On January 18, 2025, coinciding with the Chinese New Year, the historic Bhaktapur Durbar Square hosted a landmark event as Nepal’s Minister for Energy, Water Resources and Irrigation Dipak Khadka, and Chinese Ambassador Chen Song officially launched the Nepal Visit Year 2025 campaign. The joint initiative of the Ministry of Culture, Tourism and Civil Aviation of Nepal, Chinese Embassy in Kathmandu, Bhaktapur Municipality and the Nepal Tourism Board (NTB) aims to attract 500,000 Chinese tourists to Nepal during the year.

The campaign comes at a time when Nepal is experiencing a resurgence in Chinese tourist arrivals. In 2024, Nepal achieved a significant milestone in Chinese arrivals by surpassing the 100,000 mark for the first time in four years with a total of 101,879 visitors. This figure reflects a remarkable 67% year-on-year increase, signaling a robust recovery in Chinese outbound tourism to Nepal following the Covid-19 pandemic. The surge in Chinese arrivals also contributed to Nepal’s overall tourism growth, with the country welcoming 1.14 million international visitors in 2024—a 13% increase compared to the previous year.

Despite these encouraging figures, the total arrivals during the year remained below pre-pandemic levels, highlighting the ongoing challenges that the tourism industry is facing in fully regaining its previous momentum. Nonetheless, the upward trend reflects a positive shift, driven by the resurgence of international travel and strengthened ties between Nepal and key source markets, such as China.

Nepal introduced a ‘free visa’ policy for Chinese tourists on December 25, 2015, granting them the same privileges as South Asian visitors. Implemented in January 2016, the initiative aimed to revive declining tourist arrivals. This policy led to a steady rise in Chinese visitors, with Nepal experiencing a remarkable 46.8% growth in arrivals from its northern neighbor. By 2018, the number of Chinese tourists had surged to 153,633, and in 2019, Nepal welcomed a record 169,543 Chinese visitors. However, the onset of the Covid-19 pandemic abruptly halted this upward trend, with visitor numbers declining significantly in its aftermath.

A Collaborative Effort

China announced the Visit Nepal Year 2025 campaign during the 16th meeting of the Nepal-China Diplomatic Consultation Mechanism in Kathmandu in the last week of June 2024. The announcement included plans to promote Nepali tourism in China as part of celebrating 2025 as ‘Visit Nepal Year in China’. The announcement has energized Nepali travel trade entrepreneurs. According to them, this marks an unprecedented gesture of soft power diplomacy from China, as they had never before witnessed such a favorable initiative extended by any other country

China initiated the campaign following requests from Nepali politicians to promote tourism in Nepal. In response, the Chinese government has introduced a series of initiatives, including cultural events during the Chinese New Year and the Dragon Boat Festival, as well as platforms like the Phewa Dialogue and Marathon Round Table meetings. These efforts aim to increase Nepal’s visibility and appeal among Chinese travelers.

“Nepal has potential to attract 500,000 Chinese tourists annually, provided the government develops the necessary infrastructure. For instance, countries like Thailand, Malaysia, South Korea, Japan and even Laos welcome millions of Chinese tourists each year. Achieving this goal is not impossible for Nepal,” said Kalyan Raj Sharma, Managing Director of Adventure Outdoor Excursion.

Kishore Pandey, CEO of Sathi Nepal Travels & Tours - the agency that hosted the first-ever group of Chinese tourists in Nepal, believes 2025 will be a pivotal year for Chinese tourism in Nepal. “I agree that there will be significant challenges in reaching the target of 500,000 Chinese tourists. However, given China’s size and its position as one of the world’s largest outbound tourism markets, sending 500,000 tourists to Nepal is not an insurmountable task for the Chinese government. For example, in 2024 alone, Thailand welcomed 5.5 million Chinese tourists,” Pandey said. “Theoretically, achieving this target should not be a problem.”

Challenges and Opportunities

The potential for Chinese tourist arrivals in Nepal is significant, given China’s status as one of the world’s largest outbound tourism markets. However, there are several challenges that need to be overcome to achieve the ambitious target. These include limited air connectivity between the two countries and the high cost of airfare, which could impede growth. With strategic support and intervention from the Chinese government, these obstacles can be overcome, making the target attainable, stakeholders say.

Nepal must also enhance its infrastructure and accessibility to cash in on this opportunity. Countries like Thailand and Malaysia draw millions of Chinese tourists annually due to seamless transportation, advanced facilities and well-curated travel programs. With its diverse tourism offerings—ranging from majestic mountains and rivers to rich cultural heritage—Nepal can achieve similar success by improving infrastructure and diversifying its tourism products.

Chinese tourists represent the world’s largest outbound market, and targeting them could provide a substantial boost to Nepal’s economy. Young Chinese travelers, in particular, offer immense potential due to their large numbers and preference for unique experiences. By developing tailored programs that cater to this demographic, alongside Nepal’s existing offerings such as trekking, expeditions and jungle safaris, the country can attract and retain these high-spending tourists. Notably, repeat visits have been observed, especially among photography and expedition enthusiasts, highlighting the potential for long-term engagement in this segment.

Improving Infrastructure and Accessibility

Tourism entrepreneurs say Nepal must adopt targeted campaigns and events similar to those of other successful destinations to increase the number of Chinese visitors. While past efforts of the Chinese government to promote Nepal have shown promise, these need to be complemented by equally robust initiatives from the Nepali side. Collaborative efforts and well-structured campaigns could prove transformative for Nepal’s tourism sector and unlock its potential as a preferred destination for Chinese travelers.

The Covid-19 pandemic has severely disrupted flight connectivity between the two countries. Notably, direct flights between Kathmandu and Beijing, previously operated by Air China and Himalaya Airlines, still remain suspended. This decline in connectivity has adversely affected tourism, trade and people-to-people exchanges between the two nations. At the same time, the limited availability of flights has pushed airfares significantly higher.

At present, flights between Nepal and China are limited to specific routes. From China, Air China and Sichuan Airlines each operate daily flights between Chengdu and Kathmandu, while China Southern Airlines provides daily connectivity on the Guangzhou-Kathmandu route. Additionally, China Eastern Airlines offers three weekly flights from Kunming to Kathmandu, and Cathay Pacific connects Hong Kong to Kathmandu with five weekly flights.

From Nepal, Himalaya Airlines operates one weekly flight to Qingdao, three weekly flights to Lhasa, one weekly flight to Shanghai and two weekly flights to Chongqing. Nepal Airlines also flies once a week to Hong Kong.

Plans are underway to introduce a Pokhara-Lhasa-Kathmandu route which could improve regional accessibility. However, the lack of direct connectivity to Beijing remains a significant gap in the aviation network, necessitating collaborative efforts from both nations to restore and expand air links. Representatives of airlines say that the number of flights and destinations will increase as demand grows. Airfares are expected to decrease with the rise in demand, an official of a Chinese carrier told NewBiz.

Currently, over 15% of tourist arrivals and nearly 40% of tourism-related revenue in Nepal are generated from mountain tourism activities such as trekking and mountaineering. This is largely due to the longer average length of stay associated with these activities. Nepal’s diverse landscapes and adventure activities, combined with tailored offerings like guided treks, cultural experiences and luxury mountain lodges, can appeal to a growing segment of Chinese travelers seeking unique and immersive experiences.

However, poor road conditions and inadequate infrastructure can discourage repeat visits. It is essential to address these issues to enhance the overall visitor experience and boost tourist numbers.

Pandey of Sathi Nepal said the government should focus on improving infrastructure, including roads and transportation, Chinese-friendly restaurants and air connectivity. “Additionally, domestic airfares should be made more practical and affordable for Chinese visitors. On the external front, marketing strategies need to be effectively tailored to attract and engage the Chinese audience,” he added.

The Way Forward

Sharma of Adventure Outdoor Excursion said our focus should be on developing Chinese-friendly products, ensuring seamless access to popular destinations like Pokhara, Chitwan and Lumbini, and addressing long-standing issues with transportation and road conditions. “Negative feedback from tourists often centers on these challenges. If we resolve them, it can significantly enhance Nepal’s appeal as a destination,” he added.

Currently, the majority of Chinese tourists visiting Nepal fall within the semi-luxury and deluxe segments, particularly in the leisure, culture and exhibition categories. This trend shows the growing demand for more refined travel experiences that combine comfort with cultural exploration.

Deepak Raj Joshi, CEO of the Nepal Tourism Board (NTB), said India and China, as outbound markets, offer a big opportunity for Nepal. "In the context of economic transition, rising disposable incomes and evolving travel preferences among the middle class in Nepal’s two large neighboring countries, India and China, Nepal has a unique opportunity as a good neighbor to attract a significant number of visitors from these markets," Joshi added.

Chinese tourists are known for their substantial spending on shopping, presenting a significant opportunity for local businesses, who stand to benefit greatly from this trend. “We believe that, in general, most Chinese tourists are first-time visitors. However, there are always those who return multiple times, drawn by Nepal’s rich diversity in culture, nature and wildlife,” said Pandey.

Meanwhile, if the Visit Nepal 2025 campaign achieves its goals, it could become a milestone in the country’s tourism industry. Pandey is optimistic that 2025 will see the highest number of Chinese tourists visiting Nepal.

Sharma added that the number of Chinese tourists will naturally rise if Nepal improves its tourism infrastructure and prioritizes ease of access. “Campaigns promoting Nepal as a destination, similar to those initiated by the Chinese government, can create a ripple effect. Even attracting a single tourist can lead to word-of-mouth promotion among friends and family, amplifying the impact,” he added.

(This report was originally published in  February 2025  issue of New Business Age Magazine.)