Digital Transformation and Tourism in Nepal

The rise of social media and interactive digital platforms have altered the ways people traditionally experience tourism. As technology became a global phenomenon, the tourism industry was one of the first sectors to embrace the digital transformation. Digitization has exposed people to new places, cultures, communities and more via digital platforms. Tourism enterprises, across the world were also quick to switch gears and sell their products such as hotel rooms, travel packages, and flights through online platforms. A similar phenomenon has been observed in Nepal with an increasing use of smartphones, social media and consumption of online content.

Tourism has drastically changed, from being a time-consuming exercise of physically making inquiries, bookings, and payment to transforming into a hassle free and safe process of online bookings, e-commerce platforms and social media marketing campaigns that make inquiries swift. The development process within digitization, has provided the world with a portfolio of unique products, services, and destinations, further contributing to a successful and competitive market. With an ever-growing demand for travel and more so now, the need for innovation within the tourism sector is imperative. This is more true for Nepal, as the country largely depends on the tourism sector for revenue.

Digitization and Tourism

The nature of travels across the world has evolved over the years with increasing disposable income, growing markets and more importantly, changing attitudes of people. This, coupled with a rise in digitization has provided people with a window to view tourism as a lifestyle choice and less a luxury. These travel barriers have been successfully overcome with the help of the internet and social media, where more and more people are willing to experience culture and geographies that they originally saw on screens or in print. The rise of digitization has accelerated a rise in international tourism with people being more convinced to travel out of their regions after learning about new places. This trend has become more common in Nepal as well. With an increasing immigration of Nepalis, use of smartphones/social media and ease of acquiring visa has made travelling for work and even leisure much more accessible.

For the longest time, the global tourism industry was based on personal connections, which meant travelers’ decisions were determined by the agency/enterprise they would seek assistance from, however, with the emergence of technology, travelers are now more competent to understand the market, survey their choices and make a decision. The world of codes and algorithms has transformed the way we consume information. With a personalized and filter-based system to choose products, a consumer can be directed to their most preferred choice by simply surfing the internet. These efficient systems that work on reviews and preference has made travel to unique and unexplored place very popular. The onset of social media platforms has further facilitated the increase of digital tourism by allowing consumers to learn, and experience new destinations from the comforts of their home.

The outbreak of COVID-19 in 2020, drastically impacted tourism in Nepal. The government campaign, “Visit Nepal 2020” had received great reactions globally, however, the pandemic restricted all forms of tourism. In fact, travel restrictions and border closures led to a 95.3% decline of international arrivals across Asia. While physical tourism became almost impossible, digital tourism bridged the gap between destinations and travelers. In Asia and Pacific countries, smartphone usage increased from 54.13% in 2019 to 58.56% in 2020, and the internet penetration soared by 10% from 2019 to 2020. The mass consumption of e-tourism materials during the pandemic promoted further travel to new destinations in the post-pandemic era.

Tourism and Digital Transformation in Nepal

Even today, a large portion of tourism operations in Nepal is conducted manually as the country’s digital policies are still underway development in areas of information and communication technology (ICT). While there have been innovations within the tourism sector of Nepal from both the government and the travel industry, social media have played a key role in promoting digital tourism. The increase in travel vlogging channels on YouTube, food accounts on Instagram, online booking for hotels, activities, and services have attracted a diverse personalities of travellers to Nepal.

Currently, the government’s policies towards digital Nepal have been focused on federalization, infrastructure, and socio-economic issues rather than tourism, which creates a gap between ICT implementations and digital transformation in the tourism ecosystem. Additionally, constraints in international payments limit consumers’ decision in choosing destinations, activities and experiences which is also one of the core concerns for the Nepali tourism industry.

Despite these constraints, the Nepali tourism sector has managed to digitize multiple levels of the industry and garner interest and popularity among global travelers. The private sector in Nepal has played a major role in easing barriers by introducing digital payment platforms, using social media campaigns to advertise products and build awareness around culture and food of Nepal. Most notably, the Netflix Documentary, “14 Peaks: Nothing is Impossible” has been a teaser into what Nepal has to offer in terms of adventure, culture, food, and community. In fact, a study conducted by Netflix states that people who view local content on digital platforms are 2.4 times more likely to make that certain place their top destination. An increased interest in prominent destinations for monuments, history and food, due to digital depictions of stories in unique destinations has changed the way tourists travel and plan their trips. Similarly, the documentary, 14 Peaks’ success in seeking global attention has attracted international tourisms and contributed to Nepal’s road to recovery since the pandemic.

Way Forward

Tourism in Nepal has undergone significant trends of digitization. For the country to take advantage of the ever- globalizing and digitizing world, Nepal needs to streamline its digital policies and tourism activities towards a safe, efficient and hassle free travel experience. With the rise of social media and digital platforms, digital marketing has proven to be effective in reaching people around the world and creating a strong customer base. In 2021, tourism entrepreneurs at Nepal Tourism Board (NTB) focussed on the importance of digital marketing as a way to inform people outside Nepal about Nepal’s tourism portfolio. Easing restrictions on payments and promoting use of e-commerce, credit cards and debit cards would make travelling to Nepal easier and more attractive.

Nepal has the potential to serve as a major tourist hub, but its success relies on its ability to digitize itself, which is a holistic process. Nepal’s tourism enterprises, both private and public, need to enhance and digitalize every aspect to promote international and domestic tourism. The change in marketing, modernizing, and digitizing can start with the small and medium tourism enterprises (SMTs), which would mobilize the Nepali tourism industry. However, this effort needs to be supported accordingly by the government, which needs to introduce concerted  policies that focus on tourism as a key revenue generator. Owing to Nepal’s unique geography, rich culture and history, tourism will always continue to remain a pillar of the Nepali economy. With the rising demand for more efficient, accessible, and digital travel, Nepal needs to shift gears and think innovatively.

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Nepal Economic Forum organised a Neftalk on 13th June 2020 that shed light on the role of the internet in marketing Nepal as an attractive travel destination and identified digital platforms as a key driver of tourism and sustainable tourism in the country. Watch the event recording –