How Nepal Can Unlock 4 Million Tourists: HAN President Binayak Shah Outlines Tourism Roadmap

1st November 2026, Kathmandu

Nepal’s hospitality industry possesses the infrastructure to serve up to 4 million international tourists every year, yet less than one-third of that potential is currently being realized.

According to Binayak Shah, President of Hotel Association Nepal (HAN), strategic focus on neighboring markets, specifically India and China, alongside urgent infrastructure and policy reforms, can turn tourism into Nepal’s primary engine for national economic prosperity.

The Gap Between Infrastructure Capacity and Tourist Arrivals

In 2025, Nepal welcomed approximately 1.147 million tourists. While this reflects steady post-pandemic recovery, it represents less than one-third of the total capacity built by the domestic hotel sector.

With trillions of Nepalese Rupees invested in high-standard accommodations and international hotel brands, substantial private capital remains underutilized due to lower-than-expected visitor numbers.

“We are situated between India and China, where tens of millions of citizens travel abroad annually for holidays,” stated Shah. “If Nepal can capture even a tiny fraction of that outbound traffic, the economic yield for our nation will be massive.”

Shah emphasized that tourism growth is not isolated to hotels. Increased visitor volume creates a powerful multiplier effect across key national sectors:

Agriculture: Higher demand for local produce and organic goods.

Transportation & Logistics: Growth in vehicle rentals, tour operations, and regional travel.

Banking & Finance: Increased foreign currency inflow and transaction velocity.

Aviation & Services: Expanded route networks and local employment opportunities.

4 Strategic Priorities for Nepal’s Tourism Revival

To bridge the gap between capacity and performance, HAN has outlined key operational and policy interventions needed from the Nepalese government:

1. Operationalizing Regional Airports & Upgrading Transport Networks

Air connectivity remains the primary bottleneck for tourist arrival numbers.

Bhairahawa & Pokhara Airports: Over three years after their inauguration, Gautam Buddha International Airport (Bhairahawa) and Pokhara International Airport remain underutilized.

Fully operationalizing these international gateways will directly connect regional hubs in India and China without congesting Kathmandu’s Tribhuvan International Airport.

EU Aviation Safety List Removal: Resolving safety compliance issues to remove Nepalese airlines from the European Union air safety list is vital to restoring direct long-haul European travel.

Highway Upgrades: Accelerating road widening and maintenance projects along the primary tourist triangle Kathmandu, Pokhara, Chitwan, and Lumbini is essential for seamless ground transportation.

2. Addressing the Skilled Hospitality Workforce Shortage

Despite hosting nearly four dozen international hotel brands, Nepal faces a paradox in its labor market:

Brain Drain: Local workers trained in hospitality and hotel management frequently migrate abroad for higher-paying positions.

Foreign Labor Reliance: Domestic hotel operators are increasingly forced to hire foreign personnel to fill specialized technical and management roles.

Retaining talent requires proactive government labor policies, clear information on wage standards, and structured incentive programs for hospitality professionals within Nepal.

3. Diversifying Niche Markets Beyond Traditional Hubs

Most visitors remain concentrated in established corridors like Kathmandu Valley, Pokhara, Chitwan, and the Everest/Annapurna trekking regions.

To extend length of stay and increase average daily expenditure, Nepal must market its 100+ identified alternative destinations across all seven provinces, expanding into targeted niches:

Wellness & Spiritual Tourism: Leveraging natural assets, Ayurveda, yoga, and meditation retreats ahead of the government-declared “Nepal International Wellness Tourism Year 2027.”

MICE & Destination Events: Promoting Nepal as a competitive destination for international conferences, corporate retreats, and destination weddings.

Adventure & Sports Tourism: Moving beyond classic trekking into mountain biking, trail running, white-water sports, and mountaineering expeditions.

4. Climate Resilience and Crisis Communication

With climate change causing unpredictable weather events across the Himalayas, disaster risk management and factual media communications are essential.

Reliable crisis messaging prevents false perceptions from discouraging international travelers during minor localized disruptions.

Building a Unified Public-Private Action Plan

Unlocking Nepal’s full tourism potential requires seamless cooperation between private sector operators and public policymakers.

By addressing air connectivity bottlenecks, upgrading national highways, retaining skilled talent, and promoting high-value niche segments, Nepal can transform its trillion-rupee hospitality investment into sustainable economic growth.

For more: Nepal Can Unlock 4 Million Tourists