Nepal’s Hotel and Restaurant Industry Adds Rs. 109.27 Billion to GDP, Employs Over 380,000 Individuals

Thu, Jan 2, 2025 2:51 PM on Featured, National,

The hotel and restaurant sector in Nepal has made a significant contribution of Rs. 109.27 billion to the nation’s GDP, accounting for approximately 2% of the total economic output in the fiscal year 2022/23, according to the National Hotel and Restaurant Survey 2080 unveiled by the National Statistics Office (NSO) on Wednesday. The report highlights the sector's role in value creation, with more than Rs. 109 billion generated in the review period.

This survey, the first conducted in two decades, provides a comprehensive overview of star hotels, resorts, non-star accommodations, homestays, and other food service establishments. Hem Raj Regmi, Deputy Chief Statistician at the NSO, noted that the study aimed to map the extensive economic footprint of the hospitality industry.

The findings reveal a total investment of Rs. 216.73 billion in the sector, which produces services worth Rs. 326.14 billion annually. Fixed assets owned by hotels and restaurants amount to an impressive Rs. 543.25 billion. While 28.4% of these establishments rely on financial institution loans, the remaining 71.6% operate on promoters' capital.

The sector employs a total of 387,747 individuals, including entrepreneurs, partners, unpaid family members, and salaried staff. Of these, 106,459 individuals are directly employed in hotels and restaurants, which collectively spend Rs. 20.615 billion annually on salaries, wages, and benefits.

Bagmati Province leads with the highest number of establishments at 52,123, followed by Koshi Province with 25,887. Karnali Province has the lowest number, with just 7,110 establishments. Other provinces, including Madhesh, Gandaki, Lumbini, and Sudurpaschim, have 11,740, 16,976, 20,158, and 8,228 establishments, respectively.

Nepal’s hospitality sector offers accommodation for up to 2,234,852 people simultaneously, with 116,100 rooms available across the country. These include 8,496 rooms in star hotels, 100,075 in non-star hotels and lodges, 3,829 in resorts, and 3,700 in homestays.

The report also reveals that 88% of the total hospitality services in Nepal are restaurants, while the remaining 12% include star hotels, lodges, and other eateries. Among these, there are 126-star hotels, 126 resorts, 1,345 homestays, and 801 catering services and banquets operating nationwide.