Contact Us

Why Invest in
Hospitality & Tourism
in Nepal

Nepal's hospitality and tourism industry is not just one of its fastest-growing sectors—it is the beating heart of the country's economic, cultural, and global identity.

1.2M+

International Tourists

7.9%

GDP Contribution

1.05M+

Jobs Supported

Start Your Investment Journey

Market Snapshot & Key Data (2024)

Metric Value
Total International Tourists (2024)1.2 million+
Domestic Tourism Trips (Est.)7.5 million
Contribution to GDP7.9%
Employment Supported1.05 million+
Growth Forecast (2025–2030)CAGR of 6.2%
Average Tourist Stay Duration12.6 days
Average Daily Spending per Tourist$48.67 USD
Hotel Room Shortage in Key Regions15,000+ rooms
Global Tourism Growth Forecast5.8% CAGR (WTTC)

1. Strategic Geographic Advantage

Nepal is sandwiched between two of the world's largest and fastest-growing outbound tourism markets—India and China, accounting for over 43% of global tourist growth.

India Market

5 million+ potential middle-class travelers interested in pilgrimage, nature, and adventure.

China Market

High-spending segment driven by spiritual and experiential tourism.

New International Airports

Gautam Buddha International Airport (Lumbini) & Pokhara International Airport are game changers.

2. Diverse Tourism Segments with Untapped Potential

Nepal is one of the few countries that offer adventure, spiritual, cultural, wellness, wildlife, and luxury tourism—all within short travel distances.

Nepal ranks #3 globally for adventure tourism potential (Adventure Travel Trade Association, 2023)

High-Growth Segments:

Trekking & Adventure

Everest Base Camp, Annapurna Circuit, Manaslu, Dolpo

Religious Tourism

Lumbini (Birthplace of Buddha), Pashupatinath, Muktinath

Wellness Tourism

Yoga, Ayurveda, Meditation retreats in Pokhara, Kathmandu, and rural hills

Luxury Tourism

High-end resorts in Chitwan, Mustang, and Everest Region

Eco & Rural Tourism

Homestays, tea houses, agri-tourism models in Ilam, Rukum, and Karnali

3. Rising Demand and Supply Gaps

Despite increasing tourist flow, Nepal faces a significant shortage in hospitality infrastructure, particularly:

Mid-range & Boutique Hotels

Eco-lodges & Sustainable Resorts

Theme Parks & Entertainment Centers

Digital Travel Platforms & OTAs

Quality Dining & International Restaurants

Hotel Room Deficit by Destination

Destination Hotel Room Deficit
Pokhara5,000 rooms
Lumbini2,500 rooms
Chitwan1,800 rooms
Mustang & Dolpo1,200 rooms

4. Government Support & Policy Incentives

The Government of Nepal has declared Tourism as a national priority sector and offers a range of investment benefits:

Key Investment Incentives:

100% Foreign Direct Investment (FDI)

Allowed in tourism and hospitality

Tax Holiday up to 10 Years

In Special Tourism Zones

50% Income Tax Rebate

In remote and underdeveloped areas

Customs Duty Exemptions

On imported equipment and building materials

Land Lease from Government

Up to 50 years at concessional rates

Visa Relaxation

On-arrival facilities for 160+ countries

5. Strong Domestic Market

While international tourism is important, Nepal's domestic travel boom is a lucrative segment on its own:

7.5M+

Domestic Trips in 2024

Rise of Millennial Travelers

Increased Connectivity

Honeymoon & Family Packages

6. Increasing Hotel Investment Interest

Major global and regional hotel brands are entering or expanding in Nepal:

Brand Status
MarriottOpened in Kathmandu (2019), planning in Pokhara
Aloft by MarriottOpened in Thamel
Hyatt RegencyExisting flagship, exploring Pokhara and Lumbini
Accor HotelsSurveying for potential franchise models
Indian BrandsLemon Tree, Taj Vivanta exploring expansion

7. High Return on Investment (ROI)

Due to low construction cost and high occupancy rates, ROI in Nepal's hospitality sector ranges from 12% to 18% annually, higher in boutique and eco-tourism models.

Investment Type Average ROI
Boutique Hotel (Kathmandu/Pokhara)15–17%
Eco-lodge (Annapurna/Chitwan)16–20%
Wellness Resort (Lumbini/Helambu)12–14%
Budget Chain Hotel (Tier 2 cities)13–16%

8. Shift Toward Sustainable and Experiential Travel

Post-COVID, tourists seek authentic, sustainable, and nature-connected experiences—areas where Nepal naturally excels.

UNESCO Sites

Kathmandu Valley, Sagarmatha, Lumbini, Chitwan

Community-Based Tourism

Eco-lodges, homestays, and local integration on the rise

Sustainable Practices

"Leave no trace" trekking programs and carbon offset initiatives

Investor Advantage: Investors who adopt eco-conscious, locally integrated models are strongly favored by both tourists and local authorities.

9. Digital Transformation in Travel & Tourism

The Nepali travel market is rapidly digitizing:

74%

Online Bookings in 2024

Rising Digital Platforms

Toornepal.com, MyHolidayNepal, HoneyGuide, BookMandu

Tech Investment Gaps

Custom booking systems, OTA startups, app-based solutions

Opportunity: Investors in hospitality tech, hotel software, or experiential travel apps can build a monopoly in underdeveloped verticals.

10. Opportunity for Themed Developments

Glamping Resorts

In Pokhara, Nuwakot, Rara

Cultural Hotels

With Newar, Gurung, and Tharu architecture

Hybrid Centers

Trekking + Wellness + Spiritual in Mustang & Gosaikunda

MICE Hotels

Meetings, Incentives, Conferences, Events focused in Kathmandu

Riverfront Resorts

With kayaking & rafting packages in Marsyangdi, Trishuli, Seti

Case Studies: Success Stories

Barahi Group, Pokhara

Started as 10-room hotel, now a diversified resort group with 3 properties.

  • Expanded into boats, safaris, and wellness
  • Revenue CAGR of 18% in last 7 years
18%

Revenue CAGR

Meghauli Serai, Taj Safari – Chitwan

Ultra-luxury resort targeting high-value safari and jungle experience seekers.

  • High occupancy and room rates ($700+ per night)
  • 50% guests are repeat or referral-based
$700+

Per Night Rate

Conclusion: Nepal is Ready. Are You?

Nepal is no longer just a backpacker's paradise—it's a premium experiential tourism destination on the rise. With rich natural beauty, a welcoming culture, strong government support, increasing tourist arrivals, and massive supply gaps in hospitality infrastructure—now is the golden window for smart investment.

Whether you're a boutique hotel enthusiast, a wellness resort investor, or a digital travel innovator—Nepal's tourism industry is a goldmine with the potential to yield exponential returns.

Ready to Transform Your Investment Portfolio?

Connect with ToorNepal today and discover how you can be part of Nepal's hospitality revolution.