Travel & Tourism - Nepal | Statista Market Forecast

The projected revenue of the Travel & Tourism market in Nepal is estimated to reach US$444.80m by 2024, with an expected annual growth rate (CAGR 2024-2029) of 9.06%.
This growth is expected to result in a projected market volume of US$686.40m by 2029.
The largest market in this market is the Package Holidays, with a projected market volume of US$203.60m in 2024.
By 2029, the number of users in Package Holidays is expected to amount to 3.17m users.
In 2024, the user penetration rate is 11.3%, which is expected to increase to 16.3% by 2029.
The average revenue per user (ARPU) is expected to amount to US$125.80.
Online sales are projected to generate 65% of the total revenue in the Travel & Tourism market by 2029.
It is worth noting that in global comparison, United States is expected to generate the most revenue in this market, with a projected revenue of US$214bn in 2024.
Nepal's Travel & Tourism sector is experiencing a shift towards sustainable tourism, with an emphasis on ecotourism and community-based tourism initiatives.

Definition:

The Travel & Tourism market encompasses a diverse range of accommodation services catering to the needs and preferences of travelers. This dynamic market includes package holidays, hotel accommodations, private vacation rentals, camping experiences, and cruises.

Structure:

The market consists of five further markets.

The Cruises market covers multi-day vacation trips on a cruise ship. The Cruises market encompasses exclusively passenger ticket revenues.
The Vacation Rentals market comprises of private accommodation bookings which includes private holiday homes and houses as well as short-term rental of private rooms or flats.
The Hotels market includes stays in hotels and professionally run guest houses.
The Package Holidays market comprises of travel deals that normally contain travel and accommodation sold for one price, although optional further provisions can be included such as catering and tourist services.
The Camping market includes bookings at camping sites for pitches using tents, campervans, or trailers. These can be associated with big chains or privately managed campsites.

Additional Information:

The main performance indicators of the Travel & Tourism market are revenues, average revenue per user (ARPU), users and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. Users represent the aggregated number of guests. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked travels made by users from the selected region, independent of the departure and arrival. The scope includes domestic and outbound travel.

Prominent players in this sector include online travel agencies (OTAs) like Expedia and Opodo, as well as tour operators such as TUI. Specialized platforms like Hotels.com, Booking.com, and Airbnb facilitate the online booking of hotels and private accommodations, contributing significantly to the market's vibrancy.

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Bookings directly via the website of the service provider, travel agencies, online travel agencies (OTAs) or telephone

Business trips
Other forms of trips (e.g. excursions, etc.)

Nepal, known for its majestic mountains and rich cultural heritage, has been experiencing a notable growth in its Travel & Tourism market.

Customer preferences: Travelers visiting Nepal are increasingly seeking authentic and immersive experiences, such as trekking in the Himalayas, exploring ancient temples, and participating in local festivals. The demand for sustainable and eco-friendly tourism practices is also on the rise, with tourists showing a preference for responsible travel options.

Trends in the market: One of the key trends shaping the Travel & Tourism market in Nepal is the growing popularity of adventure tourism. Activities like mountaineering, white-water rafting, and paragliding are attracting thrill-seekers from around the globe. Additionally, the country's focus on promoting cultural tourism has led to an increase in heritage tours and homestay experiences.

Local special circumstances: Nepal's unique geography, which includes eight of the world's ten highest peaks, positions it as a prime destination for adventure enthusiasts and nature lovers. The country's diverse ethnic communities and vibrant traditions also add to its appeal, offering tourists a chance to immerse themselves in a rich tapestry of cultures.

Underlying macroeconomic factors: The political stability and improved infrastructure in Nepal have played a significant role in driving the growth of the Travel & Tourism market. Government initiatives to promote tourism, such as easing visa regulations and investing in hospitality services, have helped attract a larger number of international visitors. Additionally, the increasing connectivity through air travel and the presence of a skilled workforce in the tourism industry have further boosted the sector's development.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and sales channels of hotels, vacation rentals, cruises, package holidays, and camping.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, the Global Consumer Survey, third-party studies and reports, data from industry associations (e.g., UNWTO), and price data of major players in respective markets. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as country-related GDP, demographic data (e.g., population), tourism spending, consumer spending, internet penetration, and device penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, and exponential trend smoothing methods are applied. A k-means cluster analysis allows for the estimation of similar countries. The main drivers are tourism GDP per capita and respective price indices.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Mobility market, in a PDF format.

Business or corporate travel is the tourism segment that focuses on people who travel for work or professional purposes and the related tourism services. This branch also includes the meetings industry, which refers to business events, conferences, congresses, trade fairs, and exhibitions. According to the World Travel and Tourism Council (WTTC), business travel accounted for 20 percent of the global tourism expenditure in 2021. In that year, it was estimated that business travelers spent more than 740 billion U.S. dollars worldwide, with Chinese tourists topping the ranking of the biggest business travel spenders.