<figure><img width="1500" height="1125" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141156/636d02f09c7e80680e0a36a9jpeg.jpg" alt=""/><figcaption>Photo: KUNDA DIXIT</figcaption></figure>After nearly two years of nearly zero tourist arrivals and revenue, Nepal looks set to welcome international tourists again after the government on Thursday introduced <a href="https://www.nepalitimes.com/latest/nepal-relaxes-entry-for-tourists/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/nepal-relaxes-entry-for-tourists/&amp;source=gmail&amp;ust=1632570637352000&amp;usg=AFQjCNHnLyYWvLXJvsJU8eaBdNrKPZ6tVw">revised immigration</a> entry protocols. Tourists fully vaccinated against Covid, with the second dose 14 days before the date of travel, will no longer have to quarantine after landing in Kathmandu and can get visas <a href="https://www.nepalitimes.com/here-now/nepal-should-now-allow-visa-on-arrival/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/nepal-should-now-allow-visa-on-arrival/&amp;source=gmail&amp;ust=1632570637352000&amp;usg=AFQjCNHjF2QHUC13ukwzJScBCBN92EtMBQ">on arrival</a>. Earlier, they had to get visas from Nepal’s missions abroad and quarantine for seven days at a hotel in Kathmandu at their own expense.Partially vaccinated and unvaccinated visitors will have to obtain visas from Nepal’s embassies in their home countries or elsewhere, and will still have to spend 10 days in a government approved hotel in Kathmandu and get a PCR negative test before they go out and about.Tourists coming via land, except Indians who are visa-exempt, must arrive with their visas from Nepali diplomatic missions and be subject to a negative antigen test at the Chinese or Indian borders. “The government looked at the current trend of Covid infections, transmission and disease control to reach this decision,” says spokesperson of the Immigration Department Jhanka Nath Dhakal. “Entry of fully vaccinated tourists becomes easier as a lot of additional paperwork can be avoided.”   However, all visitors, including fully vaccinated ones will have to present a negative PCR or other test report done not longer than 72 hours before their flight, and bring a printout of the international arrival form at <a href="http://www.ccmc.gov.np/" data-saferedirecturl="https://www.google.com/url?q=http://www.ccmc.gov.np/&amp;source=gmail&amp;ust=1632570637352000&amp;usg=AFQjCNETnSNgD6N7OXNBWaTNnPNsbVT4UQ">www.ccmc.gov.np</a> to immigration for visa on arrival.The new protocols were issued even though the Covid-19 Crisis Management Committee (CCMC) itself does not have legal standing because an ordinance establishing it has lapsed because of the continued political impasse in Parliament.Nepal’s tourism industry had been lobbying strongly with the government to ease restrictions as the case load and fatalities in Kathmandu drop, and the vaccinate rate goes up in countries from where most visitors come to Nepal.  They argued that millions of jobs were at stake, investors were defaulting on loans for hotels, airlines and restaurants and the government was losing the $800 million it used to earn a year from tourism prior to the pandemic. <img width="1920" height="1080" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141156/636d02f59c7e80680e0a36aajpeg.jpg" alt="">Members of the tourism industry had criticized <a href="https://www.nepalitimes.com/banner/call-to-ease-entry-of-tourists-to-nepal/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/banner/call-to-ease-entry-of-tourists-to-nepal/&amp;source=gmail&amp;ust=1632570637352000&amp;usg=AFQjCNHqIs-F1N3YhbPuKTGkxsfontRJvw">earlier entry regulations</a> as being cumbersome and confusing, detracting potential visitors. For example, tourists needed to submit NTB or Department of Tourism-approved travel itineraries to obtain visas on-arrival while quarantining for seven days.  As a result, only tourists with well-connected agents could arrange the paperwork and arrive easily. Travel trade stakeholders complained of arbitrary visa requirements and ad hoc decision making.  While most tourists were previously discouraged by the convoluted regulations, news of the revised protocol has generated an overwhelmingly positive response.  Deepak Raj Joshi, the former CEO of the Nepal Tourism Board (NTB) is glad the government finally took the decision.“The tourism industry is now buoyant, stakeholders are pleased and demand from potential tourists is massive, so we must aggressively and effectively communicate the return of Nepali tourism into source markets,” Joshi says.  A streamlined entry process is a much-needed boost for tourism, one of the sectors hit hardest by Covid. Nepal got nearly 1.2 million tourists in 2019, but this figure dropped to only 220,000 in 2020 – mot of them who had arrived before the lockdown in March that year. So far this year, there have been only 70,000 visitors – most are either mountaineers or repeat trekkers, or those familiar with Nepal and have some connections here. <figure><img width="935" height="398" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141156/636d02f89c7e80680e0a36abjpeg.jpg" alt=""><figcaption>Tourist arrivals in Nepal from January to November 2020. Data: NEPAL TOURISM BOARD</figcaption></figure>Despite the <a href="https://www.nepalitimes.com/here-now/survive-2020-revive-in-2021-and-thrive-in-2022/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/here-now/survive-2020-revive-in-2021-and-thrive-in-2022/&amp;source=gmail&amp;ust=1632570637352000&amp;usg=AFQjCNEO67ibb82phNtJ_SPK2OBPcSmA1g">socio-economic fallout </a>from the pandemic, the tourism industry has prepared well to host tourists again. Vaccine penetration in the hospitality sector is high, and the new, simplified entry requirements are the next step in restoring a “new normal” for tourism alongside Covid in the long-run.Most frontliners working the tourism industry are already vaccinated, and in popular destinations such as Langtang, workers as well as locals are jabbed. Trekking and mountaineering may soon continue as normal, with expedition groups usually no larger than 20-30 members and everyone involved inoculated.There has been a trickle of trekkers coming to Nepal even under the older stricter rules, and there are expedition already at base camps of various mountains including Manaslu, Dhaulagiri and Kangchenjunga. There have been no climbing permits issued for Mt Everest.“Lobbying is underway to implement a ‘V-to-V’, vaccinated-to-vaccinated tourism model whereby vaccinated guests are hosted by vaccinated hospitality services,” says Joshi. Such a model is particularly relevant for tourists coming overland through border cities such as Birganj, Biratnagar and Nepalganj and have high vaccination rates, and the visiting Indians themselves are increasingly getting inoculated. Tourism as an industry is based on trust and hospitality as it sells services, leaving no room for negligence and error. This makes it a relatively safer sector than others, says Joshi. “If a tourism-based business doesn’t follow health guidelines and helps spread disease, it loses trust and trade for life, making the entire industry cautious and aware,” he says. “That the government readily allowed crowded religious processions to go on while stalling on safe tourism speaks volumes on flawed planning.” <img width="1448" height="2048" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110141156/636d02fa9c7e80680e0a36acjpeg.jpg" alt="">Elsewhere, on-arrival visas have also been resumed for those returning for funerals of relatives, those who are convalescing, or returning to care for elderly citizens – but they have to produce negative Covid tests and recommendations from local governments and hospitals. On-arrival visas are also on offer for returning non-resident Nepalis and foreigners married to Nepali nationals. Nationals of the following countries will need to have visas before they arrive in Kathmandu: Zimbabwe, Swaziland, Cameroon, Somalia, Liberia, Nigeria, Ghana, Ethiopia, Iraq, Palestine, Afghanistan and Syria.

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Nepal reopening for tourists

<img title="" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221110121144/636ce4569c7e80680e0966a4png.png" alt=""/>Namche Bazar, the gateway to Mt Everest, is currently abuzz with climbers and trekkers as they prepare to head towards Base Camp after the <a href="https://www.nepalitimes.com/here-now/didnt-visit-nepal-year-2020/" target="_blank" rel="noopener noreferrer">pandemic closed Nepal’s tourism for a year</a>.The narrow stone-paved streets of this township at 3,500m are once more filled with trekkers and climbers from all over the world, spending a day or two acclimatising before they head up the trail.The start of the season has not been very lucky. <a href="https://www.nepalitimes.com/banner/nepal-is-going-up-in-smoke/" target="_blank" rel="noopener noreferrer">Thick smoke from forest fires</a> have disrupted flights to Lukla, and the haze has blown up to Pheriche at 4,300m, blurring views of Ama Dablam and Everest along the way.Many spend their day hiking up to the Everest View Hotel in Syangboche and back to their lodgings to get used to the altitude.The Khumbu region <a href="https://www.nepalitimes.com/latest/nepal-open-for-trekking-from-17-october/" target="_blank" rel="noopener noreferrer">opened to international trekkers</a> only in October 2020 after <a href="https://www.nepalitimes.com/latest/unlimited-flights-to-nepal-from-17-october/" target="_blank" rel="noopener noreferrer">international flights resumed</a>, but there were few who ventured here till now.<a href="https://www.nepalitimes.com/here-now/nepals-smoky-mountains/">Nepal's smoky mountains</a>, Nepali TimesTotal <a href="https://www.nepalitimes.com/editorial/survive-revive-thrive/" target="_blank" rel="noopener noreferrer">tourist numbers in Nepal dropped</a> from over 1.1 million in 2019 to fewer than 230,000 last year --- and most of them arrived before the lockdown January-March. This year, the last three months have seen only 35,000 tourists.But with the start of the spring climbing season, there has been an uptick in the number of climbers and trekkers to the Khumbu.So far, 167 international climbers have got permits to climb Everest, with 39 climbers on Lhotse and 23 on Nuptse. All of them, as well as high altitude guides and support staff, will be sharing Base Camp on the Khumbu Glacier, which is bustling with activity again as it prepares to host 700 people.Despite the slow start to the season, <a href="https://www.nepalitimes.com/here-now/capital-of-sherpaland-gets-a-makeover/" target="_blank" rel="noopener noreferrer">Namche Bazar</a> is emerging from its enforced closure. Sonam Norbu runs a shop for climbers and trekkers in one of the stone-paved alleys of the town."It has been only 20 days since we opened up. Most people here actually closed their shops and went down to Kathmandu during the Covid crisis," he says.<a href="https://www.nepalitimes.com/latest/nepal-tourism-may-take-5-years-to-recover/">Nepal tourism may take 5 years to recover</a>, Nepali TimesBecause of the amenities it provides, Namche is a resting destination for most climbers and trekkers on the Everest Trail. Even as some climbers head up the Khumbu Icefall, other climbers who are booked on the mountains are still arriving.This has been attributed to the <a href="https://www.nepalitimes.com/here-now/nepal-should-now-allow-visa-on-arrival/" target="_blank" rel="noopener noreferrer">massive confusion around Nepal’s Covid-19 quarantine and testing rules</a>  Last month, the Ministry of Tourism finally <a href="https://www.nepalitimes.com/latest/tourist-visas-now-open-for-nepal/" target="_blank" rel="noopener noreferrer">allowed visa on arrival</a>, and <a href="https://www.nepalitimes.com/latest/nepal-relaxes-entry-for-tourists/" target="_blank" rel="noopener noreferrer">lifted quarantine restrictions</a> for those who had been vaccinated.Even though the numbers of trekkers is picking up, Namche locals say it is much quieter than previous years. Lodge and restaurant owners here are worried about the <a href="https://www.nepalitimes.com/latest/nepal-braces-for-its-2nd-covid-wave/" target="_blank" rel="noopener noreferrer">second wave</a> as well as the wildfire affecting arrivals.Nepal has been recording its worst-ever pollution levels in history, with the <a href="https://www.nepalitimes.com/latest/wildfires-in-nepal-cause-air-quality-to-plummet/" target="_blank" rel="noopener noreferrer">AQI index constantly hitting the 'hazardous' mark </a>for consecutive weeks now.For those like Sonam Norbu, the <a href="https://www.nepalitimes.com/latest/nepal-hopes-for-tourism-rebound-in-2021/" target="_blank" rel="noopener noreferrer">resurgence of tourism</a> is hope of a revival of the region’s paralysed economy.Read also: <a href="https://www.nepalitimes.com/here-now/survive-2020-revive-in-2021-and-thrive-in-2022/">“Survive 2020, revive in 2021 and thrive in 2022”</a>, Alisha Sijapati

Despite Covid-19, climbers are back on Everest

Samsung Nepal has opened pre-orders for the Galaxy A57 5G and A37 5G. Both phones run Samsung’s One UI 8.5, featuring AI capabilities like voice transcription, Circle to Search, and photo editing. They feature a 50MP triple-camera system, a Super AMOLED display, and six years of OS and security updates.

Galaxy A series

The war in West Asia has exposed the fragility of the economic architecture Nepal has built on over two generations. If the conflict continues, growth across developing Asia will slow and prices will rise. For Nepal, this will be felt through higher living costs, weaker economic activity, and growing uncertainty for the millions of families who depend on remittances.&nbsp; Nepal now needs to structurally transform from exporting labour to investing in domestic job creation. &nbsp; The country's current path toward a knowledge economy has a blind spot. A <a href="https://iids.org.np/wp-content/uploads/2025/02/unleashing.pdf" target="_blank">report</a> by the Institute for Integrated Development Studies (IIDS) in Kathmandu shows that IT export companies alone generated 7,228 jobs and income for 66,509 freelancers.&nbsp; We are building digital labour export, not an economy that accumulates institutional knowledge. The Nepali Upwork developer and a migrant construction worker in the Gulf are engaged in the same economic activity, but with different tools. Nepal’s reliance on a <a href="https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS?locations=NP" target="_blank">remittance-driven economy,</a> means the country has failed to create enough <a href="https://www.worldbank.org/en/country/nepal/publication/unlocking-nepal-s-growth-potential" target="_blank">quality jobs</a> at home. For millions of young people, leaving the country is not a choice but a necessity to survive and support families back home. <a href="https://www.worldbank.org/en/country/nepal/publication/unlocking-nepal-s-growth-potential" target="_blank">Remittances</a> have no doubt helped reduce poverty. Thirty years ago, 55% of Nepal’s population lived on less than $2.15 a day, now it is 20% after the absolute poverty line was revised upwards. This progress has come at a cost — &nbsp;an economy that depends more on exporting workers than creating opportunities at home. This development reflects a deeper political failure to create meaningful jobs within the country. Since the democratic transition in 1991, Nepal’s leadership has largely recycled the same faces, with limited progress on job creation or industrial growth.&nbsp; Nepal cannot build a <a href="https://nipore.org/accelerating-nepals-startups/" target="_blank">knowledge economy</a> while its most ambitious people are outbound to Doha and Tokyo. We are also not just losing ‘labour’. We are losing the entrepreneurial risk tolerance of our youth.&nbsp; If the most ambitious 25-year-olds are abroad, who is left to support innovation and entrepreneurship? The same people who are working tirelessly abroad, are our biggest asset for development. Their work ethic and the know-how inurban renewal could well fit into the new RSP government’s mandate of 7% annual growth.&nbsp; The <a href="https://english.biznessnews.com/posts/-nepal%E2%80%99s-it-exports-cross-1-billion-" target="_blank">$1B milestone</a> of IT exports is a celebratory moment for Nepal. However, that cannot lead to a pathway to a $100 billion economy without innovation ecosystems that go beyond individual labour export. Companies like SecurityPal and industry associations such as NASIT have made significant efforts in building such an environment, recently championed by private sector leaders as a &nbsp;<a href="https://www.securitypalhq.com/blog/silicon-peaks" target="_blank">Silicon Peaks</a> model that emphasises a home growth tech cluster. The need to accelerate this transition is even more urgent with the escalating conflict in West Asia. &nbsp;The recent International Labour Organisation (ILO) <a href="https://www.ilo.org/sites/default/files/2026-03/Nepal%20LDC%20Graduation%20Employment%20Impacts%20Report.pdf" target="_blank">report</a> shows that LDC graduation is expected to adversely impact manufacturing with losses of $1 billion by 2030.&nbsp; If manufacturing takes such a large hit from losing trade preferences, then Nepal’s services and IT sectors need to structurally transform and shift from exporting individual talent to building firms. &nbsp; A generation’s frustration has finally forced a shift in Nepal’s political structure, handing the new government a clear mandate to fix failures. But the question still persists: what prevents Nepal from achieving sustained, productivity-driven growth? &nbsp;&nbsp; RSP is in the right place at the right time to put Nepal's economy on a firm footing. At the heart of Nepal’s economic underperformance lies a major development binding constraint: low returns to investment on projects.&nbsp; The government invests like a high-growth economy, with gross capital formation at around <a href="https://data.worldbank.org/indicator/NE.GDI.FTOT.ZS?locations=NP" target="_blank">25–30 percent of GDP</a>. Yet economic growth remains modest. The problem is not how much the country invests, but how little it gets in return. One way to see this is by looking at how much investment is required to generate growth.&nbsp; Nepal needs large amounts of capital to produce relatively small gains in output (graph, below). For instance, in 2024, the ICOR was 8.29, this suggests that Nepal had to invest more than 8 units of capital to produce a one unit of additional economic output.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260406040412_605dc527641d2ff2dc5723ed8bbec946898331d5538a55b9941e32a0725bf811.jpg" data-media-id="editor_9" data-image-id="20260406040412_605dc527641d2ff2dc5723ed8bbec946898331d5538a55b9941e32a0725bf811" data-rendition-name="original" width="1827" height="925" loading="lazy" alt="Economy graph"> <figcaption>Source: Author's calculation based on a Growth Diagnostic simulation</figcaption> </figure>  This reflects a deeper issue in how investment is allocated and executed. Capital is often locked in low-productivity sectors or diluted by delays, inefficiencies, and policy uncertainty.&nbsp; As a result, even high levels of investment fail to translate into sustained growth. Until investment shifts toward productive, firm-building activities, higher spending alone will not deliver results. &nbsp; To reverse this, the government must focus on raising the returns to investment by enabling firms to grow and compete. This requires a shift from managing scarcity to creating an environment where capital can generate consistent and predictable returns. A central priority should be given to attracting and retaining both domestic and foreign private investment. Investors do not just respond to direct incentives, but also to policy stability in the country. Nepal’s economy cannot sustain high growth if its human capital continues to leave the country.&nbsp; The goal should not simply be to create jobs, but to build companies that scale, innovate, and compete beyond Nepal. This requires supporting sectors with strong productivity potential and ensuring that firms can expand without being constrained by infrastructure gaps or regulatory friction. Finally, the state must improve the quality of its own investment. Public spending should focus on lowering the cost of doing business through reliable electricity, efficient logistics, and digital infrastructure.&nbsp; The GenZ movement took two days to bring change. The economic transformation of Nepal might take a generation. The RSP can accelerate this transition, but only if it focuses on building a better investment climate for business and not just feeding the global labour pool. Kailash Raj Pandey is an MPA/ID and MBA candidate at Harvard Kennedy School and MIT Sloan School of Management and a fellow at MIT Kuo Sharper Center for Innovation and Prosperity.&nbsp; Siddhartha Raymajhí is a policy researcher based in Kathmandu.

Creating a firm future for Nepal

Know your Ministers

Prime Minister Balendra Shah on Wednesday broke tradition and met with 17 foreign envoys collectively, a move that was a notable departure from how his predecessors operated.&nbsp;
Shah had already set himself apart by talking less, listening more, and delegating to trusted friends. But by meeting all ambassadors at one go in the presence of the Foreign Ministry, he signalled a paradigm shift in how he wants Nepal to be seen: no longer just balancing India and China, but as a country confident about its <a href="https://nepalitimes.com/opinion/guest-editorial/tripolar-contestation-over-nepal">strategic importance and place in the world</a>.
In just two weeks, the <a href="https://nepalitimes.com/news/rsp-dos-and-don-ts">RSP has sprung into action </a>on multiple fronts to implement its ambitious 100-point, 100-days action plan. It has taken short-term measures to mitigate the impact of the Gulf war, as well as medium- and long- term measures to streamline the bureaucracy. A few high-profile figures have been made examples of to drive the message home.
Earlier this week, the government recalled six politically appointed ambassadors, the most notable being long-serving Shankar Sharma from New Delhi. The Kathmandu District Court issued arrest warrants against former prime minister Sher Bahadur Deuba and his former foreign minister wife Arzu Rana on charges of money laundering and corruption.
Each ministry has been trying to clean up the accumulated rot from the past three decades: regulatory overhaul of microfinance, education, health and service delivery.&nbsp;
These actions widely disseminated campaign-style on YouTube and TikTok have made most Nepalis hopeful that the party they installed in power means business.
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BACKLASH
But such attempts to overhaul a long-entrenched political culture were bound to face backlash. In their impatience and enthusiasm to get things done, some of Prime Minister Shah’s ministers have over-reached.
It was common knowledge that government-paid advertising in the mainstream press was kickback-driven, but the PMO’s directive that official notices be published or broadcast only on state-run media has been denounced — especially as the media industry struggles to stay afloat.
More serious are some recent appointments by ministers of relatives and figures closely associated with the RSP to key positions. This has rankled because this party built its political plank on ending nepotism and graft.&nbsp;
News that Home Minister Sudan Gurung allegedly had not paid rent on leased land, which illegally encroached on the lake in Pokhara did not help. &nbsp;
Prime Minister Shah himself has come under scrutiny for appointing a kitchen cabinet full of male buddies from his time as Kathmandu mayor. To douse criticism he brought in as adviser investigative journalist Deepa Dahal, who has exposed corruption in high places of the previous coalitions.&nbsp;
Shah’s appointment of another political adviser Asim Shah to the head Constitution Amendment Task Force, is also seen as problematic. He is a filmmaker and former lawmaker, but does not have a background in constitutional law.&nbsp;
Even more controversial is the Cabinet’s decision to appoint RSP Chair Rabi Lamichhane’s legal counsel, Narayan Kandel, as Attorney General. Kandel used to be a UK permanent resident, and does not have as much experience practicing law in Nepal.&nbsp;
Kandel’s appointment drew flak and raised eyebrows, and with the pending legal cases against Lamichhane this appointment represents a flagrant conflict of interest.
Health Minister Nisha Mehta was also accused of favouritism after reappointing Junu Shrestha, wife of Labour Minister Dipak Kumar Shah, as member of the Health Insurance Board which had earlier suspended her. The Labour Minister’s rambling rant at the Board’s meeting on Tuesday has not helped the RSP’s image.&nbsp;
(UPDATE: On Thursday, Prime Minister Shah sacked the Labour Minister after the RSP found him in breach of the party's code of conduct and discipline. He served 14 days in the Cabinet, one of the shortest tenures for a minister in Nepal )
It is hard to know what <a href="https://nepalitimes.com/news/ball-in-balen-s-court">Balendra Shah is thinking</a>, and how Rabi Lamichhane is going to justify some of these moves. After all, making politics, governance, and bureaucracy a meritocracy has been the core tenet of the RSP, and it risks alienating its mainly youth base if these missteps persist.
But at least for now, most RSP supporters seem to be giving the party the benefit of doubt.

tourism-reopens

Nepal reopening for tourists

Despite Covid-19, climbers are back on Everest

Galaxy A series

Creating a firm future for Nepal

Know your Ministers

Nepal’s new government springs into action