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HOTEL INDUSTRY OF NEPALMICRO AND MACRO ENVIRONMENT

ANALYSIS

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Hotel Industry In Nepal

Hotel association of Nepal(HAN), grown nearly 15% in the current fiscal year as compared to the previous years.

The highest local private sector investment in Nepal

In Nepal,

•8 five star •3 four star •12 three star

•22 two star

•18 one star •165 non star

•4 Allied •33 Resort

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Micro Environment

Micro Environment

Customer

Employee

competitors

suppliers

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Competitors

Two four-star hotels in the capital KathmanduOne four star in NepalgunjSoaltee crown plaza, Yak and Yeti,Radisson

hotel are improving their facilities.

•8 five star •3 four star •12 three star

•22 two star

•18 one star •165 non star

•4 Allied •33 Resort

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Customer

India and China will be in Nepal in 2010 the largest source country tourism, tourists from these two countries will account for the number of visitors the total number of 36.2%.

European Nation and AmericaAustraliaDomestic Tourist

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Suppliers

Institution that provide trained HRFood and Beverage supplier (organic) Travel Agents House keeping suppliersPool FurnishingEvent and CateringInterior Design Resources

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Employee

Still there is lack of qualified worker in this sector. The tourist industry in Nepal employs 42% of the total working population in

Nepal. Labour force - 18 million 

note: severe lack of skilled labour (2009 est.) Labour force - by occupation (2010 est.)

Unemployment

Source: CIA World FactbookUnless otherwise noted, information in this page is accurate as of December 30, 2010

Agriculture Industry Service

75% 7% 18%

2008 est. 2004 est.

46% 42%

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Macro Environment

Macro Environment

Legal

Political

Socio-Cultural

Environment (Global

Warming)Technologica

l

Security(terror and

war)

Economic

Infrastructure

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Infrastructure

To deal with increased aviation traffic the TIA is planning to operate 24 (from current 18 hours) starting October.

Electricity demand (900MW) < Supply (390MW)

Number of Airlines - 14 8,500 km (5,282 mi) of paved roads one 59-km railway line in the south in 2003 48 airports, ten of them with paved runways;

flights are frequent and support a sizable traffic

Energy Crisis

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Economic Environment

 GDP - composition by sector

 Population below poverty line – 7.5million (3 arba 4 crore for poverty reduction budget for 2067) Avg. inflation rate (Consumer Price Index, 2009): 11.8%.

Exchange rates Official exchange rate (as of December 6, 2010): NPR 71.79 = U.S. $1.00.

agriculture: 33%  industry: 15% services: 52% (FY09 est.)

GDP(2009)

$12.9 billion

GNP-per capita(2009)

$427(World Bank)

$536(IMF)

2010

• 71.79

2009

• 77.44

2008

• 65.21

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Social and Demographic

Social Culture can’t be ignored.Location is critical consideration. Area, noise,

attraction and other facilities.Easily accessible.

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Weather

Natural disasters also affect H&T. Hurricane Katrina and the tsunamis in Sri

Lanka in 2005 , Earth Quack in JapanTornados, hail storms, mud slides and floods

are also examples of how weather and natural disasters affect H&T in communities.

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Global Warming

Kenya's government declared a state of emergency after two and a half years of drought. Lack of rain has resulted in a decline in harvests, and it is estimated that nearly 2.5 million Kenyans are close to starvation. (2006)

Other East African countries are dealing with these conditions in 2006 as well: around 1.5 million people are near starvation in Ethiopia, 1.4 million in Somalia, and about 60,000 in Djibouti.

In 2006, floods in East Africa displaced over 1.8 million and killed over 1,000 citizens and water borne diseases like cholera.

Global warming will make overcoming the existing health challenges of cholera, malaria and malnutrition much harder for East African countries, and by 2030 the region is predicted to suffer some of the highest death rates from climate change in the world.

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Health and Disease

New epidemics have power to severely affect travel and tourism industry:

Impact of SARS in South Asia and AustralasiaNeed vaccination when western tourist come

to third world country like ours.H1N1( Swine Flu)Bird Flu

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Thailand Tourism

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Technology

New transportation methods:Super ferries and cruise shipsNew land bridgesSpace tourism

Continued growth of e-commerce:Only 5% of global population online currently

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Political/Legal Environment

Jhala Nath Khanal as the 34th PM of Nepal on February 3, 2011

The JNK government is yet to take full shape but there has already been a change of guards at the National Planning Commission, the nation’s highest economic policymaking body.

Nepal Tourism Act 2035, amendment in 2055.Child Labour Act 2000Labour Act 2000

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War and Security

11 year old civil conflict which started in 1996 and ended in 2006

Figures from the Department of Immigration showed a 37.2% increase in arrivals in 2007, which surpassed the numbers of tourist arrivals during 1999, the peak tourism year prior to 2006.

In 2008 and in 2009, the BBC declared Nepal as the world´s number one adventure tourism destination.

33% growth rate compared to 2007, a 24% increase in air arrivals in January 2008

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Conclusion

Nepal was considered cheap, affordable and a globally sought after destination, a must visit country.

Nepal is in peace process.Nepal is a nation with high possibility in

tourism sector.The future of hotel industry is positive.Government should go for amendment in

rules and regulation in relation to tourism sector, Labour and Security.

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Thank You

Lets Promote Visit Nepal 2011 by Fuelling it with positive effort from all of us.