The hospitality industry is significant for several reasons. It contributes substantially to the global economy, creating jobs and fostering economic growth. Beyond its economic impact, the industry plays a crucial role in tourism, offering accommodations, dining, and entertainment services to travelers. Hospitality establishments, such as hotels and restaurants, provide spaces for social interaction, cultural exchange, and business meetings, contributing to a sense of community. Additionally, the industry often serves as a reflection of a region’s culture and traditions, making it an essential component of the overall tourism experience.

The travel and tourism sector is the most highlighted service sector in the Nepalese economy which provides better opportunities to invest in Nepal. The business environment in the tourism sector is reluctant to investors, however, it provides various ownership models including franchise, joint venture, license and lease, sole ownership, and management contract, and one can operate their business flexibly. Also, safety and security, price
competitiveness and prioritization of travel and tourism are the optimistic grounds in the tourism sector in Nepal.

The regulatory challenges in tourism industries include land acquisition, approval of various Ministries and associations on various matters, dividend distribution tax, tax holidays, etc.

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