PhD Proposal: Economic Factors Affecting Nepal's Tourism Industry

This PhD proposal examines the economic factors influencing the growth of the tourism industry in Nepal. It begins with an introduction highlighting Nepal's potential for tourism and the economic factors affecting its development. The research aims to explore the economic factors that influence the growth of the tourism industry in Nepal, with specific objectives including studying Nepal's economic situation, measuring elements of economic factors hindering tourism growth, and identifying factors for future sustainability. The literature review discusses relevant economic factors such as foreign exchange revenues, per capita income, and employment, and the impact of tourism on GDP and employment. The methodology section outlines the research approach (inductive), philosophy (interpretivism), data collection methods (primary and secondary), sampling techniques (purposive), and data analysis (quantitative using SPSS). The proposal includes a detailed reference list of relevant academic sources.

PHD PROPOSAL
(TOURISM INDUSTRY IN NEPAL)

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
RESEARCH AIM AND OBJECTIVES .........................................................................................3
Aim .............................................................................................................................................3
Objectives....................................................................................................................................3
Research Questions......................................................................................................................3
LITERATURE REVIEW................................................................................................................4
RESEARCH METHODOLOGY ....................................................................................................5
REFERENCES................................................................................................................................7

INTRODUCTION
Tourism has become most important economic activity in all the countries around the
world. This is one of the fastest growing industries which help the countries in maintaining
appropriate economic sustainability. According to (Hamilton, Maddison and Tol, 2005) tourism
as an economic activity creates various direct or indirect impact in the economy as well. It
ultimately increases the foreign exchange earnings as well as income. Nepal is one of the
smallest but richest countries around the world due to its bio-diversity as well as unique
geographical position. The country has a great potential to attract numerous visitors because of
its presence of fine blend of art, culture as well as nature. These are the major factors which
increase the number of several visitors within the country and it enhances the profit margin of
tourism industries of Nepal. However, there are several economic factors which highly affects
the growth rate of this industry (Nepal, 2000).
Further, the primary purpose of this thesis is to identify the existing economic situation of
Nepal as well as various factors which obstruct the overall growth of tourism industry in Nepal.
RESEARCH AIM AND OBJECTIVES
Aim
To explore the economic factors that influences the growth of tourism industry in Nepal: A
case study on Nepal Tourism.
Objectives
1. To study the existing economic situation of Nepal
2. To measure the various elements of economic factors that hampers the growth of tourism
industry in Nepal.
3. To identify the factors that ensures the economic sustainability for the future of tourism
industry in Nepal.
Research Questions
 What are the major economic factors which influence the overall growth of tourism
industries of Nepal?

LITERATURE REVIEW
According to Mill and Morrison (2002) tourism industry has a great development
nowadays and most of the countries are managed to improve their situation by overcoming on
their existing economic factors. There are some of the major economic factors such as shortage
of foreign exchange revenues, low levels of per capita income as well as unemployment
frequency. However, government of most of the countries are taking several initiatives to
improve their economic condition. Godde (2000) in his article determines that tourism has been
widely criticised industry. All the economic impacts associated with the tourism arises as a result
of the demand and supply relationship in the industry. It is the major factor which highly
influences the number of visitors as well as their length of stay and their expenditure patterns.
As per the past statistics of WTO (World Tourism Organization), it has been determined
that in the year of 2000 almost 698 million travelled to foreign countries and spending more the
US$ 478 billion. Nyaupane, Morais and Dowler (2006) stated that there are several hidden costs
of tourism which might have their unfavourable economic effects on the host community.
According to past statistics of Nepal it has been identified that the tourist’s arrival grew by 6
percent growth in the previous years. In all around the world developing economies and
emerging markets drive economic as well as tourism growth. In the overall Nepalese economy
tourism industry is considered as a major industry. More than 1.50 million people are employed
in this industry directly or indirectly. However, some of the most common factors which hamper
the total growth of this industry is related to the foreign exchange earnings, generates the
employment opportunity and increases the income (Mill and Morrison, 2002). Therefore, the role
of tourism becomes the significant in economic growth and development of country.
According to Godde (2000) tourism industry is gradually picking up in Nepal and it
directly contributes about 3 percent in GDP rate. Due to the increasing growth of tourism
industry the demand for products and services of tourism are increasing rapidly. Further, the total
availability of these products depends on the production capacity as well as natural resources and
supply conditions of an economy. Mason (2010) in his article determines that the total analysis
of economic impact provides the appropriate understanding of the importance of tourism in a
region’s economy. It highly involves the economic costs as well as direct cost that is sustained
by the tourism businesses and government costs for better infrastructure. Through this, country’s
tourism industries can serve more number of visitors and enhance their customer base.

Hamilton, Maddison and Tol (2005) in his article determine that there is a positive aspect
of tourism that it is just to bring new money in the community. The overall impact of tourism can
be increased by selling local products and retaining local people to ownership of business as
well. In order to increase the revenues from tourism there are mainly two ways for tourism
industries i.e. increasing the amount that each visitor spends or increasing the number of visitors
as well.
According to Godde (2000) due to the changing patterns of tourist’s consumption and it
economic impact on employment there is a direct impact on the tourist’s expenditure and
Nepalese economy as well. There is a significant relationship between per capita income of the
household of country as well as number of tourism supply. Moreover, Nepal is developing
country with an agriculture economy and by employing 70% of the population and providing
37% of GDP as well. Economic freedom of country score is 51.3 which have increased since last
years due to the several improvements in the freedom from corruption as well as business
freedom. Almost population of Nepal has been trapped in poverty from past few years.
Government is not able to implement consistent economic reforms and left the Nepalese
economy (Mason, 2010). The cost of living is also lower comparatively other countries. Further,
some of the most common factors which hamper the overall growth of tourism industry are
foreign investments and taxation, import and export, all the resources and macro-economic
trends as well. Moreover, Nepalese economy contributing to its status as one of the most
impoverished countries.
RESEARCH METHODOLOGY
This is considered as a most important sections of any study in which researcher can find
out suitable methods of the data collection and information as well. Here, as per the given subject
matter there are several research methods which will take into consideration such as:
Research Approach: Inductive and deductive are two major research approaches in
which most suitable will be acquire as per the given scenario. Here, in the present research,
Inductive research approach will be the most appropriate as it helps in in depth analysis or
assessment of the given subject matter (Chilisa, 2012). With the help of this research approach
researcher can draw better results without framing any hypothesis.
Research Philosophy: It can be define as a blue print of the study in which research can
carry out most suitable findings. Inerpretivism and Positivisim are two major research

philosophies used by researcher. As per the given case scenario, Intepretivism philosophy will be
the most suitable and it helps the researcher in building overall information about the given topic.
This will apply as no hypothesis will be framed in the study (Walliman, 2011).
Data Collection: It is the most important section from where researcher can find out
appropriate information about the given subject matter. Primary and secondary are two major
sources from where researcher can collect the required data as well as information. Here, in this
regard present study will entail primary as well as secondary sources both. In order to collect
primary information different tourism industries of Nepal will be taken into consideration. Their
entire manager will be asked about the economic factors which hamper their growth rate as well
as current economic situation of Nepal. They will be questioned on the basis of survey analysis
in which questionnaire will be framed for the same (Johnson and Clark, 2006). On the other
hand, secondary data will be gathered from past studies about the given topic as well as other
online articles and books.
Sampling: At the time of gathering different responses it is quite essential to narrow
down the whole population so that appropriate sample will be selected. Here, probabilistic and
non-probabilistic are two main sampling techniques. In the present study, purposive technique
will be incorporated on the basis of which as it boost the overall efficiency of the study. In this
regard, 10 tourism companies of Nepal will be taken into consideration in which 10 officials of
these companies will be surveyed (Kotzab and et.al, 2006). They can give better response about
the various economic factors that hampers their growth within the area of tourism in Nepal.
Further, sample size of 100 officials will be taken into consideration.
Data Analysis: After gathering the appropriate responses data will be analysed by the
way of quantitative technique. For the same, SPSS technique will be applied just to get most
appropriate findings from the varied responses for officials (Hoy, 2009). In order to analyse the
data, different techniques will be incorporated such as descriptive statistics, frequency tables,
cross tabulation etc. These are the most effective techniques by which most suitable findings will
be framed.

REFERENCES
Chilisa, B., 2012. Indigenous Research Methodologies. SAGE.
Godde, P., 2000. Tourism and development in mountain regions. CABI.
Hamilton, J.M., Maddison, D.J. and Tol, R.S., 2005. Climate change and international tourism: a
simulation study. Global environmental change. 15(3). pp.253-266.
Hoy, K.W., 2009. Quantitative Research in Education: A Primer. SAGE.
Johnson, P. and Clark, M., 2006. Business and management research methodologies –Vols. 1-6,
London: Sage Publications.
Kotzab, H. and et.al., 2006. Research Methodologies in Supply Chain Management. Springer.
Mason, P., 2010. Tourism impacts, planning and management. Routledge.
Mill, R.C. and Morrison, A.M., 2002. The tourism system. Kendall Hunt.
Nepal, S.K., 2000. Tourism in protected areas: the Nepalese Himalaya. Annals of Tourism
research. 27(3). pp.661-681.
Nyaupane, G.P., Morais, D.B. and Dowler, L., 2006. The role of community involvement and
number/type of visitors on tourism impacts: A controlled comparison of Annapurna, Nepal
and Northwest Yunnan, China. Tourism Managemet. 27(6). pp.1373-1385.
Walliman, N. S., 2011. Research Methods: The Basics: The Basics. Taylor & Francis.