenge of balancing short-term financial pressures with long-term sustainability encompasses two critical and interconnected dimensions: environmental sustainability (ecological responsibility, climate adaptation, and resource conservation) and long-term financial sustainability (business viability, financial resilience, and economic stability). While distinct, these dimensions are deeply interrelated - environmental degradation undermines the natural assets upon which tourism depends, while financial instability prevents businesses from making investments necessary for both environmental responsibility and long-term competitiveness.
The immediate aftermath of the September 2025 Gen Z protests has placed immense strain on Nepal’s tourism businesses across both dimensions. The crisis led to a sudden collapse in revenue with an 18.3% drop in tourist arrivals in September and projections of up to a 40% reduction in the near term. This financial shock, which resulted in an estimated $178 million in direct damages to the tourism sector and nearly 10,000 immediate job losses, exacerbates pre-existing vulnerabilities exposed during the Covid 19 pandemic, which had already depleted the financial reserves of many operators.
The Dual Sustainability Challenge
Tourism businesses now face a complex balancing act. Short-term financial pressures include severe cash flow crises, rising operational costs (particularly fuel and labour), debt burdens with limited access to new capital, workforce instability, and insufficient government support.
Simultaneously, long-term financial sustainability requires revenue diversification beyond single-stream accommodation income, resilient business models that can adapt to shocks, adequate capital reserves and financial planning, market positioning that commands premium pricing, and operational efficiency that supports healthy profit margins. Many tourism businesses operate with inadequate reserves, excessive debt, and short-term planning horizons that prevent strategic investment.
On the environmental front, sustainability is no longer optional. A significant majority of international travellers now prefer eco-friendly hotels, with younger travellers (Gen Z and millennials) prioritising environmental and social responsibility. For Nepal, a disaster-prone country facing recurring floods, landslides, and climate change impacts on Himalayan glaciers, environmental sustainability is existential—degradation of natural assets would eliminate the foundation of the tourism industry itself.
Strategic Framework for Integrated Sustainability
To successfully navigate these competing demands, tourism businesses must adopt integrated strategies that recognise sustainability not as a cost burden but as integral to crisis resilience and competitive positioning:
1. Phased Investment in Quick-Win Measures: Prioritise sustainability initiatives that generate immediate financial returns. Waste management improvements, water conservation, and energy efficiency create ongoing cost savings while building environmental credentials. Digital modernisation through contactless operations and AI-driven pricing reduces operational costs while optimising resource use—hotels adopting these strategies recovered faster globally post-Covid. Renewable energy installations, while requiring upfront capital, reduce ongoing energy costs and hedge against fuel price volatility.
2. Revenue Diversification for Financial Resilience: Develop ancillary services (catering, events, wellness programmes) that provide alternative income during off-peak periods. Target multiple market segments rather than depending on single demographics or geographic sources. Create year-round operations through products that attract visitors outside traditional trekking seasons. Offer value-added experiential products that command premium pricing and create competitive differentiation.
3. Collaborative Funding and Risk Sharing: Actively engage with programmes like the $5 million NTB-UNDP “Sustainable Tourism for Livelihood Recovery” project (2025-2028) to share the financial burden of sustainability transitions. Access green financing and sustainability-linked loans from international financial institutions offering favourable terms for environmental investments. Develop public-private partnerships to share infrastructure and training costs. Invest in comprehensive insurance and build contingency reserves during profitable periods.
4. Market Differentiation Through Sustainability: Position environmental and social responsibility as core brand values that attract high-value travellers willing to pay premiums. Pursue recognized sustainability certifications (Green Key, EarthCheck, Travelife) that provide credible validation. Integrate wellness tourism offerings that naturally align with sustainability principles. Develop community-based experiences that demonstrate social sustainability while creating unique, place-based offerings.
5. Strategic Financial Planning: Implement rigorous budgeting and forecasting under multiple scenarios including crisis disruptions. Utilise data analytics for demand forecasting, inventory management, and dynamic pricing. Conduct operational audits to identify inefficiencies and optimise cost structures. Build capital reserves during profitable periods specifically for crisis response and strategic investments. Manage debt to maintain flexibility and avoid excessive leverage.
6. Workforce Development: Invest in training for both sustainability practices and operational excellence through NTB programmes. Develop retention strategies through competitive compensation and career development. Engage youth in eco-tourism and entrepreneurship to channel Gen Z energy into constructive innovation.
Policy Support Requirements
Business-level action alone is insufficient. Government must provide tangible support including tax incentives for sustainability investments, facilitated access to green financing, direct subsidies for small enterprises, and pre-established crisis support mechanisms. Infrastructure improvements to transportation and utilities are critical for reducing operational costs. Policy stability is essential - businesses cannot make multi-year sustainability commitments without confidence in the policy environment. The government’s September 2025 commitment to “removing policy obstacles” must translate into concrete, sustained action.
Conclusion: Integrated Sustainability as Competitive Advantage
Long-term financial sustainability and environmental sustainability are mutually reinforcing rather than competing objectives. Businesses that invest in operational efficiency through sustainability measures reduce costs while building environmental credentials. Those that diversify revenue and develop unique value propositions through sustainable products enhance both financial resilience and market positioning. The crisis presents an opportunity to rebuild Nepal’s tourism sector on more sustainable foundations - both environmentally and financially - rather than simply restoring the status quo. Tourism businesses that recognise and act on this opportunity, supported by effective government policy, will emerge stronger and more resilient, while those focusing solely on short-term survival risk being left behind as global markets increasingly demand genuine sustainability.
Shiva Dhakal
Founder of Community Homestay Network and Royal Mountain Travel
Nepal needs to institutionalise a digital-first tourism framework that integrates marketing, booking, and analytics across platforms. Training programmes for SMEs, local-language content creation, and access to affordable digitalisation loans are essential. The sector must also invest in creative storytelling and media visibility - with hotels and tourism businesses promoting not just their properties but their surrounding destinations. Allocating proper marketing budgets and resources to comprehensive digital and physical strategies will ensure Nepal remains visible, relevant and competitive globally.
Shiva Dhakal: Tourism businesses in Nepal must view sustainability not as a cost but as a path to financial resilience. Post-crisis recovery often prioritises liquidity - maintaining operations and jobs - but long-term strength comes from embedding sustainability in daily practices. Energy-efficient systems, waste management, and local sourcing lower operational costs and strengthen community relations. Maintaining partnerships with local producers and women’s groups ensures quick recovery when demand returns.
Access to blended finance - combining grants, concessional loans, and partnerships - can help operators adopt green technologies and train staff. Investing in sustainable infrastructure, reducing import dependence, and diversifying products all help buffer future shocks. Those who align financial discipline with sustainability not only recover faster but also build stronger brands and long-term trust.
In an era dominated by digital and virtual engagement, can Nepal’s heavy reliance on traditional trade fairs and expos still deliver the international visibility it seeks?
Prithivi Bahadur Pandé: Traditional trade fairs have played a valuable role in relationship-building and trust creation, especially in Asian markets. However, relying solely on them limits reach. The future lies in hybrid visibility - combining digital storytelling, influencer engagement, and targeted online campaigns with selective participation in key trade events. A well-integrated digital presence not only complements these fairs but also ensures that Nepal remains visible year-round to global travellers.
Raj Gyawali: Tourism marketing today happens both through trade partners and direct traveller engagement online. These two routes need different tactics.
Trade fairs still matter because relationships in tourism are built on trust and personal contact. They help us read market trends and keep our presence visible. Yet, the world is shifting quickly toward digital discovery - where travellers are inspired by stories they find online.
The smart move is balance. Maintain our presence at traditional expos, but put equal or greater effort into digital storytelling, targeted campaigns, and destination branding online. The two can complement each other perfectly - one maintains relationships, the other builds reach.
Rabi Chandra Singh: In an era increasingly dominated by digital engagement, Nepal’s continued heavy reliance on traditional marketing methods, particularly international trade fairs and expos, is proving insufficient to secure the global visibility it needs. In the 2024/25 fiscal year, the Nepal Tourism Board (NTB) participated in 25 international tourism fairs, a strategy that consumes a significant portion of its 1.6 billion rupee ($11.4 million) annual budget.
While these events still hold value for business-to-business (B2B) networking and maintaining relationships with traditional tour operators, their effectiveness in reaching the modern traveller is rapidly diminishing. The target demographics for growth—millennials and Gen Z—overwhelmingly use digital channels for travel discovery and booking. The rise of social media has fundamentally altered the ways people traditionally experience tourism.
Nepal’s recent partnership with TikTok, announced in August 2025 TikTok to promote tourism in Nepal through a creator-led campaign called “#LifetimeExperiences” is a tacit acknowledgment of this shift, aiming to leverage the platform’s vast reach among younger audiences. However, this initiative remains an outlier in a strategy still heavily weighted towards physical events. The cost of this strategic imbalance is significant. The substantial investment in trade fairs yields limited reach compared to the potential of targeted digital campaigns, resulting in a lower return on investment. Furthermore, this reliance on physical events creates vulnerability to disruptions, as demonstrated by the mass cancellations and travel hesitancy following the recent political protests.
In contrast, competitor destinations have leveraged digital-first strategies to achieve more robust growth. The Maldives, for example, successfully used digital marketing and influencer partnerships to attract high-value tourists even during the global pandemic. To remain competitive, Nepal must undertake a strategic rebalancing of its marketing portfolio. This does not mean abandoning trade fairs entirely, but rather adopting a hybrid model:
1. Strategic Reduction: Reduce participation to a smaller number of high-impact trade fairs in key source markets, rigorously measuring the return on investment for each.
2. Digital Investment: Reallocate the savings to a comprehensive digital marketing strategy encompassing social media engagement, content marketing, influencer collaborations, and search engine optimisation.
3. Digital Integration: Maximise the impact of remaining trade fair participation by integrating digital elements, such as live-streaming presentations and launching targeted social media campaigns around the events.
Without this strategic shift, Nepal risks becoming invisible to a new generation of global travellers, ceding market share to more digitally-savvy competitors.
Shiva Dhakal: Trade fairs like ITB Berlin and WTM London remain relevant for B2B and B2C markets, offering valuable face-to-face networking and trust-building opportunities. However, their success depends on strategic integration with digital marketing. A hybrid model - where fairs are used for conversion and digital channels for lead generation - is essential for modern destination promotion.
Nepal should ensure consistent national representation through NTB at all major fairs, focusing on promoting the destination as a whole rather than just individual businesses. Pre-fair training and capacity building are critical so that participants enter with clear objectives, unified messaging, and a focus on measurable outcomes. Trade fairs must evolve from symbolic representation to conversion-driven platforms supported by strong digital storytelling, data capture, and follow-up campaigns that sustain visibility year-round.
Why has Nepal been slow to embrace a digital-first tourism strategy, and what might this reluctance cost in terms of global competitiveness?
Prithivi Bahadur Pandé: Nepal’s slow adoption stems from fragmented coordination among stakeholders, limited investment in digital infrastructure, and a lack of data-driven marketing culture. This hesitation risks losing younger, tech-savvy travellers who discover destinations primarily online. A unified, digital-first approach where hotels, tour operators, and the Nepal Tourism Board collaborate to present one consistent brand narrative can significantly enhance visibility and trust. The cost of inaction is not only missed opportunities but also diminished relevance in a highly competitive global market.
Raj Gyawali: The truth is simple: we entered the digital game late. As a country, we react more than we plan. We lack institutional knowledge, data systems, and long-term continuity.
Our tourism sector is also fragmented. Associations protect their own interests instead of uniting across the value chain - hotels, guides, transporters, farmers, artisans. Without cooperation and shared data, we cannot make informed digital decisions.
A digital-first strategy is not about flashy websites; it is about systems. Data analytics, content, online engagement, and smart integration must work together. Without this shift, Nepal risks losing visibility and credibility to faster-moving destinations that are already marketing smarter, not just louder.
Rabi Chandra Singh: Nepal’s slow embrace of a digital-first tourism strategy is a critical competitive disadvantage that stems from a combination of structural, institutional, and cultural factors. The NTB first announced its intention to focus on digital marketing in 2018, yet seven years later, in 2025, the country’s digital transformation remains in its nascent stages. This delay has incurred significant costs in terms of lost market share, diminished crisis resilience, and missed opportunities for data-driven growth.
The cost of this digital reluctance is starkly illustrated by the sector’s response to the September 2025 crisis. Lacking a sophisticated digital communication apparatus, Nepal was unable to swiftly counter the negative international media narrative and restore traveller confidence. This contrasts sharply with destinations that can deploy rapid, targeted digital campaigns and influencer content to manage their reputation in real-time.
Furthermore, the delay has made Nepal increasingly invisible to younger traveller segments who rely almost exclusively on digital platforms for inspiration and booking. The failure to collect and analyse digital data on traveller preferences also means that product development and marketing efforts are based on assumptions rather than real-time market intelligence. To overcome this, Nepal must move beyond isolated initiatives like the TikTok partnership and commit to a comprehensive, top-down digital transformation agenda driven by clear government policy, investment in skills and infrastructure, and a cultural shift within the industry.
Shiva Dhakal: Nepal’s slow digital transformation stems from fragmented SMEs, limited skills, and lack of investment in coordinated national systems. Many operators still rely on traditional agents and manual processes, while public institutions have been slow to build digital capacity. This gap risks alienating younger, digitally active travellers and reinforces dependence on online intermediaries that cut into margins.
Nepal needs to institutionalise a digital-first tourism framework that integrates marketing, booking, and analytics across platforms. Training programmes for SMEs, local-language content creation, and access to affordable digitalisation loans are essential. The sector must also invest in creative storytelling and media visibility - with hotels and tourism businesses promoting not just their properties but their surrounding destinations. Allocating proper marketing budgets and resources to comprehensive digital and physical strategies will ensure Nepal remains visible, relevant and competitive globally.
How effectively is Nepal Tourism Board (NTB) balancing promotion with policy advocacy, and will it lead a long-term strategic recovery beyond temporary campaigns?
Prithivi Bahadur Pandé: The Nepal Tourism Board has shown commendable effort in destination promotion, especially during recovery phases. However, true leadership lies in policy advocacy - creating the ecosystem that enables tourism to thrive sustainably. This means influencing infrastructure planning, facilitating digital transformation, and championing responsible tourism models. A strategic recovery must move beyond short-term campaigns and instead focus on building enduring systems that make tourism more resilient to future shocks.
Raj Gyawali: The Nepal Tourism Board (NTB) carries heavy expectations. But NTB alone cannot fix everything. Its main job is to bridge the gap between the private sector and the ministry - creating a strong marketing and promotional environment. That’s already a big task.
Tourism policy, however, cuts across many ministries - labour, agriculture, imports, forestry, environment, immigration, even child protection. Coordinating all this is not NTB’s solo responsibility. What we need is a united industry that supports NTB’s role while collaborating to align wider policies affecting tourism.
A practical example: when trekking guides demand job protection, it is actually a labour issue. NTB’s job is to coordinate with the Labour Ministry, not to handle it alone. That’s how systems thinking works.
We also need to understand the full tourism landscape - which policies touch tourism and how. Only then can we advocate meaningfully instead of reacting to isolated issues.
Short-term campaigns, like #NepalNOW, are vital for communication and recovery. If such campaigns remain active even in normal times, they gain credibility and can be quickly mobilised during a crisis to share trusted information.
Crisis management is not a single act; it’s a cycle - preparedness, response, recovery and learning. NTB has started this process and if we nurture it well, Nepal will get stronger after each crisis.
Rabi Chandra Singh: The Nepal Tourism Board (NTB) currently functions more as a promotional body than a strategic policy leader, an imbalance that severely limits its ability to drive the long-term recovery of the sector. While the NTB has been effective in executing its promotional mandate - participating in numerous international fairs, organising events, and running training programmes - these efforts are consistently undermined by deep-seated structural problems that the Board can identify but cannot resolve.
In a July 2025 briefing to a parliamentary committee, the NTB CEO accurately diagnosed the core challenges facing the sector including inadequate infrastructure, policy instability, a shortage of skilled labour, and a lack of quality tourism products. The Board has even identified specific priority infrastructure projects, such as improving key road and aviation links. However, the NTB lacks the authority and resources to implement these solutions. Its role is largely confined to advocacy, and the persistence of these same issues over many years indicates that this advocacy is not translating into effective government action.
This structural limitation creates a cycle of reactive problem-solving rather than proactive strategic planning. The response to the recent crisis, which focused on public relations messages of safety, exemplifies a temporary campaign rather than a long-term strategic recovery plan. A true recovery strategy would involve addressing the root causes of the sector’s vulnerability, such as market over-concentration, a lack of product diversity, and insufficient crisis preparedness systems.
For the NTB to lead a meaningful recovery, its mandate must be fundamentally reformed. It requires:
• Enhanced Authority: The ability to influence policy and regulatory decisions related to tourism, rather than merely making recommendations.
• Increased Resources: A budget that allows for significant investment in research, policy analysis, and strategic initiatives, not just promotional activities.
• A Shift in Focus: A transition from being primarily a marketing organisation to becoming the central strategic planning and coordinating body for the entire tourism ecosystem.
Without these changes, the NTB will continue to be a well-intentioned but ultimately ineffective advocate, running promotional campaigns while the fundamental weaknesses of the sector remain unaddressed.
Shiva Dhakal: NTB has maintained Nepal’s international visibility through campaigns and global fairs, but the next stage of recovery requires stronger policy leadership and institutional capacity. Beyond marketing, NTB must act as a strategic coordinator - linking data, sustainability and product innovation.
Building staff capacity in leadership, communication and strategic management is essential to improve efficiency and alignment between policy and implementation. A systematic operational framework with clear monitoring mechanisms should guide all activities. Establishing a Tourism Data Observatory will support evidence-based planning, while adopting sustainability standards aligned with GSTC and Travelife can elevate the industry.
To diversify visibility, NTB could introduce a “New Destination Campaign” annually, highlighting emerging regions and experiences to create buzz and distribute tourism benefits more evenly. By combining promotion with policy, data, and innovation, NTB can lead a genuinely strategic and sustainable recovery.
As Nepal aims to revive its tourism sector post-crisis, should the country continue to rely on traditional trekking and cultural tourism, or is it time to radically reimagine its tourism model to attract a new generation of global travellers?
Prithivi Bahadur Pandé: Nepal’s heritage, landscapes, and spirituality will always remain at the heart of its tourism appeal, but the way we present them must evolve. The future lies in diversification - wellness and high-altitude recovery retreats, adventure-sports circuits, digital-nomad-friendly stays, and regenerative community-based experiences that empower locals. We must retain our authenticity while integrating innovation and sustainability. In doing so, Nepal can move from simply bouncing back to truly bouncing forward - emerging stronger, smarter, and more relevant for the next generation of global travellers.
Raj Gyawali: Nepal’s power lies in its geography and people - from 54 metres above sea level to the top of the world, from dozens of ethnic groups to countless stories. We already have the ingredients to deliver our brand promise: Lifetime Experiences.
We do not need to reinvent tourism. We need to focus. Deliver what we promise, consistently and responsibly, whether it’s culture, trekking, soft adventure, or wellness. Quality and authenticity will always attract the next generation of travellers.
Tourism is one of the few industries that creates value without exporting it. It keeps income circulating locally and provides meaningful livelihoods in rural areas. It is also one of the few reasons young people still live in their villages.
If we nurture this industry with vision and collaboration, tourism will not just help Nepal bounce back, it will help us bounce forward, turning every crisis into a stepping stone toward a smarter, more united and more sustainable future.
Rabi Chandra Singh: As Nepal aims to revive its tourism sector, the question of whether to rely on its traditional model or to radically reimagine it is paramount. The country’s historical success has been built on the twin pillars of trekking/mountaineering and cultural/religious tourism. These offerings are based on world-class, irreplaceable assets like Mount Everest and Lumbini, and they continue to have strong underlying demand, as evidenced by the 98% recovery to pre- pandemic arrival numbers by September 2025 (before the protests).
However, the crisis has starkly illuminated the vulnerabilities of this traditional model:
• Geographic & Market Concentration: Heavy reliance on specific trekking regions and source markets (India accounts for 27.7% of arrivals) creates high risk from localised disruptions or downturns in a single market.
• Seasonality: The model’s dependence on trekking seasons leads to boom-and-bust cycles for businesses and unstable employment.
• Changing Demographics: The traditional model is not fully aligned with the preferences of younger, digitally-native travellers who seek diverse, experiential, and socially-conscious travel.
Therefore, the path forward is not to abandon the traditional model but to strategically enhance it while aggressively pursuing targeted innovation. A radical reimagination that ignores Nepal’s core strengths would be risky and inefficient. Instead, a dual approach is required:
1. Enhance the Core:
• Upgrade Infrastructure: Improve transportation links and digital connectivity on major trekking routes.
• Ensure Quality & Safety: Implement and enforce international standards for safety and service.
• Integrate Sustainability: Promote and certify eco-friendly practices to appeal to conscious travellers.
2. Innovate and Diversify:
• Religious Pilgrimage Tourism: Develop Nepal as a major global hub for both Hindu and Buddhist pilgrimage tourism, comparable to Saudi Arabia’s Islamic tourism model or India’s emerging Ram Mandir pilgrimage circuit. Currently, only 13.1% of Nepal’s tourists come for religious purposes, far below the global average of over 33%. This represents massive untapped potential given Nepal’s unique dual heritage.
• Hindu Pilgrimage Circuit: Position Pashupatinath Temple (one of South Asia’s most significant Hindu religious complexes) as a premier pilgrimage destination comparable to emerging sites like Ayodhya’s Ram Mandir, which attracted 164.5 million visitors in 2024 (nearly 3x growth from 2023). Develop an integrated circuit connecting Pashupatinath, Muktinath (high-altitude pilgrimage site), Janakpur (birthplace of Sita), and other sacred Hindu sites. With India as Nepal’s largest source market (27.7% of arrivals) and the world’s largest Hindu population just across an open border, the potential for Hindu pilgrimage tourism is enormous.
• Buddhist Pilgrimage Circuit: Expand promotion of Lumbini (birthplace of Buddha) as a global Buddhist pilgrimage hub. While Lumbini attracted 343,000 visitors in 2023 (up from 82,000 in 2022), this is minimal compared to its potential given that China alone has 50% of the global Buddhist population. The Greater Lumbini Buddhist Circuit connecting sites across Nepal, India, and Tibet, combined with improved infrastructure including Gautam Buddha International Airport, could transform Buddhist tourism.
• Economic Model: Religious tourism globally generates 450 million trips annually with 9.1% projected growth through 2034. Saudi Arabia’s Hajj generates $12 billion annually (projected to reach $50 billion), while Ayodhya’s transformation demonstrates how government investment in religious tourism infrastructure can create exponential growth. Nepal should develop a structured revenue model including large-scale accommodation, spiritual retreat centers, festival-based tourism, and year-round programming that balances commercialisation with spiritual authenticity.
• Wellness and Spiritual Tourism: Develop and market high-quality yoga, meditation, and spiritual retreats, leveraging Nepal’s authentic heritage and integrating with religious pilgrimage offerings.
• Experiential Travel: Expand community-based homestays and cultural immersion programmes that offer authentic local interactions.
• Adventure Hybrids: Create new products that combine traditional adventure with other elements, such as “adventure wellness” (trekking and yoga) or culinary treks.
• Niche Segments: Target growing niche markets like LGBTQ+ travel (“pink tourism”) and educational tourism.
This strategic evolution must be powered by a digital-first mindset. Technology is not a separate model but an enabler for all tourism products, from virtual reality previews of treks to AI-driven personalisation of cultural tours. By enhancing its proven strengths and innovating to meet new market demands, Nepal can build a more resilient, diversified, and competitive tourism sector that attracts both its traditional base and a new generation of global travellers.
Conclusion: A Call for Strategic Transformation
The crisis triggered by the Gen Z revolution is a watershed moment for Nepal’s tourism industry. It serves as a powerful catalyst for addressing long-standing structural weaknesses and accelerating a necessary strategic transformation. Merely waiting for a return to normalcy is not a viable strategy, as the pre-crisis “normal” was already characterised by significant vulnerabilities. The path to a resilient and competitive future requires a concerted and coordinated effort from both the government and the private sector, focused on three core pillars:
1. Embrace Digital Transformation: Nepal must move decisively from a traditional, event- based marketing approach to a digital-first strategy. This requires not only investing in technology and skills but also fostering a culture of digital innovation across the industry.
2. Diversify the Tourism Portfolio: While continuing to enhance its world-class trekking and cultural products, Nepal must aggressively develop and promote new offerings in areas like religious pilgrimage tourism (leveraging Pashupatinath and Lumbini as global Hindu and Buddhist hubs), wellness tourism, experiential travel, and niche adventure to reduce market concentration and seasonality. The massive gap between Nepal’s current religious tourism share (13.1%) and global averages (33%+) represents an extraordinary opportunity for year- round, high-value tourism growth.
3. Empower Strategic Leadership: The Nepal Tourism Board must be reformed and empowered to act as a true strategic authority for the sector, with the mandate and resources to drive policy reform, coordinate infrastructure development, and lead a cohesive national tourism strategy, rather than functioning primarily as a promotional agency.
The energy and demands for change unleashed by Nepal’s youth, while disruptive, also signal a desire for a more modern, transparent and effective system. By channelling this energy into innovation and reform, Nepal’s tourism sector can emerge from this crisis not just recovered, but fundamentally stronger, more sustainable, and better positioned for long-term success in the competitive global tourism landscape.
Shiva Dhakal: Trekking and cultural heritage remain the pillars of Nepal’s identity, but evolving traveller preferences demand diversification. The future lies in high-value, low-impact tourism that prioritise quality, authenticity, and inclusion.
Nepal’s alternative growth path includes:
• Community Tourism (CT): Expanding homestays and women-led enterprises in lesser-known regions to strengthen local ownership.
• Wellness and Regenerative Tourism: Positioning Nepal as a regional hub for yoga, Ayurveda, and mindful retreats.
• Sustainable Mobility and Slow Travel: Promoting EV-based itineraries and long-stay, low-carbon experiences.
• Creative and Educational Tourism: Linking art, cuisine, and culture with learning exchanges and residencies.
• Adventure 2.0: Developing cycling circuits, eco-trails, and micro-adventures that decentralise tourism beyond Everest and Annapurna.
Nepal should also pursue high-value tourism that overcomes geographical constraints through improved infrastructure, luxury EV mobility, and premium experiences. This approach encourages longer stays, higher spending, and deeper engagement - ensuring that tourism growth remains inclusive, sustainable and resilient.
