ALCIDE DE GASPERI UNIVERSITY OF EUROREGIONAL ECONOMY IN JÓZEFÓW, POLAND Faculty of Social Sciences FIELD OF STUDY: MANAGEMENT MAJOR IN: HOTEL AND TOURISM MANAGEMENT PROFILE: general academic Kiran LAMA Index No. :6651 ECONOMIC IMPACT IN TOURISM AFTER EARTHQUAKE IN NEPAL BACHELOR’S THESIS Supervisor: Assoc. dr. Nicolas Levi Józefów 2018 Table of Contents Introduction Chapter-1. History of Earthquake in Nepal …………. Background……………………………… Natural Disaster………………… Natural Disaster in Nepal……… Earthquake…………………………. Impacts of Earthquake………………………………… UNESCO World Heritage List………………………… Chapter-2. Impacts of Earthquake in Cultural and Historical Sites…….. 2.1 Kathmandu Durbar Square…………… Dharahara………………………… Swayambhunath Temple …………… Pashupatinath Temple…… Bouddhanath ……… 2.2 Patan Durbar Square……………………………………………… 2.3 Bhaktapur Durbar Square………………………………………… Chapter-3. The Economic Impacts of Earthquake in Tourism of Nepal……….. 3.1 Effects on Tourist Arrival in Nepal………………………… 3.2 Effects on Hotel Business and Employment……….. 3.3 Effects on Local Business in Tourism……………… 4 Conclusion Introduction The Post-earthquake assesses the impact of the April 25, 2015 earthquake in Nepal and defines a recovery strategy. This volume provides detailed description of sector specific damages, losses and recovery needs. In the analysis, damaged defined as the cost to replace durable physical assets (buildings, equipment, facilities and machinery) that were damaged or destroyed. Loss refers to changes in financial flows due to the temporary absence of infrastructure, increased or new demands (operational costs) due to the disaster lost revenues, higher expenditures and the cost of maintaining service provision. According to PNDP (as of 21 may 2015). In addition, reconstruction, recovery needs are identified to build back better are costed accordingly beyond the 14 affected districts and affected well?known tourism destinations like Chitwan and Pokhara in terms of sharp fall in tourists. The negative repercussions of the disaster are likely to mean a reduced number of tourist arrivals over the next 2?3 years, reduction in tourist spend per day from $43 to $35 as per industry sources which will significantly affect the tourism revenue. When comparing to other nations which have experienced a similar disaster they have generally taken several years to recover fully with regards to tourist arrivals. According to PNDP (as of 21 may 2015). Despite the overall estimated damages and losses, the tourism sector and the industry remain resilient and optimistic to turn?around in the medium to long terms. With concerted efforts from all relevant stakeholders and support from the government, the sector is poised to „Build Back Better?. However, these efforts need to target the global tourism market and convince (potential) visitors to come to Nepal as well as provide assistance to the affected rural and urban tourism entrepreneurs. The recovery strategy should be carried out in a phased manner with actionable items as mentioned in this report. The objectives of this study are that as we know earthquake had done serious effects in our country. Many people had lost their lives and the economic as well as tourism sector had been badly hampered. Therefore, this study helps to know about the post-earthquake tourism condition in Nepal. This research has listed some of the general objectives of the projects listed below, This study helps to know about present conditions of tourism in Nepal. To find out the follow of tourists after the earthquake. Helps to know the collection of the revenue from tourism sector after earthquake. To find out the cultural heritage damages and loses. Chapter-1. History of Earthquake in Nepal ………….. 1.1 Background Natural Disaster Disaster are highly disruptive events that cause suffering, deprivation, hardship, injury and even death, as result of direct injury disease, the interruption of commerce and business, and the partial or total destruction of critical infrastructure such as homes, hospitals and other buildings, roads, bridges, power lines, etc. Disaster can be caused by naturally occurring events, such as earthquakes, hurricanes, flooding, or tornadoes, or they can be due to manmade events, either accidental (such as accidental toxic spill or nuclear power plant event), or deliberately caused (such as various terrorist bombings and poisonings). Natural disaster in Nepal Nepal lies towards the southern limit of the diffuse collisional boundary where the Indian Plate under thrusts the Eurasian Plate, occupying the central sector of the Himalayan arc, nearly one-third of the 2,400 km (1,500 mi) long Himalayas. Geologically, the Nepal Himalayas are sub-divided into five tectonic zones from north to south and, east to west and almost parallel to sub-parallel. These five-distinct morph-geotectonic zones are: 1. Terai plain 2. Sub Himalayan (Sivalik Range) 3. Lesser Himalayan (Mahabharata Range and mid valleys) 4. Higher Himalaya 5. Inner Himalaya (Tibetan Tethys) Each of these zones is clearly identified by their morphological, geological, and tectonic features. The convergence rate between the plates in central Nepal is about 45 mm (1.8 in) per year. The location, magnitude, and focal mechanism of the earthquake suggest that it was caused by a slip along the Main Frontal Thrust. The earthquake’s effects were amplified in Kathmandu as it sits on the Kathmandu Basin, which contains up to 600 m (2,000 ft) of sedimentary rocks, representing the infilling of a lake. . Earthquake Geologically, Nepal is considered to lie on seismic zone which experience frequent earthquakes. As a result, earthquakes of various magnitudes occur almost every year and have caused heavy losses of lives on several occasions. Based on the data available from the department of mines and geology, CBS (1998) concludes that earthquakes of more than or equal to 5.0 on the Richter scale have occurred at least once every year in Nepal since 1987, with the expectation of 1992 when no such events were not recorded. Scientists attribute the occurrence of frequent earthquakes in Nepal to the disturbance occurring due to the continuous encroachment of the Indian sub continental plate into the main Asian plate. At the same time, two major parallel fault systems called the Main Boundary Thrust (MBT) and Central Boundary Thrust (CBT) cross Nepal longitudinally. Consistent adjustments and readjustment taking in these fault systems are known to trigger earthquakes in the country as well. Historical data has shown that the country witnessed three major earthquakes in 20th century namely Bihar-Nepal earthquakes (1934), Bajhang earthquake (1980) and Udayapur earthquake (1988). According to the Global Report on Disaster Risk Nepal ranks in 11th positions in terms of earthquakes risk as earthquake have often occurred in Nepal. 1.2 Impacts of Earthquake It is important to note that the overall impact of the earthquakes on the tourism sector goes beyond the 14 most-affected districts. The negative repercussions of the disaster are likely to mean a reduced number of tourist arrivals over the next two to three years and reduction in spend per day to about NPR 3,500 from NPR 4,300.54 Other nations that have experienced a similar disaster have generally taken several years to recover fully with regard to tourist arrivals. It is estimated that the overall impact on the Nepali tourism industry will be a reduction of tourists? arrival annually of about 40 percent, on average, over the next 12 months and a 20 per cent reduction in the following 12 to 24 months. However, the impact on tourist arrivals is not expected to be uniform across the three market segments. High-end cultural/leisure tourism is likely to suffer relatively more than the other segments. At least 55 to 60 percent reduction in number of groups over the next 12 months is expected. As only minor damage has been reported from Chitwan and the tourism infrastructure in Lumbini has not been affected at all, it is expected that religious tourism to Lumbini will recover in 12 months. For trekking, visitors in the higher end segment are more likely to cancel their visits and the impact is expected to be a 70 percent reduction over a 12-month period. The number of lower-end trekking groups is expected to recover quickly, with an estimated reduction of 20 percent over a 12-month period. Trekking Association of Nepal reports that 40,000 employees (guides, porters, cooks, etc.) engaged in the trekking subsector (combining all the major trekking destinations) have no jobs between May and July 2015 and were sent home. Similarly, Nepal’s Tour Guides Association has reported that 228 tour guides are no longer employed as a result of the earthquakes as there are hardly any tourists to take around in Durbar Square in Kathmandu, Bhaktapur and Patan. Restaurants in Kathmandu reported a total of 335 contractual workers who lost their jobs. Taking into account that the tourism sector employs more women than men, it can also be assumed that more women have lost jobs than men, particularly when one considers that women occupy less skilled jobs such as housekeeping which can be easily taken over by men. A sustained absence of visitors from highly affected areas (due to destroyed infrastructure, enterprises and geophysical dangers) is likely to lead to a (permanent) relocation of residents to other areas, resulting in their livelihoods getting disconnected from their place of origin.