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December 2025

Navigating Nepal’s Tourism Dilemma Value vs. Volume and the Case for Diversification

Nepal Economic Forum (NEF) is a not-for-profit organization aiming to be Nepal’s premier private sector-led economic policy and research institution. We are an impact-driven economic and development think tank that seeks to redefine Nepal’s development discourse by analyzing, facilitating and disseminating contemporary issues on society and the economy. Please write to info@nepaleconomicforum.org if you have questions or comments with respect to the document. What is a NEFsearch? NEFsearch is an academic research paper published by Nepal Economic Forum that aims to create a platform for cutting-edge and robust economic research. NEF has earned a worldwide reputation for conducting theoretical, high-quality and evidence-based research studies with Nepal at the core. The aim of the NEFsearch is to draw attention towards contemporary issues that are important and relevant for economic development and societal growth of Nepal.

Title Navigating Nepal’s Tourism Dilemma: Value vs. Volume and the Case for Diversification Author - Sudip Bhaju Sudip Bhaju is a private sector development expert with 15+ years of experience driving market-led transformations across South Asia and Rwanda. He also serves as the Director at Nepal Economic Forum. Edited by - Suyasha Shakya, Consultant Designed by - Aashima Chalise, Social Media Consultant and Suyasha Shakya, Consultant

Published by Nepal Economic Forum, December 24, 2025

Table of Contents Pages Abbreviations and Acronyms

Abstract

Introduction

The Volume Legacy and Its Challenges

Diversification: The Key to Sustainable Growth

Tying it All Together: A Roadmap for Nepal’s Tourism Future

Works Cited

Abbreviations and Acronyms BIMSTEC

Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation

CAGR

Compound Annual Growth Rate

CNI

Confederation of Nepalese Industries

DTV

Destination Thailand Visa

FNCCI

Federation of Nepalese Chambers of Commerce and Industry

FMCG

Fast-Moving Consumer Goods

GDP

Gross Domestic Product

HAN

Hotel Association of Nepal

ICIMOD

International Centre for Integrated Mountain Development

KITAS

Kartu Izin Tinggal Terbatas (Temporary Stay Permit, Indonesia)

MICE

Meetings, Incentives, Conferences, and Exhibitions

NGO

Non-Governmental Organization

NTB

Nepal Tourism Board

SAARC

South Asian Association for Regional Cooperation

SAVE

Scientific, Academic, Volunteer, and Educational

SIT

School for International Training

TCEB

Thailand Convention and Exhibition Bureau

TTDI

Travel and Tourism Development Index

UNESCO

United Nations Educational, Scientific and Cultural Organization

USD

United States Dollar

WWF

World Wide Fund for Nature

December 2025

Navigating Nepal’s Tourism Dilemma: Value vs. Volume and the Case for Diversification by Sudip Bhaju Abstract Nepal’s tourism sector has recovered in visitor numbers but continues to generate low economic value per tourist due to its reliance on low-yield, volume-driven models. This paper examines the value vs. volume debate and argues that a sharp shift toward low-volume tourism is neither practical nor desirable for Nepal. Instead, the paper focuses on diversification as a viable pathway to enhance value within existing volumes by developing four high-potential segments: Meetings, Incentives, Conferences, and Exhibitions (MICE); Scientific, Academic, Volunteer, and Educational (SAVE) tourism; wellness and spiritual tourism; and digital nomad tourism. The analysis shows that targeted policy interventions, institutional coordination, and infrastructure improvements could increase visitor spending, length of stay, and sectoral resilience.

Key words Tourism, Hospitality, Tourist Arrival, Tourism Revenue, Average Tourist Spending, MICE Tourism, SAVE Tourism, Diversification, Wellness Tourism, Digital Nomad

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Introduction Nepal’s tourism industry has long been built on the mass market as we welcomed tourists from all over the world without any restrictions. From the first intrepid foreigners in the 1950s to the “hippie era” of the 1960s-70s, the country became a haven for large numbers of budget travelers seeking adventure and spirituality. Today, however, an ongoing debate is pitting “high-value, low-volume” tourism against this traditional mass-market approach. Proponents of the high-value model support choosing fewer high-spending tourists because this approach reduces the environmental and cultural pressure. The argument, therefore, is: Tourism is about value, not volume: better fewer who enrich, than many who exhaust. These proponents of high-value tourism, however, undermine the fact that the transition

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transition to low-volume tourism in Nepal is not a viable approach because Nepal has, for the past seven decades, developed the tourism sector on catering to the mass market and substantial local investments have been made in catering to volume-based tourism. Nepal cannot reverse its “welcome all” strategy to establish itself as an exclusive luxury travel destination overnight. There is no denying that we need tourists who spend more but this path to transformation requires Nepal to expand its current offerings while enhancing its value to attract visitors without reducing overall tourist numbers. Nepal should use its existing tourism assets of nature, culture, and hospitality to create new diversified segments which will increase earnings and extend visitor stays in a sustainable manner.

The Volume Legacy and Its Challenges The tourism sector of Nepal is at a crossroads after decades of expansion. The Nepali tourism industry recovered substantially in 2024 to reach 96% of its pre-pandemic levels with international visitor numbers reaching 1,147,567 which represented a 13.1% increase from 2023. The visitor stay duration rose slightly, yet tourists spent less money during their visits. The average tourist stay in Nepal reached 13.3 days during 2024 compared to 13.1 days in 2023 while daily tourist spending reached USD 40.8 (USD 41 in 2023).1 Figure 1 highlights two distinct patterns in Nepal's tourism sector from 2015 to 2024. The number of visitors has shown strong

strong resilience to decline as it rapidly recovered from the 2015 earthquake and COVID-19 pandemic to reach its typical level of one million visitors, demonstrating the strong global appeal of “Nepal’s tourism brand.” However, the average duration of stays and their daily spending amounts have remained stagnant at 12-14 days and USD 40-45 per day. The tourism industry has consistently observed that visitors to Nepal tend to be cost-conscious while spending less than visitors in other destinations. The increasing number of visitors does not translate to higher spending or longer stays. The current tourism model faces a structural challenge because it depends on basic tourist

Figure 1. Nepal Tourism Statistics (2015-2024)

Source: Nepal Tourism Statistics (2015-2024), Ministry of Culture, Tourism and Civil Aviation

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tourist segments while failing to develop premium experiences that would boost economic value from each visitor. Furthermore, the indicators show no change despite growing tourist numbers because the industry needs to adopt new strategies that require Nepal to reassess its tourism approach and focus on product diversity and the growth of value-based tourism instead of pursuing quantity growth. The visitor statistics of Nepal also require more detailed examination and interpretation. As of today, the traditional arrival counting system fails to capture specific visitor groups including Nepali diaspora residents abroad and Indian border-crossing visitors. The Government of Nepal has not established a Tourism Satellite Account system1 to accurately measure visitor numbers and spending. Furthermore, the problem of revenue leakage also exists because a majority of the tour packages are bought outside the country and payments are made to foreign operators, which means that a part of tourist spending does not enter Nepal’s economy at all. These factors suggest that official data on per-day spending might

might not tell the whole story and needs a more robust methodology. The analysis in Table 1 reveals that Nepal generates less economic value from its tourist arrivals than other countries in its region and globally. The per-day spend of tourists in Sri Lanka, Vietnam, and the Philippines exceeds USD 55-80 while Japan and China achieve spending levels above USD 150 per day, revealing how competitiveness and product sophistication push spending. Despite having internationally recognized and unique natural and cultural attractions, Nepal holds the lowest position in South Asia according to Travel and Tourism Development Index (TTDI) rankings and visitor spending. This imbalance highlights a structural issue within the industry because it focuses on low-yield segments while lacking diverse high-end tourism experiences that would boost visitor spending, stay duration, and repeat visitation. Nepal requires better tourism product alignment, higher-value market positioning, and targeted marketing toward its existing competitive segments. Nonetheless, the trend is clear. Simply attracting more tourists is not translating into proportionate economic gains domestically

The Tourism Satellite Account (TSA) represents an internationally accepted statistical system which the UN World Tourism Organization (UNWTO) and UN Statistical Commission developed to evaluate actual economic value of tourism in national economies. The national accounts system receives tourism data through the TSA framework which enables policymakers to evaluate tourism's impact on GDP and employment rates; foreign exchange earnings; and investment levels. The TSA system goes beyond visitor arrival statistics because it tracks both visitor spending patterns and their locations and durations of stay and their domestic or international status and their activities within different tourism sectors.

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domestically. If Nepal continues to pursue volume alone under the same product offerings and the same approach, the returns per tourist will remain suboptimal. Nepal stands as a nature-based destination because of its key tourism offerings, including mountain ranges, national parks, diverse ecosystems, and rich cultural heritage. The tourism industry has generated employment opportunities and decreased rural poverty levels through its trekking and expedition services along with their supporting industries. These are strengths to build upon. The challenge now Table 1. Regional Tourism Statistics

now is how to increase the average value of each tourist spending in length of engagement and positive impact without drastically reducing the total number of visitors. In other words, Nepal must upgrade the experience and opportunities for tourists such that even mass tourism can be made more lucrative and sustainable. This calls for diversification of tourism products and sophistication in marketing and service delivery. Thus, this solution requires Nepal to maintain its mass tourism sector as it generates employment opportunities of so far 1.22 million jobs while contributing 6.6% to the country's GDP.2

Source: Compiled by Author (Travel & Tourism Development Index and World Travel and Tourism Council)

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Diversification: The Key to Sustainable Growth The solution to the value vs. volume dilemma requires Nepal to diversify its tourism products. The expansion of new high-yield tourism segments will enable Nepal to draw various visitor types who may spend more time or money while maintaining the industry's volume of visitors. For this, the country’s goodwill in the region, combined with its visafriendly policies and improving connectivity through more international flights and improved highways, provide it with a competitive advantage to target new markets in the region. Furthermore, Nepal has a favorable reputation with its neighboring countries while its position between India and China provides a strategic market advantage. With the right focus, Nepal can capitalize on regional demand and niche interests to drive quality growth. Four high-potential niche segments stand out as opportunities that are immediately attainable given what Nepal already offers today, as opposed to distant futuristic ideas. These segments are MICE tourism, SAVE tourism, Wellness and Spiritual tourism, and Digital Nomads. Not all of these are entirely new; some have existed in a nascent form but there have been little to no concentrated efforts to develop and promote them on a scale. Below, we explore each segment, outlining the global context and Nepal’s prospects:

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MICE Tourism: Meetings, Incentives, Conferences, and Exhibitions The MICE tourism market is a growing, high-value, lucrative segment with high growth potential worldwide. The influx of business event attendees who are sponsored through corporate funds enables hotels and venues to operate at high-capacity during low-demand periods. MICE tourism generated more than USD 870 billion in 2024 and is projected to reach USD 1.47 trillion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 9.2% from 2025 to 2030 worldwide.3 Sectoral development of MICE into an economic growth engine becomes possible through purposeful policy implementation and established institutions and infrastructure development, as can be drawn from the experience and roadmap of Thailand and Rwanda. The Thailand Convention and Exhibition Bureau (TCEB) functions as Thailand's national MICE agency because it operates independently through its separate funding to execute the "TCEB Go" action plan (2023–2027) for industry development.4 The plan establishes targets for Thailand to attract 760,000 MICE visitors resulting in a revenue of USD 1.7 billion during Fiscal Year 2023 while the government backs ten strategic MICE destinations through public-private

partnerships to stage international association events.5 Rwanda, a country one tenth the size of Nepal, demonstrates how small nations, through their boutique MICE hub development, can transform its MICE industry through strategic planning. The Rwanda Convention Bureau established itself to attract more conference participants who grew from 17,950 in 2014 to 52,000 in 2024.6 As a result of this, the MICE revenue grew from USD 29.6 million to USD 84.8 million between 2014 and 2024.7 Thus, these examples demonstrate that Nepal can learn and adopt from the practices and learnings from successful destinations like Thailand and Rwanda. The strategic marketing of Nepal as a MICE destination has not happened, but the country continues to organize conferences and business events which demonstrate its potential. The nonaligned foreign policy of Nepal makes it an acceptable location for regional conventions because it maintains political neutrality. The neutral position of Nepal allows diplomats from countries with sensitive diplomatic relations to participate in events without hesitation, which makes Nepal the top choice for South Asian and multilateral conferences. Kathmandu functions as a major conference destination in South Asia, topping the preference list, as numerous development-focused and international government meetings such as the 4th BIMSTEC Summit (2018), SAARC Summits, and ICIMOD conferences, regularly

regularly draw 300-500 international attendees. Nepal Tourism Board (NTB) estimated that up to 70,000 individuals visited Nepal for business and conferences before COVID-19 but this segment remains underreported because Nepal does not have a dedicated MICE tracking system. Nepal has held business events through corporate conventions which include manufacturing, pharmaceutical, and FMCG dealer meets; corporate retreats in Pokhara and Chitwan; and annual meetings of FNCCI, CNI, HAN, and other associations. Nepal has sufficient hotel infrastructure to support mid-sized conferences because it operates multiple large hotels with ballrooms and the Convention Centre that serve as a venue for events. The market potential is evident since even a minimal portion of this segment would create substantial growth for Nepal's tourism inudstry. Thus, Nepal should focus on the strategic development of the MICE segment to capitalize on this opportunity. Why Nepal for MICE? Nepal provides a strategic position to host business events because it attracts South Asian and Asia-Pacific markets despite its small size. The country connects India and China and provides quick access by air to primary cities. Further, international conferences become even more valuable because of Nepal's unique environment and culture which allows participants to visit UNESCO World Heritage sites and experience the pleasant weather and stunning mountain views before or after their

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their conference. Moreover, the relatively lower costs in Nepal provide a costeffective advantage against other regional competitors. There is evidence that MICE delegates on average spend five times more than regular leisure tourists, and nearly 40% of business event attendees return later as leisure visitors with family.8 To realize this potential, however, significant work is needed. Nepal currently lacks a dedicated Convention Bureau, which, in successful MICE destinations, is the body that coordinates and aggressively markets the country for conferences and events. National convention bureaus or MICEfocused units within the NTB or the Department of Tourism should be established as an approach to MICE development. The bureau would perform three main functions which include bidding for international conferences, working with event organizers, and creating specific marketing materials to promote Nepal as a MICE destination. Right now, Nepal’s MICE activity is mostly limited to ad-hoc events such as occasional high-profile weddings or small conferences without a unified strategy. A bureau can change that by providing focus and continuity in promotions, something that goes beyond the general tourism marketing that NTB does. As the industry proverb goes: “You have to chase MICE business; it won’t just walk in.” Countries like Singapore, Thailand, and even Rwanda have long recognized this, backing their MICE bureaus

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bureaus with significant resources. Nepal should do the same on an appropriate scale. Besides this, Nepal needs infrastructure development as its most important step. The country operates several conference hotels in Kathmandu and Pokhara and international convention centers in Kathmandu and Bhairawa but capacity is limited. Just as crucial is improving the supporting infrastructure including efficient airports, reliable road networks, well-functioning transportation services, and robust internet telecommunications. The tourism industry faces a major obstacle because Kathmandu airport experiences continuous congestion and the other two airports haven’t been able to operate regular international flights. This is a major obstacle for the tourism industry as a whole as well as MICE tourism because business travelers demand smooth and hassle-free logistics. The airport operations together with their city-to-city connection capabilities will boost Nepal's ability to manage MICE events. Therefore, their full operation and multi-city connectivity will enhance Nepal's MICE management capabilities. Cities such as Kathmandu, Pokhara, Lumbini, and Chitwan can be marketed as unique conference destinations through proper planning and marketing by combining modern meeting facilities with their unique cultural and naturebased experiences. For example, a regional corporate summit in Pokhara could

could provide meetings beyond the boardroom breakout sessions with a view of the Annapurna range or teambuilding activities such as short treks or safari add-ons in Chitwan. Such integration of natural beauty and cultural immersion sets Nepal apart from typical city-bound conference locations. MICE tourism in Nepal is doable and potentially highly rewarding. The transformation needs to move from being reactive to proactive through establishing a specialized bureau and enhancing event facilities and infrastructure and through active promotion of Nepal's distinctive value to regional business entities and event organizers. Nepal has the potential to attract meetings and incentives business from India and other neighboring markets through proper execution which would generate a consistent flow of high-value visitors. The payoff is not just direct spending on hotels and events, but also enhanced reputation and repeat leisure travel, a virtuous cycle that increases tourism’s overall value. SAVE Tourism: Scientific, Academic, Volunteer, and Educational Tourism Following the pandemic, people have increasingly started to choose purposeful travel due to a shift towards experiencing meaningful things during their travel. As a result of this, Nepal has the opportunity to evolve into a global SAVE tourism destination through its natural diversity and cultural heritage to create

create authentic travel experiences. Adopting this segment would create tourism experiences beyond basic trekking and standard vacations by attracting visitors who want authentic experiences through longer stays at higher prices. The SAVE tourism model includes four distinct categories of travel which combine scientific research with academic study tours and exchanges, educational activities, and volunteering programs. This segment matches current travel industry trends which focus on responsible and purposeful travel experiences. While the SAVE tourist segment generates smaller financial returns than leisure and business travel, it produces additional benefits through longer stays, community engagement, and positive social and environmental effects in visited destinations. Furthermore, this segment will continue to see major growth because its market value has increased from USD 69.5 billion in 2018 to USD 106.9 billion by 2026 at a compound annual growth rate of 5.8%.9 The Asia-Pacific SAVE tourism market generated USD 12.6 billion in 2024 and experts predict it will expand to USD 20.6 billion by 2032 at a 6.4% annual growth rate with various countries like Thailand and Vietnam demonstrate how SAVE tourism can evolve into a specific market segment moving past NGO and university-driven projects, initiatives, or activities.10 For example, in Thailand, various operators have developed and promoted bookable products which unite wildlife protection with community

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livelihoods and cultural experiences through their hilltribe village programs and ethical elephant conservation initiatives.11 On the other hand, in Vietnam, a number of international universities have used the country as their academic field site through shortterm field schools and study-abroad programs on development, environment, and social change which offer academic credits and combine homestay experiences with community service.12 Nepal can easily replicate and establish such scientific and academic travel programs through university and NGO partnerships. Nepal has huge potential to attract SAVE travelers, given the richness of resources it can offer across the categories. Scientists find Nepal to be an ideal research site because its diverse wildlife and geological structures function as a natural laboratory for scientific investigation. The country boasts 12 national parks and multiple protected areas ranging from the lowland Terai jungles to the high Himalayas.13 Within these zones are an incredible variety of flora and fauna as Nepal harbors 3.2% of the world’s known flora and 1.1% of known fauna despite occupying only 0.1% of Earth’s land area.14 Nepal currently hosts scientific research teams (e.g. climate research on glaciers, wildlife studies in Chitwan, etc.) but this could be expanded and better organized as a tourism sub-sector. Scientific tourism would emerge as a major attraction for Nepal through research permits, academic

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academic partnerships, and citizen science travel packages that enable enthusiasts to join research teams which would bring in funding, expertise, and tourist revenue. On the academic and educational front, Nepal’s cultural and natural heritage provides countless learning opportunities as well. University groups or student exchange programs interested in anthropology, archaeology, religious studies, environmental science, and more would find Nepal extraordinarily enriching. A study-abroad semester in Kathmandu, a field school in the Himalayas, a cultural immersion program with Nepali communities, for example, are the kinds of offerings that could draw international students and institutions to Nepal. The country’s monasteries, for instance, have already hosted many foreigners for Buddhist studies and meditation courses. Likewise, scholars of development studies or sociology come to observe Nepal’s social fabric and development challenges firsthand. For example, the Kopan Monastery in Kathmandu welcomes 3,000 international visitors annually to participate in meditation retreats and Buddhist philosophy classes and spiritual education programs.15 Foreign visitors participate in monastery-based programs throughout Kathmandu Valley, particularly in the Boudhanath area, to experience guided meditation sessions and Dharma talks and cultural activities. By structuring and promoting such programs, perhaps through partnerships

between Nepali universities and foreign universities, Nepal can increase the number of academic visitors, who typically stay longer and spend on local services over months. These visitors effectively become temporary residents, contributing to the economy more substantially than a short-term trekker. On the other hand, the volunteer aspect of SAVE tourism is something Nepal is somewhat familiar with, as many international volunteers have come over the years to teach in rural schools, help in health camps, or assist with reconstruction, notably after the 2015 earthquake. International volunteering in Nepal dates back to the early 1960s, when the U.S. Peace Corps first began sending volunteers to support English teaching, youth development, agriculture, and community health across rural districts. Over the years, thousands of Peace Corps volunteers served in Nepal before the program’s recent suspension, creating one of the longest-running and most influential volunteer legacies in the country. However, much of this voluntourism to date has been unstructured and sporadic. If executed well, organized volunteer programs have the potential to connect actual community requirements with people who want to volunteer, especially given the fact that the global volunteertourism market reached USD 849 million in 2023 according to industry reports and experts predict it will reach USD 1.27 billion by 2030 because of rising sustainable travel popularity among young

young travelers.16 Volunteer tourism generates two positive outcomes for both residents and tourists because it lets them directly participate in its activities. The program creates beneficial effects for local communities while visitors gain improved experiences through their active participation. Volunteer tourists further develop emotional connections with their destinations and beneficiaries which leads them to visit again and provide ongoing financial assistance to the community. The Nepali culture of community and hospitality creates an environment where volunteers experience family-like acceptance which leads to permanent ambassadors for Nepal. Moreover, the synergy of the S-AV-E elements makes this segment especially attractive for Nepal’s goal of sustainable tourism development. Additionally, SAVE travelers practice sustainable tourism because their mission to protect nature and cultural heritage aligns with the current sustainability requirements of Nepal. The conservation volunteer works to protect biodiversity while the academic traveler respects and preserves cultural heritage through teaching others about their academic knowledge. Thus, the sustainable development model can be implement through this segment because it facilitates cultural exchange while supporting conservation efforts and creating beneficial social outcomes. Multiple international institutions operate

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study-abroad programs and field learning and volunteer initiatives to work with Nepal. The School for International Training (SIT Study Abroad) runs two semester-long academic programs in Nepal which focus on "Development and Social Change" and "Himalayan Environment and Society." The University of Virginia, University of Warwick, and University of Sydney maintain regular academic field programs which focus on anthropology, public health, and environmental science throughout Kathmandu and the mid-hills. Similarly, the WWF Nepal volunteer placements and Cornell University Himalayan climate research teams in Khumbu demonstrate the current scientific and volunteer activities in Nepal. Current programs in Nepal show potential to attract SAVE travelers. To harness SAVE tourism, Nepal should work on a few enabling factors. Firstly, collaboration with international NGOs, universities, and research institutions can channel a steady stream of SAVE visitors. For example, encouraging more international university programs in Nepal or marketing Nepal as a gap-year volunteer destination in Western countries. Secondly, ensuring ethical practices in voluntourism is key. Programs must truly benefit locals and avoid doing harm or fostering dependency. For this, Nepal can develop guidelines or accreditation for genuine SAVE tourism operators. Lastly, promotion and storytelling will help by highlighting success stories like scientists

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scientists discovering new species in Nepal, or volunteers helping increase literacy in a village, etc., to showcase Nepal as an “impact travel” destination. SAVE tourism aligns perfectly with Nepal’s strengths of natural and cultural wealth as well as global trends, and it can attract a segment of visitors who are responsible, spend longer, and add intangible value by helping Nepal’s development goals. Therefore, to take this forward, the country needs a single national strategy to grow this market segment. Wellness and Spiritual Tourism As the world becomes more stressful and fast-paced, wellness tourism has emerged in popularity and Nepal has an inherent opportunity in this arena. Wellness and spiritual tourism includes travel for activities like yoga retreats, meditation, spa and ayurveda therapies, spiritual pilgrimages, and other mindbody rejuvenation experiences. The Global Wellness Institute (GWI) found, through visitor surveys, that wellness tourists prefer to spend more money on authentic local experiences which incorporate traditional practices. The market size, which was already growing before the pandemic, has accelerated as a prime segment and is forecasted to reach USD 830 billion in 2023 and USD 1.3 trillion by 2028 globally. Additionally, the market shows further potential for growth because travelers will continue to choose wellness-focused vacations. The

GWI actually shows that wellness travel exceeds traditional tourism because it will grow from USD 720 billion in 2019 to reach USD 1.4 trillion by 2027.17 Sri Lanka and Bali have particularly shown how destinations with similar spiritual and healing traditions to Nepal have moved from isolated retreats to national-level positioning. Sri Lanka has formally identified wellness as a “thrust sector” and embedded a Wellness Tourism Strategy in its National Export Strategy, with the explicit goal of making the country the “preferred destination for wellbeing” in the region.18 This approach outlines measures for product innovation, quality benchmarks (notably for Ayurveda practitioners), and unified global promotion, thereby transforming dispersed Ayurveda resorts into a distinctive national network.19 In Indonesia, over ten years, Bali has transformed from a typical beach locale into an international wellness center featuring hundreds of yoga retreats, holistic healing facilities, and spa resorts especially in Ubud and emerging wellness areas, like Canggu and Uluwatu.20 Analyses of Bali’s tourism now routinely describe it as a leading wellness destination where traditional healing, yoga, and spiritual retreats are core to its positioning, not a side activity. The combination of cultural heritage and spiritual sites and natural attributes makes Nepal an excellent choice to capitalize on this growing market. The nation upholds its historical spiritual customs

customs which operate throughout all aspects of its daily life. Nepal serves as the origin of Lord Buddha while preserving traditional Hindu and Buddhist customs, yoga, meditation practices, shamanic healing methods, and more. The intangible heritage of this country provides a genuine spiritual and wellness experience which no other destination can match. The potential products are manifold: meditation retreats in monasteries, yoga camps with Himalayan views, ayurveda and herbal spa therapies using Nepal’s indigenous knowledge of healing herbs, spiritual treks to sacred mountains or pilgrimage sites, detox programs in the fresh mountain air, etc. Nepal offers complete wellness experiences that go beyond standard luxury resort spa treatments because it provides transformative journeys which unite physical healing with spiritual development. This is especially important because wellness tourists now seek this combination as they desire experiences that go beyond relaxation and seek authentic connections and opportunities for self-reflection. In this context, Nepal’s deep spiritual heritage and natural serenity are clear competitive strengths, but the experience of Sri Lanka and Bali suggests that translating these into a coherent wellness brand, quality standards, and targeted promotion is what actually captures the market opportunity. To develop wellness tourism, Nepal should identify a few niches to focus on

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initially. Spiritual tourism is one as Nepal already draws pilgrims to sites like Lumbini (the birthplace of Buddha), Muktinath (a Himalayan shrine of liberation and spiritual cleansing), Pathibhara (the temple of guardian goddess of Eastern Nepal), or Pashupatinath (Nepal’s holiest Shiva temple and a UNESCO sacred pilgrimage site). However, these can be promoted internationally beyond just religious pilgrimage. For example, Lumbini could be marketed as a global peace meditation center, hosting international meditation retreats or Buddhist conferences. There is also potential in yoga and meditation retreats in hill stations or ashrams. While some entrepreneurs have started yoga retreats in Kathmandu Valley and Pokhara, the scale is small. Several retreat-listing platforms, including BookYogaRetreats and BookRetreats, now show various yoga and meditation retreat options throughout Kathmandu Valley, Pokhara and Lumbini which proves small private operators started providing organized wellness retreats in these locations. However, the current number of retreats in Nepal remains limited which shows the wellness retreat segment has not reached its full potential for expansion. The development of new retreat centers needs incentives and support to create a network of wellness retreats offering quality and safe programs. The wellness tourism segment of Nepal needs to use its cost-effective pricing structure to deliver premium services. A

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luxury wellness vacation in the West or even in parts of Southeast Asia can be very expensive. Nepal, on the other hand, can offer similar experiences at a more affordable price-point, which is attractive to a broad range of wellness tourists. The country must capitalize on this benefit while ensuring certain standards are met. Wellness facilities require international hygiene standards and service quality certification maintenance to establish trust with their clients. Beyond this, the government and private sector should work together on a “Visit Nepal for Wellness” program to bring influencers and wellness travel operators who will experience Nepal’s offerings and share them with international audiences. By expanding wellness tourism, Nepal would not only increase tourist spending, as wellness travelers tend to spend more on accommodations, classes, therapies, organic food, etc., but also help deseasonalize tourism. People seek wellness year-round, and retreats can be held even in hotter or off-peak months which are not ideal for trekking. This means more stable income for the industry throughout the year. Furthermore, wellness tourism has a light footprint, and it aligns with Nepal’s sustainability goals since it typically involves small groups and respect for nature and culture. Imagine Nepal in a few years being known as “the Himalayan haven for wellness,” where travelers return home not just with photos but with a refreshed body and enlightened

spirit. This is not a far-fetched scenario as it builds directly on Nepal’s existing image of spirituality and serenity, only now it would be a strategic, marketed product rather than a missed opportunity. Digital Nomads and Remote Work Tourism In the past few years, a new breed of travelers has emerged globally - the digital nomad, a remote worker who lives and works in different places, blending work and travel. This trend was already growing with the rise in remote-friendly jobs, and the pandemic greatly accelerated it by normalizing work-fromanywhere. The global number of digital nomads worldwide was estimated at 40 million in 2024 and is expected to reach 60 million by 2030, with 50+ countries already beginning to attract them.21 Tourism operators find digital nomads to be an attractive market segment because these travelers stay longer than average visitors while spreading their money across different local communities throughout their extended periods of stay. These individuals often spend months in a location renting apartments, using local services, and effectively behaving like long-stay tourists. Critically, the economic value of the global digital nomad community is huge, roughly USD 787 billion in 2023 in spending according to one estimate.22 Thailand and Indonesia have effectively used the policy measures to capitalize on

on digital nomads and remote employees to turn them into a high-value tourism segment. Thailand attracts visitors to cities like Chiang Mai and Bangkok because of its costeffectiveness, lifestyle offerings, and abundant co-working spaces. Expanding on this, the government launched the Destination Thailand Visa (DTV) in 202425 which is a five-year multiple-entry visa commonly referred to as the "nomad visa.”23 The DTV permits remote employees and "workcation" visitors to remain for up to 180 days per visit within a five-year duration specifically designed to draw long-term professionals, freelancers and creative individuals. Similarly, Indonesia has implemented a scheme called the E33G Remote Worker Visa (Remote Worker KITAS), enabling international remote workers earning from foreign employers to reside in Indonesia for as long as a year, provided they meet an income requirement.[ii] These initiatives recognize that digital nomads and remote workers create financial value through their extended stays because they build international connections instead of making shortterm visits. The Government of Nepal should maintain its current visa policies for remote workers while developing a straightforward long-term visa option and building essential infrastructure including internet access, co-working spaces, and lifestyle facilities to establish remote work as a recognized tourism sector. Nepal presents an attractive location for

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digital nomads although this demographic remains new to the tourism industry. The country provides a combination of desirable features which appeal to remote workers through its affordable cost of living, stunning natural landscapes, exciting outdoor activities, rich cultural heritage, and a relaxed way of life. In global rankings of places for quality of life vs. cost, Nepal fares well as a person can enjoy a comfortable life in cities like Kathmandu or Pokhara at a fraction of the cost of living in Western cities or even big Asian metros. Digital nomads can value spend their dollar or euro in Nepal which enables them to enhance their lifestyle through better accommodation and leisure activities while keeping their savings intact. Moreover, digital nomads choose locations which enable them to work while allowing them to participate in activities that bring them fulfillment. Workers in Nepal have the unique opportunity to leave work on Fridays to enjoy activities such as paragliding above lakes and hiking through hills on Saturdays and Sundays. Few countries offer such proximity to adventure in tandem with city amenities. Furthermore, foreign visitors find comfort in Nepal because Nepali people are known for their friendly demeanor and welcoming attitude. The tourism industry, together with urban areas of the country, also use English for communication which makes conversations easy for most visitors. The infrastructure required for digital nomads has also shown progress

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progress in recent years with major cities now offering dependable internet access through broadband and 4G mobile networks, co-working spaces and cafes available in major metros, and improved domestic flight and bus networks for weekend travel. Furthermore, remote workers in Nepal have access to exclusive benefits which distinguish the country from other locations. Consider those who seek a “spiritual nomad” lifestyle of working online but also engaging in yoga, meditation, or volunteering in their offhours. Nepal enables people to achieve their personal development goals while maintaining their professional careers. A digital nomad can easily dedicate their weekdays in Nepal to coding and design work before joining weekend meditation retreats and taking short trips to Annapurna base camp or other trekking areas. Moreover, the cultural distinctiveness of Nepal provides a more authentic experience because you can choose to live in historic Kathmandu neighborhoods or by the lakes of Pokhara instead of typical expat areas. To become a lucrative destination for digital nomads, Nepal may need to address few areas - visas are one. Nepal provides tourists with a maximum of 90day visa access upon arrival which serves as a major attraction for visitors. Some nomads already use tourist visas to stay for a couple of months. However, globally, many countries are introducing specific digital nomad visas allowing stays

stays of 6-12 months, or longer, with easy renewals. The Government of Nepal has outlined a new visa program in its Economic Reforms Implementation Action Plan which grants digital nomads multiple entry access for five years with requirements including a monthly income of USD 1,500 or savings of USD 20,000 and USD 100,000 in health insurance coverage.25 However, this has not been currently implemented. If implemented, the visa system would provide annual residence authorization with access to banking services, fund transfer capabilities, vehicle registration, tax benefits at 5% for extended stays, and acceptance of foreign driving licenses. However, the proposed visa policy exists only as a concept because Nepal needs to start turning these plans into actual actions. The country stands at risk of missing its opportunity for vital economic expansion because of worldwide competition for remote workers. Another area for improvement is promotion and community engagement. Establishing a setting with resources for nomads, such as directories for internet services, co-working spaces, local SIM cards, and so forth, and possibly fostering a community via events or hubs would enhance Nepal’s appeal to this group of travelers. If destinations like Pokhara promoted themselves as "work retreats," emphasizing serene surroundings, multicultural vibes and stunning mountain vistas, they could attract remote workers seeking an escape

escape from hectic urban life. And ultimately, maintaining enhancement of infrastructure is crucial: reliable electricity with backup during power failures, improved transportation connections, and healthcare services all play a role in a nomad’s choice to remain for an extended period. It is worth noting that attracting digital nomads does not require separate tourism infrastructure per se as they utilize existing rental apartments, cafés, and so on. What it needs is a mindset shift to embrace this new kind of tourist. They may not spend lavishly per day, since they are budget-conscious to sustain long journeys, but their cumulative spending over months can far exceed that of a one-week tourist. And because they often share their experiences online, as they are, by definition, very digitally connected, they become organic marketers for Nepal. A cohort of happy digital nomads in Nepal can amplify the country’s image as a cool, accessible destination for long stays and remote work. While digital nomads are a newer segment, Nepal has immediate advantages to lure them with an appealing lifestyle at a low cost and plenty to do beyond the laptop. By smoothing out a few bureaucratic wrinkles and welcoming this community, Nepal can gain a steady influx of longterm visitors who bolster the local economy and possibly even contribute skills with some ending up training locals in IT, etc., as side interactions.

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Tying it All Together: A Roadmap for Nepal’s Tourism Future Ultimately, Nepal’s challenge of declining tourist spending and shorter stays can be met by re-imagining what the country offers to visitors. The solution is not to turn away the backpackers or budget trekkers who have been the mainstay, but to enrich the tourism landscape so that a diverse set of travelers, including higher spenders and longer stayers, are drawn to the country. The four segments discussed, i.e. MICE, SAVE, Wellness, and Digital Nomads, are not pie-in-the-sky ideas; they are tangible opportunities based on Nepal’s existing strengths. Each segment targets a different profile of visitor but all complement Nepal’s brand and can be pursued in parallel: MICE brings business and event travelers during off-peak seasons, utilizing Nepal’s hospitality and adding volume in a high-value way. It requires organizational focus, such as a convention bureau and infrastructure upgrades, but it builds on the fact that Nepal is a charming destination for work and play and sits in a region with enormous outbound MICE events. ·SAVE tourism relies on Nepal’s natural and cultural resources to draw visitors who will extend their stay and interact with genuine local experiences. Tourism has evolved to support sustainable development goals through its new approach which

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enables visitors to actively promote and engage in conservation while gaining knowledge and supporting local communities. Nepal must take advantage of this. Wellness and Spiritual tourism capitalizes on Nepal’s serenity and sacredness. With minimal environmental impact, it can draw those seeking inner peace and healing, adding significantly to tourist spending, as wellness tourists often seek premium services, and enhancing Nepal’s image as a sanctuary. It’s a way of reviving ageold traditions, such as yoga, meditation, ayurveda, in a modern tourism format. Digital nomads represent a forwardlooking segment that can provide a continuous trickle of income. By integrating these remote workers into the tourism strategy, Nepal taps into the remote work revolution. These visitors effectively become temporary residents contributing to the economy over longer terms, while spreading positive word-of-mouth about living in Nepal. Importantly, none of these segments requires Nepal to “reinvent” itself drastically. They are extensions or refinements of what Nepal already is known for (natural beauty, spirituality, friendly

friendly culture) or what it can easily become known for (a hospitable place for work and study). Diversification also makes the tourism sector more resilient. For example, a political conference or a wellness retreat might still proceed even if trekking season is impacted by bad weather or if a particular source market faces a downturn. A broader portfolio of tourism products means the industry can weather shocks better, a lesson painfully learned during the COVID-19 pandemic. Of course, pursuing these new segments should go together with improving how Nepal manages mass tourism in general. The implementation of airport and road infrastructure development and waste management systems in tourist areas, together with workforce training and the enforcement of sustainability regulations, will create advantages for all types of tourists including business conference attendees and budget-conscious backpackers. The “volume” aspect of Nepali tourism isn’t going away nor should it, given how many Nepalis rely on it. The task is to manage volume sustainably by preventing overtourism in fragile areas and ensuring benefits reach local communities, all while infusing higher value through product innovation. It’s about quality of experience, not just quantity of tourists. In conclusion, the debate of value vs. volume in Nepal’s tourism need not be a binary choice. Nepal can enhance value within volume by diversifying into high potential segments that increase pertourist

tourist revenue and encourage longer stays, all without alienating the core tourist base developed over decades. By embracing MICE, SAVE, wellness, and digital nomad travelers, Nepal can gradually raise its average daily spending and length-of-stay figures in a way that is practical and immediately actionable. These strategies are doable and grounded in Nepal’s current offerings they simply require vision and coordinated effort to implement. With Nepal having declared the coming years as the “Tourism Decade” for recovery and growth, such a diversified approach will serve as a strong foundation. The country’s tourism story can thus evolve from one of sheer numbers to one of varied experiences, higher yield, and sustainability. This new chapter will bring about better economic results and a successful tourism industry which will keep its strong position for many years to come while producing both high value and large volumes.

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Works Cited 1.“Nepal Tourism Statistics 2024,” Ministry of Culture, Tourism and Civil Aviation, August 26, 2025, https://tourism.gov.np/content/83/nepal-tourism-statistics2024/ 2.“Nepal Travel & Tourism Economic Impact Research,” World Travel and Tourism Council, June 18, 2025, https://researchhub.wttc.org/product/nepal-economicimpact-report 3.“MICE Market (2025 - 2030),” Grand View Research, March 2025, https://www.grandviewresearch.com/industry-analysis/mice-market-report 4.“TCEB Unveils Five-Year Plan Propelling Thailand’s MICE Industry on Global Stage,” Thailand Convention and Exhibition Bureau, February 15, 2023, https://www.businesseventsthailand.com/en/press-media/news-pressrelease/detail/1514-tceb-unveils-five-year-plan-propelling-thailands-miceindustry-on-global-stage 5.Ibid 6.“Rwanda Development Board Annual Report Highlights Strong Economic Performance and Strategic Progress in 2024,” Rwanda Development Board, April 15, 2025, https://rdb.rw/rwanda-development-board-annual-report-highlightsstrong-economic-performance-and-strategic-progress-in2024/#:~:text=Tourism%20Momentum%20Driving%20Revenue%20and,sector%2 0generated%20USD%2084.8%20million. 7.Ibid 8.Wisdom Jonny-Nuekpe, “Gov’t sparks interest in US$1.3tn global MICE market,” Business & Financial Times Limited, February 28, 2025, https://thebftonline.com/2025/02/28/govt-sparks-interest-in-us1-3tn-globalmice-market/ 9.“SAVE Tourism Market,” Allied Market Research, September 2019, https://www.alliedmarketresearch.com/save-tourism-market 10.“Asia Pacific SAVE Tourism Market by Type,” Credence Research, Accessed on December 19, 2025, https://www.credenceresearch.com/report/asia-pacificsave-tourism-market 11.“Karen Hill Tribe & Ethical Elephant Experience, Thailand,” Working Abroad, Accessed on December 19, 2025, https://www.workingabroad.com/projects/karen-hill-tribe-ethical-elephantvolunteer-thailand/ 12.“Vietnam Field School,” Australian National University, Accessed on December 19, 2025, https://programsandcourses.anu.edu.au/course/envs6017 13.“Department of National Parks and Wildlife Conservation,” Government of Nepal, Accessed on November 19, 2025, https://dnpwc.gov.np/en/ 14.Ibid 15.“Home Page,” Kopan Monastery, Accessed no December 19, 2025, https://kopanmonastery.org/#

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16. “ Volunteer Tourism Market (2024 - 2030),” Grand View Research, September 2024, https://www.grandviewresearch.com/industry-analysis/volunteer-tourismmarket-report 17. “The Future of Wellness Tourism 2025,” Global Wellness Summit, November 2025, https://www.globalwellnesssummit.com/wp-content/uploads/2024/11/THE-FUTUREOF-WELLNESS-2025-compressed.pdf 18. “National Export Strategy of Sri Lanka: Wellness Tourism Strategy,” Government of Sri Lanka, Accessed on December 19, 2025, https://www.srilankabusiness.com/pdf/nes/sri-lanka-wellness-4-2-web.pdf 19. Ibid 20,. “How Bali Tourism Trends Are Shaping the Bali Property Market,” Yolla Realty, Accessed on December 19, 2025, https://www.yollarealty.com/blog/how-balitourism-trends-are-shaping-the-bali-property-market 21. “Digital Nomads,” MBO Partners, August 2024, https://info.mbopartners.com/rs/mbo/images/2024_Digital_Nomads_Report.pdf 22. Isabela De los Rios Hernández, “Digital Nomadism: Transnational Economic Relations in the Emerging Economies,” Harvard International Review, October 27, 2023, https://hir.harvard.edu/digital-nomadism-transnational-economic-relationsin-the-emerging-economies/ 23. “Destination Thailand Visa | DTV Visa Thailand 2025,” Thai Embassy, Accessed on December 19, 2025, https://www.thaiembassy.com/thailand-visa/dtv-visa-thailand 24. “Digital Nomad,” Bali Visas, Accessed on December 19, 2025, 14. Budget Speech of Fiscal Year 2022/23, Ministry of Finance 25. Krishana Prasain, “Nepal eyes tourism, economic boost with new digital nomad visa policy,” The Kathmandu Post, May 28, 2025, https://kathmandupost.com/money/2025/05/28/nepal-eyes-tourism-economicboost-with-new-digital-nomad-visa-policy

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