Top Trends in Nepal's Hospitality Sector

As per the Nepal Tourism Board, the nation's tourism promotional body, the number of tourist who arrived exceeded the million mark for the first time in four years. Indeed, this is the third time Nepal has secured over a million tourists. Most luxury operators based in Nepal have returned to profit, propelled by a recovery in visitor arrivals after the COVID-19 pandemic. According to the statistics published by the Nepal Stock Exchange, the Soaltee Hotel accounted for a net profit of Rs 263 million in the first half of the current fiscal year that ended mid-January. 

Currently, Nepal is observing a dynamic transformation in the hospitality industry, with numerous visitors looking for adventure and cultural engagement. Considering the global hospitality market size, it was estimated at USD 4770 billion in 2023, and it is expected to reach USD 11699 billion by 2029 from 5539 billion in 2024 with an impressive CAGR rate of 16.13%.  Let us now explore the top trends that contribute to the growth of nation’s hospitality industry.

Sustainable and Responsible Tourism

In Nepal, there is a rising awareness and aspiration to preserve cultural heritage, making sustainability a notable trend in the nation’s hospitality industry and responsible tourism. As sustainability is at its peak, tourist operators and hotels have implemented sustainable practices into their business operations in the form of managing waste, encouraging energy efficiency and lowering plastic usage. At the same time, the tourism initiatives related to the community also help local economies while preserving ancient lifestyles. As a part of sustainable activities, a lot of new projects have been developed to reduce the ecological footprint, protect the beauty of the nation, and remain intact for the upcoming generation. Eventually, this significant change with respect to sustainability trends serves the needs of the visitors who are environmentally conscious.

Royal Mountain Travel encourages community-based tourism activities, working with local communities to offer great experiences while ensuring economic benefits for locals and visitors. They focus on less-impact travel by utilizing green energy sources and cooperating with conservation projects to safeguard cultural destinations and natural landscapes.

Deepak Raj Joshi, Former CEO, Nepal Tourism Board says to Nepali Times "There needs to be multi-level coordination between tourism institutions, concerned ministries, as well as diplomatic missions across the world to effectively maximise our tourism potential”

Cultural and Heritage Tourism

Nepal is attractive by its rich and cultural heritage which remains as a backbone of their tourism industry. Their hospitality sector is experiencing a significant growth by the nation’s different cultures, vast history and impressive natural landscape. In this modern era, the flow of visitors is pretty high as they are attracted by its traditional temples, festivals, palaces and customs. The Nepal government and small businesses have invested on this sector to improve sustainable activities and tourism infrastructure. Moreover, numerous home stays and cultural tours that provide an exceptional experience improving huge connections between locals and tourists. Overall, the trend promotes the Nepal economy and also helps in preserving their legacy, making this place as a luring hub for international travelers looking for unique experience. 

For instance, Nepal has many festivals, such as Tihar, Holi and Dashain, which attract a huge number of visitors looking for immersive cultural experiences. These festivals include ancient rituals and vigorous celebrations, offering tourists comprehensive insights into Nepali culture.

Binayak Shah, President of Hotel Association Nepal says to Nepal Desk "the potential of Nepal's tourism industry, owing to its strategic location between China and India, and envisions improved connectivity and streamlined infrastructure as essential components in driving increased tourism"

Integration of Technology

The nation’s hospitality industry is booming due to the integration of advanced technology, which helps transform the guest experience and operational efficiency. To make the end-to-end services streamlined, hotels and resorts are widely implementing digital solutions into their booking system for online check-ins and mobile applications. The latest technologies, such as virtual tours, AI chatbots and intelligent room amenities, offer guests incredible experiences. Besides, the online payment option and high-speed wifi cater to the needs of tech-savvy communities. Hospitality has started relying heavily on the implementation of hygiene-related technologies after the arrival of the pandemic, as well as automated sanitization and touchless interfaces. Hence, through technological adoption, Nepal’s sector satisfies the customers' complete needs and stays proactive in the world market. 

Dwarika, a renowned hotel in Nepal, utilizes AI technology to provide virtual tours that offer guests an exceptional experience of ancient Nepali architecture and heritage. The technology also helps to evaluate guest preferences and customize experiences through personalized cultural tours and heritage site exploration.

Paras Kunwar, Chief Operating Officer, Fonepay says to The Kathmandu Post "Since the central bank has fully opened the digital retail payment gateway for Nepali operators with any other country, it will help bring more foreign currencies”

All in all, Nepal is witnessing a transformational phase in the hospitality industry, propelled by a mix of technology and tradition. Presently, there is an increasing trend for sustainable lodges and boutique hotels, and they are taking the initiative to focus on sustainable tourism and culinary, implementing advanced technology, which is influencing the future of the hospitality sector. As the nation advances its infrastructure and adjusts to post-pandemic realities, the industry will contribute to sustainable developments, providing visitors with a unique experience in the heart of the Himalayas. As the nation is dedicated to sustainable goals, quality, and impressive hospitality, the industry will grow considerably, making this venue an unavoidable option for travelers.