Poverty in Nepal

The term poverty is not only a material deprivation but also low achievements in education and health , vulnerabilities and exposure to risk, and lack of voice and empowerment. All these elements combine to restrict people's capability to escape poverty. Poverty is a complex multidimensional problem., it is not only a matter of statistics or number. It is a reflection of lack of dynamism in society and  human deprivation. Except hunger and malnutrition, several other aspects are used to explain poverty, such as deprivation in terms of clothing, shelter, basic social services including primary health care, sanitation, education etc., political powerlessness and socio-cultural marginalization.

In many developing countries, poverty persists due to three main reasons: slow economic growth, biased growth pattern concentrated on few sectors, and failure of government policies. A slow rate of growth has dual effect: low income or low employment opportunities and increases the rent-seeking behaviour of the politicians in favour of non-poor like businessmen, large farmers, bureaucrats, trade unions, and the security personnel. The incidence of poverty remains for long period if the pattern of growth is urban biased and there is no rural-urban economic linkage. In Nepal other additional factors are playing dominant role. 

Trends and Pattern of Poverty in Nepal: The CBS conducted comprehensive survey in the name of living standard survey in 1995/96, 2003/04 and 2009/10. This is sown in following table.

Year	Overall Nepal	Rural	Urban
1995/96	42	43	22
2003/04	31	35	10
2009/10	25	27	15

The table shows that the poverty declined from 42 to 25 percent. Poverty is higher in rural than in urban areas. While poverty exists in both rural and urban areas, it is well known that the problem in developing countries is predominantly of rural poverty. Agricultural laborers with irregular employment constitute the major part of the rural population.  

The Small Areas Estimates of Poverty 2011, published by CBS of Nepal, shows that there is wide range of differences in poverty distribution all over Nepal. Among others, we can observe following facts regarding poverty distribution in Nepal.

High economic activity is associated with low poverty. The lowest poverty districts in Nepal are Kaski and Ilam. Also poverty relatively low in Kathmandu, Bhaktapur, Chitwan, Jhapa, Shyanga, among others.

Rain fall, productivity and poverty are associated in Nepal. Rainfall in Nepal gradually decreases from eastern region to far western region. In an opposite trend, the poverty increases from eastern development region to western development region. There are some exceptional districts like Kaski, Kathmandu and Chitwan, these districts are tourist centres and high economic activity area. In the similar trend of rain fall, the land productivity also gradually decreases from eastern Nepal to far-western Nepal.

Geography is also a cause of poverty. The difficulty increases from Terai, Mountain and Hilly region. In the similar trend, the poverty increases from plain area to mountain area. The weak linkage with market and high cost of transportation increases cost of production. The high cost of production reduces the economic activities and increase poverty.

Harnessing Full Potential of Tourism in Nepal

Tourism has been an integral part of national development, including poverty reduction and increase employment. This sector can be one of the sustainable sources of foreign exchange. Nepal is one of the best tourist destinations of the world. However, Nepal is not able to capitalize the full potential of this sector. 

Government has given the top priority to the tourism sector and has prepared a long-term master plan to develop tourism infrastructure in the nation. The domestic political turmoil lagged this sector far behind because large number of infrastructure development activities were slow downed. Hence, to boost up the tourism sector and contribute to strengthen the national income, there is need of effective tourism policy in terms of the economic development.

Status of Tourism Industry

• It is a major source of foreign exchange earnings.
• Tourism accounts around 3 per cent of Nepalese GDP.
• The sector also provided the people of Nepal with increasing employment opportunity.
• Between 2001 and 2014, number of employees in tourism sector rose by 2.5 folds.
• Foreign exchange earnings increased by three fold from 2001/02 to 2013/14 (Rs. 37 billion).
• The growth of this sector is mainly dependent on tourists from the European as well as OECD countries.
• The arrival of tourists was 275 thousand in 2002 December which continuously increased to 803 thousand in 2013 December.

Prospects of Tourism in Nepal

• The natural beauty, diversity and unique features  
• Nepalese belief of 'Guests are God' has
• The community based tourism is well suited for the Nepalese economy. Local communities becoming more conscious in updating an inventory of cultural heritage.
• Growing awareness in the people for conservation and promotion of cultural heritages.
• Potential market of economically emerging and most populist neighboring countries India and China
• SAARC could be the useful platform to develop and promote this sector.
• Community based rural tourism is the high potential of the country.
• Possibility of further growth in the number of tourists with the opening up of new mountains and restricted areas.
• Recently political development is improving the country's image at global level. Peace agreement and election CA election-II.
• Immense possibility of developing adventure tourism in the mountains and rivers.
• Campaigns like Tourism Year and Visit Lumbini Year are motivation for entrepreneurs. 
  Sparkling mountains, unique natural beauties, wildlife experiences, historical and religious places have contributed to the commercial transformation of the industry.
  
• Attraction is not increased to rural tourism which can play the essential role to alleviate poverty and employment generation.

Problems of this Sector

• Tourism sector has been facing many difficulties due to lack of infrastructure, especially airlines and transportation services are bottlenecks.
  
  
• Political instability is other major problem in Nepal.
  
  
• Participation of the private sector in the infrastructure development is not encouraging.
  
  
• Domestic airlines are not internationally competitive to harness the benefits of this sector.
  
  
• Weak data base about cultural heritage.
  
  
• The major weakness is always disturbances and strikes in the main highways from the political and various other groups.
  
  
• Less use of computer technologies and software programs in information system are the drawback of this sector.
  
  
• Lack integrated and coordinated development efforts in the tourism sector.
  
  
• Apart from conventional tourism, development and growth of other innovative tourism, such as adventure tourism and eco-tourism, has not been encouraging.
  
  
• Construction of new airports are lacking due to inadequate resources.
  
  
• Recent black listing of Nepali aviation sector by European Authority.
  
  
• More importantly, threats from the competition on the global market, especially from close competitors like Malaysia, Thailand, Singapore, Sri Lanka, and Maldives. The resource constraints like low budget comparing to competitors, slow development of infrastructure also have negative role.
  
  
• Political condition still not quite good, strike in the tourism industries is the major problem, not good air connectivity with rest of the world, security problems and so on is the major domestic threats.
  
  

What Can be Done to Promote Tourism in Nepal?

• Infrastructure
• Government should invest or facilitate in tourism infrastructure, especially in tracks and road construction in mountainous region. 
• Private sector should be encouraged to facilitate in cable car, air transport, land transports, hotels activities.
• Regional airports and fast track roads should be developed in PPP approach.
• Capacity Building
• University and School education curriculum should be equipped with tourism education.
• Ongoing capacity building and training is needed until villagers are confident enough with their tourism activities.
• Increasing Length of Stay of Tourists
• Recreational activities should be diversified to different tourism places outside Kathmandu valley.
• Safety and Compensation for Tourism
• Insurance of tourists guides, trekking guides and workers who are in the tourism sectors this could be incentive for quality services and sustain these experienced in this sector.
• Insurance products should be developed for tourists about rescue in crisis, health problem and in accidents.
• Air safety measures should be applied and international images should be enhanced about it.
• Improving Quality of Services
• Quality standards should be maintained by regulating tourism hotels, services and businesses
• Tourists complain handling authority should be formed by the government with strong power to punish the wrong doers or those who do not provide the services they had contract. This can feel tourists safe and trust the government.
• Positioning Global Image on Tourism
• Nepal is nation that has passed through a decade long conflict. Thus image positioning program should be initiated.
• Promotional activities should be done to inform about tourism strength of Nepal. This should focus both tourists and investors.
• Tourism promotion program should be launched, targeting neighboring countries, India and China.
• Tourism information system should be established by empowering the local bodies.
•  Strengthening Local Community 
• Local communities and private agencies should be involved in the preservation, conservation and promotion of tangible and intangible cultural heritages.
• New Products Tourism
• New products of tourism should be given top priority for example
• Sports Tourism: a cricket game can attracts lots of people from all South Asian countries 
• Health Tourism: government has legalized surrogacy birth for foreigners; it can be allowed to Nepalese people it can be good earning source. International standard hospitals can be attracted because of good climate of Nepal.  
• Educational Tourism: Nepal can be educational hub of Asia.
• Investment in International Air Transport
• Private airline companies should be encouraged to contribute to tourism and economic development through the expansion of domestic and international air services.
• Diversifying the Sector
• The tourism sector should be developed as the foundation of the economy through product diversification and geographical diversification.
• Diversifying the tourism sector and should be expanded by developing educational tourism, health tourism, wildlife tourism, agro tourism, eco-tourism, mountaineering and trekking tourism, adventure and entertainment tourism, cultural tourism, and religious tourism in addition to mountain tourism.
• Promote Domestic Tourism
• Domestic tourism can be promoted to diversify the risk because concentration only on foreign tourists sometimes be risky.

Conclusions                                                                                                                                       

The tourism industry is growing very rapidly and Nepal has tremendous potential  in  this sector. Thus, market friendly tourism policy is essential to increase national productivity and income, increase foreign currency earnings, create employment opportunities, improve regional imbalances, among others through the development and diversification of the travel and tourism industries.

Government should decentralize the tourism planning process and encourage private sectors for the development of tourism. Similar, it is necessary to improve tourism infrastructures, improve safety mechanisms, develop tourism marketing information system and facilitate community based tourism. It is also necessary to develop new tourism products and places. Thus, tourism sector could be a means of reducing poverty, sources of foreign exchange and promote employment opportunity in the country.