FACTORS DETERMINING THE ARRIVAL OF INTERNATIONAL TOURISTS IN NEPAL

Abstract

The purpose of this study, "Factors Determining the Arrival of International Tourists in Nepal", was to complete a portion of the requirements for the “Master in International Trade and Economics” degree. This dissertation aims to find the factors that can help with the increase in inbound tourists in Nepal. This paper also analyzes the trend of tourist arrival in Nepal, the composition of tourist arrival in Nepal, and the contribution of tourism to national earnings. The regression model has been used to study the factors that determine the arrival of international tourists in Nepal. Time-series data has been used in this study of 9 years of data. This paper uses tourist arrival (TA) as a dependent variable and the Consumer Price Index of Nepal (CPIN), Foreign Direct Investment of Nepal (FDI), Number of Terrorism-related incidents in Nepal (NTRIN), Government investment in the Tourism industry by the Nepal Government (TB), and the Total number of Natural Disasters that occurring in Nepal (ND), is the independent variable. FDI and TB are significantly positive, which helps to increase tourist arrivals. While other variables are significantly negative.