An Economic Analysis of Tourist’s Expenditure in Pokhara

Abstract

This study entitled Tourist’s Expenditure in Pokhara has been carried out inpartial fulfillment for the Degree of Master of Art in Economics. The main objective of this study was to analyze “Tourist’s Expenditure in Pokhara” The sampling technique was applied for getting information from tourists.Primary data hadbeen collected through the direct personal interview taken by the researcher himself with the help of questionnaires. One hundred seventy-five tourists from different countries had been chosen as a sample on March, April and May in2013 and 10 hotels had been studies to get required information.The application of log linear models on different heads of expenditure i.e., food-meals-drinks, and accommodation etc., in general, have yielded inelastic demand. Contrary to this,accepting nationality and length of stay as selection variables, the demand for tourism products have evidenced both elastic as well as inelastic demand. There is no up to date statistical record of tourist arrival in Pokhara.Pokhara received 52740 Indian and 178059 non Indian tourists in 2010. The total number of tourists welcomed in Pokhara was 230799 in 2010. It was 48 percents are of total number of tourists in Nepal According to hotels record 44082 tourists stayed on March, April and may in 2013 at 10 hotels. The Largest number of tourist stayed at the Fulbari Resort and Spa i.e.20731 (47.03%) and Landmark Pokhara keep second position i.e. 9242(20.96%).11.4 percent tourists identified the problems of infrastructure development like transportation, Airport condition and bad rodecondition etc. The problems identification on pollution, electricity, guide and information, political conflict, tariff in counter, flexible price and food and drinking water remained 6.86, 5.71,5.41, 1.71,3.43, 4.0 and 2.86 percent respectively. The average expenditure of a tourist in Pokhara was found to be NRs 3832.95(per day/per tourist).The average length of stay of tourists in Pokhara remains only 2.89 days and average length of stay of tourists in Nepal remained 13.74 days. This study has been able to show that average tourist expenditure on different items, expenditure elasticity on different items of consumption by nationalityand average length of stay along with to suggest the remedies for tourism problems in and around Pokhara city.