Local Roots, Global Vision: Diversification and Sustainability at the Core

The government has unveiled Tourism Policy, 2025, an ambitious roadmap to position the country as a year-round global destination. Updated after 17 years, the policy aims to revitalize the sector, diversify tourism offerings and stimulate economic growth. It replaces the policy issued in 2008.

Tourism is one of the mainstays of the Nepali economy, contributing significantly to GDP and employment. But the sector’s weaknesses—exposed by natural disasters, pandemics and chronic infrastructure gaps—remain unresolved. The new policy seeks to address these weaknesses by diversifying tourism products and services, upgrading infrastructure and using technology for both promotion and operations.

Although Nepal draws more than one million visitors annually, foreign exchange earnings from tourism have never crossed $1 billion. Efforts to boost arrivals, including major campaigns in 1998 and 2011, have struggled to push numbers much beyond the one-million threshold. While visitor numbers topped one million again in 2023 and 2024, they remain below the pre-pandemic peak of 1.197 million recorded in 2019. The urgency for reform is reinforced by a surge in private investment in the sector. International hotel chains are entering Nepal at an unprecedented pace, betting on a future driven by group tours and more by curated, high-value experiences. “The policy aims to position Nepal as an attractive global destination by promoting adventure, wellness, educational and film tourism, while fostering private-sector collaboration,” said Minister for Culture, Tourism and Civil Aviation Badri Prasad Pandey.

The new policy lays out broad strategies to make tourism more dynamic, sustainable and inclusive. It calls for the systematic development of new and emerging destinations, along with upgrades to existing attractions. At the heart of the policy is diversification, broadening Nepal’s tourism offerings and markets, supported by stronger promotion in key international source markets. To maximize outreach, the government plans to work closely with the private sector, Nepali missions abroad, non-resident Nepali organizations and international tourism service providers.

Push for Partnerships, Incentives, Infrastructure

Collaboration is a key focus of the new policy. As per the policy, the government will work with foreign hotel chains to attract international travelers, while also boosting domestic tourism through partnerships with the private sector, local communities and other stakeholders.

The policy introduces exemptions and incentives to spur investment, including infrastructure projects through public–private partnerships (PPPs). It stresses full utilization of airports outside Kathmandu and encourages private investment in both national and international airports. Likewise, it envisages developing regional airports as domestic and interregional hubs.

To support this diversification, the government will simplify travel logistics through online visa issuance, digital payment facilities in both foreign currency and Nepali rupees and establishing integrated tourism service centers at border points. To boost Nepal’s visibility in the international arena, international athletes and film crews working in the country will be exempt from visa fees—a clear push to tap into sports and film tourism.

The new policy envisions preparing a Tourism Satellite Account within a year to collect and analyze comprehensive tourism-related data. The government also plans to strengthen research and statistics in coordination with the Department of Immigration, Department of Customs Department and the private sector.

Technology-driven promotion is another priority of the policy. AI-assisted marketing, social media campaigns and collaboration with international tour operators and Nepali missions to raise Nepal’s global profile have all been included in the new policy.

“Tourism is no longer promoted through posters and fairs alone. Digital storytelling, AI-led targeting and global collaborations are how we will put Nepal on the tourism map of the future,” said Indu Ghimire, a joint secretary at the ministry.

Broadening Tourism Appeal

While Nepal, as a destination, is best known for its mountains, trekking and adventure sports, the new policy signals a shift toward a broader, more diversified tourism portfolio. While adventure tourism—including trekking, rafting, paragliding and mountaineering—remains central to Nepal, the new policy envisages focusing on wellness tourism as well. This includes yoga, Ayurveda, meditation and spiritual retreats, all aimed at tapping into a rapidly expanding global market. Cultural tourism is also a priority, with plans to leverage Nepal’s heritage sites, festivals and living traditions.

The emphasis on emerging niches such as educational exchanges, film production and sports tourism reflect Nepal’s ambition to expand its market reach beyond traditional offerings. The policy also introduces special schemes like incentive leave, educational tours, study-observation visits and senior tourism to attract more tourists. The government is also prioritizing MICE tourism—meetings, incentives, conferences, and exhibitions—by offering different incentives. Similarly, it envisages supporting sports tourism through investment in infrastructure at both provincial and local government levels.

The country’s diverse terrain will continue to anchor its adventure appeal, offering everything from mountaineering, trekking, rafting, paragliding, bungee jumping, high-altitude skiing, mountain biking, climbing, skydiving, zip-lining and high-altitude motorcycle tours.

The policy also promotes multi-seasonal tourism by developing regional clusters that combine natural beauty, cultural heritage, religious significance and adventure activities. The government also plans to build international-standard film studios to support the creative industry.

The policy also emphasizes partnerships to promote health, yoga, meditation and medical tourism. Religious tourism will be enhanced by developing destination circuits, while universities will be encouraged to attract international students through targeted programs. Other initiatives include promoting traditional and natural medicines, improving health service quality, and marketing local cuisines and traditional foods to national and global audiences.

Stakeholders Stress on Execution

While the government has outlined its bold ambitions in the new tourism policy, industry leaders are responding with cautious optimism. “The policy is ambitious and strategically diverse. It aims to promote inclusivity, innovation and sustainability across the sector,” said Bijaya Amatya, CEO of Kora Tours. “But its success will depend on effective execution and oversight, infrastructure development in remote areas, balanced safety regulations with tourist freedoms and the ability to adapt policies as needed. If these concerns are addressed, Nepal could emerge as a leader in responsible and diversified tourism.”

Others also shared similar views. “We were expecting fresh initiatives. While the policy does address some long-standing concerns, many have been left out” said a senior tourism entrepreneur.

There are also some concerns in the luxury and wellness segment. “There is still not enough focus on high-end tourism,” argued Hitesh Goalcha, Hotelier and Managing Director of Kavya Resort and Spa. “The government has done very little to position itself as a luxury or wellness destination, despite rising global demand in this segment.”

Experts caution that despite its promising framework, the policy faces serious challenges. The main among them is implementation. Pointing to the policy of 2008, stakeholders say only two out of its 16 provisions were fully executed. “Without strong enforcement and accountability, we risk repeating the same mistakes,” Amatya warned.

With regional competitors like Bhutan positioning themselves as premium eco-tourism destinations and India scaling up its wellness sector, Nepal cannot afford to let another policy gather dust. Whether Tourism Policy 2025 becomes a milestone or just another missed opportunity will depend not on its vision, but on its execution.

This report was originally published in September 2025 issue of New Business Age magazine.