More than 10,600 room nights have been added by tourist standard hotels and lodges across the country in the last two years prompted by rising travel demand, according to a recent survey of Nepal Rastra Bank.

The survey titled Economic Activities Report 2017-18 show that Nepal’s hospitality industry currently has 75,792 room nights available, which has increased by 16.33 percent in the last two years.   

The survey was conducted in eight major city areas—Kathmandu, Biratnagar, Janakpur, Birgunj, Pokhara, Bhairahawa, Nepalgunj and Dhangadhi—spread across 47 districts.

The results show that the 2,860 hotels and lodges can produce 75,792 room nights daily. Based on the room nights available, the country can accommodate 27 million tourists annually.

Meanwhile, the number of hotels and lodges saw a significant growth of 20.82 percent in the last two years. The central bank survey said that during the survey period, 1.01 million foreign tourists visited Nepal. The survey does not include domestic traveller movement.

“The tourism and hospitality industry, which falls under the service sector, saw  significant growth among all economic indicators in the country,” said Binayak Shah, general secretary of the Hotel Association of Nepal (HAN). “Indeed, it’s a good indication showing that the country’s tourism industry is becoming vibrant and indicates a better situation as it has been attracting better-than-expected investments.”

According to Shah, more than 5,000 room nights will be added in the country within two years given the current development of hotels in various parts of the country.

One of the key reason behind the growth is domestic tourist movement, which has been increasing rapidly due to rising income of Nepalis, he said, adding that the three levels of governments—federal, provincial and local have also boosted growth.

The central bank’s survey said that despite the rise in accommodation facilities, the country faces a challenge to increase the length of stay and spending of tourists. Similarly, timely completion of airport infrastructure is also one of the biggest challenges that the government faces, it said. The survey said that foreign tourist growth has increased strongly by 28.5 percent in 2017-18.  

Although Pokhara has the highest numbers of tourist standard hotels and lodges, in terms of room night’s availability, Kathmandu is ahead of Pokhara. The survey revealed that Kathmandu has 782 hotels and lodges, producing 28,505 room nights. The Kathmandu area includes Lalitpur, Bhaktapur, Sindhupalchok, Kavrepalanchok, Dhading, Nuwakot, Rasuwa and Dolakha districts in the survey.

Similarly, Pokhara has 919 hotels and lodges, producing 18,253 room nights.

Birgunj, the country’s key trade route in the eastern southern plain, has 562 hotels and lodges producing 15,217 room nights daily. The number of room nights in Birgunj has increased by 12.8 percent while hotels and lodges number recorded a growth of 13.8 percent in 2017-18 as compared to the previous fiscal year. Birgunj attracts the largest number of Indian visitors.

Likewise, Nepalgunj saw the strongest growth in the number of hotels and lodges, gaining 68.6 percent. The city added 116 new tourist standard hotels in the last fiscal year and produces 5,757 rooms per night.

Travel trade entrepreneurs said that after the Chinese government closed the Tatopani border point north of Kathmandu due to damage by the 2015 earthquake; Indian travellers undertaking the Kailash Manasarovar Yatra have been using the Nepalgunj-Humla route, the shortest way to reach the widely popular holy destination in China.

The eastern city of Biratnagar has been producing 3,384 room nights by 179 hotels and lodges. The number of hotels and lodges in Biratnagar has increased by 18.5 percent while room nights have increased by 21 percent in 2017-18 as compared to the previous fiscal year.

In Dhangadhi, there are 41 hotels and lodges producing 1,271 room nights. Janakpur produces 1,420 room nights from 47 hotels and lodges, according to the survey.

Meanwhile, Bhairahawa produced 1,985 room nights. The birthplace of Buddha—where the country’s second international airport is expected to come into operation by the end of 2019—has 179 hotels and lodges.

Hotels capacity

Area                         Hotels/lodges    Room nights

Kathmandu                        782                 28,505

Pokhara                              919                 18,253

Birgunj                                562                 15,217

Nepalgunj                          285                   5,757

Biratnagar                          179                   3,384

Bhairahawa                        179                   1,985

Janakpur                             47                    1,420

Dhangadhi                          41                    1,271

 (Source: NRB)