Foreign tourists are spending more time in Nepal than ever before, but their daily expenditures have declined, raising concerns about the country’s ability to attract high-value travelers despite significant investment in luxury accommodations. Government data show that the average length of stay for foreign visitors reached a record 16.34 days in 2025. However, their average daily spending fell to $33.09, markedly below the regional average of $100 to $150 and the second-lowest on record.

The trend reveals a disconnect within Nepal’s tourism industry. Visitors are extending their trips, primarily due to trekking, mountaineering, and leisure activities, but this increase in duration has not translated into higher daily spending. Tourism ministry figures show that per-day tourist expenses have been on a long-term decline since peaking at $79.10 in 2003. The lowest recorded figure was $31.90 in 1996, a period marked by political instability amid the Maoist insurgency led by Pushpa Kamal Dahal.

Officials attribute the recent length-of-stay data to improved accuracy, citing the implementation of a centralized electronic tourism management information system in 2025. The ministry views longer stays positively, suggesting tourists are spending more time exploring Nepal’s natural and cultural sites supported by improved tourism services and marketing efforts.

Despite this, hoteliers report that financial benefits have not materialized as expected. Industry representatives, including hotelier Yogendra Shakya, point to ongoing safety concerns, particularly in air travel and road infrastructure, as significant deterrents to affluent tourists. Nepal remains on the European Commission’s air safety blacklist since 2013, barring Nepali airlines from operating in European airspace and raising broader questions about aviation safety.

In 2025, Nepal received 1.05 million foreign visitors, with 91 percent arriving by air, underscoring the sector’s heavy reliance on air connectivity. Though crossing the one-million milestone for the third consecutive year, arrivals have not rebounded to pre-pandemic levels seen in 2019. Industry leaders cite recurring aviation accidents, poor highway conditions, political instability, and last year’s Gen Z protests during the peak autumn season as factors hindering recovery.

Despite these challenges, Nepal has seen a surge in high-end hospitality investments. Luxury properties such as Shinta Mani Mustang, Dusit Thani Himalayan Resort & Spa, The Terraces Resort & Spa in Lakuri Bhanjyang, and Kavya Resort in Nagarkot have opened recently, with Marriott International collaborating with CG Hospitality on two ultra-luxury hotels in Kathmandu, including a Rs15 billion Ritz-Carlton in Thamel. However, many of these establishments have struggled to reach anticipated occupancy levels due to external factors impacting tourist confidence.

Officials at Dusit Thani Himalayan Resort & Spa indicated significant difficulties during the Gen Z protests but reported gradual recovery aided by increased bookings from Indian tourists, who typically stay three nights for weddings and anniversaries. Indian visitors have contributed substantially to the lengthier stays, though some industry insiders express skepticism about whether all such spending is formally recorded through banking channels.

The Nepal Tourism Board’s director, Mani Raj Lamichhane, attributed declining daily expenditures partly to the strengthening of the U.S. dollar against the Nepali rupee, making Nepal a relatively cheaper destination. He also noted intensified price competition following the rapid expansion of hotels and resorts, with luxury establishments offering rates significantly below pre-pandemic levels to attract guests. Nepal currently boasts over 1,600 hotels, including 222 star-rated properties, capable of providing around 64,000 room nights.

Tourism remains Nepal’s largest service export, generating Rs88.66 billion and accounting for over 37 percent of total service exports in fiscal year 2024-25. However, global uncertainties such as the ongoing conflict in West Asia have shifted the sector’s reliance toward domestic travelers, as international visitor spending stagnates.

Shakya emphasized that many hotels around Kathmandu Valley and other destinations increasingly depend on Nepali guests for survival. He highlighted broader economic factors affecting visitor spending worldwide, including inflation reducing purchasing power, rising airfare and fuel costs forcing travelers to limit expenses, and a growing preference for short trips rather than extended stays in full-service hotels.

The ruling Rastriya Swatantra Party has pledged to double annual tourist arrivals to 2.5 million and significantly boost tourism revenue within five years. While private investment continues to flow into Nepal’s hotel and resort sector, industry leaders caution that unless improvements are made in transport safety, infrastructure, and international promotion, attracting high-spending international visitors to fill the expanding luxury accommodation inventory will remain a significant challenge.