The hospitality sector in Nepal has undergone a significant transformation over the past few decades, evolving from a traditionally informal industry to a sophisticated, globally competitive market. This shift has been driven by a combination of policy initiatives, international partnerships, and local entrepreneurship, resulting in a dynamic landscape where traditional practices intersect with modern business strategies. The sector's growth has not only enhanced the country's economic development but has also played a crucial role in youth employment, offering a wide range of career opportunities and fostering a new generation of skilled professionals.
Abode to the towering peaks of the world’s highest mountains including the iconic Mount Everest, majestic Himalayan range and lush green valleys, Nepal offers a breathtaking array of picturesque landscapes. The country’s diverse geography encompasses dense jungles teeming with wildlife in Bardiya and Chitwan National Park, the tranquil beauty of Gosaikaunda in Rasuwa, and the rugged dramatic terrain of the Mustang region. Each corner of Nepal reveals a unique facet of its stunning natural splendor, drawing adventurers, nature lovers, and spiritual seekers from around the globe.
Beyond its physical beauty, Nepal is also renowned for the warmth and hospitality of its people. The traditional Nepali ethos of ‘AtithiDevoBhava - welcoming guests as you would welcome gods’ elevates every aspect of hospitality. This cultural value is evident in the warm welcomes, generous hospitality, and genuine kindness extended to visitors. Traditional practices such as offering guests the ceremonial scarf Khada, marigold garlands, tikaon the forehead and home-cooked meals have long been integral to the Nepali way of welcoming guests. These customs create an inviting and homely atmosphere for travelers, making them feel cherished and respected.
In recent years, this deeply ingrained tradition of hospitality has evolved into a trend, shaping Nepal’s modern tourism and hospitality industry. As Nepal opened its doors to the world and embraced global tourism primarily after the first successful summit of the Mt. Everest in 1953, the hospitality sector expanded and adapted. Therefore it is safe to mention that until the 1970s, Nepal’s tourism industry was in its infancy. The country definitely attracted trekkers and adventure tourists with the allure of the Himalayas, particularly after the opening of trekking routes like the Annapurna Circuit and Everest Base Camp. Hippie movement, independent thinkers and intellectual soul searching individuals kept rising until 1980s. Nepal offered very basic accommodations and services through guesthouses and modest hotels, mostly prepared for budget travelers.
Nepal’s hospitality industry has seen significant evolution over the past few decades, reflecting broader trends in tourism and global economic changes. During year 1990-2000, the tourism industry transformed and identified as a key economic activities and Nepal carefully decided to open doors for international chain hotels, setting up a tourism board, a national tourism organization to structurally promote tourism in Nepal and started envisioning the appropriate upgrade of tourism infrastructure and training the human capital. High-end eco-lodges, luxury resorts, and boutique hotels sprouted, blending modern amenities with traditional Nepali charm. These establishments prioritize sustainable practices, heritage conservation, and authentic cultural experiences, ensuring that visitors enjoy both comfort and a deep connection to Nepal’s rich traditions. This is also a time when ecotourism was consciously envisioned, and Annapurna trekking route, which is considered one of the world’s top 10 routes, were introduced. However, this is also the time when armed conflict, 1995-2006, devastated the tourism industry and took an entire decade until 2010 for recovery but at the same time, sustainable tourism models were proposed. The earthquake in 2015 truly razed the tourism to the grounds, but Nepalese tourism industry bounced back very quickly and 2018, Nepal recorded the highest tourism arrival in the history, and Nepal declared ambitious Visit Nepal 2020 but the COVID-19 once again devastated the tourism in Nepal.
Post-COVID recovery shows the resilience of Nepalese tourism industry and technology integration, welcoming several new international chains, and hospitality industry is evolving in a very positive direction. The number of hotel rooms doubled within the past one decade. Currently Nepal is in a very comfortable place in terms of its wide range of offerings which are competitive and unique. The only challenges that the unstable government, and lack of mechanism, commitment, and transparency, Nepal fails to benefit from global tourism growth.
Nepal is diligently working to reclaim its rightful place on the global tourism map. The country's frequent appearances in global media showcase its unique offerings, such as the launch of the first experiential high-end stay at most reputed Shinta Mani Resorts in Jomsom, Mustang. Additionally, a story published in Time magazine highlights Burham Lodge, a conservationist's efforts to create a wildlife experience in BardiyaNational Park without constructing any permanent infrastructure, preserving the natural habitat of wild elephants.Nepal's appeal extends to its renowned eco-lodges like Pavilion Himalayas in Pokhara and the low-carbon-footprint operations of Tiger Tops in Chitwan National Park. In collaboration with Kathmandu University,Nepal also attracts a significant number of young students to study Buddhist philosophy at monasteries in Kathmandu’s Boudhanath and the birthplace of Lord Buddha Lumbini.This effort draws scholars from around the world in pursuit of knowledge and mystic experiences. Nepal is home to eight of the world's fourteen highest peaks, including Mt. Everest, world’s tallest mountain, making it life’s ultimate goal for mountaineers. The Great Himalayan Trails, trekking routes, community homestays, and conservation parks further contribute to Nepal's rich tourism identity.
Nepal strongly follows the global trends: internet booking, use of global platforms in social media, Nepal’s presence is significant. Digital access must be the most important trends, followed by appetite to develop Nepal as a conscious destination for pilgrims, spiritual seekers and holiday makers. Nepal ticks all the boxes, in terms of what the global travelers, especially high-end tourists are looking for. Healthy food, sustainability, lowest carbon footprint, emphasis on local traditional designs, wildlife conservation, showcasing nature, culture, cuisine, heritage, and history has been the highlight of the latest trends. Besides, Nepal is fast making its name on experiential tourism, adventure, and spiritual tourism. Not to mention domestic tourism income has been a record high in the past several years, which is very encouraging for Nepal.
While Nepal boasts modern, world-class international hotel chains, many businesses continue to emphasize high-end eco-lodges, conservation of heritage, and the use of traditional Nepali architecture. Nepalese tourism entrepreneurs are deeply attuned to the unique strengths of Nepalese traditions, integrating them into their offerings. Storytelling about festivals, culture, and rituals continues to be a cherished aspect of the guest experience. Additionally, new infrastructure is being developed in harmony with traditional and cultural norms, incorporating traditional designs. Nepali pride is showcased through music, arts, handicrafts, sculpture, wood works, ethnic dances, folklore, and cultural celebrations, all of which are robustly preserved today.
Nepali youth are increasingly attracted to the hospitality and tourism industry due to the numerous opportunities presented by trendy restaurants, hotels, resorts, and homestays in the country. These avenues offer entrepreneurial and employment prospects, allowing young people to engage gainfully in the sector. With unlimited access to information, Nepali youth recognize their innate hospitality, which, when complemented by education, training and experience, opens doors to careers beyond borders. In the early days, career aspirations in Nepal were predominantly centered on becoming doctors and engineers. These professions were seen as prestigious and secure, providing a clear path to success. However, in recent years, there has been a noticeable shift in career preferences, with the hospitality industry emerging as a popular choice among young professionals. Historically, the hospitality sector was dominated by a select few who were highly educated and able to secure top positions. The majority, however, found themselves in entry-level roles. This disparity contributed to a societal perception that careers in hospitality were less desirable. Our society's psychology has long been influenced more by visible examples and personal experiences than by statistical data. Today this mindset is changing. With better access to education, more people obtaining passports, and a wider array of career opportunities, the perception of the hospitality industry has evolved. Young professionals are now drawn to the diverse opportunities and growth potential within the sector.
This shift is a testament to the broader changes in Nepalese society. Increased exposure to different professions and a more informed decision-making process are enabling individuals to explore and pursue careers that align with their passions and interests. The hospitality industry, with its dynamic and evolving nature, has become a beacon of opportunity for many. In recent years, the hospitality industry has witnessed a surge in popularity among young professionals in Nepal. The hospitality industry offers a broader spectrum of opportunities, making it accessible to a wider range of individuals. One of the key benefits of the hospitality industry is its capacity to encompass individuals who may not have achieved top academic results or had the opportunity to pursue extensive education. This inclusivity significantly enhances youth employment prospects, especially for those with limited or basic education. It provides a platform for such individuals to build successful careers, thereby contributing to the reduction of unemployment and supporting economic growth.
Since the establishment of the first hospitality college in 2000, the number of institutions offering bachelor's degrees in hospitality has grown to over 100. Additionally, many international hospitality colleges welcome Nepali youth, promising immediate career advancement upon completing their education and training. However, due to a lack of effective state monitoring policies, the quality of outcomes often falls short, failing to guarantee desired results in youth employment. There are many opportunities for young people in Nepal to advance in the hospitality and tourism field through formal education and training programs from recognized institutions. There are enough specialized courses in the field, providing the necessary skills and knowledge. Internships and apprenticeships are widely available for practical experience through internships and apprenticeships at hotels, resorts, restaurants, and travel agencies can provide hands-on experience and professional growth.
Additionally youth have an opportunity to equally participate in entrepreneurial activities as the growing trends of experiential tourism, homestays, and boutique hotels offers young entrepreneurs the chance to start their own businesses, catering to niche markets. They don’t necessarily have to enroll to degree programs, but also wide range of certification programs are offered in hotel management, event planning, or culinary arts can enhance credentials and job prospects. Students can learn languages new to Nepal such as Japanese, German, and others based on their requirements. They can learn technology, programming and many IT skills to become create employment for themselves and others.
Nepal has many untapped destinations and tourism products to compete effectively. However, the country needs policy reforms, free from political interference and indecision, and must promote meritocracy. By creating opportunities for youth to stay in their communities and contribute to the country, Nepal can achieve economic benefits and foster long-term social harmony. Nepal is at risk of losing its demographic dividend as a young nation due to the significant outflow of young talent. If the government fails to develop the necessary human capital and provide attractive benefits and entrepreneurial support, the country may miss out on the potential benefits of the tourism industry.
Nepal stands at a critical juncture in determining whether the tourism and hospitality industry will become a cornerstone of the economy, employment, and national reputation. The recent Grade 10 (SEE) results reveal a concerning reality, with a 52% failure rate and many students never reaching this level. These young individuals represent a crucial asset for national development, provided they receive access to world-class training and vocational education. Without proper educational opportunities, many may end up in menial jobs abroad, and Nepal will continue to face challenges. While world-class infrastructure can be built with investment, developing a skilled local workforce cannot be achieved overnight. It is essential to seize the opportunity to train and prepare our youth for the anticipated growth. Nepalese youth already possess inherent hospitality qualities; our task is to refine these skills and instill a sense of pride, ensuring they contribute effectively to the industry’s success. Attracting international chains to Nepal involves thorough research and understanding of market potential. Therefore, it is crucial for the government and policymakers to prioritize the training and education of youth. Both degree programs and vocational skills are essential for maintaining quality tourism.
Secondly, inadequate marketing efforts by the Nepal Tourism Board lead to low occupancy rates in many hotels, and wages in the formal hotel sector have not seen significant increases. Global conflicts impact tourism both in Nepal and worldwide, limiting economic activities and growth, and Nepal is no exception. As a result, the absence of desired growth remains prevalent. Additionally, cultural taboos surrounding certain professions, insufficient awareness about the dignity of labor, and a lack of career counseling are some of the other major challenges Nepali youth face today.
Nepal’s evolution as a hospitable destination is a dynamic journey that bridges tradition with modern trends. The inherent warmth and generosity of Nepali culture have seamlessly blended with global hospitality standards, creating a unique and appealing experience for travelers. This transformation has not only enhanced Nepal’s appeal as a tourist destination but has also significantly impacted youth employment. The sector’s inclusivity, combined with increasing educational opportunities and entrepreneurial avenues, has opened up numerous pathways for young Nepalese to build fulfilling careers in hospitality. As Nepal continues to attract visitors with its rich traditions, stunning landscapes, and evolving hospitality industry, it stands poised to offer both its guests and its youth a promising and vibrant future.
(Kharel is the host and producer of Inspiring Women and Global Perspectives talk shows.
KhemLakai is the CEO of the Global Academy of Tourism & Hospitality Education. He is currently serving as the President of Nepal Swiss Chamber of Commerce and Industries.)
