Unit 5 Chapter 3 Tourism Industry: Class 10 Economics Notes | Unit 5 Chapter 3

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Unit 5 Chapter 3 Tourism Industry

Class 10 Economics

Unit 5 Chapter 3 Tourism Industry

For SEE Board Exam Preparation: Complete Theoretical Notes and Full Exercise Solutions

Welcome to the complete study guide on the Tourism Industry under Nepal’s Economy. This is Chapter 3 of Unit 5 for Class 10 Economics students in Nepal preparing for their SEE board exams.

Here you will find structured theoretical notes on the concept of tourism, its current state in Nepal, sustainable tourism, its importance, problems, and solutions, along with fully solved textbook exercises.

Explore our complete study list here: Class 10 Economics Notes.

Unit 5 Chapter 3 Tourism Industry

Introduction

Nepal is a country filled with incomparable natural beauty and abundant biodiversity. Nepal is also known to the world as a multi-ethnic, multi-lingual, multi-religious, and multi-cultural nation. Nepal is particularly one of the world’s foremost tourist destinations, especially for recreational tourism, mountaineering, trekking, and pilgrimage tourism.

(A) Introduction to the Tourism Industry

The tourism industry, which falls within service-oriented industries, is one of the major pillars of a country’s economy. People travel from one place to another for various purposes. This act of travelling around is called tourism, and the people who do the travelling are called tourists. When citizens of a country travel within their own country, they are domestic tourists, and when they travel to another country, they are international tourists.

According to the United Nations World Tourism Organization (UNWTO), tourism refers to the activities of persons travelling to and staying in places outside their usual environment for not more than one year, for leisure, business, and other purposes.

The service-oriented industries established with the objective of providing facilities and services to tourists — including hotels, restaurants, transportation, airlines, travel agencies, and guide services — are collectively called the Tourism Industry.

Three Pillars of Sustainable Tourism:

1. Ecology / Environment (Conservation of Biodiversity)

2. Social Justice / Equity (Responsible travel by tourists)

3. Economy (Economic development through tourism)

It provides services such as accommodation, food and beverages, travel, entertainment, and cultural experiences for tourists.

(B) Current Situation of the Tourism Industry in Nepal

Looking at the current state of Nepal’s tourism industry, the number of tourists visiting Nepal has increased by 1.7 percent in fiscal year 2081/82 compared to 2080/81. In addition, the average length of stay of tourists is approximately 13 days, and the average daily spending per tourist is nearly 40 US dollars. The contribution of the tourism sector to the Gross Domestic Product was 6.7 percent in 2023, and this contribution grew to 7 percent in 2024. (Source: Ministry of Culture, Tourism and Civil Aviation, 2024)

Similarly, looking at Nepal Tourism Board statistics, among tourists visiting Nepal in 2024, 40 percent arrived from India. Around 9 percent came from China, 7 percent each from the United States and Sri Lanka, and 5 percent from Bangladesh. Statistics from the same period show that of all tourists, nearly 60 percent visited Nepal for recreation, 16 percent for pilgrimage, 15 percent for trekking, and 10 percent for other purposes.

(C) Introduction to Sustainable Tourism

Tourism activities that are conducted in a manner that meets the needs of both the present generation and future generations are called Sustainable Tourism. Such tourism activities emphasize environmental conservation, respect for local culture and traditions, community participation, and the equitable distribution of economic benefits. It also places emphasis on educating and raising the awareness of tourists. It stresses that tourist services and facilities must be integrated with environmental considerations.

According to the World Tourism Organization, Sustainable Tourism includes the following aspects:

(a) Natural resources must be used efficiently while conserving biodiversity.

(b) The cultural heritage and traditional values of tourist destinations must be protected, and intercultural relationships must be maintained.

(c) The income generated from tourism must be distributed fairly among all participants involved in the tourism business.

Therefore, Sustainable Tourism is a new and progressive concept. It promotes environmentally friendly tourism, protects cultural heritage sites, and empowers local communities.

(D) Importance of Sustainable Tourism in Nepal

Sustainable tourism can make a special contribution to Nepal’s development. The core objective of sustainable tourism is to minimize the impact of global climate change on the tourism sector and to distribute the benefits derived from it equally. The theme of World Tourism Day 2025 — “Tourism and Sustainable Transformation” — also emphasizes sustainable tourism. The importance of sustainable tourism in the context of Nepal is described as follows:

(a) Environmental Conservation: Sustainable tourism supports environmental conservation. By making tourism activities environmentally friendly, it helps minimize the potential negative impacts on natural resources.

(b) Protection of Cultural Heritage: It pays attention to the protection of cultural heritage. It emphasizes respect for traditional culture and the preservation of historical sites.

(c) Economic Sustainability: Economic sustainability is the core foundation of sustainable tourism. It provides income-generating opportunities for local communities without damaging the country’s resources, and plays an important role in improving living standards.

(d) Social and Community Empowerment: Sustainable tourism raises the awareness of local communities. It assists in the proper management of tourist areas and resources. It also helps bring about community empowerment through economic earnings.

(e) Minimizing the Impact of Climate Change: It helps minimize the negative impacts that tourism can have on climate change, ecosystems, and local communities.

(E) Problems and Measures to Solve Problems of Sustainable Tourism Development in Nepal

The problems and measures to solve the problems of sustainable tourism in the context of Nepal are presented in the table below:

Basis	Problem	Measures to Solve the Problem
1. Environment	Waste and pollution from plastic, metal, and human remains at tourist sites has affected the environment and ecosystem.	To prevent littering at tourist sites and ensure proper waste management, emphasis must be placed on the reuse, recycling, and reduction of resources.
2. Infrastructure	Tourist infrastructure such as roads, airports, hotels, lodges, means of transportation, and information systems are inadequate.	Emphasis must be placed on developing environmentally friendly infrastructure with a long-term vision, such as electric transport and eco-lodges.
3. Policy and Regulation	A lack of uniformity in tourism-related policies has created a lack of coordination among various bodies related to tourism and local communities.	Inter-agency coordination must be increased by embracing sustainable tourism. Policy clarity is necessary for this.
4. Natural Resources	The irrational and reckless consumption of natural resources in tourist areas has created an imbalance in the ecosystem.	For the conservation of natural resources, a fixed portion of the income received from tourism must be mandatorily used for the conservation and management of natural resources.
5. Accessibility	Access to emergency rescue and services is limited in all tourist sites.	An effective information and communication system must be established at tourist sites, and human resources must be mobilized to carry out emergency rescues.
6. Participation	Community participation in tourism-related planning and management is not as expected. As a result, local communities have not been able to receive adequate benefits from tourism.	To increase community participation, local communities must be involved in training, employment, and decision-making processes, and the benefits must be equitably distributed.

2. Exercise — With Solutions
Very Short Answer Questions [1 Mark]

a. What is Tourism?

Answer: The activity of people travelling from one place to another and staying there for various purposes (leisure, business, recreation, etc.) is called Tourism.

b. Define Tourism according to the World Tourism Organization.

Answer: According to the World Tourism Organization (UNWTO), tourism refers to the activities of persons travelling to and staying in places outside their usual environment for not more than one year, for leisure, business, and other purposes.

c. What kinds of services are included under the Tourism Industry?

Answer: The Tourism Industry includes hotels, restaurants, transportation, airlines, travel agencies, and guide services that provide facilities and services to tourists.

d. According to the latest data on Nepal, what is the average length of stay and average daily spending per tourist?

Answer: According to the latest data on Nepal, the average length of stay of tourists is approximately 13 days, and the average daily spending per tourist is nearly 40 US dollars.

e. For what purpose do the greatest number of tourists visit Nepal?

Answer: The greatest number of tourists visit Nepal for the purpose of ‘recreation’ (nearly 60 percent).

f. What is Sustainable Tourism?

Answer: Tourism activities conducted in a way that meets the needs of both the present and future generations — keeping in mind environmental conservation, respect for local culture, and the equitable distribution of economic benefits — are called Sustainable Tourism.

3. Exercise: Short Answer Questions [5 Marks]

a. Give an introduction to the Tourism Industry with examples. 5 Marks

The act of people travelling to various places for different purposes is tourism, and the group of commercial establishments that provide services — such as accommodation, food and beverages, travel, entertainment, and cultural experiences — needed by those tourists is called the Tourism Industry. It is one of the major service-oriented industries in the economy.
Examples: Hotels and resorts where tourists stay, travel agencies and trekking companies that take tourists around, airlines, tourist guide services, and homestays are examples of the tourism industry.

b. Briefly describe the current state of tourism in Nepal. 5 Marks

The current state of the tourism industry in Nepal is on an improving trend. According to the latest data (2024):

– The tourist arrival rate has increased by 1.7 percent compared to the previous year.

– The average tourist stay is approximately 13 days, and daily spending is 40 US dollars.

– The contribution of the tourism sector to the Gross Domestic Product (GDP) has reached 7 percent.

– Among tourists visiting Nepal, the largest share comes from India (40%), followed by China (9%), and the United States and Sri Lanka (7% each).

– The main purposes of tourist arrivals are recreation (60%), pilgrimage (16%), and trekking (15%).

c. Give an introduction to Sustainable Tourism and write its three pillars. 5 Marks

Environmentally friendly and equitable tourism activities conducted in a way that meets the needs of both the current and future generations without destroying natural resources and heritage are called Sustainable Tourism. The three main pillars of sustainable tourism are as follows:

1. Ecology / Environment: To conserve biodiversity and natural resources.

2. Social Justice / Equity: To ensure respect for local culture, traditions, and heritage, as well as active community participation.

3. Economy: To increase the income of local communities by distributing the economic benefits from tourism in a fair and impartial manner.

d. Describe the importance of Sustainable Tourism in the context of Nepal. 5 Marks

Sustainable tourism has enormous importance for Nepal’s development, which can be described under the following points:

1. Environmental Conservation: By making tourism activities environmentally friendly, it helps preserve natural resources and biodiversity.

2. Protection of Cultural Heritage: It emphasizes respect for and preservation of traditional culture, values, and historical sites.

3. Economic Sustainability: Without damaging the country’s resources, it provides long-term income-generating opportunities for local communities and helps improve their standard of living.

4. Community Empowerment: By raising the awareness of local communities in the management of tourist areas, it supports their economic and social empowerment.

5. Minimizing the Impact of Climate Change: It helps minimize the negative impacts that tourism can have on ecosystems.

4. Long Answer Questions [8 Marks]

a. Give an introduction to Sustainable Tourism. Prepare a list of the problems of Sustainable Tourism in the context of Nepal. 8 Marks

Introduction to Sustainable Tourism: Sustainable Tourism is a new and progressive tourism concept that aims to meet the needs of both the present and future generations without causing any harm to the natural environment, cultural heritage, and social values of a tourist destination. It stresses the need to conserve biodiversity, involve local communities in the management of tourism, and equitably distribute the economic benefits obtained from it.

Problems of Sustainable Tourism in the Context of Nepal: The main problems visible in the context of sustainable tourism development in Nepal are listed as follows:

1. Environmental Problems: The lack of proper management of plastic, metal, and human waste at tourist sites (such as mountains and trekking routes) is increasing pollution.

2. Inadequacy of Infrastructure: There is a shortage of sustainable and environmentally friendly infrastructure such as roads, airports, eco-lodges, and comfortable transportation.

3. Policy Problems: There is a lack of policy clarity and effective coordination among various government bodies related to tourism and local communities.

4. Exploitation of Natural Resources: Reckless and indiscriminate consumption of natural resources in the name of tourism is creating an imbalance in the ecosystem.

5. Lack of Access: Access to emergency rescue, healthcare, and reliable communication systems in remote tourist sites is very limited.

6. Lack of Community Participation: Because local communities have not been sufficiently included in tourism-related planning and management, they have been unable to receive adequate economic benefits from tourism.

b. Give an introduction to a tourist site in your Rural Municipality / Municipality. From the perspective of sustainable tourism, what kind of role can the local community play in the development of that site? Present your views. 8 Marks

(Note: Students can write the name of a famous tourist site in their own village or municipality and answer accordingly. A sample answer is presented here.)

Introduction to the Tourist Site (Sample): A famous tourist site in my municipality / rural municipality is the ‘Local Homestay and Natural Lake Area’. This site is located amidst beautiful green hills and a clean lake. Both domestic and international tourists visit this place to observe its natural beauty as well as to experience the authentic culture of the local ethnic communities, traditional food, and warm hospitality.

Role of the Local Community in the Development of this Site from the Perspective of Sustainable Tourism (My Views): The local community is the very foundation of sustainable tourism. To develop this tourist site in an environmentally friendly and long-term manner, the local community can play the following roles:

1. Environmental Conservation and Cleanliness: The community itself must run campaigns to prevent tourists from littering plastic and other waste carelessly, and to promote the reuse and recycling of waste.

2. Preserving Indigenous Culture: Instead of blindly imitating foreign cultures, the community must protect and promote its own traditional dress, music and dance, and indigenous food as the main attraction for tourists.

3. Use of Locally Made Products: The food grains, vegetables, and handicraft items needed for tourists should be produced organically at the local level and sold, which will raise the community’s economic standard.

4. Sustainable Use of Natural Resources: The community must make a collective decision to stop the reckless exploitation of the lake and forest, and to use a portion of the earnings for the conservation of natural resources and biodiversity.

5. Tourist Safety and Hospitality: To make tourists feel safe, local young people must be given guide and rescue training, and they must behave in a civilized and respectful manner in accordance with the spirit of treating guests as divine. Only if the local community moves forward in this planned manner can the benefits of tourism be enjoyed for generations to come.