KATHMANDU: Tourism in Karnali Province recorded mixed progress in the last fiscal year, with overall tourist arrivals rising by 1.72 percent despite a significant drop in visitors from India and China, according to a new study by Nepal Rastra Bank (NRB).

Data compiled from sample hotels across the province show that total tourist arrivals reached 8,169, up from the previous year, though the growth rate slowed noticeably. While the number of hotel bed-nights increased by 5.58 percent, the sector saw a 1.09 percent decline in direct employment.

The most notable shift was in source markets. Indian tourist arrivals, which had surged by nearly 50 percent the previous year, plummeted by 23.85 percent. Chinese arrivals also fell sharply by 25.77 percent. In contrast, arrivals from third countries grew by 9.13 percent, indicating a gradual diversification in the tourist base.

The NRB report highlights several challenges that continue to hinder Karnali’s tourism growth, including difficult geography, limited transport connectivity, inadequate tourist-standard hotels and lodges, and shortages of skilled manpower. Strengthening air and road connectivity, developing help desks, and improving hospitality services remain urgent needs, the study notes.

Despite these constraints, the report points to strong long-term potential. Karnali is home to iconic destinations such as Rara Lake, Shey-Phoksundo Lake, Kankre Bihar, Syarpu Lake, Pachal Waterfall, Bulbule Lake, the Sinja Civilization site and the Panchkoshi circuit, offering vast opportunities for nature, cultural and religious tourism.

The province government’s budget for FY 2082/83 places tourism promotion as a priority under the theme “Destination Nepal: Destination Karnali.” The plan emphasises sustainable infrastructure development and quality tourism services to boost arrivals.

The report adds that upgrading Surkhet Airport and ensuring regular passenger flights to Dolpa, Mugu, Humla, Jumla and Rukum West could significantly improve access to remote attractions, potentially increasing local income and employment.

Overall, NRB concludes that while Karnali’s tourism sector is expanding gradually, addressing infrastructure and service gaps will be key to realising the province’s full potential as a major tourism destination.