This paper on tourism is part of a larger report [available in VOCEDplus at TD/TNC 133.82] exploring inclusive job creation in Nepal. Research into key sectors was commissioned in early 2017 to inform broader analysis of keys trends in labour markets and to provide recommendations on which areas labour market interventions should target. Key sectors were selected that had good growth and export prospects and accounted for a substantial share of employment across the country, and/or because they had been targeted for special attention by government, for example through the Nepal Trade Integrati
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This paper on tourism is part of a larger report [available in VOCEDplus at TD/TNC 133.82] exploring inclusive job creation in Nepal. Research into key sectors was commissioned in early 2017 to inform broader analysis of keys trends in labour markets and to provide recommendations on which areas labour market interventions should target. Key sectors were selected that had good growth and export prospects and accounted for a substantial share of employment across the country, and/or because they had been targeted for special attention by government, for example through the Nepal Trade Integration Strategy (NTIS). The research into selected sectors consisted of reviewing the literature and conducting surveys with firms in January 2017. The other sectors reviewed were agro-processing [available in VOCEDplus at TD/TNC 133.78], light manufacturing [available in VOCEDplus at TD/TNC 133.81] and information and communication technology [available in VOCEDplus at TD/TNC 133.79].
Developing the tourism sector is often identified as a key priority for Nepal's development, and, given that much of the activity in tourism is labour-intensive, growth in the sector can also be expected to be employment-intensive. Nepal also has a distinct natural comparative advantage in the area: tourism has the potential to bring in significant foreign exchange while also being an attractive economic activity that is accessible by the poor in rural parts of the country. In January 2017, a survey was carried out of firms across various sub-sectors in tourism to identify constraints to growth (and labour demand). This found that firms generally felt the major challenges in the growth of the industry were linked to demand for their services. A lack of skilled workers exacerbates these problems. The top two cited constraints were related to the demand side - that is, not labour-related, but ones that hinder demand for skilled workers nonetheless. These were lack of adequate infrastructure to facilitate tourism and weak government support in promoting Nepal as a tourism destination. However, once probed, all firms discussed labour supply constraints as a major issue too - namely, lack of skilled, experienced workers (with the latter being particularly valued) and the loss of good workers to migration abroad.
Excerpts from publication.
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