A Study of Climate Variability and Socioeconomic Impact on Tourism Industry of Nepal

Abstract

In Nepal, tourism is the second largest industry after agriculture. Furthermore, Nepal offers numerous opportunities for adventurous outdoor recreation, especially in the Himalayas, and attracts tourists
from all over the World. However, future prosperity of Nepal’s tourism industry might be affected by a changing climate and a socioeconomic environment. A log-level regression model is employed to estimate the impact of climatic and socioeconomic factors on the number of international tourists visiting Nepal. Climatic estimates indicated that an increase in temperature did not have a significant impact on the numbers of international tourist arrival. Results show that the number of international tourists visiting Nepal was positively associated with GDP and population growth, inflation rate, and an exchange rate. These results help policy makers for facilitating growth of tourism industry and its adaptability to climate change in Nepal.