Tourism Business Response to Multiple Natural and Human-Induced Stressors in Nepal

Nepal’s rich cultural and natural heritage – the basis of a flourishing tourism industry that contributes 8% to the country’s GDP – suffered heavily during the Gorkha earthquake that shook the country in April 2015. Recovery was challenged by a political-economic crisis that hampered mobility and delayed access to resources. Given the economic importance of tourism to Nepal, a revival of this industry was considered vital by public authorities and private sector representatives. This chapter discusses the response mechanisms of the tourism industry in Kathmandu to two sequential, overlapping stressors that brought challenges to the business sector beyond the usual. Interviews with hotel managers and owners, tour operators and trekking company owners have revealed that coping strategies varied from business-as-usual to completely new paths. To what extent do multiple disruptive events challenge a tourism industry to diverge from established paths of economic development? How did Nepal revive its tourism industry? In-depth interviews with tourism industry stakeholders brought forth evidence of unusual collaborative action towards a quick restoration of tourist arrivals and a positive image of the destination. Furthermore, a handful of companies have shifted their entire business strategy.