Chinese investors alone pledged investments worth NPR 5.35 billion, the highest of all.
Foreign Direct Investment (FDI) has become a welcome respite for the Nepali tourism sector at the time when it is reeling under muted demand conditions due to the ongoing pandemic.
The Nepali Government has received FDI worth NPR 5.50 billion for the tourism business during mid-July and mid-September of the current fiscal year 2020/21.
According to the Department of Industry (DoI), the FDI commitment the government received for the tourism industry in the first two months of the current fiscal is almost the same as that of the last fiscal.
Of the total amount pledged, Nepal received FDI worth NPR 5.35 billion from China, the highest of all. The Chinese investors have proposed to open around 30 hotels and restaurants and provide employment opportunities to 618 people.
China has been leading in FDI pledges to Nepal, especially in the tourism sector, for the last few years. As Nepal has become a leading tourism destination for Chinese tourists, the investors from China have been showing a deep interest in opening hotels and restaurants, mainly in Kathmandu Valley, Pokhara, and Chitwan.
As per the DOI records, the tourism sector has received a total of NPR 32.80 billion foreign investment in the past five years. Chinese investors have poured in NPR 23.23 billion, making up 71% of the total proposed amount.
In the FY 2019/20, Nepal received a foreign investment commitment of NPR 25.79 billion for the tourism sector, with China proposing to invest NPR 11.66 billion.