Saturday, April 7, 2012

Travel & Tourism sector supported 3.3 percent of total employment in 2011 in Nepal

According to a latest report Travel and Tourism Economic Impact 2012 Nepal published by the World Travel and Tourism Council (WTTC), travel and tourism sector supported 412,500 direct jobs in 2011. It represented 3.3 percent of total employment in 2011.

By 2022, Travel & Tourism will account for 562,000 jobs directly, an increase of 2.8% pa over the next ten years. It is forecast to support (direct, indirect and induced) 1,341,000 jobs (8.3% of total employment), an increase of 3.1% pa over the period. The direct employment provided by the sector includes employment by hotels, travel agents, airlines and other passenger transportation services (excluding commuter services). It also includes the activities of restaurants and leisure industries directly supported by tourists.

The direct contribution of Travel & Tourism to GDP was Rs 53.5 billion (4 percent of total GDP) in 2011, and is forecast to rise by 4.7 percent in 2012, and to rise by 3.7 percent per annum, from 2012-2022, to Rs 80.8 billion in 2022 (in constant 2011 prices). Its total contribution is equal to 8.8 percent of GDP (Rs 119.1 billion) in 2011 and is expected to rise by 4.1 percent per annum to Rs 185.5 billion in 2022.

Visitor exports generated Rs 28.6 billion (24.5 percent of total exports) in 2011. This is forecast to grow by 2.8 percent in 2012, and grow by 3.9 percent per annum, from 2012-2022, to Rs 43.2 billion in 2022 (22.3 percent of total). By 2022, international tourist arrivals are forecast to total 1,083,000.

Travel & Tourism investment in 2011 was Rs 12 billion, or 4.9 percent of total investment. It should rise by 5.4 percent in 2012 and by 4.9 percent per annum over the next ten years to Rs 20.4 billion in 2022 (5.8 percent of total). Travel & Tourism’s share of total national investment will rise from 5.0% in 2012 to 5.8% in 2022.

FYI, tourism sector is the second highest foreign exchange income earner in Nepal.

The biggest contributor to total convertible foreign exchange income is remittances, which comes under the services trade heading. In 2010/11, the share of remittances, tourism and investment in total convertible foreign exchange income of services trade was 85.27 percent, 11.35 percent, and 3.38 percent respectively. In numbers, these translate to Rs Rs 214 billion, Rs 29.39 billion, and Rs 5.42 billion respectively. The total convertible foreign exchange income of merchandise trade and services trade was Rs 38.45 billion and Rs 248.80 billion respectively.