Problems and Prospects of Tourism in FWDR (A Case Study of Kailali District)

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Problems and Prospects of Tourism in FWDR (A Case Study of Kailali District) Problems and Prospects of Tourism in FWDR (A case study of Kailali district) A Thesis Submitted To Central Department of Economics Faculty of Humanities and Social Sciences In Partial fulfillment of the Requirements for the Degree of Masters of Arts in Economics BY Kiran Joshi Roll No. 405/065 Central Department of Economics Tribhuvan University Campus Kirtipur, Kathmandu, Nepal 2013 1 LETTER OF RECOMMENDATION This thesis entitled “Problems and Prospects of Tourism in FWDR (A case study of Kailali district)" has been prepared by Kiran Joshi under my supervision in partial fulfillment of requirements of the Degree of MASTERS of ARTS in ECONOMICS. I hereby recommend this thesis for examination to the Thesis Committee for approval. ___________________ Supervisor Bharat Pokharel Associate Prof. Central Department of Economics Tribhuvan University Date: 23 December 2013 2 LETTER OF APPROVAL This is to certify that the thesis submitted by Kiran Joshi entitled “Problems and Prospects of Tourism in FWDR (A case study of Kailali district)” to the Central Department of Economics, Faculty of Humanities and Social Sciences, Tribhuvan University, in partial fulfillment of the requirement for the Degree of Masters of Arts in Economics has been found satisfactory in scope and quality. Therefore, we accept this thesis as a part of the said degree. Thesis Evaluation Committee __________________ Associate Prof. Ram Prasad Gyawaly, Ph.D. Head Central Department of Economics __________________ Prof. Shoora B. Paudyal, Ph.D. External Central Department of Economics __________________ Associate Prof. Bharat Pokharel Thesis Supervisor Date: 23 December 2013 3 ABSTRACT Abstract of a thesis submitted in partial fulfillment of the requirement for the Degree of Masters of Arts in Economics Problems and Prospects of Tourism in FWDR (A case study of Kailali district) Far Western Development Region including Kailali District has huge potential for tourism industry. This region has historical, cultural, religious and naturally important different sites and most of them are unexplored and unidentified. Government's role, plans, policies, institutional arrangements are important for the development and management of tourism. They serve several important functions including: tourism planning and development, coordination, marketing and promotion, and regulation and control. These all are in crisis in the region. The main aim of the study is to find out the major possible tourist attractions of the region and district, existing situation of the presence of government in the sector of the tourism and the activities by the local people. Infrastructure and facilities development status and the response of the visitors for the future guideline. 4 The major problems of tourism identified from this study in the region are: proper conservation of nature; infrastructure and facilities development; lack of proper role from the government; lack of professionalism; lack of proper tourism planning and implementation; poor implementation of existing rules and regulations; lack of marketing and promotion; lack of coordination between the local organizations. The major prospects of tourism identified from this study in the region are: friendly people; natural beauty; cultural diversity; religious sites; protected areas; market in abundance. The main conclusion from this study is that the proper coordination, collaboration and cooperation must be necessary among the government bodies for tourism development, local organizations, entrepreneurs and peoples for the tourism development of the region and district. For the development of this region tourism can be one of the main instruments and government's role would be the most. 5 ACKNOWLEDGEMENT I would like to express my deep gratitude to the Central Department of Economics at Tribhuvan University, for allowing me to carry out this thesis in partial fulfillment of the requirements for the degree of Masters in Economics. I am grateful to my supervisor Associate Prof. Bharat Pokharel, for providing me an opportunity to learn different knowledge related to research during this study under his supervision. I am very much thankful to Associate Prof. Dr. Ram Prasad Gyawaly Head, Central Department of Economics for his valuable suggestions and inspiration during the preparation of this thesis. I am very thankful to Karmadani Chaudhary for providing me valuable information related to Tharu culture of Kailali. Likewise, I would like to recall my heartfelt reverence to the librarians of T.U, CBS, NTB and NPC. I would like to express my deep gratitude and indebtedness to my parents, brothers, sister and brother-in-law for their encouragement and support. I want to specially remember my sweet niece for her calmness and patience during my work. Last but not least, I am thankful to the respondents as well as other people of the study area, who provided necessary as well as valuable information and possible help to accomplish this study. December, 2013 Kiran Joshi 6 TABLE OF CONTENTS Chapter Title Page Recommendation letter i Letter of Approval ii Abstract iii Acknowledgments v Table of contents vi List of tables viii List of figures ix Abbreviations x Chapter 1 Introduction 1-9 1.1 Background of the Study 1 1.2 Statement of the Problem 6 1.3 Objective of the Study 7 1.4 Importance of the Study 8 Chapter 2 Literature Review 10-25 2.1 Empirical Literature Review on Tourism 13 2.2 Literature review on existing plans and policies 23 Chapter 3 Research Methodology 26-28 3.1 Research Design 26 3.2 Rationale of the Selection of Study Area 26 3.3 Sampling Procedure 26 3.4 Source of Data Collection 27 7 3.5 Data Collection Tools & Techniques 27 3.6 Methods of Data Analysis 28 3.7 Limitation of the Study 28 Chapter 4 Major Tourist attractions of FWDR 29-47 Chapter 5 Problem and Prospects of Tourism in Kailali 48- 56 5.1 An overview of Kailali District 48 5.2 Prospect and Problem 50 5.3 SWOT Analysis 51 Chapter 6 Data Analysis and Interpretation 57-67 6.1 Introduction 57 6.2 Present Information about Tourist 57 6.3 Present information related with tourism agencies 62 CHAPTER 7 Conclusion and Recommendations 68-70 7.1 Conclusion 68 7.2 Recommendations 69 References 71 Annexes 75 8 List of Tables Table No. Title Page No. 5.0 SWOT Analysis 56 6.2.1 Tourist Arrival by Purpose in Kailali 57 6.2.2 Tourist Arrival by Age and Sex Composition in Kailali 58 6.2.3 Means of Transportation use by Tourists to reach Kailali 60 6.2.4 Length of Tourist Stay in Kailali 61 6.2.5 Level of tourist satisfaction in Kailali 62 6.3.1 Infrastructures and Facilities Development in Kailali 63 6.3.2 Promotion of tourism products of Kailali 64 6.3.3 Role of Government for tourism development in Kailali 65 6.3.4 Investment Pattern in tourism in Kailali 66 6.3.5 Profit Pattern from tourism in Kailali 67 9 List of Figures Fig. No. Title Page No. 6.2.1 Tourist Arrival by purpose in Kailali 58 6.2.2 (a) Tourist Arrival by Age in Kailali 59 6.2.2 (b) Tourist Arrival by sex Composition in Kailali 59 6.2.3 Means of Transportation use by Tourists to reach Kailali 60 6.2.4 Length of tourist stays in Kailali 61 6.2.5 Level of tourist satisfaction in Kailali 62 6.3.1 Infrastructures and Facilities in Kailali 63 6.3.2 Promotion of tourism products of Kailali 64 6.3.3 Role of Government for tourism development in Kailali 65 6.3.4 Investment Pattern in tourism in Kailali 66 6.3.5 Profit Pattern from tourism in Kailali 67 10 Abbreviations AIEST International Association of Scientific Expert in Tourism CBS Central Bureau of Statistics DBG Dewariya Botanical Garden DDC District Development Committee FGD Focused Group Discussion FWDR Far Western Development Region GDP Gross Domestic Product GHT Great Himalayan Trail GHT-CSCT Great Himalayan Trail – Climate Smart Celebrity Trek GNI Gross National Income GoN Government of Nepal GOs Government Organizations HAN Hotel Association of Nepal INGOs International Non Government Organizations IUOTO International Union of Official Travel Organization MIS Management Information System MOCTCA Ministry of Culture, Tourism and Civil Aviation MOF Ministry of Finance 11 NAC Nepal Airlines Corporation NATA Nepal Air Transportation Association NATTA Nepal Association of Tours and Travel Agents NGOs Non Government Organizations NPC National Planning Commission NRB Nepal Rastra Bank NTB Nepal Tourism Board SNV Netherlands Development Organization TAAN Trekking Agencies' Association of Nepal TRPAP Tourism for Rural Poverty Alleviation Program TU Tribhuvan University UNWTO United Nations World Tourism Organizations VDC Village Development Committee VITOF Village Tourism Promotion Forum WTO World Tourism Organization WTO World Trade Organization WTTC World Travel and Tour Council 12 13 CHAPTER - I INTRODUCTION 1.1 Back ground of the Study Nepal, wedged strategically by the two growing economy of the present world namely India and China is a tiny landlocked country, located on the southern flank of the Himalayan range, situated in the northern hemisphere, known as land of Mt. Everest and the birth place of Lord Buddha, though Nepal occupies only 0.33 percent and 0.3 percent of total land area of World and Asia respectively, the country has an extreme topography and climate. The altitude ranges from 70 meters to 8848 meters and climate varies from tropical to arctic depending upon altitude. The country stretches from east to west with length of 885 kilometer and widens from north to south with mean breadth of 193 kilometer. Geographically, the country is divided into three East-West ecological zones: the northern range – Mountain, the mid range – Hill and the southern range – Terai (flat land). In the northern range, the Himalayas form an unbroken mountain range which contains eight peaks higher than 8000 meters, including Mt.
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