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HOTEL INDUSTRY OF NEPAL

MICRO AND MACRO ENVIRONMENT ANALYSIS

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Hotel Industry In Nepal Hotel association of Nepal(HAN), grown nearly 15% in the current fiscal year as compared to the previous years. The highest local private sector investment in Nepal In Nepal,
8 five star 22 two star 4 Allied
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3 four star 18 one star 33 Resort

12 three star 165 non star

Micro Environment

Customer

suppliers

Micro Environment

Employee

competitors

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Competitors
8 five star 22 two star 4 Allied 3 four star 18 one star 33 Resort 12 three star 165 non star

y Two four-star hotels in the capital Kathmandu y One four star in Nepalgunj y Soaltee crown plaza, Yak and Yeti,Radisson hotel are

improving their facilities.

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Customer
y India and China will be in Nepal in 2010 the largest

source country tourism, tourists from these two countries will account for the number of visitors the total number of 36.2%.
y European Nation and America y Australia y Domestic Tourist

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Suppliers
y Institution that provide trained HR y Food and Beverage supplier (organic) y Travel Agents y House keeping suppliers y Pool Furnishing y Event and Catering y Interior Design Resources

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Employee
y Still there is lack of qualified worker in this sector. y The tourist industry in Nepal employs 42% of the total working population in Nepal. y Labour force - 18 million

note: severe lack of skilled labour (2009 est.) y Labour force - by occupation (2010 est.)

Agriculture 75%
Unemployment

Industry 7%

Service 18%

2008 est. 46%

2004 est. 42%

Source: CIA World Factbook Unless otherwise noted, information in this page is accurate as of December 30, 2010

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Macro Environment

Legal Infrastruct ure Political

Economic

Macro Environmen t

SocioCultural

Security (terror and war) Technolog ical

Environm ent (Global Warming)

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Infrastructure
y To deal with increased aviation traffic the TIA is

planning to operate 24 (from current 18 hours) starting October. y Electricity demand (900MW) < Supply (390MW) Energy Crisis
y Number of Airlines - 14 y 8,500 km (5,282 mi) of paved roads y one 59-km railway line in the south in 2003 y 48 airports, ten of them with paved runways; flights

are frequent and support a sizable traffic


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Economic Environment
GDP - composition by sector agriculture: 33% industry: 15% services: 52% (FY09 est.) Population below poverty line 7.5million (3 arba 4 crore for poverty reduction budget for 2067) Avg. inflation rate (Consumer Price Index, 2009): 11.8%. Exchange rates Official exchange rate (as of December 6, 2010): NPR 71.79 = U.S. $1.00. GDP(2009) GNP-per capita(2009)

$12.9 billion
2010 71.79
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$427(World Bank) $536(IMF)


2009 77.44 2008 65.21

Social and Demographic

y Social Culture cant be ignored. y Location is critical consideration. Area, noise,

attraction and other facilities. y Easily accessible.

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Weather
y Natural disasters also affect H&T. y Hurricane Katrina and the tsunamis in Sri Lanka in

2005 , Earth Quack in Japan y Tornados, hail storms, mud slides and floods are also examples of how weather and natural disasters affect H&T in communities.

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Global Warming
y Kenya's government declared a state of emergency after two and a

half years of drought. Lack of rain has resulted in a decline in harvests, and it is estimated that nearly 2.5 million Kenyans are close to starvation. (2006) y Other East African countries are dealing with these conditions in 2006 as well: around 1.5 million people are near starvation in Ethiopia, 1.4 million in Somalia, and about 60,000 in Djibouti. y In 2006, floods in East Africa displaced over 1.8 million and killed over 1,000 citizens and water borne diseases like cholera. y Global warming will make overcoming the existing health challenges of cholera, malaria and malnutrition much harder for East African countries, and by 2030 the region is predicted to suffer some of the highest death rates from climate change in the world.

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Health and Disease


New epidemics have power to severely affect travel and tourism industry: Impact of SARS in South Asia and Australasia Need vaccination when western tourist come to third world country like ours. H1N1( Swine Flu) Bird Flu

y y y y

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Thailand Tourism

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Technology
New transportation methods: Super ferries and cruise ships New land bridges Space tourism Continued growth of e-commerce: Only 5% of global population online currently

y y y y

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Political/Legal Environment
y Jhala Nath Khanal as the 34th PM of Nepal on y

y y y

February 3, 2011 The JNK government is yet to take full shape but there has already been a change of guards at the National Planning Commission, the nations highest economic policymaking body. Nepal Tourism Act 2035, amendment in 2055. Child Labour Act 2000 Labour Act 2000

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War and Security


y 11 year old civil conflict which started in 1996 and y

y y

ended in 2006 Figures from the Department of Immigration showed a 37.2% increase in arrivals in 2007, which surpassed the numbers of tourist arrivals during 1999, the peak tourism year prior to 2006. In 2008 and in 2009, the BBC declared Nepal as the worlds number one adventure tourism destination. 33% growth rate compared to 2007, a 24% increase in air arrivals in January 2008

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Conclusion
y Nepal was considered cheap, affordable and a

y y y y

globally sought after destination, a must visit country. Nepal is in peace process. Nepal is a nation with high possibility in tourism sector. The future of hotel industry is positive. Government should go for amendment in rules and regulation in relation to tourism sector, Labour and Security.

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Thank You
Lets Promote Visit Nepal 2011 by Fuelling it with positive effort from all of us.

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