Nepal’s tourism industry has shown an impressive recovery from the global downturn caused by the COVID-19 pandemic. The country welcomed 1.147 million international tourists in 2024, which is 96% of the pre-pandemic level and 13.1% higher than 2023. These figures not only demonstrate the return of traveller confidence but also the effectiveness of measures taken to stimulate this key economic sector. Tourism has traditionally been Nepal’s largest industry and a major source of foreign exchange earnings and makes a significant contribution to the country's gross domestic product, bringing in about US$471 million per year to the economy. The share of inbound tourism in GDP is estimated at approximately 8%4, although the industry's overall contribution declined somewhat during the pandemic, it is now actively recovering.

The importance of tourism for the socio-economic development of Nepal cannot be overstated. The industry is seen by the government as an important tool for reducing poverty and achieving greater social equality among the population. The hotel sector, in particular, is the second largest source of foreign exchange and is estimated to have created about a million jobs across the country. This underlines its role not only as an economic driver, but also as an important factor in social stability.

Nepal, a country of majestic Himalayas and ancient traditions, has always attracted travelers. But the traveler himself has changed. Large tourist groups following standard routes are increasingly being replaced by individualists, seekers of unique experiences and those who skillfully combine work with knowledge of the world. In 2025, the Nepalese tourism business faces the need to deeply adapt to these new demands in order not only to maintain its attractiveness but also to open up highly profitable niches.

Classic trekking routes to Everest and Annapurna remain iconic, but the world of tourism is becoming increasingly segmented. Today’s global traveler – whether a solo traveler seeking authenticity or a digital nomad seeking an inspiring location to work remotely – places new demands on the quality, flexibility and content of the tourism product. Alpha Business Media examines how Nepal is responding to these challenges and which destinations promise to be the most profitable in the near future.

Nepal is a country whose name is inextricably linked with the majestic Himalayas. For millions of people around the world, dreams of adventure and spiritual exploration are embodied in images of the snow-capped peaks of Everest and the scenic trails around Annapurna. These two regions have served as a magnet for tourists for decades, bringing in vital foreign exchange and shaping the country’s international image. But today, amid growing global demand for unique travel experiences and mounting environmental challenges, the question arises: are these legendary routes becoming “tired”?

The popularity of Everest and Annapurna has its downsides. The growing influx of tourists puts significant pressure on fragile mountain ecosystems, leading to the accumulation of garbage, pollution of water sources and erosion of trails. Local communities, although receiving economic benefits, also face the challenges of preserving their unique culture and traditional way of life under the pressure of commercialization. Moreover, the excessive concentration of tourism activity on a few "promoted" destinations leaves other, equally attractive, but lesser-known regions of Nepal in the shadows, limiting the potential for more balanced and sustainable tourism development throughout the country.

When it comes to tourism in Nepal, the imagination usually conjures up images of foreign trekkers conquering the snow-capped Himalayan peaks or pilgrims from around the world heading to the holy shrines of Lumbini. International tourism is, of course, the country’s most important source of foreign exchange and its calling card. However, in the shadow of this global attention, another equally important and, in times of crisis, irreplaceable segment of the industry often remains: domestic tourism..

The COVID-19 pandemic, which has paralysed international travel, has brought into sharp relief the importance of Nepali travel within their own country. Domestic tourists have been the lifeline that has kept many hotels, restaurants and travel companies afloat during the toughest times. But is domestic tourism just a temporary measure to support the return of international visitors, or does it have the potential to become a powerful growth driver for the entire industry in its own right?

Nepal, a land of breathtaking Himalayan peaks and ancient culture, has always attracted travelers. But in 2025, the expectations of those travelers are rapidly changing. Armed with a smartphone and accustomed to instant access to information, the modern traveler is looking not just for beautiful views, but for personalized, convenient, and technologically advanced experiences. In response to this global trend, the Nepalese tourism industry is beginning to embrace the concept of smart tourism, introducing artificial intelligence (AI), virtual reality (VR), augmented reality (AR), and feature-rich mobile apps.

However, on this path of innovation, it is important to separate real working tools that bring measurable benefits to businesses and tourists from expensive "toys" that look impressive but do not solve pressing problems. Which technologies really help attract more clients, improve the quality of service and increase the profitability of the Nepalese tourism business, and which ones risk remaining just a fashionable but ineffective investment? Alpha Business Media analyzes the current state and prospects of "smart" tourism in Nepal.

This report analyses the profound transformation of Nepal’s remittance market driven by the rapid adoption of digital financial services (DFS) and fintech innovations. There is a clear shift from traditional, often informal, remittance channels to more formalised, digital and efficient methods.

Key findings indicate that ‘new generation remitters’ – the younger, more tech-savvy generation of Nepali diaspora and recipients in the country – are increasingly using mobile banking, digital wallets (such as eSewa, Khalti, IME Pay) and QR payments to send and receive remittances. This trend is supported by the rapid growth in user numbers and transaction volumes on these digital platforms.1

The digital transformation of the remittance sector offers significant opportunities for Nepal’s commercial banks. These include expanding their customer base, especially among the younger generation, creating new revenue streams by offering additional digital services, significantly improving operational efficiency, and the potential to deepen financial inclusion across the country.

At the same time, commercial banks face a number of challenges. The main ones are increased competition from agile fintech companies, the critical need to ensure reliable cybersecurity measures to protect transactions and customer data, the need to overcome the gap in the level of digital literacy of the population, and the difficulty of adapting to a dynamically changing regulatory environment.

The report formulates key strategic recommendations for commercial banks to capitalize on emerging opportunities and minimize risks. These strategies focus on introducing innovations in service delivery, developing strategic partnerships with fintech companies, maintaining a customer-centric approach, and using data analytics to make informed decisions and personalize offers.

Small and medium enterprises (SMEs) are the cornerstone of Nepal’s economy, playing an indispensable role in its development and the welfare of the people. However, despite their importance, SMEs in Nepal face serious obstacles in accessing finance, which is called the “credit dilemma.” This dilemma not only constrains the growth of individual enterprises, but also limits the overall economic potential of the country.

SMEs contribute significantly to Nepal's gross domestic product (GDP), accounting for 22%1, and provide employment for approximately 1.8 million people.1They form the basis of the industrial sector, which accounts for about 13.5% of GDP, while the contribution of the manufacturing industry, where SMEs also have a significant share, is 5.3% of GDP.2These enterprises play a key role in maintaining economic stability, fostering innovation, and building efficient value chains, especially in sectors such as trade, services, small-scale manufacturing, agro-processing, and tourism. Given their widespread presence and contribution, the challenges faced by SMEs, especially in access to finance, assume macroeconomic significance. The sustainable development of this sector is directly linked to Nepal’s overall economic health and growth prospects.

Just a few years ago, a typical financial transaction in Nepal meant going to the bank, filling out paper forms, and waiting in line for hours. Today, millions of Nepalis pay their electricity bills, transfer money to family members, and shop at stores with a few taps on their smartphone screen. Rapid digitalization, fueled by rising internet penetration and the popularity of digital wallets such as in Sewa, Khalti and payment system Fonepay, has radically changed the country's financial landscape. By early 2025, the number of mobile banking and digital wallet users was in the tens of millions, and the volume of QR payments was breaking all records.

This digitalization has brought undeniable conveniences and increased financial inclusion. However, it has also opened a Pandora’s box of new, previously unimaginable threats. Nepal’s financial system finds itself on the front lines of a global cyber war, where the adversaries are invisible hacker groups, sophisticated fraudsters, and internal vulnerabilities.

How strong is the digital armor of Nepalese banks? Are regulators and financial institutions themselves prepared to fend off increasingly sophisticated attacks? This article analyzes the current state of cybersecurity in Nepal’s financial sector, identifies the main threats, and suggests urgent measures to protect the country’s new digital economy.

Nepal's cooperative sector, known as "Sahakari", is a significant and historically entrenched part of the country's socio-economic landscape. The cooperative movement in Nepal has a long history, formally beginning in the 1950s, and was initially focused on meeting the needs of the rural population in the agricultural sector. Agricultural cooperatives are still the most widespread and influential segment, providing their members with access to vital resources such as credit, seeds, fertilizers, and promoting the adoption of modern agricultural methods. The scale of Sahakari's activities is impressive: cooperatives are present in almost all of the country's 753 local governments, with the exception of a few of the most remote and inaccessible mountain areas, indicating their deep penetration into the economic fabric of Nepal, especially in rural areas.

This study provides a comprehensive analysis of Nepal’s banking sector’s readiness to finance green projects and assesses the effectiveness of existing economic incentives to promote green finance. Nepal, a country with high vulnerability to climate change, is in dire need of investments in sustainable development. The report examines key aspects ranging from the policy and regulatory framework, including the recently adopted Green Finance Taxonomy, to the practical implementation of initiatives by banks and the government.

The key findings indicate that despite the emergence of building blocks for green finance, such as dedicated credit products and green bond issuance, the banking sector faces significant systemic challenges. These include limited capacity to assess and manage the risks of green projects, continued reliance on secured lending, which makes it difficult to finance innovative and low-cost green start-ups, and a significant gap in financing for small and medium-sized enterprises (SMEs) that could be key players in the green economy.

The effectiveness of existing economic incentives, particularly subsidized credit programs, is seriously undermined by the government’s fiscal indiscipline and implementation problems. Tax incentives are fragmented and do not always directly incentivize environmentally meaningful outcomes. Nepal’s inclusion on the FATF “grey list” creates additional obstacles to attracting international green investment.