Tuesday, August 6, 2019

Government fails to meet tourism targets

The government has failed to meet major targets of the tourism sector in the 14th national plan.
According to Ministry of Culture, Tourism and Civil Aviation progress report, a total of 701,000 tourists visited Nepal in the fiscal year 2015-16. Based on the record, the government had – in the 14th periodic plan – set a target of bringing in 800,000 visitors in the fiscal year 2016-17, one million in 2017-18 and 1.2 million in the fiscal year 2018-19.
However, in the fiscal year 2016-17, only 753,002 tourists visited the country.
Likewise, the country received only 940,000 tourists in 2017-18 and 1.1 million visitors in 2018-19, according to a progress report – issued by the ministry today – that also revealed that the ministry also failed to meet foreign exchange earnings targets. “Based on the earnings of the fiscal year 2015-16 – that stood at $497 million – the periodic plan had set a target of earning $594 million in 2016-17, $800 million in 2017-18 and $1.08 billion in 2018-19.”
However, in the fiscal year 2016-17, the country received $510 million from the tourism sector, whereas in the fiscal year 2017-18 and in 2018-19, the country earned $620 million and $670 million, respectively, failing to meet the targets of all the three fiscal years.
Likewise, the ministry has also failed to meet the target – set in the 14th national plan – for duration of average stay per tourist. Based on the length of average stay in the fiscal year 2015-16 – tht was 12.4 days – the periodic plan had set a target of increasing the average stay per tourist to 13.5 days in the fiscal year 2016-17, 14 days in 2017-18 and 15 days in 2018-19. “Although the length of average stay reached 13.4 days in the fiscal year 2016-17, it dropped to 12.6 days in 2017-18 and slipped further to 12.4 days in the fiscal year 2018-19,” the report revealed.
The ministry has even failed to meet the target of per day expenses per tourist. According to the report, based on per day expenses per tourist in the fiscal year 2015-16 – that stood at $53 – the government had set a target of achieving per day expense of $55 per traveller in the fiscal year 2016-17, $58 in 2017-18 and $60 in 2018-19. “However, per day expense per tourist reached only $53 in the fiscal year 2016- 17, $54 in 2017-18 and dropped further to $44 in the fiscal year 2018-19.”
The drop in earnings has directedly affected the contribution of the tourism sector to the country’s gross domestic product (GDP), though it has not yet developed tourism satellite account to actually calculate the contribution of tourism sector to GDP.
In the fiscal year 2015-16, the tourism sector’s contribution to the GDP was 2.6 per cent, and based on this data, the government had set target to increase its contribution to the GDP to three per cent in the fiscal year 2016-17, 3.5 per cent in 2017-18 and four per cent in 2018-19. “However, in the fiscal year 2016-17, the tourism sector’s contribution to the GDP stood at 1.98 per cent, whereas in 2017-18 and 2018-19, the contribution went up to 2.05 per cent and 2.5 per cent, respectively, but without being able to meet the target,” the report revealed.

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