The Nepalese hospitality industry along with tourism continues to be one of the key segments driving the growth of the services sector in the Nepalese economy. Currently, Nepalese economy ranks 101th in the world in terms of GDP as of FY19 as per IMF (2019 estimates).Travel and tourism sector contribute about US$ 8.9 trillion (y-o-y growth of 3.5%) as per World Travel & Tourism Council‟s (WTTC), providing employment to about 330 million persons in 2019 globally. Also,travel & tourism industry earns an average of 25% of the total foreign exchange for the country.
In the study, CARE Ratings Nepal has analyzed the Nepalese hotels & tourism industry for the past years to see the changes it has gone through and to understand the major factors affecting the industry in terms of demand and pricing. The industry has been viewed in comparison to other SAARC countries as well.