The tourism industry creates significant economic impact in Nepal through direct and indirect activities, including GDP contribution, employment, and foreign exchange earnings. The industry has been thriving with the recent political stability and is expected to host nearly 1.5 million tourists by 2020. However, the infrastructure-side of tourism is still inadequate – especially for servicing high value tourists. Several luxury hotels and resorts have come up in response to this market demand.

Significant demand-supply gap exists in tourism infrastructure, particularly in facilities for high-end tourists; which presents an opportunity for additional investment in this sector.

There is a demand-supply gap in the tourism infrastructure in Nepal since the number of in-bound tourists has been increasing but facilities to service them are inadequate in terms of quantity and quality. The demand-supply gap is especially wide in the “high-value” tourists’ segment that seeks luxury accommodation services. There is a little focus on this segment given the overall thrust on “low budget tourism” in Nepal; and the sector would benefit from also bringing in focus on high-value tourists. Currently there are only 40 to 50 4 and 5-star hotels and resorts in Nepal, and most are concentrated in Kathmandu and Pokhara with very little high-end infrastructure outside these cities.

Analyzing the structure of tourism industry in Nepal by type of services and purpose of tourism shows that 5 and 4-star hotels and resorts are the most attractive investment opportunity.

The market opportunity for five-star hotels and resorts in Nepal ranges from US$ 80 to 100 million, largely driven by inbound high-value tourists. There are only 40 to 50 hotels and resorts in this category, and a significant demand-supply gap exists pointing to an opportunity for accelerated growth in this segment.

The tourism market in Nepal is growing at a rapid pace and can be expected to shift towards modernization and commercial-scale approaches over the next few years. Given this, investors can also expect to see interesting opportunities in businesses operating in segments like branded and luxury hotels in the near future.

The tourism sector in Nepal is also witnessing growth in domestic tourism. Nepal tourism industry is also driven by foreign tourists, and their number has been growing due to political stability and demand-generation activities initiated by the government. Together, they are the key source of revenue and growth driver for hotel industry.

Nepal has a shortage in high budget accommodation segment and such facilities are often completely booked; indicating that there is a market opportunity for expansion. For instance, occupancy in 4 and 5-star hotels and resorts were as high as 90% during peak season.

Most accommodation facilities for tourists are concentrated in 6-7 cities and towns, with little or no infrastructure outside these locations.

Nepal tourism infrastructure is concentrated around Kathmandu valley, Pokhara and Chitwan region. While the fact that hotels are concentrated in a few areas presents a challenge; this challenge is further compounded by the fact that the luxury hotel segment is largely focused only on Kathmandu and Pokhara. High-budget travelers seeking to visit other towns and cities lack good quality facilities even though there is a willingness to pay. Given that there are 550-600 places of tourist interest in Nepal, there is a huge opportunity investment in developing accommodation infrastructure in these underserved areas.

Bhusal Group has focus now on five star hotel and registered in 2017 by the name of Hotel Mega (2nd Edition) Pvt. Ltd. Previously it was Deep Prakash International and in 2017, Bhusal Group took over its management and approx. 60% construction work is completed which has target of opening by the end of 2020. It’s a five star hotel looking for the international franchise partner and the hotel facilities and descriptions are as follows:

Name of the Company	Hotel Mega Second Edition Pvt. Ltd.
Name of Hotel	Hotel Mega
Type of Hotel	Five Star
Hotel Facilities	Five Star Facilities, Casino Facilities (11,000 sq. ft.)
Location	Belahiya, Siddharthanagar Nagarpalika
Land Area	1,35,000 Sq. Ft.
Room Capacity	117 rooms
Construction	2 years
Promoters	1. Bal Krishna Bhusal 2. Amrit Bhusal

The hotel is under construction and is located in the southern border of Nepal with India in Bhairahawa, Rupandehi District just less than 20-minute drive from the Gaumtam Buddha International Airport and in close proximity of Indo-Nepal Border entry point of Sunauli. The hotel is located at convenient location which will attract tourists, domestic and international for enjoying leisure time and facilities like casinos and games; a commercial center and other activities.

The promoters believe in the passionate pursuit of excellence and financial success with uncompromising services and integrity, which is why we have decided to venture into the hospitability industry by establishing our own hotel. We are certain that our values will help us drive the business to enviable heights and also help us attract the number of clients/ tourists that will make our hotel fully booked all through the year.

We are going to be a customer-centric hotel with a service culture that will be deeply rooted in the fabric of our organizational structure and indeed at all levels of the organization. With that, we know that we will be able to consistently achieve our set business goals, increase our profitability and reinforce our positive long-term relationships with our clientele, partners, and all our employees as well.

Our hotel facility will be decorated in an exquisite and elegant facade, so much so that it will be a noticeable structure in the city where it is located. The Hotel will provide a conducive spot for our customers to take a break from their various busy schedules, to a place where they can find comfort and luxury.

The hotel will be equipped with a business center and a VIP lounge, as well as a Fitness room and self-service laundry which will be made available for resident guests at no extra cost. We will also install a free Wi-Fi that will enable our guests surf the internet with their laptop in the hotel room free of charge, and there will be wireless access in all the public area in the hotel; we will also provide mobile phones for loan to business travelers for their convenience so as to enable them stay in – touch with their family members, friends, and business partners.

No doubt our business class guest rooms will provide our customers with a warm and comfortable home away from home experience, large banquet venue, as well as wide variety of domestic and foreign cuisine. We are set to give our esteemed guests an unforgettable experience whenever they patronize our hotel.