Analyzing the Effectiveness of Pro-Poor Tourism in Nepal (Economics)

This report examines the effectiveness of pro-poor tourism in Nepal, a developing South Asian country heavily reliant on agriculture and increasingly on tourism. It investigates the economic relationship between tourism and the livelihoods of poor Nepalese people, aiming to determine if pro-poor tourism practices have been successful in reducing poverty and improving living standards. The study explores how tourism has brought changes to the lives of poor communities, identifies the benefits they receive, and suggests ways to further enhance their participation and gains from the tourism sector. It addresses the lack of widespread government acceptance of pro-poor tourism despite its popularity among local communities and its potential to integrate rural populations into productive economic activities. The research uses collected data to provide a comprehensive analysis, offering conclusions and recommendations for stakeholders to maximize the positive impact of tourism on Nepal's impoverished population. Desklib provides access to this report along with numerous other solved assignments and past papers.

Effectiveness of
Pro Poor Tourism
in Nepal

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Background of the Nepal.............................................................................................................1
Tourism in Nepal.........................................................................................................................2
Research Questions......................................................................................................................2
Research Aim and Objectives......................................................................................................2
Hypothesis of the study...............................................................................................................2
Problem statement.......................................................................................................................3
Significance of the study.............................................................................................................3
Structure of the study...................................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Pro Poor tourism is practiced in developing countries for the purpose of improving the
local conditions of the local people. It develops relationship between poor people and tourism
businesses so that poverty can be reduced. The main idea is to make them participate towards the
development of tourism within the society (Tolkach, Pearlman and King, 2012). It can be in
terms of offering the employment opportunities and involving them in the decision making
process. Pro Poor tourism is not another form of tourism but rather it is used as an approach to
remove poverty among the marginalized communities.
This has to be noted that tourism is a massive and growing industry affecting millions of
poor across the globe. A marginal improvement can generate many substantial advantages. With
regard to poverty reduction, the industry has many benefits as compared to other sectors. It has
the potential to increase the scope for wide participation (Trau, 2012). Tourism is more kind of
labour intensive industry and the services are often created on the assets owned by poor people.
Hence, it can be said that there is a strong relationship between the industry and poverty
reduction.
People may be considered as deprived due to their economic circumstances, although
they may be filled with social and cultural resources. Often, these resources are of interest for the
tourists which create many opportunities related to sources of income for the communities. This
kind of tourism helps in improving the living standard of the poor within the society (Truong,
2014). It can offer net benefits for the poor people. It is not a particular tourism product or sector
or a category like eco-tourism. Currently, it is acting as an overall approach to the development
and for unlocking many opportunities for the poor.
Background of the Nepal
Nepal is a small South Asian country between India and China with the area of
approximately 0.14 million square kilometres and population of 30 million. It is ranked 147 out
of 187 as per Human Development Index (HDI) according to the income level. 25.2 percent of
population is under poverty lines and Gross National Income (GNI) per capita was $730 in the
year 2014 (World Bank, 2015). The economy mainly depends on agriculture as the largest size of
population is engaged in it. Tourism has contributed NPRS 157.8 billion (8.6 percent of total
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Gross Domestic Product) in the year 2014. It was 8.2 percent in 2013 and it is estimated to grow
to 9.9 percent by 2024 (World Travel and Tourism Council, 2015).
Tourism in Nepal
Tourism is the largest industry in Nepal. It has been a hotspot destination for rock
climbers, mountaineers and people looking for adventure. The country has many beautiful and
magnificent places which can attract tourists from around the world (COST OF LIVING INDEX
IN NEPAL “STATISTICS & GRAPHS OF NEPALESE CITIZENS ECONOMIC POWER. 2015).
It is a popular tourist destination for adventurous, religious and spiritual tourism. Economic
problems like poverty, unemployment etc. is very common in the country. Huge portions of
Nepal labour force are unemployed who are considered as burden of the economy. Pro Poor
tourism is the best suited in a developing or under-developed economies because it integrates the
rural and integral people of the country in productive and resourceful activities by creating
employment for them. This study is about evaluating the effectiveness of Pro Poor Tourism
Practice in Nepal. It identifies the benefits obtained by the economy of the Nepal with regard to
this kind of tourism.
Research Questions
 Has pro poor tourism practice in Nepal been a success?
 What is the role of pro poor tourism in eliminating poverty in Nepal?
 How is tourism bringing changes in the lives of poor people in Nepal?
Research Aim and Objectives
The major aim of the research is to evaluate the effectiveness of Pro Poor Tourism Practices
in Nepal. In order to achieve the above aim, following objectives have been established:
 To examine the economic relationship between tourism and poor people in Nepal.
 To identify the changes in the lives of poor Nepalese people that tourism has brought
 To find out the ways on which the poor Nepalese can get more benefitted from Tourism
Hypothesis of the study
 H0: Pro poor tourism brings changes in the lives of poor people in Nepal
 H1: Pro poor tourism doesn’t bring changes in the lives of poor people in Nepal
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Problem statement
Pro Poor tourism has been practised in several developing and under-developed nations.
This kind of tourism is very popular among the local communities. However, this concept has
not gained wide acceptance from the side of the government. Still many countries are not
concentrating on the development of the poor local communities. They are not getting proper
sources of income and livelihood opportunities. There is a need to do proper research on
identifying the effectiveness of Pro Poor tourism on the development of the tourism. This study
makes an efforts to show the effectiveness of Pro Poor tourism in a under developed nation like
Nepal.
Significance of the study
The research will be significant in evaluating the success of pro poor tourism practice in
Nepal. It will also find out the limitations and obstacles against it so that it will be useful for the
respective authorities and stakeholders. This study will also identify some ways by which the
local poor population can get more benefits from the tourism activities in their area.
Structure of the study
Chapter 1 – Introduction
This chapter offers a brief overview of the research subject which is to be investigated.
Chapter 2 – Literature Review
This chapter demonstrates the knowledge and theories about the literature which has been
developed with regard to the research subject
Chapter 3 – Research Methodology
This chapter talks about the research tools and techniques which are applied to collect the data
for the research.
Chapter 4 – Data Analysis
This chapter performs the analysis of the data which has been collected from various sources. A
suitable technique is used to interpret all the results
Chapter 5 – Conclusion & Recommendation
This is the final stage of the research. Under this chapter, different types of conclusions are made
on the basis of generated findings.
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REFERENCES
Cost of living index in nepal “statistics & graphs of nepalese citizens economic power. 2015.
[Online] Available through:<http://ekendraonline.com/nepal/cost-living-index-nepal/>.
[Accessed on 9th February, 2016].
Tolkach, D., Pearlman, M. and King, B. 2012. Key Implementation Factors in Pro-poor Tourism.
Tourism Recreation Research. 37(1). pp.3-13.
Trau, A., 2012. Beyond Pro-Poor Tourism: (Re) Interpreting Tourism-Based Approaches to
Poverty Alleviation in Vanuatu. Tourism Planning & Development. 9(2). pp.149-164.
Truong, V., 2014. Pro-Poor Tourism: Looking Backward as We Move Forward. Tourism
Planning & Development. 11(2). pp. 228-242.
World Travel and Tourism Council. 2015. Travel and Tourism Economic Impact 2014 Nepal,
[online]. Available on <http://www.wttc.org/-/media/files/reports/economic%20impact
%20research/country%20reports/nepal2014.pdf>, [Accessed on 9th February, 2016].
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